Blockchain - What are the KPIs that attract investors?
Blockchain technology has the potential to revolutionize the way businesses operate, offering increased transparency, reduced costs, and streamlined processes. Decentralized applications (dApps) that use blockchain technology, such as Ethereum, have the potential to disrupt traditional business models and create new opportunities.
As more and more real-world use cases come to the forefront, it has shown the potential to be used in a wide range of industries, including finance, supply chain management, healthcare, and more.
By using key performance indicators (KPIs), businesses can measure the success of their blockchain initiatives and attract customers.
List of KPIs that attract investors
Key performance indicators (KPIs) are metrics used to measure the success of a business or specific initiative. For businesses looking to attract customers with their blockchain initiatives, some potential KPIs to consider might include:
- How big is the problem and how is your solution disrupting market players and the marketplace?
A blockchain solution is a large-scale business venture. Problems with a small number of afflicted populations should not require a blockchain solution. Keep in mind other available applications and differentiate your project from those already in existence.
- What is the value creation and for whom?
What advantage can your application give to its users that other projects have failed or neglected to produce?
- What will be the customer acquisition cost?
How will you attract users to your application? Online news outlets and blockchain websites are a good way to publicize your blockchain project with little to no monetary investment. Find a high-traffic website of blockchain-interested users and spread the word about your new application.
- Can a market leader replace the solution -risk analysis?
Keep in mind the risks associated with launching a blockchain project. Larger companies with greater resources can take an idea and adapt their own applications to fix something previously overlooked. Your application should solve a problem that larger companies cannot easily fix with their own established technologies.
- Does the project have well-defined goals?
A project that is simply the implementation of a basic and specific idea will not be appealing for venture capital investors. They are looking for businesses that have a future goal in mind and a plan to work towards it for the next few years.
- Has it been thoroughly tested?
Blockchain technology is very difficult and tedious to test. Making sure that it is operational and working without major flaws is key to showing investors that they can trust you with their money.
- Can it be updated on the go?
Investors want to know that you can update your application or platform without much hassle (i.e., without shutting it down for a while and rebuilding it).
- Is there developing talent to be able to sustain the market/product?
Investors like to know that there is a market for the kind of software development talent that is needed to work on the project. They want to know that there is room to develop more software on top of what is already in place, and they want to be assured that when problems in the code arise, there are people around who are available to help.
- What are the risks involved in the project’s blockchain ideas?
This question dives into the more technical questions about how difficult it would be for a blockchain to be attacked. It deals with cryptography, proof-of-work, and consensus protocols. Essentially, investors want to have a good picture of the major risks accompanying their investment in a specific project.
In conclusion, blockchain technology has the potential to transform a wide range of industries, offering increased transparency, efficiency, and security. By using key performance indicators (KPIs) businesses can measure the success of their blockchain initiatives and attract customers. As the technology continues to evolve and mature, we can expect to see an increasing number of businesses and organizations adopting blockchain to drive innovation and growth.
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