With blockchain set to change everything from finance to logistics, companies are excited to adopt the technology. However, hiring the wrong blockchain development company can waste resources, fail projects, or create security issues. It is critical to avoid a set of mistakes that companies often make in order to improve the chances of a successful investment here.
1. Neglecting the Lack of Technical Skills Evaluation
Development of blockchain is based on concepts like smart contracts, cryptography, consensus, protocol-level properties, and many more. It is easy to underappreciate the basic level understanding that is needed to avoid poor performance and the loopholes that bring vulnerability.
This can be avoided by:
-Evaluating specific blockchain milestones showcased in the company’s portfolio.
-Ensuring the submission of comprehensive CVs outlining the tech stack and their corresponding roles on the project.
-Quizzing them on protocol-level knowledge regarding Ethereum, Solana, Polygon, Hyperledger, e.t.c.
2. Disregarding Security Measures
Diminishing security efficacy within blockchain is out of the question. One single backdoor to a smart contract misconfiguration or any weak encryption can be impossible to repair, both monetarily and for the reputation of the company.
Obtain this from them by:
-Presenting their procedures for contracting out the auditing of the smart contract.
-Regularly performing pen tests and quality KYC/AML leveraging them along with private key encryption and data shielding.
3. Choosing Exclusively on Price
Especially for startups, a low cost option is often perceived to be the most beneficial. With blockchain technology, however, low prices are equally likely to mean substandard coding practices, insecure pre-made templates, and little to no upkeep.
Avoid This Mistake By:
-Putting more emphasis on the value rather than the price.
-Considering post-launch support as an essential service from the firm you choose.
-Taking into account the long-term ROI as opposed to upfront pricing.
4. Lack of Communication and Transparency
The truth is, many projects fail not due to poor coding, but lack of communication and visibility on the project itself.
Avoid This Mistake By:
-Working with a company with Agile methodologies that offers regular project visibility.
-Making sure that there is one point of contact so that there is no information overload or ambiguity.
-Adhering to timelines, goals, and milestones from the beginning.
5. Lack of Checking Customization Options
Lack of customization is always a risk when trying to address unique business problems. This problem is best illustrated by agencies that provide a uniform approach to business solutions.
Avoid This Mistake By:
-Evaluating how the company formulates a client-specific blockchain architecture.
-Confirming that the company understands the objectives and user flows of the business.
-Checking the custom-built DeFi, NFT, or tokenization platforms the agency has created.
6. Skipping Over Support Provided After Post Launch
Flagchain systems require recurring updates because of new protocols, emerging bugs, required security patches, and the need to enhance them to handle growing demands. Disregarding this can easily lead to systems that are either vulnerable or outdated.
Don’t Walk Into This Mistake By:
-Ensuring that the company provides support after deployment.
-Inquiring about maintenance contracts or Service Level Agreements available.
-Numbered checks: Having available troubleshooting and emergency response on a 24/7 basis.
7. Not Verifying Knowledge On Legal Compliance
Whether dealing with finances, healthcare, or user identity, blockchain is subject to regulation. Hiring a non-compliant global compliance rules can be a legal nightm
Invite this mistake:
-Asking how they deal with other local regulations like GDPR, SEC and other local blockchain regulations.
-Check their experience about KYC/AML integration.
-Provide me with smart contracts audit reports and compliance checklists.
Conclusion
Careful consideration is really important when choosing a company for blockchain development since it could make or break a project. Everything from security to scalability is impacted by the partner chosen.
Work towards avoiding the mistakes listed above, and you'll have a better chance of creating a safe, blockchain solution that is robust and prepared for the future.
Confident about building?
Let me put my facts into mxcoders.com's hands and planning on collaborating with them, once such solid security and scalable innovations are in place, they would become my trusted partner for blockchain development.