6 Major Reasons Why Decentralized Projects Fail

[Goodcat49]

Many decentralized projects tend to fail a few years after their inception for a multitude of reasons. Those who want to participate in the decentralized economy should find the right project or join a trusted team involved in the decentralized field. This will save you time and prevent you from being stressed in the short and long terms.

So far the cryptocurrency and blockchain sector is around ten years old, but it has registered a massive growth in the past three consecutive years. Very many projects, companies and businesses related to this nascent technology actually registered a record growth in 2018 compared to other years.

Albeit, a number of distributed ledger technology (DLT)-related projects have managed to live and perform well, while the majority have not survived to see their second or third birthday. Here are major reasons for the failure of most decentralized projects:   

1. Failure to Build a Product/Service Needed by People

Also, the team behind a project has never developed a product or a service that customers actually need – product-market fit (PMF) is still a big problem. As a matter of fact, a lot of blockchain-based projects will find it hard to achieve the PMF.

2. Blockchain Bloat

As Muneeb Ali of Blockstack revealed, “At scale, Ethereum is designed to fail,” there are indeed some projects that are designed to fail. Many such projects are created to be used for experiments, but of course, consumers will continue using the product as they wait for something better. Crypto fanatics are now concerned about the mass of the Bitcoin (BTC) blockchain. Ethereum is also facing similar problems. Any blockchain of around 100 GB could not succeed in the future for either currency. A lot of these issues can be thus attributed to blockchain bloat, a very bad side effect of budding blockchain ecosystems. Experts are now trying to come up with alternatives such as IOTA and Nimiq in order to address this issue.

Here are major reasons for the failure of most decentralized projects: https://coinidol.com/decentralized-projects-fail/