Working on an ICO with a Software House – 6 Insights on Blockchain Development Outsourcing

CornerRight 4 min


Icons/Position/Pos. No. 4

Cryptocurrency


Icons/Technology/Tech No.1

AI

Unless your team is experienced in creating cryptocurrencies, while working on ICOs you will come to a point where you will be in need of additional backup to support you in solving particular technical issues.

Being a tech expert, you already know the pros and cons of outsourcing. But what are the biggest problems and pain points in outsourcing this kind of project? How does it differ from the usual? Is there anything I should beware of?

Here are a bunch of our comments, coming from the 4soft team, on delivering successful blockchain, ICO and Web projects of various complexity.

Let’s jump right in:


What do you have to consider before launching an Initial Coin Offering with a Software House?

1. Avoid rates based on cryptocurrency

Some software houses base their rates for ICOs on cryptocurrency tokens. While it might seem to be a tempting model, allowing you to pay directly in crypto raised during the project, it also carries some risk.

The first and the most explicit is, of course, a change in the crypto value.

If you agreed to 1 BTC on the 6th of December 2017, but actually made the payment 11 days later, you would have to pay an additional $7489.91 – that’s 63.8% more than the agreed price.

Of course, it can also work the other way around: you can actually save half off the price. But if we are talking about projects worth, for example, 50 bitcoins ($420 000 at the moment of writing this), the leverage can swallow your whole project. You are playing roulette – a big event on the crypto market can actually drown your ICO.

2. Discuss the level of control and responsibility

In ICO projects, a lot of elements are extremely painful and complicated to outsource. When you are working with blockchain there are points of no return, along with sensitive data all around.

The comfort of outsourcing is often in giving up the responsibility for your project to someone else. However, if you are dealing with financial data, you simply cannot let yourself do that.

That’s why, while working with CTOs, we’ve developed a cooperation model that instead augments their in-house resources, giving full control to their tech team. They use our experienced blockchain developers to deepen their understanding of blockchain and build a solution for their companies.

Of course, you may not have your own team to take care of that at the moment. In this case, you will be dependent on an external partner to assess which technology would be best for the project and the way of approaching it.

That’s the moment when trust comes into play.

3. Give them a credit of trust

After picking the right software house, based on referrals, delivered projects and testimonials, a good practice is to give them a healthy credit of trust. A credible partner with the proper experience will know how to proactively make you feel safe about your project.

Why do I mention that? An overzealous approach to micromanagement might slow you down and distract you. That’s why “transparency” is a mantra used in all software houses – to help you feel safe, secure and in charge, and let them do their job with all the experience they’ve gathered.

Simply find a self-sufficient team with strong business ethics and let them do the job for you – that’s what you are paying them for.

And talking about money…

4. Mind the precision of your ICO budget estimation

The rule of thumb is: if you get a quick custom project estimation in a Time & Material model, it is imprecise and you will actually have to pay more to get the project done.

We know that a precise estimation takes time, and it shouldn’t be rushed – our analysts take great care to make sure any estimate will be accurate and fit into the prescribed budget. Development is pricy, and you don’t want to spend any mor

Similar blog posts

11 types of software development you should know

10 min

If you’re looking to invest in a digital product or build a custom solution, it’s smart to get started by learning what the software development landscape looks like today. It might seem that programming is a pretty straightforward activity. You write code, test it, deploy it, and finally implement it – right?

Mon/Jan/2022
see details

4 Most Popular 4soft Articles on ICO & Blockchain Development – L4A Blog

2 min

Since the beginning of the 4soft Blog, we created 4 core epic posts on 4 different aspects of Initial Coin Offering process, about 1500 words each. That’s the most popular quartet among our posts. Together those posts make a strong knowledge base for your future ICO project, covering the process, threats, outsourcing and app features.

Tue/Jul/2018
see details

4soft Use Cases: Blockchain In E-Commerce

4 min

E-Commerce thrives. Online sales steadily grow by about 20% every year. To sustain this growth, online shops leverage every possible technology that helps them to be more efficient and get ahead of the competition to sell more, faster and at better prices.

Tue/Feb/2020
see details

4soft Use Cases: Blockchain in Healthcare

4 min

Report by BIS research says that in the next 6 years the healthcare industry can save $100 billion per year by using Blockchain technology. Usually, it is dangerous to cut costs in this area. When you’re dealing with health, any failure or slight decrease in efficiency can contribute to very serious complications. Life and death depend on the reliability of the IT systems and their ability to support rather than obstruct peoples’ work

Thu/Jan/2020
see details