Introduction

In recent years, the interest in blockchain projects has surged, with businesses and innovators eager to explore the transformative potential of this technology. From decentralizing finance to securing data, blockchain offers countless possibilities for reshaping industries. However, despite its promise, many new projects stumble right out of the gate, facing unforeseen challenges that can derail their success. Among the most common pitfalls are choosing the wrong product, using unsuitable technology, and not securing enough funding. Understanding these mistakes is crucial for anyone looking to navigate the complex landscape of blockchain and launch a project with the best chance of success.

1. Choosing the Wrong Product

One of the most common mistakes when starting a blockchain project is choosing the wrong product to develop. Many blockchain initiatives fail not because of flaws in the technology itself, but because they focus on products that do not solve a real problem or address a genuine market need. These projects often suffer from a lack of clarity about their purpose and the value they intend to deliver. Without a clear understanding of the problem being solved, projects may end up creating a solution in search of a problem — a product that looks impressive on paper but fails to resonate with users or gain traction in the market.

Understanding the target audience is critical to avoiding this mistake. It’s essential to identify the end users, what pain points they experience, and how a blockchain solution could better address those issues than existing alternatives. Too often, teams dive into development with a great idea in mind but fail to validate whether there is a demand for that product. Instead of starting with technology, successful projects start by asking fundamental questions: Does this solve a real problem? Who will use this, and why? Will someone pay for it?

Several blockchain projects have struggled or even collapsed due to a lack of product-market fit. For instance, in 2018, a number of Initial Coin Offerings (ICOs) launched tokens without a clear use case or a plan for integration into a viable product.

Solutions:

To avoid this mistake, it’s crucial to validate product ideas early and often. Here are some effective strategies:

• Conduct Market Research: Start by thoroughly researching the target market. Understand the demographics, preferences, and pain points of potential users. Analyze competitors and existing solutions to identify gaps in the market that a blockchain product could fill.

• Engage in Feedback Loops: Don’t build in isolation. Engage with potential users early on through surveys, interviews, and beta testing. Gather feedback on the product concept, usability, and features. Use this feedback to refine the product idea and make adjustments based on real user needs.

• Pilot Testing: Before a full-scale launch, consider running a pilot project or a minimum viable product (MVP). CoreLedger offers an easy solution for any project to build a proof-of-concept quickly to test the market. A pilot allows you to test the core functionality in a controlled environment, gauge user interest, and identify potential challenges. This can help prevent costly mistakes and allow for adjustments before committing to a broader rollout.

By focusing on a product that addresses a genuine need, validating ideas through continuous feedback, and testing the product in real-world scenarios, blockchain projects can significantly increase their chances of success and avoid the common pitfall of choosing the wrong product.

2. Using the Wrong Technology

Another critical mistake that can doom a blockchain project from the start is choosing the wrong technology. Blockchain is not a one-size-fits-all solution; different blockchain platforms and technology stacks come with their own sets of strengths, weaknesses, and trade-offs. The choice of technology should be guided by the specific needs and goals of the project. Unfortunately, many teams rush to adopt a particular blockchain platform without fully understanding its capabilities or limitations, leading to costly and sometimes irreversible errors.

Selecting the wrong blockchain technology can manifest in several ways. For instance, a project might choose a platform that lacks scalability, making it impossible to handle a growing number of transactions as the user base expands. Or, a project might select a platform that lacks sufficient developer support, making it challenging to find skilled developers or maintain the codebase over time. Additionally, certain blockchains might not align well with the project’s specific use case — such as a need for high transaction speed, privacy features, or compliance with regulations. Failing to match the technology to the project’s requirements can lead to severe operational inefficiencies, integration difficulties, and, ultimately, project failure.

Solutions:

To mitigate the risks of selecting the wrong technology, blockchain projects should adopt a strategic approach that includes the following best practices:

• Analyze Project Requirements: Start by thoroughly understanding the specific needs of the project. Is the priority on speed, scalability, privacy, or regulatory compliance? What type of transactions will be processed, and what are the expected volumes? The answers to these questions should drive the choice of technology.

• Consider Long-Term Scalability: Evaluate whether the chosen blockchain platform can handle future growth. Assess its ability to scale horizontally (adding more nodes) or vertically (increasing transaction throughput). Consider platforms with robust scalability solutions, such as sharding, layer 2 solutions, or consensus mechanisms designed for high throughput.

• Evaluate Developer and Community Support: Opt for a platform with a strong developer ecosystem and active community. A vibrant developer community ensures ongoing support, regular updates, and the availability of tools and libraries. It also means finding skilled developers to build and maintain your project will be easier.

• Seek Expert Consultation: Don’t hesitate to consult with blockchain experts or advisors at CoreLedger who have experience in the specific domain of your project. They can provide valuable insights into the strengths and weaknesses of various platforms and help identify the best fit for your project’s needs.

By carefully evaluating the technology stack against the project’s specific requirements, considering scalability and community support, and seeking expert guidance, blockchain projects can avoid the common mistake of using the wrong technology and set themselves up for long-term success.

3. Insufficient Funding

Insufficient funding is a critical mistake that can lead to the premature failure of a blockchain project. Many new ventures in the blockchain space underestimate the true costs involved in developing, launching, and maintaining their projects. Unlike traditional tech startups, blockchain projects often require substantial upfront investment to cover not just the technical development, but also legal compliance, marketing, security audits, and ongoing operational costs.

Building a successful blockchain project is an expensive endeavor. Beyond the initial development costs, there are often additional expenses related to smart contract audits, infrastructure maintenance, token issuance, community building, and regulatory compliance — all of which are necessary to build trust and attract users. Without a realistic budget that takes all of these factors into account, projects can quickly find themselves running out of money, unable to reach crucial milestones or bring their product to market.

Moreover, the volatile nature of the blockchain space can lead to unpredictable funding challenges. If a project’s funding is tied to the value of cryptocurrencies, market downturns can severely impact its budget. Thus, it is essential for projects to plan conservatively and ensure they have enough runway to withstand financial fluctuations.

To avoid the pitfall of insufficient funding, blockchain projects should adopt a multi-pronged approach to secure adequate financial backing:

• Thorough Financial Planning: Begin with a detailed budget that accounts for all foreseeable expenses, including development, marketing, legal fees, compliance costs, security audits, and operational overhead. Be conservative in estimates and build in buffers for unexpected costs or market downturns. Ensure that the financial plan also includes a timeline for reaching key milestones, so the team has a clear understanding of when additional funding may be needed.

• Engage Investors Early with a Proof-of-Concept: Approach potential investors early in the process to build relationships and secure funding commitments. Blockchain projects can attract various investors, from traditional venture capitalists and angel investors to crypto-specific funds. Nowadays, having a compelling pitch is not enough to secure funding. If projects can demonstrate their ideas with a live proof-of-concept demo, they can build up investors’ confidence. For this, CoreLedger has a ready-to-use solution for projects to build a proof-of-concept quickly.

• Leverage Grants and Incubators: Many blockchain projects can benefit from grants, incubators, or accelerator programs that provide not just funding but also mentorship, resources, and industry connections. At CoreLedger, we have successfully helped our clients’ projects receive grants from organizations like the Internet Computer Protocol. Many organizations and various government initiatives offer grants to promising projects that contribute to the broader blockchain ecosystem. Participating in these programs can provide a financial boost and valuable guidance from experienced mentors.

• Consider Token Sales with Caution: While token sales (ICOs, STOs, or IEOs) can be a powerful way to raise capital, they come with risks, especially given the regulatory scrutiny around such fundraising methods. If choosing this route, ensure that the legal structure is compliant with relevant laws and regulations, and that there is a clear, transparent use case for the token.

By approaching funding strategically, engaging with the right investors, and leveraging available resources such as grants and incubators, blockchain projects can build a more secure financial foundation. This approach reduces the risk of running out of money prematurely and increases the likelihood of successfully bringing a product to market.

Conclusion

In summary, launching a successful blockchain project requires avoiding three common pitfalls: choosing the wrong product, selecting the wrong technology, and not securing sufficient funding. Each of these mistakes can derail even the most promising ideas if not carefully considered from the outset. The key to overcoming these challenges lies in thorough planning, comprehensive research, and strategic decision-making. By learning from the experiences of others and taking proactive steps to validate product-market fit, select the right technology, and secure adequate funding, you can position your blockchain project for success in this rapidly evolving space. Remember, every great innovation starts with a solid foundation — make sure yours is built to last.

Call to Action

If you’re looking to start a blockchain project or overcome challenges with your existing one, don’t go it alone. Book a free consultation call with CoreLedger’s blockchain experts today! Our team is ready to help you navigate the complexities, avoid common mistakes, and set your project up for success. Let’s turn your vision into a reality together!

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

Blockchain technology, despite its relative youth, has shown significant success, particularly in cryptocurrency trading and token speculation. However, its potential extends beyond finance, offering unique benefits like tamper-proof information storage and artifact ownership. In education, blockchain is primarily a subject of study rather than a tool for enhancing teaching and learning. We found a number of online resources that list the topics below:

1. Credentialing and Certification

Secure Digital Credentials:

Blockchain can create tamper-proof digital credentials, such as diplomas, certificates, and transcripts. Employers and institutions can easily verify these credentials, reducing fraud and streamlining the verification process.

Preventing Fraud:

With blockchain, each credential is securely linked to the individual who earned it, making it nearly impossible to counterfeit. This ensures that qualifications are genuine and trustworthy.

2. Data Migration

Efficient Data Transfer:

Blockchain simplifies the process of transferring student records between educational institutions. By storing student data on a decentralized ledger, blockchain ensures that records are accurate, up-to-date, and easily accessible.

Cost and Time Savings:

This approach eliminates the need for third-party verification agencies, reducing administrative costs and saving time for both institutions and students.

3. Rewards and Incentives

Gamification:

Blockchain can be used to create digital collectibles and tokens as rewards for students. These tokens can motivate students to engage more deeply with their studies and participate in extracurricular activities.

Personalized Incentives:

Educators can design custom reward systems tailored to specific learning outcomes, encouraging positive behaviors and academic achievement.

4. Micro-Credentialing

Focused Learning:

Micro-credentials, which are smaller and more specific than traditional degrees, can be managed through blockchain. These credentials recognize mastery of particular skills or knowledge areas, aligning with job market demands.

Stackable Credentials:

Students can accumulate micro-credentials over time, building a portfolio of verifiable skills that enhance their employability.

5. Access Control and Intellectual Property Management

Secure Access:

Blockchain can control access to educational materials, ensuring that only authorized individuals can view or download content. This protects sensitive information and intellectual property.

Digital Rights Management:

Educators can use blockchain to manage digital rights, preventing unauthorized use or distribution of their work and ensuring fair compensation for content creators.

6. Smart Contracts and Decentralized Learning Platforms

Automation:

Smart contracts automate administrative tasks, such as tuition payments and course registrations. These contracts execute automatically when predefined conditions are met, reducing administrative overhead.

Decentralized Platforms:

Blockchain enables the creation of decentralized learning platforms owned and controlled by learners. These platforms reduce the influence of intermediaries and promote a more democratic and equitable education system.

7. Funding and Financial Aid

Transparent Financial Systems:

Blockchain can create transparent and decentralized systems for managing educational funding and financial aid. This ensures that funds are allocated fairly and efficiently, minimizing corruption and mismanagement.

Student Loans:

Blockchain can streamline the student loan process, making it more transparent and reducing the risk of fraud.

8. Learning Analytics

Secure Data Storage:

Blockchain ensures that learning data is securely stored and can be shared and analyzed in a decentralized manner. This protects student privacy while allowing educators to gain insights into learning patterns and outcomes.

Benefits of Blockchain in Education

1. Proof of Origin: Ensure responsible sourcing and transparent verification of materials and credentials.
2. Fraud Prevention: Maintain immutable records to protect against falsification.
3. Regulatory Compliance: Facilitate adherence to regulations with verifiable proof of origin and lifecycle.
4. Improved Accessibility: Reach learners outside traditional channels, bridging the digital divide.
5. Enhanced Credibility: Combat diploma mills and fake degrees by providing transparent records of achievements.

Real-Life Examples and Case Studies

Several institutions have already begun to implement blockchain in education:

MIT and Digital Diplomas: MIT has issued digital diplomas to its graduates using blockchain technology, which allows employers to verify them instantly.

Sony Global Education: Sony has developed a blockchain-based system to share academic records and achievements securely.

Woolf University: Woolf University uses blockchain to manage student and faculty contracts, course credits, and degree validation.

Challenges

The benefits blockchain technology brings to the education sector are promising. There are, however, a few challenges:

• Complexity and Early Stages: Blockchain technology is still evolving and can be complex to implement.
• Regulatory Environment: Continuous changes in regulations can impact blockchain adoption.
• Reluctance and Misconceptions: Many associate blockchain with cryptocurrencies, leading to hesitation.
• Data Privacy Compliance: Ensuring compliance with data privacy laws like GDPR can be challenging.
• Security Concerns: Loss of private keys can lead to identity loss.
• Scalability Issues: Early blockchains lacked capacity for industrial use, though newer protocols have improved this.
• Cost and Standardization: High costs and lack of standardization and interoperability remain barriers.

Conclusion

Most blockchain projects in education emerged during the Ethereum hype between 2015 and 2018, with few real-life applications since. The sector still awaits a “killer app” that fully leverages blockchain’s potential. As the technology matures, collaboration and standardization will be key to unlocking its benefits for education.

Blockchain holds promise for transforming education by enhancing security, efficiency, and accessibility. While challenges remain, continued innovation and regulatory clarity can pave the way for broader adoption and impactful applications.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

We are excited to announce a groundbreaking partnership with Finance Yard, aimed at driving innovation and transformation in the financial services industry across Europe. This collaboration will form a comprehensive ecosystem blending traditional finance with emerging technologies like blockchain, digital assets, and artificial intelligence (AI). Together, we will combine these technologies with regulatory and compliance expertise to educate, shape opinions, and enable new business models for the future of finance.

About Finance Yard

Finance Yard is forming a European ecosystem with the goal to bring together traditional finance, emerging technologies, regulation, and compliance.

Finance Yard is designed to connect people, organizations, and financial hubs to educate, shape opinions, and enable new business models for the financial services industry of the future. We’re currently having or building chapters in Frankfurt, Munich, and Berlin. They focus on blockchains, digital assets, and artificial intelligence.

CoreLedger’s Expertise: Pioneering Blockchain Solutions

CoreLedger specializes in advanced asset tokenization technologies and bespoke blockchain software solutions. Our offerings include no-code platforms, patented transaction technologies, and customized blockchain applications designed to drive innovation and efficiency across various industries. With a focus on scalability, security, and customization, we empower businesses to seamlessly integrate blockchain technology, enhancing their security and operational efficiency.

The Collaboration: Driving Education and Innovation

This partnership will play a pivotal role in the financial industry’s evolution by combining Finance Yard’s community impact with CoreLedger’s technological expertise. Our goals include:

1. Education and Training: Offering comprehensive education and training programs to financial professionals, enabling them to understand and leverage blockchain technology effectively.
2. Technical Guidance: Providing expert technical guidance to financial institutions, helping them integrate blockchain solutions into their existing systems.
3. Blockchain Software Development: Developing bespoke blockchain software solutions tailored to the specific needs of financial institutions, ensuring seamless integration and enhanced operational efficiency.

A Future-Ready Financial Ecosystem

The partnership between Finance Yard and CoreLedger represents a significant step towards building a future-ready financial ecosystem. By fostering innovation and regulatory compliance, we aim to transform the financial services industry, making it more accessible, efficient, and secure. This collaboration underscores the importance of continuous technological adaptation and regulatory clarity in shaping the financial services of tomorrow.

As we continue to work together, our combined efforts will pave the way for new business models and opportunities within the financial industry. This strategic alliance reflects our shared vision of a technologically advanced and compliant financial ecosystem that meets the evolving needs of businesses and consumers alike.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

Introduction

In today’s rapidly evolving technological landscape, two of the most transformative technologies are Artificial Intelligence (AI) and blockchain. While each has made significant strides independently, the combination of AI and blockchain presents unprecedented opportunities for innovation. This blog delves into the intersection of these two technologies, exploring their synergistic potential and real-world applications.

How Blockchain Can Benefit AI

Preserving Data Privacy

Data privacy is a significant concern, especially in the context of AI, where sensitive personal information is often used to train models. European Union recently introduced EU AI Act: first regulation on artificial intelligence. This symbolizes the importance of data privacy in using data for AI. Traditional centralized databases are vulnerable to breaches, putting private data at risk. Blockchain technology can enhance data privacy through its decentralized and encrypted nature. With blockchain, data can be stored in a decentralized manner, distributed across multiple nodes, reducing the risk of a single point of failure. Additionally, blockchain can enable advanced privacy-preserving techniques, such as zero-knowledge proofs and differential privacy, which allow AI models to learn from data without accessing the underlying sensitive information. This ensures that individuals’ privacy is preserved while still enabling AI to derive valuable insights from the data.

Ensuring Data Integrity

Data integrity is crucial for the effectiveness of AI models. AI systems rely heavily on vast amounts of data to learn, adapt, and make accurate predictions. However, if the data is tampered with or corrupted, it can lead to misleading results and poor decision-making. Blockchain technology can ensure data integrity by providing a tamper-proof ledger for storing data. Each data entry on the blockchain is cryptographically secured and linked to the previous entry, making it virtually impossible to alter without detection. This ensures that the data used to train AI models remains accurate, reliable, and consistent over time. As a result, AI systems can operate with greater confidence and produce more reliable outcomes.

Proving Data Ownership

In the digital age, data is a valuable asset, and proving data ownership is essential for both individuals and organizations. Blockchain technology provides a decentralized and transparent way to prove data ownership. When data is recorded on the blockchain, it is timestamped and linked to the owner’s unique digital signature. This creates an immutable record that proves who owns the data and when it was created. For AI, this is particularly beneficial in scenarios where data provenance is critical, such as in intellectual property, research, and creative industries. By leveraging blockchain, AI systems can verify the authenticity and ownership of the data they use, reducing the risk of data theft, fraud, and disputes over data rights.

Real-World Use Cases

Supply Chain Management

In supply chain management, the combination of AI and blockchain can revolutionize the way goods are tracked and managed. AI can provide predictive analytics and optimization for inventory management, demand forecasting, and logistics planning. Blockchain, on the other hand, ensures transparent and tamper-proof tracking of goods from origin to destination. Companies like IBM and Maersk have already implemented blockchain-based supply chain solutions, demonstrating the potential of this combined approach.

Healthcare

The healthcare sector stands to benefit immensely from the integration of AI and blockchain. AI can assist in diagnostics, personalized treatment plans, and predictive healthcare analytics. Blockchain can secure health records, ensuring they are interoperable and tamper-proof. For instance, CoreLedger is developing a software leveraging blockchain to secure and store health records, while AI is being used to analyze patient data for better treatment outcomes.

Finance

In the financial sector, AI and blockchain can work together to enhance security, transparency, and efficiency. AI algorithms can detect fraud and provide financial forecasting, while blockchain ensures secure and transparent transactions. Few companies are exploring decentralized AI services on blockchain platforms, highlighting the potential for innovation in finance.

Challenges and Considerations

Technical Challenges

Despite the promising potential, integrating AI and blockchain poses several technical challenges. Scalability remains a significant issue for blockchain, while AI faces data privacy concerns. Additionally, the integration of these technologies can be complex and require significant computational resources.

Ethical and Regulatory Considerations

The ethical implications of AI decision-making and the regulatory challenges surrounding blockchain technology cannot be ignored. Ensuring compliance with existing regulations while fostering innovation is a delicate balance. Ethical considerations, particularly regarding AI’s impact on jobs and privacy, must be addressed to gain public trust.

Future Trends and Opportunities

Emerging Trends

Several emerging trends are shaping the future of AI and blockchain. AI-driven blockchain platforms are being developed to enhance data security, privacy and ownership. Decentralized AI models and federated learning are gaining traction, allowing for collaborative AI model training without compromising data privacy. The integration of IoT with AI and blockchain is also an exciting area, enabling smarter and more secure IoT ecosystems.

Opportunities for Innovation

The synergy of AI and blockchain presents numerous opportunities for innovation. New business models can emerge, leveraging the strengths of both technologies. Particularly certain industries such as healthcare, life sciences, finances, where data are sensitive and private, can benefit from decentralized solutions. Collaboration between AI and blockchain communities will be crucial in driving forward these innovations.

Conclusion

The convergence of AI and blockchain represents a new era of technological innovation, CoreLedger is leading the way by developing innovative solutions to address data privacy, authenticity and ownership. By enhancing both technologies’ strengths, these technologies have the potential to revolutionize various industries, from supply chain management to healthcare and finance. While challenges remain, continued research and development, coupled with ethical and regulatory considerations, will pave the way for a future where AI and blockchain work together to create a smarter, more secure world.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

The Importance of Choosing The Right Blockchain Development Service Partners

In today’s rapidly evolving digital landscape, blockchain technology stands out as a transformative force, offering unparalleled security, transparency, and efficiency. As businesses across various industries explore the potential of blockchain, selecting the right development service partners becomes a critical decision. The right partners bring not only technical expertise but also strategic insights, ensuring that your blockchain initiatives are secure, compliant, and tailored to your unique needs. This article underscores the importance of choosing competent blockchain development service partners, highlighting their role in driving successful and sustainable blockchain projects.

The Application of Blockchain Across Industries

Blockchain technology is versatile and can be applied across numerous industries. In finance, it enhances security and transparency in transactions. In supply chain management, it provides traceability of goods from origin to consumer. The healthcare industry benefits from secure patient data management and sharing.

Other industries include real estate, where blockchain can streamline property transactions, and energy, where it can support decentralized energy trading platforms.

Factors to Consider When Choosing a Blockchain Development Company

Choosing the right blockchain software development company or blockchain developer involves several critical considerations:

1. Experienced Team

An experienced team is crucial for the successful implementation of blockchain projects.

Here are some factors to consider:

A Proven Track Record and Core Skills

A company with a solid portfolio and a history of successful projects across various industries demonstrates its ability to deliver. Review their case studies, client testimonials, and past projects to gauge their experience. Also, ensure the team has expertise in core blockchain development skills and relevant programming languages. Proficiency in languages like Solidity (for Ethereum smart contracts), Go, and Rust is crucial. These skills are fundamental to building robust and efficient blockchain solutions.

Industry Specialization

Look for a team with experience in your specific industry. Different industries have unique requirements and challenges when it comes to blockchain applications. A team that has previously worked in your industry will be more adept at understanding and addressing your nuanced needs.

Continuous Learning and Adaptation

Blockchain technology evolves rapidly. An experienced team should be committed to continuous learning and staying updated with blockchain software development trends, tools, and best practices. This ensures they can incorporate the latest innovations into your project, keeping it ahead of the curve.

Collaborative and Transparent Communication

Effective communication is critical to the success of any development project. Choose a company that values collaboration and maintains transparent communication throughout the project. Regular updates and a clear understanding of project milestones help ensure that the project stays on track.

2. Technical Proficiency

When looking for a technically proficient team, here are some factors to consider:

Programming and Cryptography Skills

The team should be proficient in programming languages commonly used for blockchain development. Key languages include Solidity for Ethereum smart contracts, Go, Rust, and JavaScript. Blockchain also relies heavily on cryptographic techniques to secure data and transactions. The team should be well-versed in cryptographic principles, including public and private key encryption, digital signatures, and hashing algorithms.

Smart Contract Development

Developing smart contracts requires specialized knowledge in coding and deploying self-executing contracts on the blockchain. The team should have experience writing and auditing smart contracts to prevent vulnerabilities and ensure they perform as intended.

System Architecture and Design

A strong grasp of system architecture and design is necessary for creating scalable and efficient blockchain applications. This includes designing the overall structure of the blockchain system, understanding consensus mechanisms, and integrating blockchain with existing systems. Good system architecture ensures the application can handle growth and increasing loads.

3. Customization and Scalability

To ensure that the development company fits your specific needs, here are some factors to consider:

Custom Blockchain Software Development Solutions

Customization involves creating blockchain solutions that address the unique requirements of your business. This means that the company should be able to build bespoke applications that integrate seamlessly with your existing systems and processes. Custom blockchain software development solutions ensure the technology enhances your operations rather than requiring significant changes to fit a generic solution.

Business Strategy Alignment

The custom blockchain software development solution should align with your business strategy and goals. A good blockchain software development company will take the time to understand your business objectives and design a solution that supports these goals. This ensures that the blockchain application meets current needs and positions your business for future growth.

Scalability

Scalability is the ability of the blockchain solution to handle increased loads and growth without performance degradation. This is essential for businesses that anticipate growth or fluctuations in transaction volumes. A scalable solution ensures that the blockchain system can accommodate the increased demand as your business expands without requiring a complete overhaul.

4. Security Measures

Here are key security measures to consider when choosing a blockchain development company:

Robust Security Protocols

Ensure the company employs robust security protocols to protect the blockchain network from cyber threats. This includes encryption standards for data at rest and in transit, secure key management practices, and regular security audits to identify and fix vulnerabilities.

Regular Security Audits

Regular security audits are essential to maintain the integrity and security of the blockchain system. These audits should include code reviews, penetration testing, and vulnerability assessments. The blockchain software development company should be committed to conducting these audits periodically to ensure that any security flaws are promptly addressed.

Strong Access Controls

Implementing strong access controls ensures that only authorized individuals can access sensitive parts of the blockchain system. This includes multi-factor authentication (MFA) and role-based access control (RBAC) to limit access based on the user’s role within the organization.

5. Cost Effectiveness

While cost is an important factor, it should not be the sole determinant. Look for a company that offers a good balance between cost and quality. A cost-effective solution should meet your budget constraints without compromising on the quality and features required for your blockchain application.

Benefits of Hiring a Blockchain Software Development Company

Hiring a specialized blockchain software development company offers several benefits:

1. Access to Expertise and A Tailored Solution

A dedicated blockchain software development company will be able to ensure the creation of robust and secure applications. They can provide a solution tailored to your business needs, ensuring that the blockchain application aligns perfectly with your objectives and processes.

2. Faster Time to Market

With their expertise and resources, a blockchain software development company can expedite the development process, reducing the time to market and allowing your business to gain a competitive edge by capitalizing on new opportunities quickly.

3. Regulatory Compliance

Blockchain projects often involve navigating complex regulatory environments. A seasoned blockchain software development company is familiar with and can navigate complex regulatory environments. It can connect you with the right legal resources, and support you to comply with all relevant regulations and standards.

How to Get Started

1. Understanding the Landscape

Start by researching the landscape of blockchain development services and identifying potential providers. Look for companies with a proven track record, positive client testimonials, and a portfolio of successful projects.

2. Identifying the Type of Service

Determine the specific type of blockchain service you require and whether you need smart contract development, decentralized applications (dApps), or blockchain consulting.

3. Defining Ongoing Support and Maintenance

Consider the company’s long-term support and maintenance services. Blockchain technology is continually evolving, and having a partner who provides ongoing support can ensure that your solution remains up-to-date and effective.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

Blockchain & Digital Transformation

Over the past few years, we have seen digital transformation revolutionize practically every industry. Now, more than ever, decision-makers across these various sectors are seeking reliable and innovative solutions to enhance their operations. Among the plethora of technological advancements, blockchain technology stands out as a beacon of trust and security. However, its potential extends far beyond the confines of digital transactions.

The integration of blockchain with real-world applications is redefining the standards of operational integrity and transparency, industry by industry. For example, use-cases that require secure data storage or geolocation data now have entirely new possibilities through the use of file hashes and Open AreaSeals.

In this article, we will take a look at the unique advantages that blockchain technology, augmented by these two tools, offers to decision-makers across various industries, ensuring not only the security but also the authenticity and precise geolocation of their critical data.

Making the difference

In the past, blockchain technology was largely understood as something purely digital, and detached from the real world. This has changed lately as more and more real-world assets (RWA’s) are introduced, and people get used to the idea of digitalization. But it’s not just about the basic tokenization of things that makes blockchain technology extremely interesting. The technology is second to none when it comes to creating trust in data, simply because all the activity history of is kept for all time as a permanent and unalterable record stretching back to the start of the chain.

But what does it mean to create trust in data, especially when we are talking about real things, like Events, Products, Arrangements, or Contracts? Effectively we are talking about creating proof for four things: Who, When, What, Where.

The Who

Every transaction on blockchain needs to be signed by a private key. That’s part of how the whole system works. The private key is unambiguously tied to the public address, which in turn can be linked to a real person or entity.

The When

Time, again, is at the very heart of the technology, which provides us with an unambiguous timestamp for all properties that are recorded on blockchain. This is because transactions (or activity) can only exist in a block; blocks are generated sequentially, and once a block is sealed/mined it cannot be changed. Each block has an unforgeable timestamp with down-to-the-second precision, making it perfect for recording real-life events.

The What

For a long time, people believed that blockchain technology wasn’t capable of storing large enough amounts of data to be of any use for more than a handful of real-life cases. There is also the issue of data privacy. The latter was tackled by using private blockchains, but this has a detrimental effect on trust, the one and only thing that really matters and the true USP of blockchain. Both of these problems are now solved by the Internet Computer Protocol, which can store large quantities of data on-chain at a very low price, while also being able to store secret & sensitive data on-chain, a distinguishing feature that no other blockchain infrastructure matches.

But even with legacy blockchains, there is a ridiculously simple solution to both, because you don’t actually need to store large amounts of data on blockchain. You can still use an off-chain storage solution of your choice, which can be as private and secure as you desire. All you need to do is to create a file hash (fingerprint) of the data and store this fingerprint on blockchain. The fingerprint lets you prove, without any doubt and whenever you need it, the authenticity of the off-chain data. In other words, you can decide when you share the data with third parties, but you keep the timestamp of the original entry. Just imagine what impact that has on intellectual property!

The Where

Real-life data is always generated/collected at a specific location. The recording on blockchain wouldn’t be complete without it. The utilization of Open AreaSeals as a free and open standard plays a pivotal role in this context. Open AreaSeals are unique geodetic identifiers that form a comprehensive virtual global reference grid, facilitating the accurate geolocation of any data point. Each AreaSeal, identified by its unique code, corresponds to a specific location on Earth, with grid sizes varying from large scale (100km) down to highly detailed (100mm) resolutions. This approach enables the integration of exact spatial data with blockchain technology.

When a specific AreaSeal associated with a data point, event, or transaction is encoded and stored on the blockchain, it creates an unalterable and precise record of ‘where’ an occurrence took place or an item exists. This feature is crucial for sectors that demand stringent geolocation data accuracy, such as supply chain logistics, environmental monitoring, urban development, and more. AreaSeals offer a standardized method for georeferencing compatible with numerous mapping tools and GIS applications, making them an invaluable tool for blockchain applications requiring real-world location data.

The hierarchical nature of AreaSeals, marked by their clear parent-child relationships, provides a framework for scalable and organized data representation. This attribute is particularly useful for tracking temporal changes or movements within specific areas, adding depth and functionality to blockchain records. Essentially, Open AreaSeals are a free and open standard that serve as the critical link for the accurate and trustworthy incorporation of the ‘where’ in blockchain frameworks. They not only enhance the blockchain’s capability to manage real-world data, but also pave the way for innovative applications across various fields, marrying the trust and immutability of blockchain with precise and verifiable location data.

Choosing the right blockchain solutions for your industry application

Ultimately, the synergy between blockchain technology, file-hashes, and Open AreaSeals heralds a new epoch in data management and verification across industries. For decision-makers, this integration offers an unmatched level of data integrity, security, and precision, enabling the accurate tracking and authentication of assets and transactions in the physical world. This innovative blend of technologies is not just a leap forward in digital trust; it is a transformative approach that bridges the gap between the digital and physical realms, opening up endless possibilities for efficiency, transparency, and accountability in operations. As industries evolve and the demand for reliable data continues to escalate, blockchain solutions augmented with Open AreaSeals and file-hashes stand out as the optimal choice for organizations aiming to stay at the forefront of technological advancement and operational excellence.

When choosing blockchain technology, decision makers should prioritize infrastructure solutions, like the CoreLedger TEOS platform, that integrate core technologies like file hashes and Open AreaSeals, ensuring both data integrity and precise geolocation for comprehensive trust and accuracy.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business, whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information or contact us directly to discuss your project.

Consumer tastes are constantly changing, and companies are always trying to keep up. Today, a growing number of consumers are focused on the sustainability and transparency of their purchases, and nowhere is this evolution more prevalent than with the food they eat. Buyers want to know more than just the nutritional facts of the food they consume; they want to know where it comes from, how it was shipped, and if the production process was ethical. For both the food industry and its supply chains, it has become a challenge to serve this growing thirst for detailed information. But, it is also a huge opportunity for brands to differentiate and stay at the forefront of purchasing decisions by providing their consumers access to real-time, verified product information.

How can suppliers do this? Well, the search for the best use or application for blockchain technology (apart from speculation and gambling) has been ongoing for at least 5 years now. We may very well have hit gold with use cases in the supply chain industry, especially for “farm-to-table” tracking.

What does blockchain technology bring to the table?

A blockchain is essentially a very special database. It is not hosted in a single location or under a single entity’s control. Instead, it is stored in many places as a full copy, not just fragments. There is also no single party that could enforce a modification or a ban on the data. The really groundbreaking innovation, however, is the way it stores data. Instead of a growing database file that holds the current state (numbers and values), a blockchain is a continuous sequence of transformations. The current state is derived from aggregating all transformations that have happened. The beauty of this is that this sequential “chain” can grow by adding batches of transformations onto it. These batches are called “blocks.” And because all these blocks are linked with each other by the strongest cryptographic methods known today, it is essentially impossible to just swap one historic block for another. In other words, the chain always keeps its integrity and has an unforgeable timestamp history of precisely when an individual transaction took place.

Automation + Security = Transparency

Because of the inherent nature of blockchain technology, it is perfect for all use cases where you need an unforgeable timestamp. Recording transport data is a perfect example. If you carry freight from Producer A to Logistics Center B and then further to Supermarket C, you can conveniently record the date and time of each pick-up and delivery, as well as the circumstances of each transaction, such as the temperature inside the containers (important for products like fruit, fish, meat, or medical supplies). The metadata of the handover and transport can also be recorded, such as the vehicle type (E-car or gas-guzzling truck), logistics ID Tags, etc.

This might not sound like a groundbreaking solution, as many of these data points are already collected. The differences here are automation and security. Secure sensors record the data in real-time, not just when a human scans or manually enters info, and that data is then timestamped and permanently recorded on a blockchain. This also means that it’s possible to continue writing data while transport is underway, thanks to continuous sensor readings (such as temperature, humidity, geolocation, etc.).

Transparency helps both consumers and producers

This chain can even stretch back before the factory or packing plant, as products typically already have a history themselves before they are picked up from Producer A. Here, it becomes really interesting for the consumer. In the case of foodstuffs like coffee, they can know for a fact it was grown organically and at what elevation, the parameters surrounding the harvest, how it was processed, etc. In the case of apparel, they could see, for example, what farm the wool came from, where the cotton was grown, or where the cloth was eventually made. All this information can be timestamped on blockchain, and once it’s there, it can’t be changed or erased.

But, the integrity of the record is only trustworthy if the data is entered by a trustworthy party. In some cases, data is entered voluntarily for the public to see and verify. This is particularly useful in heavily regulated industries, countries, or places that are regularly audited to ensure the publicly available record is being accurately created. In other words, everyone who voluntarily puts data on-chain obviously acts in good faith; otherwise, they wouldn’t be actively leaving unforgeable evidence of malpractice on a public record.

Removing error and malice from the data

There is also a newer and even more secure method of ensuring that the data entered on the chain is accurate. Using blockchain-secured sensors to automate the data collection and recording process removes the possibility for human error (or manipulation) altogether. Customers can also get real-time information about their purchases. For example, sensors can track the live location of shipments, disclose the humidity and temperature inside the container, or even deliver parameters about the health of fresh produce.

All of this is a big plus for the consumer and the business, supplier, and grower; the possibilities are endless, and the positive impact of such transparency on problematic industries like industrial farming or even fast fashion is quite apparent. This use-case also makes “greenwashing” virtually impossible because customers and investors can put more trust in the sensor-blockchain link. As a result, it boosts the brand experience of companies that use blockchain technology for this purpose and builds consumer trust.

Putting this solution into practice

While the description above sounds highly technical, the actual “how-to” is simple. Time-stamping data on blockchain can be done with generic blockchain API’s such as the CoreLedger TEOS API, the Notardec API, or simply with one of the growing list of dedicated Apps, such as NOTRZR. Depending on your application, it is either some arbitrary data like text entry or structured data (e.g., sensor readings). The critical element is that each such entry has a unique identifier on blockchain and can be retrieved with a blockchain explorer. You effectively need a way to render the data into a nice and readable format, such as a certificate. You can see some examples of what those might look like here.

Then, all you have to do is create a QR code from the URL that points to your product data and put the QR code as a sticker on your product. Consumers can then scan the QR code with their phone, and a new browser window will open, displaying all the desired information. Ideally, this page includes a link to some additional metadata (the technical stuff) and to a blockchain explorer where customers can verify the authenticity of the data, should they want to dig deeper. It’s a simple, elegant, and secure way to build customer confidence and promote better business practices like sustainability and transparency.

Learn more about our solution to boost customer confidence on our site.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business, whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information, or contact us directly to discuss your project.

Fiat Currency: Challenges and Alternatives

Ever since the global Covid-19 pandemic, markets have been unsettled, supply chains strained, and currencies inflated. And when currencies become unstable, banks collapse, and governments’ need for fresh money exceeds peak performance of their central banks’ printing press, we are faced with the challenge: Is there a currency on which one can rely these days?

The short answer is no. We know from history that all fiat currencies are destined to fail at some point. Unbacked paper money has had a tendency to cause runaway inflation, and history tends to repeat itself. In the short term, money as we know it is a perfect transaction and settlement method, but as a store of value it is next to useless. To store value, you need precious commodities like gold and silver. Even industrial metals such as copper and nickel could be used, provided there is constant need from the industry side. But as of yet there is no good replacement for a transaction currency, since precious metals are too costly to be easily transported, and the digitization of precious metals in the form of fungible tokens for payment purposes, or a de-facto “private money without counterparty risk,” faces staunch resistance from regulators.

Of course, there is a growing trend to use Bitcoin and other cryptocurrencies for that purpose. But Bitcoin is no solution either. It is highly volatile, which means that companies don’t want to hold it and must rely on an intermediary to convert it back into fiat currency immediately. So, they are actually transacting in the corresponding currency, not Bitcoin; all their goods and services are still priced in their fiat currency, wages are based on that currency, etc. And if companies or private persons decide to hold the Bitcoin rather than convert it to fiat, they become subject to its high volatility. Combined with the hostility of governments and banks towards Bitcoin (and crypto in general), there is always a looming risk that some action by the aforementioned entities will lead to a significant drop in prices and loss of value. All this means that, unfortunately, Bitcoin is not a practical alternative for businesses. What they need is something that has low volatility, is not as much exposed to regulation as an asset-backed token, and is widely accepted.

One alternative to crypto are vouchers/coupons with utility value, otherwise known as utility tokens. These are less risky from a regulatory perspective than gold backed tokens are, but utility tokens are not “money” in the classic sense because they only have value for a specific purpose, and nothing else. This means they aren’t a viable currency alternative. It’s easy to understand this when you think about how coupons or tickets work. In theory, you could go to the grocery store and ask if you can pay your $49.90 bill with $50 worth of movie tickets at a local cinema. But of course, the store is not going to accept cinema tickets as tender, even if they have the same monetary value; cinema tickets are not really fungible. So, an alternative currency needs to be something that is generally accepted.

A new kind of standard

Which brings us to energy. Everyone needs energy. Industry, business, private individuals — everything is powered by some form of energy, and the price of energy is reflected in the price of goods and services in a country. The problem is you can’t really store energy, at least not affordably or for long periods of time. The bulk of energy is consumed at the same time it is produced, and because it is consumed immediately and not stored it counts as a perfect utility token, priced by the kilowatt hour.

Let’s assume the world goes on an energy standard rather than a gold standard. You can’t hoard the energy — it doesn’t make sense. If you want to hoard, you’d better use the energy to buy gold. This also makes sense, because the extraction of gold consumes a lot of energy, which is reflected in the price, so you can just use it as a transaction currency.

But here comes the tricky part. Who would control and issue the currency? If someone assumed the role of a global energy-token issuer, the regulators and governments would give them a hard time. And no single government would allow another one to control its currency. The answer is: There is not a single issuer, there are many. Each and every energy producer on the planet can issue their own energy token, and they would be responsible to take it as payment for energy delivered to the grid. Give and take a few percentages that are lost in the grid, this would work pretty well — perfectly decentralized and “utility style” with an “economic” regulatory profile. However, we’re back to where we started if there are thousands of different currencies, all denominated in kW h but issued by different parties. What’s needed is someway to convert between the different issuer’s “currencies.”

Making it all possible

This kind of use case is why we invented the TokenWARP protocol, which makes assets seamlessly convertible with each other, and can even match up trade pairs in order to make just about anything tradable with anything else. Given a sufficient liquidity in the decentralized market, where one energy token is converted into another one by providers, large consumers, or simply market makers, you can for example pay an invoice that is denominated in “yellow kW h” with your “blue kW h” tokens without even noticing.

All of this might seem a bit far fetched, but we like to think of innovative solutions to real world problems that we can realistically help make possible. A more stable currency is something that would benefit everyone, and after food and water, energy is one of the most universally needed commodities on the planet. The big advantage of energy here is that its value is relatively stable, because it is the basis of nearly all business and private activity. TokenWARP technology can help make this visionary use case a reality, but it also works just as well for more less ambitious enterprise blockchain applications involving digital assets and tokens.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information, or get in touch with us directly to discuss your project.

It’s a strange time to be online, these days. With the emergence of Deepfake software and image filters it has become pretty difficult to distinguish between genuine video and audio material, and stuff that has been created by a computer program. The accessibility of Artificial Intelligence in various shapes and forms has also given us ways to create all kinds of artifacts — artworks, movies, texts, music — on a whim without much human effort, creativity, or work invested in the first place. And here exactly lies the problem with Deepfakes. AI and synthetically generated content is very hard to distinguish from genuine artifacts created by celebrities, artists, authors, etc. The list of examples is seemingly endless, and the torrent of problems that come with it, too.

Solving for Fake

A solution to this problem must provide the means to distinguish a Deepfake artifact from a genuine one, regardless of what kind of artifact we are talking about. This will only work if the genuine artifacts carry some unique signature-property that identifies their creator, something that even AI is unable to produce no matter how much CPU power is allocated to the task.

In theory, a digital signature would solve that problem for all kinds of digital artifacts. Digital signatures are a state-of-the-art tool in the cryptography toolkit. The creator tells the world which public key they are using and then creates a signature for each individual artifact. Crucially, the signature is a function of the artifact, so each signature is unique; you cannot just copy & paste it onto a different artifact like you might copy & paste the image of a handwritten signature onto a document. However, the creator’s signature is only a part of the solution. There are still two remaining problems; first, how can you communicate signatures? And second, how can you anchor it in time?

Distributing Signature and anchoring and them in time

Distributing signatures might sound like a minor problem that could be solved by just adding one to the digital artifact. But it’s not that simple. If you export the artifact into a different format, like sending a Word file as a PDF, or even just copy & paste content then the signature (and even the evidence that there WAS a signature) would be gone.

Anchoring an artifact in time is a key part of proving its authenticity. For obvious reasons, knowing when the artifact was created allows you to handle all kinds of different problems. An interview with a person that was created after the person’s death, or when a document refers to another one that was created at a later date, is more than just dubious it’s clearly fake.

Establishing a clear timeline is also important in addition to time-stamping the artifact itself. Think about what happens with compromised private keys. If a key is compromised you can simply replace it with a new one. From the moment you learn about the security breach, all further documents signed with the old compromised key would be invalid, while the previously signed ones still retain their validity. This means that whoever stole the key, or has access to the compromised key, can no longer use it. Without properly time-stamped artifacts this would be next to impossible and a nightmare if all records had to be signed and validated again.

Blockchain Technology is the perfect solution, not just for the task of creating secure digital signatures for artifacts but also for solving the twin problems of distributing the signatures and anchoring them in time.

Leveraging the one-way nature of blockchain

Unlike a normal database, a blockchain is built as a chronicle, a one-way ladder of chronological information. Everything that goes onto it is like a historic fact. As a result, data does not, cannot, change — it only grows incrementally as time passes. New data is appended in well defined chunks, known as blocks. These blocks have an immutable content and timestamp, and it is basically impossible to break the integrity of this chain. Every entry is part of such a block and, consequently, has a timestamp, too. This solves the problem of anchoring an artifact in time.

At the same time blockchain is built in such a way that writing to it requires the author to disclose their identity. Not their real identity, though, just the public key (or a derived format thereof). To prove that the entry has really been made by the owner of that public key, a digital signature made with the matching private key is mandatory. That means that everything on a blockchain has a provable origin.

Finally, the power of blockchain technology is maximized if each and everyone on the planet can access the data and read for themselves whatever they want to read. This solves the issue of distributing data. People often say that while blockchain technology is perfectly secure, it cannot hold massive amounts of data. Lucky for us, it is not necessary to store the actual digital artifact, such as a video or a music file, directly on the chain. Instead one can simply store the unique “fingerprint” of that content on-chain and still benefit from all the security benefits.

This fingerprint (the technical term is “filehash”) is a short string of characters, usually 32. Creating such a filehash is state-of-the-art technology. The additional beauty of using a filehash instead of putting all the data on-chain is that the data is not automatically shared with the world. The author is still in control of the data itself and can decide with whom they want to share it.

And that’s how blockchain technology becomes the perfect tool to prove the authenticity of (digital) artifacts!

Putting it all together

So, how does it work in practice? You start with digital data; either the artifact in question is already digital (such as the text of a publication, a picture or video, etc.) or you create a digital representation of a physical artifact by scanning a physical document or photo.

Next, you generate a filehash of that physical data and record it on a blockchain using your private key. When you distribute the artifact, you point to the record on blockchain. If the receiver of the artifact wants to verifiy whether they got the right version (unmodified), they can just reproduce the filehash from the data they received and compare with the entry on blockchain. If it matches, it’s the right one, the authentic version.

If the receiver wants to check whether the artifact was created by the right author (you), or by someone else, they can just verify the author of the entry on blockchain. If it was in fact you, the author listed on the blockchain will be identical to your public key (for the sake of simplicity we leave out the details about blockchain addresses and public keys). If they want to know when the record was created, they can just check the timestamp on blockchain. All this can of course be automated and applied to hundreds of thousands of records if need be.

If you want to see how this all works in practice and try it out for yourself, you can download NOTRZR from the Apple or Google Play app stores. You can also use the Notardec API to automate the processes we’ve talked about here. Questions? Let’s talk!

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information, or get in touch with us directly to discuss your project.

It’s been five years since the peak of the first token sale hype, and the notorious acronym “ICO” (Initial Coin Offering) is slowly receding into memory. Token sales in various forms and formats have tried to fill the void, but none have capture the imagination, or currency, of the public the way they did before the Crypto Winter of 2017. It’s safe to say things are just not the same. Whether it’s a Security Token Offering (STO) or one of the many other three-letter-acronyms for creative attempts to get people to buy digital assets, today is a far cry from the once instantly successful ICO’s of the past. It’s genuinely puzzling that so many, from entrepreneurs to established companies, still think that a token sale is an easy way to attract investors. It’s not. And there are several obvious reasons.

It’s genuinely puzzling that so many, from entrepreneurs to established companies, still think that a token sale is an easy way to attract investors. It’s not.

What happened to the ICOs?

Let’s just reflect a moment on what has happend so far. Back in the “good old days” the “coins” being offered in an ICO usually represented new cryptocurrencies, and the project selling this new coin planned to launch a new blockchain, where the token would be used as a native currency or utility token. Ethereum is the best model for this, and was incredibly successful to the point of essentially being an industry standard. Ether is still the form of payment required to use the Ethereum blockchain.

But using the Ethereum network has proven to be costly, especially with so many Token Sales launching there and driving up the “gas prices.” See some self-reinforcing effect here? The Ethereum token sale was coincidentally the first (successful) ICO in history. There is no way to bypass this payment of Ether in order to use the Ethereum blockchain, so the “coin” has a utility value. It was highly speculative, but still reasonably safe to bet on a sharp increase in the Ether price because it was so ubiquitous.

Copying this model required at least some software development and networking skills, but the early blockchain and crypto adopters had those resources. Unfortunately, the number of viable/profitable blockchain use cases is limited by what the technology is actually good at, and not everyone is a developer. Still, the idea of getting quick and easy funding via an ICO was incredibly tempting, especially as the hype started to surpass the reality of what was possible.

Then things got ugly. Hundreds if not thousands of projects popped up offering “tokens” with some arbitrary value, most of them with no actual utility for the described project, but artificially shoe-horned into the idea… because you need a token if you want to do a token sale, right? It was much like the early days of mobile apps, where every business rushed to have one whether they added any real value or not.

In many cases, there weren’t any software developers behind these projects, or at least ones that didn’t have experience with the technology. It became something of a Wild West, with countless terrible white papers, market criers, deception, and fraud, all contributing to a huge speculation bubble in Crypto, that resulted in a predictable market crash and the first long and cold Crypto Winter, which became the death knell for most running ICOs and killed off the market value of most existing tokens. Eventually, the regulators stepped in and created rules for future token sales, which choked a lot of projects and turned tokens mostly into securities, aka secrity tokens. The Ethereum token sale, for example, would not be legally permitted these days — and that would have been a tragedy.

Why do Token Sales fail today?

#1: Lack of enthusiasm and liquidity

One of the reasons why tokens sales struggle today, aside regulatory hurdles and lack of actual utility, is that many of the early ICOs used token sale contracts based on Ethereum’s native currency, Ether. Many investors used to be early-movers in Ethereum, so they often had an unexpected fortune in ETH. Others had the same with BTC or other early-day cryptocurrencies, and there were successful business models for service providers converting BTC into ETH and selling tokens. These fortunes are largely gone now, and the experienced hands still holding large quantities of ETH know how to distinguish good projects from the bad ones. So in short: hype, enthusiasm, and liquidity are a far cry from the good old days. But that’s not the only driving factor.

#2: Regulations

Regulations have caught up with blockchain technology and imposed many restrictions. Most tokens count as securities these days, and securities are difficult to sell. You need a prospectus in most jurisdictions, and you need to do KYC/AML. This costs money, can require time consuming development and management, and is an effort that deters many potential investors. You also can’t just list the tokens on exchanges, which means investors are stuck with their token and are unable to flip it or sell it on. The effort to list tokens is really high; you need legal advice and regulatory clarity, etc. For all this red tape we can thank the many bad actors who sold worthless tokens to gullible investors. The number of scams justifies tough regulation.

#3: Product-Market-Fit

The main reason why most token sales fail these days is because they want to be better than all the notorious scammy ICOs from the past. Many token sales today offer investment in real businesses with real revenue and accountable assets. This is a good thing! But, these real businesses make for a bad Token Sale.

Here’s why. Tokens that are backed by real assets (such as a revenue share token) have a quite stable value. These tokens are like equity, but different in that it’s just a value granted to the holder without ownership rights. And because they come from a real business, they must follow all the rules of the classic economy. If it is a classic business, it is a classic investment, it just comes in a new shape — a token. Tokens are regarded as insecure and easy-to-steal. The newspapers are full of stories about massive thefts and exploitative scams. The technology is hard to understand for most people, especially old school investors who are happy with a yield of 3–7% per year. (We’ll come back to that later).

So why does it have to be a token? They come with all sorts of practical issues. If you loose the private key, they are lost forever. They are not accepted on Exchanges. Banks don’t want to keep them for you. You are mostly on your own. In short: it’s the wrong packaging for an otherwise reasonable investment for an interested audience. Solutions for that in the form of tokenized equity held by third parties are in the making. However, that can hardly be called a token sale.

Finding the Right Audience

Let’s look at the other side of the equation. Obviously there ARE people who like to invest in tokens and have no problem with the technology. They invested billions in the early ICOs and were perfectly happy to take care of their tokens themselves. What about them? Well, we said we’d come back to the yield. Let’s assume an average 5% for an investment with a real business. Then the “value” of your investment roughly doubles in 20 years (not counting inflation, which is about 5% alone already — and more!).

The crypto/digital asset savvy audience is used to very different numbers. Bitcoin often doubled value in a matter of weeks. Some coins multiplied in days and then imploded in hours. But that’s exactly what the crypto/token investors are after. Gambling, not real business.

So if you plan a token sale, don’t count on these people if you have a real value in your business. It’s not going to help you to try and raise money from token speculators, it’s just going to be a burden.

Subscribe to our Medium publication to receive a notification when we publish the next installment of this mini-series, How to Run a Successful Token Sale.

At CoreLedger, we believe that blockchain is a practical technical solution to improve and solve a wide variety of issues across industries and sectors, which is why we try to cut through the hype and focus on real-world applications, not just what’s technically possible.

CoreLedger’s mission is to help businesses of all sizes quickly and affordably access the benefits of blockchain technology. From issuing a simple token to enterprise-grade token economy solutions, we have all the tools and components you need to quickly and affordably integrate blockchain into your business whether you’re a new startup or a big multinational enterprise.

Interested in our results-focused, real-world approach? Visit our website for more information, or get in touch with us directly to discuss your project.