2020 has been a banner year for Defi. Defi Pulse estimates that the assets locked into Defi protocols will be worth more than $13 billion by the end of 2020, representing a 2,000% increase over January.
If, due to this popularity, you decide to develop your Defi product and are looking for information on how to start a Defi project, you’ve come to the right place. This article will go over the significant stages of Defi development and the factors to consider when selecting a development team and launching a product.
You follow a specific development scenario regardless of the type of Defi project you are developing. Let’s go over how to launch a Defi project.
1. The process of developing the Defi product
Defi product development differs slightly from normal software development. It all comes down to decentralization. Any financial organization or central authority does not run Defi; instead, blockchain enforces all of an application’s or service’s logic. You must create smart contracts containing all the operational rules to accomplish this. The following is the Defi development process:
- Business analysis
- UX/UI design
- Smart contracts development
- Defi integrations
- Front-end development
2. Defi security
Decentralized finance has advantages and disadvantages. Because Defi is anonymous and lacks a regulatory framework, Defi users are easy targets for scammers, hackers, and money launderers. The system is vulnerable due to the weak architecture of bugs in the code, smart contracts, and insecure integration. As a result, you should do everything possible to reduce the risk of theft and fraud. Here are some pointers for ensuring Defi security.
Always conduct security audits and check for smart contract vulnerabilities. Don’t share your private key with anyone. The product’s creator must be the sole keeper of the secret key. Also, store it offline.
Test the product for smart contract edge cases, such as a network overload or hacker attack. Finding the system’s weak points will enable you to improve and stop actual fraud cases.
Don’t overlook testing and audits. With your development team, go over every option for ensuring the safety of your product. This is crucial for kicking off a successful Defi project.
3. A DeFi project’s development team selection
Now it’s time to pick a development team for your product. We believe that the development of Defi necessitates extensive knowledge of blockchain technology and previous experience with similar projects. Thus, in addition to security, these two criteria will be critical when selecting software engineers. Because of the recent spate of hacker attacks, people regard Defi as risky and are cautious about their platforms and applications. Your task is to create a dependable product with the assistance of an experienced team fully aware of its responsibility for the quality of its work. So, who should be on your development team:
- Portfolio of successfully implemented blockchain projects
- Experience in creating smart contracts
- Experience with fintech projects
- Skilled in-house developers
- Clear security standards
We also recommend that you work with companies that provide full-cycle software development services. In this case, you can complete all project tasks, from design to testing and support, while working with a single team. Many people believe this option is more cost-effective and convenient because you do not have to sign contracts and communicate with multiple companies simultaneously.
Now that you know how to launch a Defi project and what steps to take, let us tell you how we can assist you. SmartOSC is a software development company that works on various projects, including blockchain development, NFT marketplaces, smart contract development, and more.
SmartOSC’s team of talented and experienced specialists can execute projects of any complexity while adhering to best security practices.
Please feel free to share your thoughts with the SmartOSC team. We will do our best to bring them to life using cutting-edge technology. Please get in touch with us if you would like a free consultation with a technical specialist or a project estimate. And best wishes with your Defi product; you’re on the right track!
Contact us if you have any queries about Blockchain development services, dApps development, NFT marketplace development, Crypto wallet development, Smart contracts development.