Five Tips for Building Blockchain Projects from US Department of the Treasury

There are a lot of projects and processes where Blockchain technology could be extremely helpful. But it’s not like all the projects really need it.

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The US Department of the Treasury has just published five tips for people to determine if blockchain technology is central to the project:

1.   Do you need a structured central repository of information?

2.   Is more than one entity reading or writing transactions to a database?

3.   Is there less than total trust between parties/entities in the ecosystem (for example, one user will not accept the “truth” as reported by another user)?

4.   Are central gatekeepers introducing costs and /or “friction” when verifying transactions (for example, manual verification)?

5.   Are there routine or logical interactions that occur that could be programmed to self-execute (for example, smart contracts)?

If the answer to several of those questions is yes, the next step could be interviewing a variety of different stakeholders to understand their pain points, the Treasury states. It also recommends seeking out diverse teams and documenting the entire process, to help spot weaknesses and opportunities.

US Department of the Treasury warns, though:

“Include both blockchain skeptics and non-technical people. A team comprised of only pro-blockchain people can be blinded by the hype and force a square peg into a round hole.”

The advice concludes by advising that entrepreneurs carve out time for explaining the basics of blockchain technology to everyone from investors to lawyers. Again, this is because diverse perspectives can help teams get beyond the hype surrounding blockchain experiments.

Of course from one point of view such kind of research rather can be rather time-consuming. But from another point of view according to the opinion of officials from US Department of the Treasury “building enough time into your project plan to present and explain blockchain technology in clear, easy-to-understand terms will help you plan for, and move through the process swiftly.”

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