Understanding a Crypto Project’s Development Roadmap and Milestones
It’s never a good idea to make impulsive decisions when you get your hopes high and think about investing in the next big thing in the crypto space.
When it comes to new or less popular cryptocurrencies, part of your fundamental analysis should include checking the project’s development roadmap and milestones. While it doesn’t require reading them from A to Z, having an overview is essential for understanding the risks and challenges that the project may face.
Yet, not all roadmaps and milestones are created equal. Some projects may have vague, unrealistic, or outdated roadmaps that don’t reflect the actual state of the project. Some projects may have overly ambitious or complex roadmaps that are difficult to execute or verify. Some projects may have no roadmap at all, or only provide a few updates on their social media channels.
Read below and find valuable tips on how to understand and evaluate a crypto project's development roadmap and milestones.
How to Evaluate Crypto Projects’ Development Roadmap and Milestones
A roadmap and milestones can help investors to assess the potential and viability of a project, as well as to monitor its performance and development. They can also help investors identify how the team plans to overcome risks and challenges.
A crypto project's roadmap generally encompasses the following elements:
- vision and mission: outlining the overarching goals and objectives guiding the project.
- achievements: highlighting specific milestones that signify substantial progress.
- enhancements and features: detailing planned improvements, updates, or newly introduced functionalities.
- schedule: provide an estimated timeline for the completion of each milestone or release.
- team and resources: identifying the individuals and resources contributing to the project's development.
One example of a crypto project with a valid and trustworthy roadmap is Cardano.
The Cardano roadmap covers distinct phases, including the Byron phase, emphasizing the core infrastructure's development, and the Shelley phase, dedicated to decentralizing the network. A recent milestone is the introduction of the Goguen phase, focused on incorporating smart contract functionality. This phase empowers developers to construct advanced decentralized applications on the Cardano platform.
The important elements you should look at include:
- The source and credibility of the roadmap
The roadmap should be published on the crypto company’s official website or whitepaper and should be updated regularly. The roadmap should also be signed or verified by the team members or developers of the project, preferably with their real names and credentials.
- The clarity and specificity of the roadmap
The roadmap should clearly state the goals, objectives, and deliverables of each phase or stage of the project, as well as the expected timeline and completion date. The roadmap should also provide measurable indicators or metrics to track the progress and success of each milestone.
- The feasibility and realism of the roadmap
The roadmap should be aligned with the project's vision, mission, and value proposition, as well as with the market demand and competitive landscape. The roadmap should also be achievable and realistic, considering the project team's resources, capabilities, and challenges.
- The transparency and accountability of the roadmap
The project team should provide regular and consistent updates on their development progress and achievements, preferably on their official website or blog, as well as on their social media channels. The project team should also be open to feedback and questions from the community and investors and should address any issues or concerns promptly and professionally.
- The innovation and differentiation of the roadmap
The roadmap should demonstrate how the project aims to create value and solve problems for its target users or customers, as well as how it differs from its competitors or alternatives. The roadmap should also showcase how the project leverages new technologies, trends, or opportunities in the crypto space.
Another example of a crypto project with a clear roadmap is Bitcoin Minetrix.
While it’s true that it’s backed up by Bitcoin, you can clearly and quickly get the idea behind Bitcoin Minetrix’s roadmap from its homepage.
Why Are Crypto Projects’ Milestones Important
Crypto project milestones mark significant progress in a project's development. They also serve as key indicators of success and are instrumental in maintaining momentum and community engagement.
Here's why milestones matter:
- They allow both the project team and the community to track advancements, demonstrating the team's commitment and competency.
- They provide a sense of accomplishment and validate the project's credibility, attracting more users and contributors.
- They allow teams to iterate their plans based on real-world feedback and changing circumstances.
- Regular updates on achieved milestones, as well as challenges faced, foster trust and transparency, maintaining a positive relationship with the community.
A well-structured roadmap provides a clear agenda and strategy, while milestones serve as markers of progress, adaptability, and community engagement. As the cryptocurrency space continues to evolve, you should prioritize projects that have innovative ideas but also demonstrate a clear vision and strategic plan for their development journey.
In sum, try to have an extensive overview of a crypto project's development roadmap and milestones to make more informed and confident investment decisions.