Crypto Wallet App Development: A 2025 Guide

Want to develop a crypto wallet app? By 2030, the Global Cryptocurrency Payment Apps market is projected to reach over $2.108 million, growing at a CAGR of 18.52% over the next eight years (Research and Markets).

A staggering 290% increase compared to previous years is mainly driven by the widespread adoption of cryptocurrencies, market strengthening due to recent ETF approval, and wider adoption of cost-saving payments provided by layer-2 solutions. Realizing the future perspectives of cryptocurrency and its lucrative opportunities for business development, many companies already started investing in digital crypto projects.

For example, we have built Dollet Wallet – a non-custodial crypto wallet that features seamless asset management and multi-chain compatibility. Thanks to this project, we know all the ins and outs of blockchain wallet development and can discuss them with you.

In this guide, IdeaSoft developers will introduce the basics of how to create a crypto wallet app for your business. You’ll discover the core essentials of crypto wallet app development, the basic features, and the step-by-step strategy that will help you build a scalable and functional crypto application.

IdeaSoft has the expertise and a full-cycle product team on board!

Looking for an experienced team of crypto wallet developers? Let our experts share key insights on developing a custom digital solution and explain the common development challenges to help you successfully plan your crypto wallet project.

Table of content:

Why to Develop a Crypto Wallet Application?
What Are the Types of Crypto Wallets?
Essential Features in Crypto Wallet Apps
8 Fundamental Aspects for Developing a Cryptocurrency Wallet App
Our Experience in Crypto Wallet Development
Key Challenges in Cryptocurrency Wallet Development
Summary

Why to Develop a Crypto Wallet Application?

We distinguish 4 reasons why it makes sense to start crypto wallet app development:

Riding the wave of market growth. Startups develop a crypto wallet app to enter a growing market. This not only opens avenues for substantial revenue through transaction fees and premium features but also offers opportunities for innovation and brand establishment in the competitive fintech space
Promoting financial inclusion. Cryptocurrencies offer a unique solution to the challenges faced by unbanked and underbanked populations. By developing a crypto wallet application, developers contribute to financial inclusion, providing access to financial services for those who lack traditional banking facilities. Crypto wallets facilitate global transactions without the barriers imposed by traditional banking systems, thus fostering economic participation across diverse demographics.
Contributing to economic growth. Developing a crypto wallet application not only benefits individual users and businesses but also contributes to the overall growth of the cryptocurrency ecosystem. By fostering innovation and encouraging new technological developments, developers play a crucial role in advancing the blockchain space and supporting the global economy’s digital transformation.
Seizing market differentiation. By offering unique selling points such as advanced security measures, user-friendly interfaces, and additional services like DeFi integration, developers can set their crypto wallet applications apart from the competition. Strategic partnerships with other fintech and blockchain companies can also enhance the application’s value proposition, attracting a broader user base.

Overall, startups, end users (cryptocurrency holders), businesses, merchants, investors, and traders benefit from crypto wallet app development.

What Are the Types of Crypto Wallets?

The functionality and technologies required for the crypto app development will mainly depend on the type of wallet you choose. So, the first stage in understanding how to develop a crypto wallet is to identify what type of wallet can better match the app’s features, project requirements and needs. This table highlights the main differences between cold wallets and hot wallets.

crypto wallet app development — *The difference between hot and cold wallet type*

And here is a comparison table with the different wallet features we recommend you investigate before you decide to develop Bitcoin wallet application.

Feature	Cold Wallets (Hardware Wallets)	Hot Wallets	Hybrid Wallets
Definition	Physical devices designed to store cryptocurrency offline.	Software-based wallets connected to the internet.	Combine elements of both cold and hot wallets.
Security	High – private keys isolated from the Internet, resistant to online hacks.	Lower – requires an ongoing Internet connection, more vulnerable to online attacks.	Enhanced – majority of funds stored offline, small portions kept online.
Accessibility	Limited – requires physical access to the device.	High – seamless access for active trading/transactions.	Balanced – offline storage for security, online for accessibility.
Usage	Best for long-term storage of large amounts of cryptocurrency.	Ideal for active trading and frequent transactions.	Suitable for users needing both security and convenience.

The wallet type, however, is not the only aspect you need to develop a secure blockchain wallet application. Identifying the features and technologies of your future application will help you to create a cost-efficient and competitive solution for crypto payments. So, let’s review the most important features that can maximize the performance of your cryptocurrency platform.

Crypto Wallet Apps Features to Develop

Planning the app’s functionality is another essential aspect of such projects, as it allows you to understand the use cases and identify the benefits of your app compared to the existing market alternatives.

Below, we’ve outlined the most fundamental features in crypto applications, which you can apply to create a custom digital wallet app or even build your own crypto casino!

#1. User Authentication

An essential feature that enables wallet access only to authorized individuals. As a rule, user authentication is exceptionally important for meeting various crypto compliance standards such as AML, KYC, and others. Typically, it is implemented through secured login credentials, biometric authentication, or multi-factor authentication (MFA), which prevents third-party access to the crypto wallets.

#2. Support for Multiple Cryptocurrencies

Today, multi-currency apps have a strong competitive advantage compared to single-currency alternatives, like Bitcoin or Ethereum wallets. Integrations with various currencies can significantly improve the usability of your digital wallet app, making it more versatile and functional. Additionally, multi-currency crypto wallets allow asset holders to diversify their portfolios, which is important from both the business and the customers’ standpoints.

#3. Secure Blockchain-Based Transactions

Once you’ve decided to develop a crypto application, make sure to prioritize the security of your on-chain transactions and other cost-related operations. The transaction safety measures include but aren’t limited to encrypting sensitive data, verification of user accounts and signatures, and integrations of blockchain security protocol, etc.

#4. Integration with Payment Gateways

This feature enables users to perform the payments directly from their crypto wallets, through the integrated external payment processors or gateways for cryptocurrencies. Crypto-based technologies work similarly to the standard payment processor gateways and acquire bank credit cards and are commonly applied to make transactions more simple without compromising their security.

#5. Efficient Address Management

Powerful address management functionality allows crypto users to ease wallet address tracking and facilitate their identification. However, along with the technical aspects, developers also need to ensure the system provides a convenient design and user-friendly experience for managing crypto addresses.

#6. Integrations with the Paper Wallets

Importing paper wallets allows crypto holders to transfer funds between a physical paper wallet and the digital crypto wallet app. Yet, similarly to the crypto exchange security features, paper wallet integration should be handled carefully due to its high relevance to sensitive user information and financial data.

#7. QR Code Scanning

This function is mainly used to simplify the process of sending and receiving cryptocurrencies. Users can scan QR codes to input wallet addresses, conduct transactions, or log in to their crypto wallets through any mobile or desktop device. The QR code scanning integration is relatively straightforward and features plenty of established libraries and APIs available for developers.

#8. Automated Session Logout

This functionality can provide the add-on security layer for your digital wallet app, ensuring they’re safe and can be accessed only by authorized parties with specific permissions. Once the session is ended, the system will automatically log you out, confirming the safety of the in-app processes and crypto manipulations.

Got lost in tech details?

8 Steps for Developing a Cryptocurrency Wallet App

Now we would like to describe the basic steps for creating a crypto wallet app and give best practices for each step based on your experience.

1. Review the Latest Blockchain and Cryptocurrency Concepts

Keep track of the latest trends and technology updates in the blockchain and crypto landscape. This knowledge will provide a solid foundation during the actual development process. Revise the current Layer-2 solutions as far as they offer higher transaction speed with a relatively low gas fee.

At the current market state, we recommend turning your attention to Solana due to its ecosystem prominent growth and Polygon, due to the fastest implementation of the ERC-4337 token standard. This new level of technology allows for building a programmable wallets with smoother transaction flow and higher level of security at the same time.
Herman Stogniiev, Co-founder and CTO at IdeaSoft

Understanding the fundamentals of blockchain architecture, different consensus mechanisms, and the specific features of cryptocurrencies will help you maximize the performance of your project, ensuring its competitiveness in the long run.

2. Utilize Established Open-source Cryptocurrency Libraries

Leverage well-maintained, open-source cryptocurrency libraries like BitcoinJ for Bitcoin or Web3.js for Ethereum. These libraries have been extensively tested for blockchain-based product development and can significantly enhance the development workflow while ensuring reliable functionality and keeping your products secured.

3. Leverage APIs for Seamless Integration

Utilize reputable APIs provided by blockchain networks, which can provide high-level reliability and development support. These APIs offer standardized methods to interact with the blockchain, making the integration process smoother and more efficient.

4. Harness Cloud Technology for Scalability

By utilizing cloud platforms like AWS, Google Cloud, or Azure build a scalable crypto web app that always provides top-level user experiences. Additionally, leveraging the cloud solutions in crypto wallet applications enables businesses to effectively allocate computation resources based on user demand, providing a seamless performance even during peak usage.

5. Choose an Appropriate Technology Stack & Development Expertise

Select a technology stack and blockchain expertise that aligns with your project’s requirements and business goals. For instance, consider using languages like JavaScript (for web-based wallets) or Java/Kotlin (for mobile apps on Android or iOS). By choosing the databases, frameworks, and libraries that work best on the target operational system and device, you can provide the smooth and efficient performance of your crypto wallet app.

6. Strengthen Security Measures

As we mentioned earlier, security is the paramount component in cryptocurrency wallet development. Implementing industry-standard security practices like data encryption, secure key management, and secure coding practices can make your product more resistant to hacking attacks, leakages, and other threats. Additionally, secure and reliable systems will help your crypto wallet app gain recognition among larger audiences.

7. Analyze Market Competitors

Conduct thorough market research to understand the strengths and weaknesses of the existing crypto wallets. Identify the key areas where your product can stand out among the competitors with unique features or improvements. Use the results of your research to make data-driven decisions and build a powerful digital wallet for cryptocurrency.

8. Implement & Refine Your Application

After the app release, pay attention to the user feedback and adjust the functionality of your crypto wallet to meet the client’s needs. Continuous refinement and updates based on user input, as well as catching up with the latest industry innovations, will help you to ensure the product’s success from a long-term perspective.

Our Experience in Crypto Wallet Development

At IdeaSoft, our blockchain team features vast expertise in building digital wallet solutions for crypto. For each of the projects, we create a custom development strategy that is fully tailored to your project requirements and business goals.

For example, for one of our recent projects – Dollet Wallet – our experts have built a non-custodial crypto wallet that features seamless asset management and multi-chain compatibility. Along with a functional admin panel, the app streamlines processes for crypto storage, DeFi farming pool investments, and bridge-enabled asset transfer. Finally, this cryptocurrency wallet supports third-party service integration to enable the seamless in-app exchanges of crypto assets.

*Dollet Wallet wireframes featuring a basic wallet functionality*

To maximize the project’s efficiency, our experts have created a data-driven development strategy based on the current market trends and target audience studies, yet included the core business goals and project requirements discussed with our client.

Key Challenges in Cryptocurrency Wallet Development

According to Rostyslav Bortman, the Head of Blockchain at IdeaSoft, the main challenge in crypto wallet development is the security of private key management on a device.

Crypto wallets utilize the device memory for private key storage, so developers must analyze the architecture and technical specifications of the hardware when building cryptocurrency wallet apps.

Along with the private key management, other important aspects in creating digital wallet apps include the app’s UI/UX design, its scalability, and blockchain development expertise.

UI/UX Design. In the challenging landscape of Web 3.0 development, ensuring an outstanding user experience and seamless functionality can give you a serious advantage over the competitors. With an expert UI/UX team, you can create a user-friendly interface that ensures a seamless engagement with the key wallet services and functionality.
App Scalability. As the user base and transaction volumes grow, you may need to scale your project to optimize its performance for larger traffic flow. So, once you decide to build a cryptocurrency wallet, make sure to consider its future development and growth strategy as well. Considering the scalability of your digital crypto wallet will help to optimize your application, extend its functionality, and integrate the newest technologies, which benefit both the client experience and the business as a whole.
Blockchain Development Team. The development expertise is an essential component of your project’s success. For this reason, it’s important to hire specialists who are relevant to your project requirements and business goals. Additionally, it’s recommended to check the developers’ experience and discuss your expectations to ensure a productive and efficient collaboration.
Regulatory and Legal Challenges. Adhering to evolving regulatory frameworks and legal requirements is crucial for your crypto wallet app development. Compliance with anti-money laundering (AML) and know-your-customer (KYC) regulations can be particularly challenging, as these requirements vary across jurisdictions and are subject to change.
App Security and Safeguarding Measures. The cryptocurrency space is a prime target for hackers, and wallet developers must continuously adapt to evolving security threats. Our team always recommends implementing advanced encryption, and multi-signature authentication, and conducting regular security audits after each smart contract or even wallet software update.

When developing a cryptocurrency wallet, it’s also recommended to consider the right wallet type, including multi-currency support and specific in-app functionalities, which can enhance the app’s usability and facilitate user experience.

How much does it cost to develop a crypto wallet app?

The cost of cryptocurrency wallet application development is influenced by the desired feature set, complexity, chosen platform, and the location of the development team. For a basic wallet with features like storing a few cryptocurrencies and basic send/receive functionality, the estimated cost range is between $30,000 and $40,000. This is suitable for individuals or startups looking for a simple solution.

We always recommend our clients to start with a discovery phase, where we properly draw up requirements for the project and make proper estimates.

For a more moderate wallet that includes additional features like supporting a variety of cryptocurrencies and basic trading capabilities, the estimated cost increases to $50,000 – $80,000. For those seeking an advanced cryptocurrency wallet with features such as staking, DeFi integration, and an in-app exchange, the estimated cost may rise to $100,000 – $200,000.

Want to develop a crypto wallet application?

We can calculate the cost of wallet development based on your wishes. Just contact us!

This complexity level often demands the expertise of a full-cycle development team, such as IdeaSoft, which is capable of handling intricate functionalities and both iOS and Android platforms. The investment reflects the comprehensive nature of the features and the need for a more extensive and blockchain-specialized development team.

Summary

Choosing the right functionality, efficient strategy, and relevant expertise is essential for building a successful crypto wallet application. And, having uncovered the essentials of how to create a cryptocurrency wallet for your business, it’s the best time to get started on your project development with the professional blockchain team.

IdeaSoft is one of the leading blockchain companies with proven expertise in crypto app solutions development. Our team of dedicated blockchain developers, creative designers, professional project managers, and experienced business administrators will guide you through each stage of the project delivery, helping you to build the most efficient and effective solution for your company.

Incorporating restaking features can further enhance your wallet app by providing additional rewards and incentives for users. Contact us today to discuss how to create a crypto wallet app that empowers your business development and growth!

Security Tokens: Transforming Finance and Investment

At present, there’s a big fuss made around security token offerings (STO) in the crypto asset community. From an operational and a regulatory perspective, these tokens surely have a huge potential to reshape and optimize the current fundraising mechanisms.

But does it mean the security token era is the future of the finance and investment industry?

According to the recent market study by Deloitte, the answer is YES. Security tokens are expected to become the securities of tomorrow, as they can provide clear benefits in terms of transparency, efficiency and enhanced liquidity. Moreover, successful projects, such as Securitize, already getting the leading positions in the world of security assets.

In this article, we’ll make a comprehensive overview of security tokens in crypto, covering their benefits and key market insights in the STO niche. Additionally, IdeaSoft’s specialists will underline the major development aspects in building a robust digital securities ecosystem based on our recent project – issuance platform development for the Securitize project.

Looking for an experienced dev team?

Whether you’re interested in launching a custom solution for asset tokenization or need expert support for the existing product, our developers will get you covered. Contact our professional development team and find out how you make the most of your security token project today!

Table of content:

Security Tokens Market Overview & Its Future Perspectives
Why Do Security Tokens Matter?
Limitations & Benefits of Security Tokens
Our Expertise: Securitize Project
Summary

Security Tokens Market Overview & Its Future Perspectives

The real-case successful examples of security tokens, such as Polymath, Harbor, tZero and Securitize have uncovered the immense potential of this niche across many industries. The recent overview by Meticulous Research forecasts the tokenization market value to grow from $3.76 billion in 2023 to $13.23 billion by 2030. Such an impressive market projection encourages businesses to consider the ways on to invest in security tokens and the business benefits of these projects.

In the finance and investment niche, the significant market growth of security tokens is explained through the increasing awareness, wide adoption of this technology and its ability to reshape traditional investment mechanisms. According to Andrii Lazorenko, the CEO and co-founder of the IdeaSoft blockchain development company, the future of security tokens can be interpreted directly from their technical specifications.

“The unique feature of security tokens is their ability to “tokenize” the value of nearly any real-world asset, which can be easily managed and transferred through blockchain. So, once the regulatory requirements are put in place, their presence on the blockchain will become legal, significantly increasing the market capitalization.”
Andrii Lazorenko, CEO and co-founder of IdeaSoft

An intensive market expansion over the next few years is not the only factor that identifies the success of security token projects. The legalized digital tokens are expected to facilitate swift and streamlined financing processes while keeping them fully secure and cost-efficient. For instance, individuals will have the ability to undergo a prompt Know Your Customer (KYC) verification, whitelist their digital wallets, and execute transactions efficiently. In fact, this becomes critical for small and medium-scale projects that need to quickly acquire the capital they need for the successful product development and release.

Why Do Security Tokens Matter?

In our recent blog post, the IdeaSoft specialists already discussed the key differences between digital security tokens and utility tokens and their role in blockchain projects. Here, we’ll analyze the key aspects of why security tokens are important and their potential in the finance and investment landscape.

Security tokens and blockchain can bring numerous benefits to large corporations and prospective startups. Once integrated, these technologies can automate and optimize the asset management and exchange processes, making them fast, simple and more accessible compared to the traditional mechanisms.

Along with seamless and efficient trading, adopting a crypto security token will enable easier access to the global markets, helping companies improve their development and growth.

Unlike other digital solutions, crypto security tokens also offer a decent transparency level to its users and ensure high-level security based on a strict regulatory background. In particular, such tokens need to comply with the Know Your Customer (KYC) and Anti-Money Laundering (AML) laws, as well as the numerous regulations of other relevant jurisdictions.

Finally, security tokens are the game-changers in the financial industry, as they can unlock huge liquidity pools for traditional systems. This benefits all the network participants: the issuing company and the owners of security tokens.

Got lost in tech details?

Let us help you figure it out, and correctly draw up the requirements for your project

Limitations & Benefits of Security Tokens

The actual value of any technology highly depends on the advantages and potential limitations it can provide for your business. Below, our experts have made a comprehensive summary of the key pros and cons of digital security tokens, explaining their efficiency from the business development standpoint.

What Are the Benefits of Security Tokens?

Compared to traditional forms of securities, security tokens can uncover numerous advantages for a company or business. Below, IdeaSoft experts have uncovered the core aspects of how companies and enterprises can benefit from security token solutions.

The Key Advantages of Security Tokens

Global Accessibility	Blockchain technology allows for the direct trading of security tokens, in which no intermediaries are required. This potentially opens up numerous investment opportunities to broader and more diverse audiences.
Enhanced Efficiency & Automation	Smart contracts enable automated compliance with regulatory requirements, which helps to reduce administrative overhead and streamline the issuance and transfer process.
Cost-Effectiveness	The automation and optimization benefits provided by security tokens and blockchain can also result in greater cost efficiency. In particular, this becomes possible due to lower issuance costs and reduced fees associated with trading and settlement.
Improved Compliance & Security	Built-in compliance features of security token can ensure that only eligible investors can participate in offerings, helping issuers adhere to regulatory requirements. Additionally, the security features of blockchain technology can protect against fraud and unauthorized changes to ownership records.
Accessibility for Small and Medium-sized Enterprises (SMEs)	With crypto security tokens, SMEs can raise capital in a more streamlined and cost-effective manner compared to traditional fundraising methods. This can lead not only to optimized cost expenses but also to drive larger investments for development and growth.
Fractional Ownership	Unlike other digital tokens, security tokens provide fractional ownership solutions for high-value assets (for instance, equity, dividend, profit shares, voting, or buyback rights). This also allows to engage a larger number of investors, including those that were previously out of reach.
Increased Liquidity	Digital security tokens can potentially improve liquidity in traditionally illiquid markets across various industries (for ex. real estate). This is mainly achieved through the optimizations of the exchange process, which becomes more flexible, accessible and much faster compared to the traditional options.

Security tokens open up a wide range of improvements from both business and client perspectives. From enhanced efficiency, transparency and process automation to improved liquidity and global market access – you’ll get the first results right after its integration.

Potential Limitations of Digital Security Tokens

Along with the security token advantages, it’s also important to keep its limitations and architecture specifications in mind. Below, IdeaSoft developers have covered the major characteristics of security tokens that should be considered before the project development.

High Entry Barrier. Only accredited investors can whitelist a wallet and purchase security tokens, which potentially narrows the audience number. To pass the accreditation, investors need to comply with the regulatory authorities and the laws of the respective countries.
Small Secondary Market: This problem stems from the first issue. Since there are relatively few accredited investors worldwide, even if you manage to buy a security token, selling it can be quite challenging. Holding onto it for a long time may be necessary because of limited market liquidity.
Financial Literacy. To successfully pass accreditation and start engaging with security tokens in crypto, an individual must possess a high level of education, significant experience in financial instruments, and capital.
Market Competition. Typically, accredited investors start with well-established and trending assets like Tesla stocks and others. The token investments on niche-specific assets like for example security tokens of Ethereum, can be lower due to the lack of its awareness and asset volatility.

Knowledge and awareness of token specifications is one of the key points that can identify the project’s success. At IdeaSoft, our developers have deep expertise in tokenized technologies and proven experience in building security token exchanges. Our team creates a business-driven product that fully covers the specifications and benefits of security tokens.

Our Expertise: Securitize Project

One of the recent blockchain-based development projects delivered by IdeaSoft is the tokenized securities platform for Securitize. This tech-driven solution enables a seamless, compliant cross-chain trading of private securities on public platforms and multiple blockchains.

Its integrated solutions, such as Digital Securities Protocol (DS Protocol), functional investor dashboard and multi-blockchain support, enable seamless and fully secure cross-border transactions, outstanding efficiency and excellent user experiences.

How to Issue a Security Token with Securitize?

Our team has created a straightforward algorithm for digital security issuance, management and exchanges, which consists of the following stages:

Step 1: Secure Custody of Cryptocurrency. Acquire the desired amount of cryptocurrency, such as Ethereum (Ether), and secure these digital assets by putting them into a secure custody solution.
Step 2: Audit and Proof-of-Reserves. Engage a service like Chainlink to ensure transparency and provide proof-of-reserves for the cryptocurrency held in custody.
Step 3: Tokenization. Tokenize your cryptocurrency through the Securitize platform (or its alternative), so that one token can now represent the value of the equivalent amount of Ether securely held in custody.
Step 4: Security Token Offering (STO). Offer the newly created security tokens to potential investors. In such a case, a security token performs as a tradable financial instrument, similar to a bond with specific conditions. Additionally, it represents ownership of the underlying cryptocurrency held in custody.
Step 5: Regulatory Compliance. Ensure that the security token offering complies with relevant securities regulations and requirements.
Step 6: Investment. Investors can purchase the security tokens, effectively gaining exposure to the cryptocurrency (e.g., Ether) held in custody.
Step 7: Asset Management. Manage and monitor the cryptocurrency holdings in custody to maintain transparency and security.

Today, the issuance platform Securitize is known as the first and only platform to fully integrate compliance protocol with regulated marketplace ATS and to enable live trading security tokens. The IdeaSoft developers helped to build an efficient, secure and highly profitable solution that has already revolutionized the security token market.

Summary

Security tokens open up a wide range of opportunities for business development and growth. Their high liquidity potential, and accessibility and effectiveness enable access to the benefits that are unavailable for utility tokens, or fiat currencies.

Now it becomes obvious that crypto security tokens are the future of finance and investment. Over the next years, more companies are expected to invest and develop their asset tokenization solutions to increase their operational efficiency and business competitiveness. ERC 404 tokens are set to play a significant role in this evolving landscape.

Utility vs Security Token: Differences and How to Choose

With over two decades of presence in the market, digital tokens has become an essential component of blockchain solutions. Similar to coupons, casino chips or company stocks, they act as a cash substitute and represent a specific amount of digital resources you can own, transfer or redeem.

Alongside commonly known NFTs and payment tokens you’re certainly aware of the other trending assets, such as utility tokens and security tokens. So, in this article, the dedicated IdeaSoft experts will explain the difference between these digital tokens and their functions in the ever-changing crypto market. Also, you will find out whether utility or security token is the right solution to meet your business goals.

Are you looking for digital token integration experts? Contact us right away to discuss how to successfully implement utility and security tokens into your business!

Table of content:

Digital Tokens: Market Outlook & Benefits
Security Tokens: Definition & Specifications
Utility Tokens: Meaning & Specifications
Utility vs. Security Token Comparison: A Quick Overview
What’s Common Between Security and Utility Tokens?
The Key Differences Between Utility and Security Tokens
Which Token Type Is Better for Your Blockchain Project?
Summary

Digital Tokens: Market Outlook & Benefits

As of September 2023, the global cryptocurrency market cap has reached $1.034 trillion, which is over a 150% increase compared to September 2020 (CoinMarketCap). And, the rising trends for asset tokenization, DeFi, web 3.0 and cross-chain solutions are expected to become the main growth factors for the market’s success.

crypto market charts, crypto overview, utility vs security tokens — **Source**: Coinmarketcap

Despite the decades of presence on the market, digital tokens become truly popular only in recent years. Today, you can use digital tokens to buy real-world assets, pay university tuition and hotel accommodations, make investments and create crypto exchange solutions.

The cross-industry adoption of digital tokenization brings a whole bunch of benefits from a business standpoint. Digital tokens allow for seamless, efficient, and secure transactions while remaining highly accessible, unlocking substantial liquidity from illiquid assets.

Depending on the technical characteristics, use purposes and value for the particular crypto project, companies can choose from a wide range of token types. So, let’s now review the key highlights of utility and security tokens to identify which one can fully meet your business goals and needs.

Security Tokens: Definition & Specifications

A security token is a digital representation of real-world asset ownership, such as the company’s equity or bonds, real estate or other tokenized tangible or intangible objects that have been verified on the blockchain. Typically, it is directly related to the company’s value and growth, providing the owners with dividends, voting rights and other benefits. That is why, security tokens are often viewed as investments.

It’s also important to admit that the tokens are viewed as securities only when they meet the strict conditions of the SEC (the Howey test). This confirms that the transactions under the security tokens are qualified as an “investment contract” and would therefore be subject to U.S. securities laws.

However, it’s not the only type that has gained huge recognition in today’s security token landscape. Utility tokens are another asset class that is currently trending and has been also applied across a wide range of projects. So, to determine which – security or utility token – can better align with your project requirements and needs, let’s now review the specifications of the latter one.

Utility Tokens: Meaning & Specifications

Unlike the other types of tokens, a utility token is much more than just a payment solution for blockchain. It enables owners to access the services, features and offerings on a decentralized platform, acting as a lifeblood for a specific blockchain network. Utility tokens are an essential tool for nearly any blockchain ecosystem, which is more focused on user engagement and decision-making rather than asset ownership.

Once issued by a company, utility tokens perform the role of digital coupons, that can be redeemed in the future for discounted fees or provide access to a product features or service. It’s also important to say, that utility tokens are not used for investment purposes, as they’re relatively underregulated and can avoid federal laws governing securities.

An excellent example of digital utility tokens is Ether (ETH), which are aimed to enhance smart contract execution and improve the on-platform transactions within the Ethereum network.

Basically, these are the most important aspects of the utility vs. security token overview, that will help you to understand their usage specifications and identify the right solution for your project.

Utility vs. Security Token Comparison: A Quick Overview

As previously described, security tokens typically represent ownership or assets with intrinsic value and are often subject to regulatory oversight. In contrast, utility tokens are primarily designed to provide access to specific products or services within a blockchain platform, offering functionality rather than ownership.

Let’s now review their main differences to enhance our understanding of this technology.

Utility vs. Security Token Comparison, security or utility token, utility tokens and security tokens

What’s Common Between Security and Utility Tokens?

Before we start diving into the differences between a utility token and a security token, let’s briefly review the interception areas they feature. This can help you to better understand their role in blockchain development, as well as the perspectives they offer upon the integration.

Digital Nature: Both security and utility tokens relate to digital assets, represented by cryptographic codes on a blockchain.
Blockchain-Based: They are built on blockchain technology, which ensures transparency, immutability, and security of transactions.
Peer-to-Peer Transfers: Both types of tokens can be transferred without the need for intermediaries.
Programmability: Both utility and security tokens can have programmable features, thanks to smart contracts, enabling automated actions when certain conditions are met.
Potential for Liquidity: While security tokens are typically associated with ownership in an underlying asset (like equity in a company), they can be traded on platforms that facilitate secondary market trading. Similarly, utility tokens can often be bought, sold, and traded on exchanges.
Regulatory Considerations: Both types of tokens may be subject to regulatory considerations, but security tokens are more likely to be classified as securities and thus subject to stricter regulations.

Along with the commonalities of each, let’s explore the unique features that make security and utility tokens stand out.

The Key Differences Between Utility and Security Tokens

To find out the best-matching technology for your project, it’s always important to check the strong sides and potential drawbacks of each option available. IdeaSoft specialists have created a simple and straightforward comparison of security token vs. utility token, that will help you make the right choice.

Security Tokens

Main Advantages of Security Tokens:

Fundamental Values. Security tokens provide fundamental values such as profit shares, voting rights, legal security and so much more, which makes them an attractive solution for a wide range of projects.
Regulation Compliance. From the regulatory standpoint, security tokens are better than utility as the prior ones have to pass the strict conditions of the SEC (The Howey Test).
Recovery Property. Security tokens feature recovery protocols, ensuring the safety of the issued assets.
Straightforward Integration. Simple integration of these tokens allows their smooth integration into different markets and networks.

Potential Drawbacks of Security Tokens:

Challenging Compliance Process. Meeting regulatory requirements, such as conducting audits and filing reports, can be complex, time-consuming, and expensive.
Market Volatility. Depending on the underlying asset, security token values can still be subject to market fluctuations, similar to traditional securities.

Utility Tokens

Main Advantages of Utility Tokens:

Enhanced Functionality. Utility tokens can enable process automation through smart contracts, thus contributing to the platform’s efficiency and profitability.
Better Flexibility. They can be designed for a wide range of purposes, from accessing products, services or features to participating in voting or governance mechanisms.
Boost the Platform Usage. Utility tokens allow businesses to improve the platform’s usability, helping users to easily access the required services or products.
Broader Audiences. These tokens can also attract a wide user base, including those interested in using the platform’s services rather than strictly for investment purposes.

Potential Drawbacks of Utility Tokens:

Limited Investment Potential. Unlike security tokens, utility tokens do not provide direct ownership or profit-sharing rights, which makes them less attractive to certain investors.
Potential Regulatory Uncertainty. The regulatory frameworks for the utility tokens are in the early stages of development, which can cause significant challenges in the regulatory area.

The detailed comparison of utility token vs security token plays a key role in evaluating their potential value from a business standpoint. Now, you’re fully ready to choose the best digital token that aligns with your project requirements and goals!

Which Token Type Is Better for Your Blockchain Project?

Having explored the specifications of each token, you’re all set to find out what solution – utility tokens vs security tokens – can better correspond to your project needs. At IdeaSoft, our dedicated blockchain developers have proven expertise with crypto technologies in fintech, blockchain, B2B and B2G, and many other industries. Regardless of the product’s complexity and arising challenges, we’ll provide a professional assistance in building a robust and secure solution for your business.

So, if your primary goal is to provide access to specific services, products, or functionalities within your platform or ecosystem – consider the utility token application. Typically, they help products to facilitate transactions, provide accessibility, and enable better user engagement within a network.

However, if you want to represent ownership in an underlying asset, such as equity in a company, profit-sharing, or debt – choosing the security tokens will be a better fit. They’ll provide investors with the potential for returns, as the token’s value is estimated based on the company’s valuation.

To succeed in digital token integration, evaluating the project specifications, business goals and consumer needs must be the top priority for your business. Our dedicated experts at IdeaSoft always conduct comprehensive product research and market analysis, helping to identify which token, utility or security, will align with the company’s goals and technical specifications of your crypto solution.

Summary

Though each of these tokens is widely applied in blockchain, the use and purpose of utility and security tokens are completely different. So, before investing in its integration, businesses should make a detailed utility/security token comparison to understand which will better serve their goals and needs. While security tokens work best for fundraising and investments, utility tokens can unlock access to special services, products, or other related assets. ERC 404 tokens provide an innovative approach for specific use cases within this ecosystem.

With cross-industry experience and deep expertise in blockchain, we help our clients to identify, develop and implement the most efficient solutions, technologies and innovations in their crypto projects.

Smart Contract Testing & Debugging: Best Practices for Web 3.0 Builders

The security and reliability of any software product highly depend on the quality of its source code. When it comes to blockchain-based products, checking every single possible variable is essential, with a particular emphasis given to smart contract testing.

Once the smart contract is deployed, changes are difficult, and transactions are permanent. If some issues are overlooked, it can result in notable reputational and financial losses for a business. That said, the IdeaSoft team has prepared a simple overview of smart contract debugging that explains how to test smart contracts, which tools to choose, and what aspects to check when building your perfect blockchain solution.

Let’s dive in!

Looking for an experienced blockchain team?

At IdeaSoft, we have deep expertise in creating robust and functional smart contract solutions for a wide range of projects.

Reach out to our team, and we will consult the best solution for your business, taking into account your product requirements and budget.

Table of content:

How Do You Debug a Smart Contract?
Best Practices for Smart Contract Testing and Debugging?
What Are The Best Debugging Tools to Use with a Smart Contract?
Essential Smart Contract Debugging Tips from IdeaSoft
Our Experience
Summary

How Do You Debug a Smart Contract

The standard process of smart contract debugging involves a series of steps aimed at ensuring the reliability, functionality, and security of the code. To help you understand its core principles, here’s a simple overview of how smart contracts are tested at IdeaSoft before they’re deployed in the blockchain:

Review the Requirements (optional): Our testing team double-checks the business requirements and technical specifications of the smart contract, defining its expected functionality, input parameters, and desired outcomes.
Unit Testing: We test specific functions and methods within the smart contract in an isolated environment, ensuring they work as intended and return the expected results.
Integration Testing: Our specialists check interactions between different functions within the contract and with external contracts or dependencies. Ensure that data flows correctly and that interactions meet requirements.
Functional Testing: Through a full range of testing scenarios, we verify that the smart contract meets its functional requirements to ideally match your business needs.
Security Testing: Our developers identify and address potential vulnerabilities of the smart contract code by using techniques like static/dynamic analysis tools, code review, and commonly occurring issues.
Documentation: Our team creates comprehensive documentation explaining the contract’s functionality, usage, and potential edge cases that will help to manage and optimize your smart contracts in the future.
Final Verification: Once all issues are resolved and tests pass successfully, our specialists confirm the smart contract is ready for deployment to your blockchain project.

Now that you’ve learned the basics of how smart contract debugging is performed and what areas it covers. In the next paragraphs, we’ll discuss the best practices for smart contract testing and tools that will help you come up with an ideal tech solution for your blockchain application.

Best Practices for Smart Contract Testing and Debugging

There are different approaches and recommendations on how you can debug a smart contract. For this reason, the IdeaSoft team highlighted the most essential hacks that can enhance your smart contract checkup.

#1 Use Automated Testing Tools

One of the most effective approaches in smart contract testing is to choose robust and user-friendly audit tools. The automated testing tools enable more efficient code checkups, helping to identify various errors, logic flaws, and unexpected behaviors in the early development stages. Leveraging QA automation using AI further enhances these processes by providing intelligent analysis and detecting patterns that might be missed by traditional methods. Additionally, this allows to save a lot of time, cost and human resources without sacrificing their quality.

According to Rostyslav Bortman, the Head of Blockchain at IdeaSoft, the most effective dev environments for smart contract testing are Hardhat, Foundry, Tenderly and Truffle.

#2 Test for Security Vulnerabilities

Implementing regular updates and the latest practices in smart contract security can protect your application from potential malicious attacks and minimize its exposure to malware.

The popular tools that help to identify weaknesses and common vulnerabilities in smart contracts are MythX, OpenZepplin, Goerli Testnet, and more.

#3 Deploy Contracts on Multiple Networks

Testing contracts on various networks, such as testnets and private networks, allows developers to assess contract behavior under different scenarios. This practice is especially useful during performance testing, as it helps to capture more specific issues that might not be apparent in a single environment. At the same time, it helps to ensure your contract’s compatibility and validate its smooth performance across different blockchain networks.

#4 Document Your Tests

When learning how to debug smart contracts, documenting test cases, expected outcomes, and edge cases shouldn’t be overlooked as well. It aids in maintaining, understanding, and sharing your smart contract tests. Also, such an approach can improve the team’s collaboration and greatly help with future debugging and updates.

Remember, well-documented checkups provide you with greater optimization ideas and insights, thus contributing to the longevity and reliability of your smart contracts.

What Are The Best Debugging Tools to Use with a Smart Contract?

Once we’ve uncovered the best practices for smart contract debugging, the next important aspect to discuss is choosing the tech stack for your code checkup. As of today, the most popular testing tools for smart contracts include:

Truffle – an automated testing framework that covers multiple approaches (JavaScript/TypeScript or Solidity testing) to exercise different testing scenarios. Its in-built consoles (Truffle Console and Truffle Develop) are applied not only for interactive debugging purposes but also allow easy testing and executing transactions within a single environment.
Mythril – a security analysis tool for EVM bytecode that is commonly applied for Ethereum, Hedera, Quorum, Vechain, Roostock, Tron, and other EVM-compatible blockchains.
Waffle – an advanced framework for smart contract testing that uses minimal dependencies, features an easy-to-learn syntax, and provides fast execution times for compiling and testing smart contracts.
Hardhat – a powerful development environment for smart contracts on Ethereum that offers a comprehensive toolset for building, testing, and deploying contracts.
Tenderly – a feature-rich development tool that allows you to build, test, monitor, and operate smart contracts from their inception to mass adoption. This tool supports over 30 different networks and is extremely helpful in strengthening the security of every Web 3.0 project.
Immunefi – a functional bounty platform for smart contract and DeFi solutions that helps testers review code, address vulnerabilities, and improve the overall safety of crypto projects.

Depending on the project’s complexity, functionality, and architecture specifications, all the smart contracts are tested in different ways. To maximize the reliability and security of your blockchain solution, it’s important to choose the most relevant technologies with your business goals and project requirements in mind.

By outsourcing smart contract development to IdeaSoft, you’ll access the advanced debugging tools and the professional blockchain development expertise that fully matches your project. For each of our products, we identify the most relevant tools and effective testing approaches to ensure it’s robust, safe, and bug-free.

Essential Smart Contract Debugging Tips from IdeaSoft

Smart contract debugging is a complex process that has different nuances, considerations, and development challenges. To help you successfully get these covered, our Head of the Blockchain Department – Rostyslav Bortman, has prepared the key recommendations aimed at facilitating and improving the process of contract testing.

Make sure to achieve the unit test coverage near 100%;
While conducting the checkups, it’s crucial to cover all cases for the function (both positive and negative);
Use console.log where it’s supported. In particular, this can be performed through the Hardhat and Foundry debugging tools;
Use forks of the networks instead of real networks. For example, you can try forking Goerli Testnet with Hardhat and running tests on the fork. This allows to speed up the testing process and reduces the need to search for the ETH;
Use forks (for example, Hardhat fork) for simulation testing, as it allows you to impersonate any account (since you can use any address without a private key) and also aids in performing time manipulation tricks – which can be exceptionally important in some cases;
For rigorous debugging, we recommend using Tenderly, which is so far one of the most efficient tools used for smart contracts;
If the protocol you need for the tests doesn’t support forking (the EVM networks like zkSync or similar ones), you can use mock contracts to simulate the behavior of external contracts, components, or systems;
Ensure that your test cases include boundary tests. For example, if there’s a function that works with numbers, test it with maximum and minimum possible values;
Look for opportunities to optimize the gas fees. In particular, this can be achieved through reducing the number of used variables, storage cleaning, replacing dynamic arrays on fixed-size options, avoiding triple-nesting cycles and double-nesting cycles (if possible), and so on.

These simple smart contract testing tips can help not only enhance the contract checkup but also ensure smooth operation and efficient performance upon its deployment in the blockchain.

If you lack some expertise in how to debug smart contracts properly, don’t hesitate to ask for professional assistance. The tech-savvy engineers from a reputable development company such as IdeaSoft can help you to test, debug, and deploy the best smart contract solutions to the project you need.

Our Experience

With years of expertise working in blockchain development, our dedicated specialists have a deep understanding of smart contract architecture, its testing, and debugging. Currently, we don’t offer smart contract audit as a service, but each of our smart contracts is rigorously tested by our professional blockchain team, ensuring it’s always efficient, secure, and bug-free.

In particular, we have successfully implemented smart contract solutions for the LiveCGI streaming platform, N-Finity NFT marketplace, BridgeTower marketplace and other projects, which can be found in our portfolio. Our team creates a powerful development strategy and conducts rigorous performance checkups to ensure the product operation is smooth, efficient, and completely secure.

Summary

When developing any smart contract solution, conducting a thorough code checkup is essential. Smart contract debugging is a complex process that involves plenty of tools, frameworks, and techniques aimed to effectively address any code vulnerabilities and issues. As a result, it helps to greatly enhance the security and reliability of the final blockchain-based product.

At IdeaSoft, we have deep expertise in creating robust and functional smart contract solutions for a wide range of projects. With over 250 successful cases in IT development, our mission is to build secure products that provide the maximum value and will never be hacked.

If you need professional guidance on smart contract debugging or need some more information about the other development services – contact us right away! Our experienced specialists are always ready to build a custom testing strategy with your business goals and needs in the first place! Furthermore, we specialize in DePIN platform development, ensuring your project utilizes decentralized physical infrastructure networks for enhanced performance and resilience.

DeFi Exchange Platform Development Process

Today, it’s not enough to develop decentralized exchange platforms. Instead, you need to address all the current user needs and their potential challenges with the most effective DeFi solution. We at IdeaSoft know that better than anyone. Such an approach helped us to develop Orderly.Ne t work – an infrastructural layer for DEXes within the NEAR blockchain ecosystem.

In this guide, IdeaSoft’s top DeFi experts explain the essentials of a DeFi platform development, covering its must-have features, benefits, and challenges that might occur before and during the product delivery. Additionally, you’ll learn a step-by-step strategy for building a powerful DeFi exchange that will effectively address your business objectives and client needs.

Table of content:

Developing a DeFi Exchange Platform. What to Consider
How to Create a DeFi Exchange Platform: 5 Essential Steps
Estimating the Development Cost of a DeFi Exchange
What Are the Key Business Challenges in DeFi Exchange Development?
IdeaSoft Experience in DeFi Development
Summary

Want to develop a solid crypto exchange?Don’t know where to start?

Go through our article and find out about essencial development steps, advantages of different exchange types and main features your product need to have to stay competitive. Or schedule a call with us and let us help you figure it out, and correctly draw up the requirements for your project!

Developing a DeFi Exchange Platform. What to Consider

As you already know, Decentralized Finance exchanges are platforms that facilitate the exchange of cryptocurrencies and other digital assets in a decentralized manner. Unlike traditional centralized exchanges, which rely on intermediaries to match and execute trades, DeFi exchanges operate on blockchain technology and smart contracts, enabling automated trading and financial activities without the need for a central authority.

Currently, there are two major types of decentralized exchange ecosystems:

Automated Market Maker (AMM) model – a widely trending and extremely flexible DEX solution, which helps to facilitate the trading experience and has gained huge recognition across the top-rating exchanges (for instance, Uniswap v3, Curve, Balancer, etc)
Central Limit Order Book (CLOB) model – a traditional trade execution model that matches orders from buyers and sellers based on a set of rules, which has a reliable mechanism and a specified price (for example, it’s still used by the platforms like SwapEx, Polkadex, etc)

If you’ve reviewed the top players on the market, such as Uniswap, dYdX, PancakeSwap, DODO, Balancer, Maverick, you probably noticed that, along with the traditional swaps, these are constantly adding the newer strategies for yield generation and income increases.

Daily, the top 5 DeFi exchanges generate over $1.22 billion of trading volume, according to CointMarketCap. With a thoroughly planned strategy and advanced development solutions involved, your DeFi product has all the chances to get on the top of this rank. So let’s review how we can make this happen.

Key Features of a Successful Launching DeFi Exchange Platform

Before we get started learning how to develop a DeFi crypto exchange platform, it’s important to first analyze what features it should cover. IdeaSoft’s experts have shared some thoughts on the DeFi exchange functionality that will help you to create a successful product for token trading.

Swap

In the context of DeFi exchange development, swap is a fundamental feature that enables an exchange of one cryptocurrency for another directly within a decentralized platform. This mechanism provides a simple and smooth trading experience using smart contract-based exchange protocols, without the need to commence the traditional crypto-to-fiat exchange or token migration. So, users can swap tokens directly from the official private key wallet or trading account.

AMM Mechanism

Automated Market Maker (AMM) is a mathematical algorithm of becking the token prices, which lies at the core of many DEX solutions. Unlike the traditional exchangers, the DeFi crypto exchange platforms are based on liquidity pools and liquidity providers, while token prices are assessed by the algorithm and depend on the market dynamics.

In DEX, AMM protocols use liquidity pools to provide traders with the required token amounts. They use mathematical formulas to determine the price of assets within the liquidity pool, so tokens in these pools must have an equivalent total value. Then, the pool’s smart contract automatically calculates token prices based on the ratio of assets in the pool, allowing for automated and fast trading.

Other Useful Functionality for DeFi

Along with the core features, it’s also critical to implement the add-on functionality for the DeFi product. This way, you can provide a seamless, efficient user experience that increases engagement rates and boosts the competitiveness of your decentralized exchange platform.

IdeaSoft’s developers recommend the following upgrades for DeFi exchange platform:

User Dashboard – functional yet easy-to-navigate environments that display the most relevant information to your users. Typically, it covers account balances, transaction history, portfolio performance, rewards, and farming/staking activities (if applicable).
Advanced Data Analytics – data visualization tools that allow users to track their portfolio performance, transaction history, earned yield, and other key metrics.
In-built Wallet – an essential component that enables securing storage, sending, receiving users’ crypto and checking the current balance.
Yield Farming Strategies – advanced functionality that allow users to increase their incomes for the tokens they own or have received as a result of trading.
Referral Programs & Bonus Programs – lucrative offers that allow providers to increase client loyalty and audience engagement through more attractive trading conditions.
Educational resources – content, tooltips, and guides that are aimed to help users understand the various DeFi functions and concepts, as well as get comprehensive assistance on your app.

Packing your DeFi product with these elements allows you to provide exclusive services and outstanding experiences for larger audiences.

DeFi crypto exchange platform that is efficient, competitive, and fully aligns with your business goals and needs? Keep on reading to find that out!

How to Create a DeFi Exchange Platform: 5 Essential Steps

In our recent post, we’ve discussed the essentials of a custom DEX development process, and here our best specialists from IdeaSoft explaining the basics of an efficient DeFi exchange development.

The full-cycle development of such projects consists of 5 core stages: planning, prototyping, development, quality assurance, and deployment. Now, let’s review what processes are covered by each of them.

1. Research, Planning & Conceptualization

Detailed planning of your future product lies at the core of any project, and the creating DeFi exchange platform is not an exception. In-depth research helps to get a clear picture of the architecture, features and design of your decentralized exchange. As a rule, it covers the following aspects:

Industry analysis and market studies;
Customer research and interviews;
Analysis of the core user problems and challenges;
Product conceptualization and validation.

These are only a few areas to be considered during the research phase, which shape the core understanding of your future DeFi solution and the further development flow. At the same time, this information uncovers plenty of data-driven insights and ideas that can help you to make your product more efficient, profitable and competitive.

2. Project Prototyping

Though this stage is usually overlooked in products with simple architecture, prototyping is exceptionally important when creating DeFi exchanges. It allows you to analyze the functionality of your decentralized solution, review the tech stack and expertise and make sure the desired product fully aligns with your business goals and user needs.

As for the DeFi exchange components, the most essential to consider are:

Token swap mechanism (automated market makers/order books)
Robust smart contracts
Efficient and intuitive UI/UX design

These basic components allow for creation of a powerful decentralized ecosystem for lending and borrowing, yield farming and staking, flash loans and many other solutions for seamless exchange and trading experiences.

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Let’s set up a call and create a detailed requirements for your future product!

3. The Development Phase

Once you’ve finalized the prototype of your future product, it’s time to start the actual process of DeFi platform development. To create a robust, functional and competitive DEX product, this stage needs to be covered:

Smart Contract Integration: Build the “backbone” of your DeFi platform, that will define the rules and logic for various functionalities, such as trading, staking, lending, and borrowing.
Security Audits: Conduct thorough security checkups to identify and fix potential vulnerabilities of your DEX, reducing the risk of exploits and attacks.
User Wallet Integration: Integrate the selected wallet providers (such as MetaMask, Trust Wallet, or Ledger) to allow users to connect their wallets securely and interact with your platform.
Liquidity Management: Depending on the selected token swap mechanism, developers can build a custom order book solution or AMM protocol that ensures efficient liquidity management in trading and liquidity pool operations. For instance, in our recent projects – Orderly.Network – our team has built a complex exchange solution based on decentralized order books.
Token Standards and Compatibility: Ensure the compatibility of your DeFi exchange with the popular token standards and assets based on the selected blockchain platform (for instance, if we talk about Ethereum blockchain, you will need to apply ERC-20 and ERC-721).
Additional Income Generation Tools: Develop accurate algorithms for calculating yields and getting rewards with various staking and farming opportunities. Though this feature is non-binding, it gives businesses a decent competitive advantage and provides additional reward generation (for instance, through farming strategies).
User Experience (UX) & User Interface (UI) Design: Design an intuitive and user-friendly interface that enables users to easily navigate through the platform, perform actions, and access different functionalities. A smooth and engaging user experience is crucial for user adoption.

Some other important aspects to consider when developing a DeFi crypto exchange include the system’s interoperability, risk management features, governance mechanisms, regulatory compliance and project scalability.

For instance, at IdeaSoft, our team provides a personalized approach for each client to maximize product development. By applying the top tech solutions and agile approach, we ensure the finalized DEX is efficient, secure and fully customized to your business requirements and goals.

4. Quality Assurance (QA)

Before deployment, your DeFi exchange platform should be examined by a professional QA specialist, security experts and engineers. They’ll conduct rigorous testing of all its functionalities in a controlled environment, providing the necessary debugging, fixes and updates where needed. Also, the QA team provides a compatibility checkup to ensure the smooth operation of all the components and integrations.

5. Implementation, Maintenance & Improvement

Upon the product’s deployment, our specialists create comprehensive documentation for both developers and users, explaining how to interact with your platform’s smart contracts and functionalities. This helps you effectively address user inquiries and issues, as well as provide further optimizations of your DeFi solution. Additionally, you can discuss product maintenance and upgrades to keep your product efficient in the rapidly evolving DeFi landscape.

For instance, at IdeaSoft, we always provide ongoing support for each of our projects to help our clients make the most of their decentralized exchange software.

Want to build a project?

Estimating the Development Cost of a DeFi Exchange

The cost of decentralized exchange platform development is variable, and typically based on the following factors:

Products architecture and features
Required expertise and the size of your dev team
Tech stack involved
Delivery timeline

Getting the right DeFi expertise can not only help to improve and speed up the project delivery but also benefit from a better resource and cost allocation. At IdeaSoft, we provide a personalized approach for each of the DeFi exchange development projects, ensuring they’re functional, cost-efficient and always delivered on time.

What Are the Key Business Challenges of DeFi Exchange Platform Development?

Besides the project’s planning, development and deployment, businesses need to address many challenges to ensure their DeFi product stays successful and competitive in the ever-changing market. Based on our hands-on experience within this niche, IdeaSoft’s specialists highlight the following key challenges when creating a DeFi exchange platform.

Competitiveness: Among hundreds of DeFi cryptocurrency platforms released, your product should be the most appealing option for users. Learn the existing competitor offerings, and analyze their key features and disadvantages to get some ideas for your DeFi swap system. Additionally, we recommend studying their client reviews to gain a deeper understanding of the audience’s expectations and needs.
User-centric: A common mistake of product owners is that they typically focus solely on their business goals and ideas and often miss the actual value for the end users. Instead, you should always build the DeFi system with your end-user in mind: ensure it’s simple and intuitive, provides wide functionality and in-depth analytics to enhance user experience and maximize engagement.
Cost-efficient: Always search for opportunities to make transactions faster, cheaper and more efficient from both client and business perspectives. This will help your product stay ahead in a long-term run.
Business-oriented: The product’s success isn’t only indicated by the development, so make sure to create a robust business strategy on how to monetize your DeFi services that help your business to scale.

To stay ahead of the competition in such a huge pool of DeFi products, businesses implement new functionalities, build advanced strategies and offer lucrative bonuses to engage as many users as they can. Often, the resource-intensive and expensive DeFi development turns into replications of the popular exchange platforms with zero competitiveness and miserable ROIs from a business perspective.

IdeaSoft Experience in DeFi Development

IdeaSoft company features vast experience in DeFi exchange development. Our tech-savvy developers, professional project managers, talented UI/UX designers, and experienced business administrators can provide full guidance on how to create a decentralized cryptocurrency exchange for your business.

Among a variety of our successful DeFi solutions, we are highly proud of our recent product – Orderly.Network – an infrastructural layer for DEXes within the NEAR blockchain ecosystem.

Orderly Network is a cutting-edge trading solution for dApps that provides web 3.0 developers with decent liquidity and a CLOB infrastructure. This NEAR-based product features a solid risk engine, powerful order-matching mechanism, and shared asset pools for dApps, which effectively complement the entire on-chain infrastructure.

Our IdeaSoft team created:

NEAR-based DEX ecosystem
Deep liquidity via world-class market makers
Composable infrastructure
Middleware for DeFi protocols
Functionality that provides trading access to users with the help of Lending/Borrowing protocol available to an entire ecosystem of traders and composing projects
Shared liquidity pool accessible by a whole ecosystem of managing projects
Liquidity optimization for ecosystem’s dApps
Optimization of order matching engine that provides superior liquidity by utilizing off-chain flow

Orderly Network has generated over $240 million in total trading volume and shows plenty of business opportunities for development in the competitive DEX market.

Summary

Creating a successful exchange solution for the DeFi market is challenging but definitely worth the money and effort. With a detailed strategy, powerful architecture and the best expertise involved, you can create a competitive DeFi exchange platform that can enhance your business development and growth.

At IdeaSoft, we create innovative DeFi solutions to help companies improve their existing blockchain systems or create a decentralized exchange project from scratch. With a wide range of expertised and experienced professionals, our company will provide a custom development strategy that is fully tailored to the goals, needs, and current challenges of your business, including solutions for cross chain DeFi integration.

How to Design Web 3.0 App

Having a robust, functional, and user-friendly application is one of the key points of any project’s success, especially in such a competitive niche as web 3.0 development. Surely, the decentralized nature of the web 3.0 apps provides users with a wide range of benefits compared to other solutions, such as greater privacy, enhanced content ownership, and advanced functionality. Nevertheless, if these provide a poor user experience, such projects will never get recognition among large audiences.

Whether you decide to create a third-gen web solution from scratch or improve your existing products, the web 3.0 UX must be among your top priorities. In this post, our best dev specialists from IdeaSoft introduce the basics of web 3.0 app design that can help your project to succeed. We explain the core design principles and development stages and uncover the common tools and techniques which can provide your web 3.0 solution with powerful and competitive advantages.

Table of content:

Understanding Web 3.0 App Design Principles: Why These Matter
Stage 1: Getting Started with Web 3.0 App Design
Stage 2: web 3.0 App Design & Development
Stage 3: Testing & Reviewing a Web 3.0 App Design
Web 3.0 App Design Tools That Might Come In Handy
How Much Does a Web 3.0 App Design Cost?
Summary

Understanding Web 3.0 App Design Principles: Why These Matter

Recently, we’ve discussed what makes web 3.0 technology stand out compared to earlier generations and the role of blockchain in web 3.0. However, there’s another essential aspect to consider in third-gen web solutions: product design.

The architecture of web 3.0 projects features a wide range of differences compared to regular web 2.0 applications. To come up with a powerful and user-centric decentralized app, it’s essential to run comprehensive market research, analyze clients’ pains and needs, and review the existing solutions provided by competitors. So, make sure your app designers have a deeper understanding of complex app architecture and solutions based on competitor research and product analysis. Finally, keep your web 3.0 application design simple and easy-to-navigate to help users better understand the interface and functionality provided.

Reducing the learning curve of web 3.0 is another emerging challenge in designing web 3.0 apps. web 3.0 architects should apply familiar patterns (for instance, through storytelling and commonly known design solutions), so the product looks more accessible and trustable for different audiences.
Ann Datsenko, COO IdeaSoft

Awareness of these simple principles helps businesses develop the most efficient, functional, yet simple platforms that fit their goals and their audience expectations.

Stage 1: Getting Started with Web 3.0 App Design

Once you realize the importance of user experience in Web 3.0, the next question that usually comes to mind is how to design a web 3.0 application. In fact, the design concepts aren’t solely based on the product vision and should be also created with the end user in mind.

IdeaSoft’s best experts uncover the most valuable recommendations for creating a solid and user-friendly web 3.0 design.

#1 Set the Goals

Identifying the clear goals of your future web 3.0 application is a classic yet extremely effective approach to shaping the reference and coming up with the most winning decisions during the planning and development stages.

Some of the common questions that will add more clarity to your web 3.0 design:

What’s the core goal of your web 3.0 application?
What pain/problem does your app target? What solution does it offer?
What are the core functions of this product?
What makes your web 3.0 app stand out among competitors? Why is it appealing to users?
What benefits do you expect to get from the business point of view?

Once you write out the answers – you’re good to go with planning the details of your upcoming web 3.0 app project.

#2 Make a Plan

Based on the insights from the questions above, dig slightly deeper into the product’s vision to sketch out an outline of your web 3.0 application.

Turning the ideas into a particular feature or design characteristic of your product becomes even easier with the right development team. For instance, at IdeaSoft, we help our clients to draw a visible roadmap of your web 3.0 app delivery while keeping in mind the business goals, audience needs, and market trends. Additionally, our dedicated development team can assist with app monetization, web 3.0 design, and marketing aspects to ensure the long-term success of your product.

#3 Know Your Competitors & Target Niche

The more attention you dedicate to the research, the higher the chances to succeed. Knowing your competitors and their strong and weak points is an excellent approach to building a solid, functional and user-friendly web 3.0 design. What is more, this approach gives an excellent boost to your product’s competitiveness, allowing you to faster achieve the top positions within the target niche.

IdeaSoft’s web 3.0 developers also recommend exploring the client reviews of your competitors. It’s one of the most effective ways to explore the current customer pains and can provide you with valuable insights on the key features to include in your web 3.0 product design.

Stage 2: web 3.0 App Design & Development

Now, based on your product requirements and market needs, it’s time to create a web 3.0 startup. This implies turning the product’s vision and visualization concepts into the “spine” of your future app.

Wireframing & Prototyping

Digital wireframing is one of the easiest and fastest ways to put your product ideas into the web 3.0 app interface. Basically, it lays out the basic pages and core functionality of your app design. Along with that, it’s extremely helpful for understanding how your app’s going to work and can greatly streamline the MVP development.

Don’t try to make design for a web 3.0 app perfect from the first attempt. Instead, focus on as many implementation options as you need. This will help you to achieve the most relevant solution that delivers a high-end experience to the app users.

***UI/UX blockchain wallet design for Versara***

Implementing User-Interface Design

Another crucial stage of web 3.0 app design basics is the UI design. To make your product succeed, make sure your app is great-looking, professional and attractive while keeping it simple and functional.

Basically, that’s where the expertise of professional UI/UX designers comes in: they combine branding and product guidelines with the best practices in app design to make your web 3.0 solution recognizable and easy to use.

Additionally, a professional web 3.0 designer will help to integrate your product vision, requirements and preferences into the mockups and application as well, ensuring it’s still easy to navigate, simple and consistent.

Incorporating Web 3.0 Elements and Interactions

When planning the design of your web 3.0 application, don’t forget to cover the technical specifications of the web 3.0 elements: blockchains, smart contracts, NFTs, crypto and other technologies. Depending on the specifications of your app’s infrastructure, web 3.0 designers can identify the most efficient implementation approaches to maximize the app’s performance from the business and client’s perspectives.

For instance, the dedicated design experts at IdeaSoft always choose the web 3.0 elements and tools based on the project’s technical specifications and business needs.

Stage 3: Testing & Reviewing a Web 3.0 App Design

Having finalized the UI design of your application with all the web 3.0 integrations covered, it’s now time to test the usability on real users. A rendered click-through model of your app can help you analyze UX in web 3.0, including the navigation, interface design, and functionality integrations coming during the development stage.

Based on the extensive expertise from our recent projects, IdeaSoft experts suggest checking the UI/UX flow of your web 3.0 app design alongside Q&A testing and combining those two stages. Thus you will have an extensive overview and deep check of your app from various perspectives that help you imitate the real user interaction with your product.

We underline the following steps for tests:

Functional testing – comprehensive checkup of all the interactive elements of your app, such as form fields, buttons, links, screens and other interactions.
Responsive design evaluation – ensuring that your web 3.0 app adjusts to different screen sizes and devices while remaining consistent and user-friendly.
User flow checkup – understanding the navigation paths of your end-users, making sure they’re simple, logical and intuitive, yet remove any confusing dead-ends within the app.
Web 3.0 elements performance testing – a detailed usability checkup of your application’s key web 3.0 elements (wallet connections, smart contract interactions, crypto transactions and any other blockchain-related components).
Accessibility compliance testing – making sure the app can adapt to the personalized needs of your audience (for instance, keyboard navigation and screen reader compatibility).
Performance review – accessing the design’s performance and loading times, checking for the optimization opportunities and design flaws that may cause loading or lagging user experience.

Once the app’s UI design audit is completed, you’re all set to build the powerful and competitive web 3.0 product! Additionally, focusing on UX for conversion optimization will ensure that your app not only attracts users but also effectively converts them into loyal customers.

Thinking of launching your web 3.0 product?

Let us help you figure things out, and correctly draw up the requirements for your project

Web 3.0 App Design Tools That Might Come In Handy

At IdeaSoft, we’re constantly exploring new tools and platforms to come up with the most effective web 3.0 application design for your project. For each of our projects, our team creates a personalized set of development tools with the most relevant functionality that can increase usability while saving design time and cost.

Below, our design team has introduced the basic list of tools actively used for web 3.0 app creation today.

Figma	A collaborative design tool with similar functionality to Sketch and Adobe XD. Alongside a large set of tools for app design prototyping, it features a real-time collaboration – an exceptionally helpful feature for teams responsible for different aspects of app design.
Sketch / Adobe XD	Both are quite popular general-purpose design tools that allow you to create wireframes, mockups, and prototypes for intuitive and efficient user interfaces. No matter how complex your web 3.0 solution is, these tools are necessary for designing the app’s general layout and basic user interactions.
Adobe Creative Cloud	An excellent design tool for creating custom illustrations, icons, and animations, which can come in handy for designing your custom dApp.
Spline	A useful 3D software for real-time collaboration that enables creating objects, and editing 3D materials and renders to enhance product interactiveness.
FlowMap	A must-have design solution that helps creators to streamline customer journey mapping, user flow designing, prototyping, flowchart creation, and other processes within a single platform.
Maze	Another great tool for enhancing the product research workflow through continuous user insights and helpful data-driven analytics.

Popular Tools for Web 3.0 App Design, Source: IdeaSoft team

Having knowledge of blockchain networks, NFTs, and smart contracts is crucial for designing user-friendly decentralized applications. With this expertise, designers can efficiently test wireframes, reduce onboarding time, and minimize design costs by getting things right the first time without the need for rework. Our designers are well-versed in web 3.0 specifications and utilize web 3.0 tools effectively in their work. Some popular tools include:

Truffle Suite: A popular development framework for building Ethereum-based dApps, the functionalities of which can help you design UX around the technical constraints and architecture of your web 3.0 application.
3MetaMask Snaps: A library for integrating third-party plugins into the MetaMask wallet, which enables developers and designers to create custom user interfaces for blockchain interactions.
Fleek Space: A functional environment designed for building user interfaces for IPFS (InterPlanetary File System) and decentralized storage applications.

Along with the list of tools for web 3.0 app design, you’ll also need a good understanding of the basic blockchain concepts, app architecture and user behaviors to create a unique and functional dApp within this niche.

Once we review all the specifications of your web 3.0 solution, our development team will provide you with the list of the most efficient tools for the app’s design, development and deployment. Additionally, we will guide you through the key stages of the web 3.0 app design to help you create a robust, intuitive and highly engaging solution for your decentralized software.

How Much Does a Web 3.0 App Design Cost?

Along with discovering how to design web 3.0 apps, business owners also ask about the overall cost of the design solution for their project.

According to the expertise of our previous web 3.0 projects, such as crypto exchange solution (Biiteeu), trade finance platform (Versara), and NFT marketplace (Nfinity), the cost estimations of the web 3.0 design are always individual.

In most cases, the cost of a web 3.0 app design will vary depending on the blockchain technologies and expertise required, the size of your team, the project’s scale, and the timelines set. For instance, IdeaSoft’s specialists analyze each of these factors in detail to come up with a cost estimation plan that helps you to deliver a powerful web 3.0 product without sacrificing its quality or functionality. This approach ensures you can optimize Web3 development costs effectively.

Summary

With more and more web 3.0 solutions coming, product design and usability will gradually become the top priority for business owners. Wrapping the unique features of your web 3.0 application into the right design concept will help your business to improve the product’s accessibility and performance, access larger audiences and gain more trust from its users.

At IdeaSoft, our developers feature extensive expertise in designing web 3.0 applications according to the novel approaches and most recent trends within the industry to ensure your product’s success. Whether you need a DeFi, digital wallet, exchange platform, Bento UI or any other blockchain-based dApp solution, we’re always to provide you with the top expertise, tools and techniques in web 3.0 design!

Contact us today and create the powerful web 3.0 app design that fully aligns with your requirements, product vision and business needs!

Web2 vs. Web3: What’s the Best Technology for Your Business?

So far, we’ve witnessed huge progress in the evolution of web technologies, which currently evolved into three generations: Web 1.0, Web 2.0 and Web 3.0. And, while there’s a minor gap between the first and second gen, the difference between Web 2.0 and Web 3.0 is more notable.

In this post, our dedicated developers from IdeaSoft will shed light on Web 2.0 and Web 3.0 architecture, explaining the specifics, advantages and use cases of each. Additionally, we’ll explore what projects need the Web 3.0 migration and its potential benefits for SMBs and large enterprises.

Table of content:

Web 2.0: Key Features & Examples
Web 3.0: Main Principals & Use Cases
What’s the Difference Between Web 2.0 and Web 3.0 Architecture?
Pros & Cons of AI for Web 2.0 and Web 3.0 Apps
Web 2.0 vs. Web 3.0: Which Apps Should Migrate?
Products That Will Never Make It to Web 3.0
The Future Potential of Web 2.0 and Web 3.0
Summary

Web 2.0: Key Features & Examples

To help you study deeper the differences between Web 2.0 and Web 3.0 development, let’s make an in-depth overview of each technology. This will help you to get a better idea on which one will be a better match for your project and meets all your business objectives and needs.

With over two decades of presence, Web 2.0 has got a wide range of appliances and not without a reason. Some of the most notable features of this technology that are still relevant include:

Centralized architecture;
Transparency in data and integrations;
Application Programming Interfaces (APIs);
Web as a platform, not just a network;
Enhanced functionality and user interactions, more opportunities for collaboration;
Plenty of customization options;
Improved audience connection and marketing capabilities.

Such a large set of advantages of Web 2.0 has made it the top choice for millions of projects in social networking, content sharing and streaming, eCommerce and online marketplaces, financial and banking, eLearning and online education, cloud computing and so much more.

Today, Web 2.0 technology has been used by companies of different scales and niches. From progressive software for businesses like Microsoft or Adobe Creative Cloud to web-based user-oriented products like Zoom, Netflix, Twitter or Instagram – the Web 2.0 architecture has become a solid “backbone” of those all.

Web 3.0: Main Principals & Use Cases

Web 3.0, on the contrary, is known as a decentralized digital network solution, which is powered by blockchain. Though the technologies in Web 3.0 are almost identical to the previous gen, its architecture is built using the decentralized blockchain. Some other important features of this network include:

Blockchain;
Distributed Ledger Technology (DLT);
Smart сontract technology;
Tokenization;
Trustless and permission-less controls and environments;
Enhanced cross-chain interoperability;
Improved security and privacy;
Solid governance mechanisms.

The underlying concept of Web 3.0 is aimed to make internet searches more simple, efficient and in no time. The reduced reliance on centralized authorities results in improved trustability and transparency, which in combination with blockchain can uncover new possibilities for innovation, collaboration and growth.

Today, the Web 3.0 application is a popular tech solution for decentralized protocols and DEX platforms, metaverse solutions, AI and ML-powered apps, NFT marketplaces, decentralized social networks and so much more.

But does that mean that Web 3.0 is better than Web 2.0? Not quite. A majority of web experts expect Web 3.0 to develop along with the second generation, providing a wide range of decentralized optimizations for businesses.

What’s the Difference Between Web 2.0 and Web 3.0 Architecture?

As we mentioned, most Web 3.0 capabilities are already present in Web 3.0. So, should you actually choose Web 3.0 or Web 2.0?
Below we’ve reviewed the architecture and infrastructure of both to help you find the best option for your business needs.

So, as you compare the Web 2.0 to Web 3.0 specifications, you can explore the major differences in data ownership and management, user accessibility and authentication, technologies and its social focus.

Thinking of migrating your Web 2.0 solution?

Let us help you figure it out, and correctly draw up the requirements for your project!

Pros & Cons of AI for Web 2.0 and Web 3.0 Apps

AI integrations is among the hottest topics of discussion in the tech world, and the network niche is not an exception. Recently, we’ve discussed the integration of AI and machine learning for mobile app development, and here we’ve analyzed the key gains and drawbacks of AI for Web 2.0 and Web 3.0 solutions.

What Are the Pros & Cons of AI for Web 2.0?

AI can bring numerous benefits to Web 2.0, which refers to the second generation of web-based services and applications that emphasize user-generated content, collaboration, and social networking. However, it also comes with its own set of challenges and drawbacks. Let’s explore the pros and cons of AI for Web 2.0.

Major Advantages:

Improved user experience through deep personalization, behavior analysis and data-driven recommendations;
Enhanced customer support and problem-solving;
Better data analysis and valuable business insights;
Greater automation and efficiency, especially for the repetitive tasks.

Possible Drawbacks:

Privacy concerns related to regulations compliance and security of the personal and sensitive data;
Trustability, which is mainly introduced by fake information or biased recommendations;
High dependency on the data;
User acquisition issues, as the audience might not be ready for the changes caused by the AI integration.

What Are the Pros & Cons of AI for Web 3.0?

The artificial intelligence solutions evolve extremely fast, and provide a huge potential for Web 3.0 solutions as well. When handled by a professional development crew, it can significantly power up your project, no matter if you decide to choose Web 2.0 or Web 3.0 technology.

Major Advantages:

Improved transparency and audibility provided by decentralized AI models and algorithms;
Retained data ownership and control, which gives the option to choose what data to share and with whom;
Facilitates trustless collaborations through smart contracts, allowing multiple parties to work together without relying on a central authority;
Complex processes and services automation delivered through AI-driven smart contracts.

Possible Drawbacks:

Scalability challenges may put some limitations on the product’s performance and responsiveness;
The transaction costs and gas fees can be higher for some processes;
The complexity of implementation, which requires professional development expertise and specialized knowledge of both AI and blockchain technologies;
Regulatory compliance challenges, based on which projects need to meet the additional legal requirements.

Web 2.0 vs. Web 3.0: Which Apps Should Migrate?

Along with the differences between Web 2.0 and Web 3.0, their advantages and disadvantages, it’s also good to analyze what projects can benefit from the Web 3.0 migration.

Below, we’ve introduced some of the key app segments which can get a great competitive advantage upon migrating their projects to Web 3.0.

Fintech apps. Incorporating Web 3.0 can significantly enhance the infrastructure and capacities of these applications, ensuring quick and robust transactions without constraints.
Cloud Storages. The decentralized, open-source and distrustless environment of Web 3.0 gives users complete control over their data. Additionally, the unique encryption mechanism enables to implement robust security, keeping the data protected from any unwanted access.
Gaming Apps. With Web 3.0, the blockchain-based mechanism allows to trade or exchange the in-game assets and gain a competitive advantage over the other gaming applications.

Besides, IdeaSoft experts see a great potential in GameFi niche, and we envision a huge growth in game dev projects development for the late 2023 – early 2024.

Besides, IdeaSoft experts see a great potential in GameFi niche, and we envision a huge growth in game dev projects development for the late 2023 – early 2024.
Viktor Legetsky, managing partner at IdeaSoft

Regardless of the specifications of your app, our experts always provide a detailed overview of your project to get data-driven opinions on whether or not it’s worth applying the Web 3.0 technology for your project.

Products That Will Never Make It to Web 3.0

While the Web 3.0 may appear a must-have technology for your business, it’s not always the best solution and mainly depends on each project.

For example, projects that require a high level of security, such as banking and medical applications will get more advantages from the Web 2.0 integration instead. Additionally, Web 3.0 won’t be that efficient for the products with a large user base, as their audience may not be ready to change their habits and switch to competitor alternatives instead.

Our specialists at IdeaSoft have also outlined some real-case examples where the Web 3.0 is not applied:

Not all businesses need fully decentralized products. For instance, financial and banking institutions, which may lack the direct access to their funds. Additionally, with the decentralized solution, users won’t be able to recover the access in case it’s lost, which hits both the system’s usability and trust.
Blockchain is not likely to make notable transformations for simple solutions. If the project features a simple architecture, or won’t get more efficiency upon the blockchain integration – then it’s better to make some upgrades to the existing Web 2.0 ecosystem. A professional project audit and market analysis will help you to evaluate the benefits of Web 2.0 and Web 3.0 architecture and come up with the right decision for your business.
Web 3.0 is less preferable for projects that imply rapid development. In this case, Web 2.0 provides much faster time-to-market compared to Web 3.0 alternative.

The personalized approach of IdeaSoft company helps our clients to get the most efficient and effective solution that is fully tailored to your company’s goals and needs. During consultation and research phases, our developers always make a comprehensive analysis of the existing tech solutions within Web 3.0 and Web 2.0 niches to help your business take the most of their integration.

The Future Potential of Web 2.0 and Web 3.0

Despite the emerging popularity of Web 3.0, it’s not likely to completely replace the second generation during the next decade. According to the most recent market research, these technologies are likely to develop in parallel and operate within different user segments.

Based on our extensive experience at IdeaSoft, we’ll say there’s no clear answer on the best “one-size-fits-all” network solution. However, having explored the comparison between Web 2.0 and Web 3.0, it becomes much easier to see which one will be a better fit in terms of your project specifications.

It’s recommended to consider Web 3.0 if your project:

Has the decentralized system architecture
Requires enhanced security and trustability
Operates with large volumes of sensitive data
Enables users to retain data ownership and management

On the contrary, Web 2.0 technologies can fit better for the projects that:

Are based on a centralized architecture
Feature greater accessibility and are community-focused
Provide efficient rapid development options
Are highly scalable and easy-to-maintain

At IdeaSoft, our experts always make a deep analysis of the client projects to come up with the most efficient and effective network development solution. We carefully study the business model, key objectives and client needs, yet conduct comprehensive market research to identify the right tech stack and dev expertise for each case.

Summary

The final decision on which technology – Web 2.0 or Web 3.0 – will be better for your project depends on many factors, such as the project’s architecture and functionality specifications. While Web 2.0 is a common solution for a majority of businesses, Web 3.0 can offer greater room for upgrades and innovations.

At IdeaSoft, our team of dedicated web developers features extensive expertise across both Web 2.0 and Web 3.0 technologies, helping clients to come up with the most efficient decisions for their business.

Consider launching a Web 2.0 or Web 3.0 solution from scratch or upgrade your existing product? Contact us and get professional assistance for any web development project today!

How to Create Your Own DEX?

If you did market research about the DEX perspectives before, you’ve probably noticed dozens of decentralized exchange solutions on the market. Wherever created from scratch or forked from the existing projects, many startups keep on trying to catch the hype of Uniswap.

And that’s no wonder since the perspectives of DEX are quite appealing: as of 2023, the total number of crypto users worldwide has overpassed 420 million and as the technologies evolve, these figures are expected to grow over the next decade.

So, where should you start to create a DEX project for your business? What benefits does it have compared to centralized exchange (CEX), and what challenges do you expect when building a custom DEX solution? In this article, IdeaSoft crypto experts uncovered the essentials every entrepreneur MUST know about!

Table of content:

Future of DEX: What Are the Most Promising Areas?
Why Turn Investments Into Decentralized Finance in 2023?
Evolution of DEX Platforms: Main Takeaways
What Should You Know About Uniswap v.4.0
How to Create Your Own DEX: A Complete Guide from IdeaSoft
IdeaSoft Experience in DEX Development
Summary

Future of DEX: What Are the Most Promising Areas?

Before you dive into product development, it’s always great to start by learning the market trends and most prospective areas of decentralized exchange. This will provide you with a better understanding of the future of DEX, yet can give some helpful insights and ideas for your upcoming cryptocurrency project.

As of 2023, some of the most popular features offered by DEX include trading, crypto asset staking, lending services, yield farming options, bonus offers, and loyalty programs. Talking about the prospects and trends for 2023-2024 in decentralization exchange, IdeaSoft’s Chief Technology Officer Herman Stohniiev has outlined the following key areas:

Inclusivity – the popular DeFi platforms like PancakeSwap and Uniswap have set up the all-inclusivity trend, which means offering a wider selection of services (applying additional strategies for staking, yield generation, referral programs, etc.) to make the trading more accessible, profitable and attractive for both existing customers and new users.
Cross-Chain DEX – this solution is focused on enhancing asset trading across different blockchain protocols. Typically, these imply the use of cross-chain bridges or validators, which act as intermediaries and ensure secure asset transfers.
Algorithmic Trading – the integration of algorithms in custom DEX solutions provides a wide range of opportunities for traders and liquidity providers: automated trading, cost-efficiency and arbitrage opportunities, risk reduction, data-driven insights, and in-depth market analysis.
Liquidity Aggregation – refers to the process of creating a unified and deeper liquidity pool from multiple sources (other DEXes or liquidity providers). When building a DEX exchange, this feature is among the best solutions that can maximize the efficiency of your DEX platform by consolidating liquidity, improving price discovery, and expanding the range of tradable assets.
Central Limited Orderbook (CLOB) – in a CLOB-based DEX, traders can buy and sell orders for various trading pairs, which are aggregated and displayed in a single order book. This enables improved liquidity, better price transparency, fair order matching, higher automation, and flexibility in trading.

Along with that, Herman Stohniiev indicates that the DEX solutions are currently not ready for integration with traditional finance: they’re still at the early stage of formation and have to complete a lot of challenges to become more mature.

Why Turn Investments Into Decentralized Finance in 2023?

The easiest way to better understand the trend for custom DEX products is to analyze the lucrative benefits it provides upon launch.

Among the primary advantages of decentralized finance is the exposure to the growing DeFi market and its potential for innovation, disruption, and financial transformation.

Additionally, investing in decentralized finance provides greater network security and transparency, reduced counterparty risk, access to a diverse and decentralized pool of liquidity, participation in governance and token economy, opportunities for token listings and fundraising, and more.

With the right strategy and professional development team on the board, it’s possible to create your own DEX solution that is efficient, competitive and fully aligns with your business objectives and needs.

Evolution of DEX Platforms: Main Takeaways

Increasing interest in decentralized finance investments has driven the attention of governmental authorities and became a subject of concern in large CEX providers, such as Binance and Coinbase. As the decentralized exchange solutions continue to evolve, the US Securities and Exchange Commission (SEC) reassured to increase oversight of the DeFi ecosystem as a whole. Our experts at IdeaSoft believe that the recognition and governance from the regulatory institutions will become a great boost to the decentralized exchange industry. At the same time, we’ll see deeper and more fruitful cooperation between SEC and DEX.

Nevertheless, despite the great reputation of centralized platforms, why do businesses still consider how to create a DEX exchange?

If you take a look at both CEX and DEX segments, it becomes more than clear that the latter option seems to have more perspectives compared to a centralized platform.

	Centralized Exchange (CEX)	Decentralized Exchange (DEX)
Regulation Mechanism	Centralized governance	Based on smart contracts to connect traders and liquidity providers
Liquidity	Higher, as a majority of CEX platforms obtain a lion’s share of crypto trading	Lower, as DEXes are the newcomers to the crypto trading segment
Verification	Requires personal verification through the AML & KYC compliance	Doesn’t require identity verification
Security	Exposed to hacking vulnerabilities	Is more secure due to the reliance on smart contracts
Risk Factors	Custodial: Assets are controlled by a CEX network	Non-custodial: Users maintain full control over their assets and security
Trading options	A wide range of trading options, such as market orders, limit orders, stop orders, margin trading, derivatives, OTC trading, and more	More limited but also offers more specific functionality like yield generation strategies which allows getting additional revenue
Fees	More expensive compared to private networks (due to the intermediary involvement)	Moderated fees; Some of the layer-2-based protocols provide zero commission or cost-efficient trading fees
Familiarity	Extremely popular and more prominent compared to the DEX alternatives	Quite famous across web 3.0 users
Customer Support	Provided	Not so popular, yet available in some cases
Examples	Coinbase, Binance, Kraken	Uniswap, SushiSwap, PancakeSwap

DEX vs CEX table comparison

What Should You Know About Uniswap v.4.0

Being one of the leading DEX solutions in the DeFi world, Uniswap has achieved wide recognition for a reason. Since its launch in 20 1 8, it has more and more features rolled out in the new versions of the platform.

The last version, Uniswap V4, which was announced in June 2023, seems really promising in terms of the DEX functionality and user experience. It exposes the concept of “Hooks” – contracts that run at specified points in a pool action’s lifecycle, which include but are not limited to the pool setup date, information on when liquidity is added or removed, trade’s data, and so much more. Additionally, Uniswap introduced nice upgrades to the user experience through customizability, enabling pool creators to have greater control over the behavior of their pools.

Another feature of Uniswap V4 is a singleton contract architecture – opposed to the previous model, where every pool had its own smart contract. This model results in greater cost-efficiency and accounting automation, which is important for users and the platform.

The technologies and upgrades of Uniswap are an excellent demonstration of what aspects to focus on when preparing a custom DEX solution for your business.

1/6 The new #DeFi era is coming!

Uniswap v4 introduces "hooks" to customize liquidity pools, enabling dynamic fee adjustments and new order types. This brings a whole new level of functionality to each pool, allowing for unique configurations and diverse pool sizes. #UniswapV4 https://t.co/QHv6hwtR1X
— IdeaSoft.io (@io_ideasoft) June 22, 2023

In our Twitter account, we already discussed the key differences to be learned at Uniswap and are ready to come up with the powerful and competitive DEX platform that will help your business to stand out.

How to Create Your Own DEX: A Complete Guide from IdeaSoft

Along with investing in decentralized finance, it’s always good to know what the entire DEX development process looks like.

So, once you’ve uncovered the general points about DEX, let’s now explore how you can build a custom decentralized exchange solution for your business.

Got lost in tech details?

Book a consultation with IdeaSoft tech expert and get your project idea validation & fast project estimation.

Below, IdeaSoft specialists explained the essential stages of creating any decentralized exchange solution for a business.

Step 1: Conceptualization and Planning

Having a clear picture of your future product is critical, especially when it involves complex blockchain architecture and specific structures like in DEX. Complex, in-depth research is the first step that helps to visualize how your future product should be designed. Typically, it includes:

Market and industry analysis;
User research and interviews;
Pain points and potential problems;
Product conceptualization and A/B idea testing.

These are only a few components to be done during the research phase for building a DEX exchange. Not only it helps in creating a data-driven “backbone” of your project, but it also results in more efficient and effective decisions during the next development stages.

Step 2: Project Prototyping

After you learned how to invest in DEX and collected the essential information for the future project, it’s the right time to consider the structure and features of your DEX solution.

In fact, the decentralized nature isn’t the only thing that distinguishes a DEX from CEX. Some other common decentralized exchange features are:

Trading Engine
Decentralized Order Book
Token Swapping
Payment Systems & Crypto Wallet Integration
NFT Marketplace
Automated Market Makers (AMMs)
Permissionless Access
Transparency & Auditability

Based on the project’s tech stack, businesses can come up with the most powerful and effective DEX platform that aligns with all their objectives and user needs. At the same time, it gives a great understanding of what expertise they need to create the desired product.

Step 3: DEX Development

Creating a DEX from scratch can be challenging and resource-intensive, as it requires a large combination of back-end development and a deep understanding of network architecture and cryptocurrencies.

Based on our extensive experience from past projects, the actual DEX development solutions consists of the following technical components:

Factory contract – used for the LP token creation, it builds an LP token for every pair of the swap;
Routing contract – called by the user to interact with a Factory contract;
Front-end development – a user-visible side of the DEX platform, which is responsible for how it looks and feels.

With the right team of tech specialists, like IdeaSoft, business owners can cover all aspects of DEX creation: front-end and back-end, UI/UX design, security safeguards, and cryptocurrency integrations to come up with the right product they need.

Step 4: Quality Assurance (QA)

At this stage, your DEX development team makes a comprehensive audit of the platform, making sure it’s secure, efficient and bug-free. The reviews like performance and usability testing ensure your DEX solution provides a seamless and user-friendly experience for traders, while the compatibility checkup confirms a smooth platform operation across different environments.

Step 5: Implementation, Maintenance & Improvement

During the final stage of a DEX creation, developers integrate the ready-to-go decentralized exchange platform and ensure it works as planned.

At IdeaSoft, we also understand how critical it is always to keep your product up-to-date. So, for each of our projects, we provide ongoing support to help our clients always stay ahead of the competition in the DEX industry.

IdeaSoft Experience in DEX Development

Ideasoft company has a deep experience across multiple domains of blockchain development, in particular with web3 and decentralized exchange projects. Our tech-savvy developers create powerful DeFi strategies and yield-generating solutions to come up with profitable and efficient protocols for different business needs.

As one of our greater achievements, we should underline the development of Orderly.Network – an infrastructural layer for DEXes within the NEAR blockchain ecosystem.

It’s a powerful NEAR-based solution with enterprise-grade liquidity and an order-matching engine on the board. This ecosystem has generated over $240 million in total trading volume and has great development potential in the DEX industry.

No matter how challenging is the project, our team will provide you with the most efficient and profitable solution for your business!

Summary

With more and more successful examples presented on the market, creating a custom DEX today is surely worth it. Despite a complex and resource-intensive architecture, a powerful decentralized exchange platform can offer a wide range of opportunities for businesses and their clients.

At IdeaSoft, we provide a wide range of DeFi services to help companies enhance existing blockchain projects or create DeFi-based DEX from scratch. Our specialists build a custom development strategy for DEX or any other crypto solution based on the goals, needs, and current challenges of your business.

How to Build a Successful Web3 Startup [Case Study]

As a business owner, you know that a successful startup starts with a clear action plan and the right team of experts. However, being inspired by the idea of creating a Web3 startup, some entrepreneurs can lack understanding of how to set this process up and usually need more guidance to come up with a successful project for their business.

Whether you’re working on a DAO concept, dApp or have an idea of any DeFi solution – Web3 development potentially will be a part of it. So, to make the most of your product, studying the Web3 basics is not an option but a necessity today.

In this comprehensive guide, IdeaSoft specialists will cover the basics of Web3 development for businesses, from the evolution and challenges of Web3 to the best practices for building successful startups based on our real-case examples. Finally, we’ll share proven tips on hiring blockchain developers for startups that will help you make the most effective decisions for your business.

Table of content:

Web3 Startup Market in 2023: Key Takeaways
Web3 Startup Development: Before vs Today
Best Practices of Building a Successful Web3 Startup by IdeaSoft
Main Challenges in Creating a Web3 Startup
Why Outsourcing Is the Best Option for Your Web3 Startup?
Summary

Web3 Startup Market in 2024: Key Takeaways

Over the past decade, the concept of Web3 has gone through a significant transformation and development, evolving to the model we use today. Based on artificial intelligence (AI), machine learning (ML) and blockchain, this technology gained huge interest from cryptocurrency enthusiasts, large tech companies, and venture capital firms, which are looking for a powerful and competitive blockchain solution for their projects.

As of 2023, the global Web3 startup market was valued at $3.34 billion and is projected to grow to $49.10 billion by 2030, according to the recent Web 3.0 Market Report by Cognitive Market Research. Evolving at an impressive CAGR of 46.7% and with numerous tech advancements on the board, Web3 development became a prospective and profitable investment option for thousands of businesses across different niches.

Web3 Startup Development: Before vs Today

The Web3 ecosystem went through a complex transformation process to evolve to its present state. At the beginning of its formation, the majority of Web3 and blockchain projects had limited infrastructure, scalability challenges and a relatively small developer community.

Alla Aleksanian, IdeaSoft’s project manager has accurately described 2019’s establishment of Web3 as the “race of arms” in the crypto world, which was “driving businesses to create and launch their projects in terms of a constant growth of their assets”. In other words, most companies lack a clear focus on the final outcomes of Web3 implementations, missing lots of lucrative opportunities for their business.

As of today, the striking development of the Web3 startup market has stimulated more and more businesses to expand their expertise within this niche.

“Now, it’s not enough to just launch a Web3-based project. You’ll need more complex and functional solutions to stay ahead of the competition”
Rostyslav Bortman, the Head of the Blockchain Department at IdeaSoft

In the table below, IdeaSoft blockchain team has created a comprehensive overview of the changes in Web3 development to help you better understand its key transformations over the past years.

Changes	Before	Now
Infrastructure	Web3 technologies were primarily applied for dApp solutions, though they faced multiple challenges like limited scalability, considerable transaction time, and fees.	The Web3 startups cover many industries, ranging from blockchain infrastructure and tools, crypto solutions, NFT platforms, DeFi and other niches. A variety of blockchain platforms (Ethereum 2.0, Polkadot, Binance Smart Chain, Solana, etc) and Layer 2 solutions (for instance, Optimistic Rollups and ZK-rollups) help to enhance scalability, reduce transaction timeout and embed advanced functionality.
Development Tools	The limited number of tools and frameworks had a huge impact on the development of a Web3 startup and the functionality of the final product.	As the industry evolves, blockchain dev teams can access a broader range of tools, libraries and frameworks designed specifically for building custom Web3 projects.
Interoperability	In the past, different blockchain networks operated in isolation, limiting communication, functionality and interoperability.	Various blockchain-based protocols like Polkadot and Cosmos, provide a decent level of cross-chain interaction between blockchains, allowing projects to collaborate, share assets, and exchange data seamlessly.
Regulatory Landscape	At the beginning of its establishment, the regulatory environment around Web3 startups was quite uncertain, with different jurisdictions grappling with defining appropriate frameworks.	Currently, more and more countries have started developing the regulatory foundation to protect personal data and prevent fraud. Overall, Web3 startups have to cover multiple legal and regulatory aspects to protect investors and potential clients, which can be potentially implemented through KYC and AML policies, local regulations, documentation and other specific requirements.
User Experience	Web3 applications often had complex user experiences, requiring users to manage private keys, wallets, and transaction details manually.	Web3 startups today provide more user-friendly experiences that facilitate the onboarding process and make the interaction process easier for non-technical users. In the upcoming years, this progress will be even more obvious thanks to the intensive optimization and automation approaches.

The comparison of web3 development basic aspects and their changes over the years, developed by IdeaSoft blockchain team

Best Practices of Building a Successful Web3 Startup by IdeaSoft

With hundreds of ideas released and concepts introduced in the Web3 market, making a powerful yet competitive product becomes a great challenge. Based on the experience from our recent projects, IdeaSoft’s developers have listed the most important aspects of Web3 startup development.

#1 Strategy, Market Research, and Idea Validation

Through market research, user needs, and industry trends always lie at the core of a successful digital product. When it comes to Web3 startups, creating a solid development strategy based on deep research and data-driven decisions can be even more helpful. In particular, it enables businesses to:

Understand the target audience, competitors, and industry trends;
Test the viability of your Web3 solution (through surveys, interviews, prototyping, MVP release, etc.);
Get the data-based insights to enhance your product visualization;
Mitigate risks, effectively allocate the resources and optimize your Web3 solution before the actual development is started.

Moreover, you can always get professional assistance from marketing specialists and business analysts to ensure the product is fully based on the current user needs and market demands.

#2 Forming the Best Blockchain Development Team for Your Web3 Startup

The more effort invested in blockchain development vendor research, the higher your chances of launching a high-quality Web3 startup. Below we’ve listed the key aspects of choosing a blockchain dev team for a digital project.

Identify Key Roles and Responsibilities

Define the key roles required for your Web3 startup, such as blockchain developers, smart contract engineers, blockchain architects, UI/UX designers, product and project managers, and marketing specialists. Clearly outline their responsibilities and establish a team structure that fosters collaboration and efficient workflow.

Look for Technical Expertise

Prioritize candidates with deep expertise in blockchain technologies, decentralized systems, smart contract development, and cryptography. Seek professionals with a strong understanding of Web3 protocols, frameworks, and other technologies relevant to your project.

Emphasize Collaboration and Communication

Ensure that team members have excellent collaboration and communication skills, greatly impacting the development progress. Look for individuals who can work well in cross-functional teams, contribute ideas, are proactive and result-oriented, such as dedicated blockchain developers at IdeaSoft.

Assess Experience and Track Record

Consider specialists with a similar project background or those who have a proven record of delivering successful blockchain solutions. Assess their ability to navigate challenges specific to Web3 development and their understanding of best practices and industry standards.

Consider External Support

Explore the options of scaling your team to fill in the talent gaps if needed. For instance, you can collaborate with scalable outsourcing development companies or get top expertise through employee outstaffing solutions.

#3 Technical Infrastructure

To hire Web3 startup developers that ideally match your project, it’s also important to mind its technical elements. Some of the essential components for Web 3.0 products are:

Blockchain Platforms;
Smart Contract Development Frameworks;
Decentralized Storage Solutions;
Scalability Solutions;
Identity and Access Management Systems;
Oracles and Data Feeds;
Security and Auditing Tools;
Developer Tools and Libraries.

Typically, the tech-related decisions are fully tailored to the specific requirements and scalability needs of the Web3 startup. IdeaSoft developers also suggest counting other factors, such as security, performance, community support and system interoperability, to create a strong foundation for its long-term success.

#4 Minimum Viable Product (MVP) Stage

When studying the common reasons for startup failure, Failory has discovered that MVP is one of the most valuable technical concepts that help your product to succeed. Overall, building a robust MVP allows businesses to:

Validate the project’s idea;
Test its essential and most valuable features;
Analyse customer interaction and get user feedback;
Spot the optimization opportunities;
Facilitate and speed up the development process;
Ensure the efficient investment of time, costs and effort without sacrificing product quality.

Talking about Web3 projects, creating a robust MVP solution also helps raise higher funding and provides data-driven insights on why it is worth the web3 development cost. So, along with hiring expertise blockchain developers for Web3 startup, more and more businesses consider MPV as an important component of their project.

But do you always need an MVP for your blockchain-based product?

“It’s more than possible to launch your Web3 startup without building a minimal viable product first. However, a well-planned MVP solution for Web3 can potentially help you to get larger financing and uncover plenty of helpful insights once created.”
Rostyslav Bortman, the Head of the Blockchain Department at IdeaSoft

Whether you want to launch your Web3 startup with an MVP or jump straight to the development stage, IdeaSoft’s dedicated blockchain specialists are always here to help! With the latest solutions and technologies applied (such as agile methodology, iterative design approach and so on), our developers help businesses to create feature-rich and profitable Web3 products for any niche.

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#5 Launching and Scaling

If you’re going to launch a scalable Web3 startup, it’s crucial to accurately consider the blockchain technology and architecture of your future product. Based on these criteria, businesses can easily identify their expertise and implement the most effective blockchain technologies that align with the project’s goals and needs.

Similarly, the technologies and specifications of your blockchain-based startup greatly impact its further scalability and potential integrations with other projects. If the technology is relatively new, its efficiency and perspectives for your project should be reviewed in more detail.

At IdeaSoft, our experienced business analysts are aware of the top-rated and effective blockchain technologies to come up with the most suitable option for your project. During the discovery phase, we make a comprehensive analysis of your Web3 product concept, which helps us to identify the expertise and technologies needed to make a powerful and feature-rich product for your business.

#6 Fundraising: What Do Investors Pay Attention To

To successfully prepare your Web3 startup for fundraising, one of the core aspects to mind is a solid product concept. Clearly point out the problems and pain points your Web3 solution can address, with a strong focus on the current market trends and client needs. It’s advisable to include data-driven insights, market research and case studies to instill more confidence in investors.

Additionally, demonstrate the strong sides of your project compared to the existing products to show how it can stand out. This usually includes technological innovations, proprietary algorithms, partnerships, or intellectual property that give you a competitive edge.

Make sure to uncover the market potential and scalability of your Web3 startup based on real-case examples and studies to showcase how your product can generate revenues, develop and grow.

Finally, introduce your dedicated dev team, highlighting experience, qualifications and expertise in blockchain, smart contract development, cryptography, and other relevant Web3 technologies.

Main Challenges in Creating a Web3 Startup

In our recent article, we’ve already discussed the advantages and prospects of Web 3.0 development. Now, let’s shift the focus to the key challenges in building a Web3 startup, which can facilitate project development and help in the troubleshooting process as well.

Based on the extensive expertise of the IdeaSoft team, some of the most common challenges in Web3 development include:

Lack of a clear vision of your Web3 solution. As a business owner, you need to have a solid understanding of your final product, its features, requirements, and goals, as well as its target audience and market niche. Based on these project details, the blockchain dev team will be able to find the most relevant tech stack for its successful release.
Getting the right blockchain developers for Web3 startup. Despite a growing community of Web3 developers, finding a talented crew of specialists can be quite challenging. An experienced team of developers, can introduce the best implementation for your Web3 concept based on their past project experience, case studies, and tech trends introduced on the market.
Finding relevant technologies and development solutions. In the ever-changing Web 3.0 environment, it’s really hard to constantly track all the improvements, especially for new players. To easily access the top solutions in blockchain and make data-driven and cost-effective decisions for your business, it’s worth hiring an experienced team of developers for building Web3 projects.
Insufficient planning and cost management. Due to the rapid evolution of digital and tech solutions, meticulous and efficient planning is crucial for managing the project’s timeline and cost.

“A significant number of digital and tech solutions are evolving extremely fast, especially in Web 3.0 niche. That’s why time-efficient and detailed planning gets an exceptional role in the project’s timeline and its cost. Additionally, to comply with the development timeline and release date, business owners also have to ensure a stable source of financing.”
Alla Aleksanian, IdeaSoft web3 project manager

Being aware of these Web3 startup development aspects can help your business to effectively overcome the challenges and come up with a feature-rich and competitive product for the selected market.

Why Outsourcing Is the Best Option for Your Web3 Startup?

Along with the best practices on how to create a Web3 startup and its potential challenges, it’s also important to consider the blockchain dev team for hire. Undoubtedly, entrusting your project to the right crew with a decent experience will help you get a functional, user-friendly, competitive, and profitable product for your business.

Currently, outsourcing is among the most popular hiring models for Web3 development, and not without a reason. Here are the most popular benefits of the outsourced team for a blockchain project startup:

Enhanced Cost-Efficiency. Startups can optimize their expenses related to infrastructure, and employee benefits, and training yet remotely access the top talents for their Web3 projects at a reasonable cost.
Access to Specialized Expertise. Web3 development niche is relatively new, so finding expertised blockchain developers for a Web3 startup can be challenging. Outsourcing allows businesses to effectively reach the required talents, which in turn can accelerate development, reduce the onboarding process and improve the quality of your Web3 solution.
Better Flexibility and Scalability. With outsourcing, startups can hire the required expertise for Web3 development and easily scale their team up or down based on the current workload situation. At the same time, the in-house specialists can optimize their workflow by entrusting the specialized tasks to the outsourcing partner.
Accelerated Time-to-Market. Outsourcing companies often have established workflows, processes, and tools in place, enabling efficient project execution and delivery. So, hiring a reputable blockchain development company like IdeaSoft allows businesses to speed up development and achieve a faster time-to-market for your Web3 project.
Improved Management. Launching a Web3 startup through the outsourcing model reduces the management burden associated with recruiting, onboarding, and controlling your team’s workflow. In turn, it helps businesses to focus on their core competencies and strategic activities such as project planning, business strategy, marketing, customer acquisition and so on.
Facilitated Post-Release Maintenance and Support. Getting round-the-clock operations and support is essential for Web3 startups serving a global market. Outsourcing providers also deeply understand your project and can provide great ideas for optimization and improvement based on your product specifications and current market needs.

IdeaSoft Experience

One of the most recent successful cases of Web3 development at IdeaSoft was the Ethereum-based project for Asymetrix. Overall, it is a decentralized, non-custodial protocol allowing ETH staking with a unique approach to yield generation upon users’ stakes.

In addition to unique staking reward generation logic, IdeaSoft team had a task to develop DAO, which should facilitate governance and airdrop possibilities within the protocol. Integrating account abstraction into our development process, we enhanced both the security measures and user experience for the protocol.

Asymetrix protocol TVL, Source: DeFiLlama

The fruitful outcome of Asymetrix’s successful launch can be largely attributed to our team’s careful planning, strategic implementation, and profound discovery phase, coupled with our extensive expertise in blockchain development and prior experience with similar projects. Within a mere two-month timeframe, Asymetrix protocol has garnered an impressive TVL of over 20 million, which continuous to grow steadily.

By outsourcing the blockchain development services at IdeaSoft company, our clients can create a Web3 startup that is competitive, profitable and fully aligns with the key market trends and users’ needs.

Summary

Creating a Web3 startup is a complex process that covers a wide range of aspects, from product ideation and market research to MVP development, fundraising and post-release maintenance. To stay ahead of the competition, it’s essential to follow the best practices in Web3 development, test and embed the most effective solutions and stay aware of the potential challenges.

Partnering with providers of IT outstaffing solutions can help you assemble a skilled team quickly and cost-effectively, ensuring your project stays on track.And, with the right development team for your blockchain startup, ensuring the long-term success of a Web3 product is easier than ever!

Ready to discuss your project?

Let us help you figure it out, and correctly draw up the requirements for you!

With years of experience in Web3 development, IdeaSoft is known as one of the most reliable tech outsourcing partners in Ukraine. Our specialists will provide high-end support across all the stages of your Web3 startup, from ideation to project release and post-maintenance support.

Contact us today to uncover the most effective strategy for launching a successful Web3 solution that fully aligns with your business goals and needs!

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