How to identify a good Web3 DApp/Platform that best suits your needs
The Web3 space is experiencing significant growth and expansion across various industries, driven by the rising popularity of cryptocurrencies and blockchain technology. Initially centred around finance — digital assets such as Altcoins, stablecoins and NFTs, it has now branched out into areas like Gaming, Logistics, and Hospitality, showcasing real-world use cases. As a result of this boom, numerous blockchain and Web3 tech firms are emerging. However, with the plethora of dApps available in today’s market, it becomes crucial to identify the most suitable and credible projects. Here are some common points to consider when evaluating projects to see if they are credible and if they suit your needs -
Studying Litepaper & Documentation: The first and most important step is to understand the project through its Litepaper. The Litepaper offers a theoretical summary of the project’s goals, motivations, and how it aims to address market challenges. Subsequently, reviewing the documentation helps understand the practical progress made towards implementing the ideas mentioned in the Litepaper. Additionally, examining technical documentation provides insights into the project’s technical robustness and the ease of integrating the project’s dApps into your existing products or services.
Roadmap & Milestones: The roadmap reflects the project’s history, goals, and progress. Analyzing a company’s roadmap reveals its activity duration in the market and the progress made in achieving stated goals. A project that consistently meets its milestones indicates a dedicated and active team. Conversely, slower development progress might indicate that the team behind the project is lacking resources or facing challenges due to various factors impacting development.
Check the blog and social media accounts: Monitoring a project’s blog and social media presence can provide insights into their level of activity and commitment. This can be considered a more accurate measure of how active a team is towards their project compared to milestones achieved as Some developers might focus on continuous improvement of their active services rather than achieving numerous newer milestones with a clanky UI/UX. Engaging teams actively interact with their community, share updates, and address concerns promptly which is a clear sign of the project providing quality services and addressing user feedback.
Researching the Core Team’s background: Understanding the background of the core team members is crucial. Experienced professionals from relevant industries may be better equipped to deliver effective solutions. There are two types of such experienced founders — projects that are led by experienced individuals from other industries who recognized the potential of blockchain and Web3 technology and projects led by experts from the finance and fintech industries who transitioned to develop industry-neutral solutions. Conversely, projects lacking transparency in the core team’s background are cause for concern and raise red flags.
Tokenomics: Assess the project’s tokenomics model thoroughly. A fair tokenomics model that prioritizes the interests of the community and retail investors contributes to a sustainable ecosystem. Projects which allocate tokens disproportionately in favour of insiders and team members should be approached with caution. Detailed research on token allocation, vesting schedules, token utility, and mechanisms like token burns or buybacks is crucial to help gain better insights into a project’s tokenomics model as some projects have yet to release their tokens while others already have tokens circulating in the market.
Cross-verify performance metrics: It is important to cross-verify a project’s performance metrics with similar dApps and transaction volumes of prominent projects in the blockchain network. Suspiciously inflated transaction volume data could be a sign of fraudulent activity or an attempt to attract attention through hype.
By following these steps, you can make more informed decisions while navigating the ever-expanding Web3 market and identify projects with genuine potential and credibility.
