If you are considering blockchain, cryptocurrencies, NFTs, or Web3 for your business, you might be looking for a reliable partner to build decentralised applications or tokenise assets.
Appstrax Technology no longer provides development services in blockchain, crypto, or Web3 projects.
We made this choice carefully after thorough evaluation.
As solutions architects, we focus on creating robust, secure systems that address genuine business needs and deliver sustainable returns.
After exploring the Web3 space, we identified high risks, heavy speculation, and poor alignment with solid business principles.
This article shares our insights transparently to help you make informed decisions for your organisation.
Our Early Interest in Web3
We initially found blockchain’s promises of decentralisation, immutability, and transparency exciting.
Our team invested time studying key elements.
- We examined blockchain as a distributed ledger technology.
- We explored decentralised applications that run on peer-to-peer networks.
- We analysed smart contracts that self-execute coded agreements.
- We reviewed cryptocurrencies and token designs for utility or investment.
- We applied our usual rigorous approach, emphasising practical benefits.
- However, client inquiries and deeper research revealed persistent risks.
Real-World Challenges in the Crypto Ecosystem
The crypto field often prioritises financial speculation over genuine innovation. This creates an unstable setting for businesses aiming for lasting growth.
Many of the inquiries we received focused on quick token value gains driven by hype, not on solving operational issues.
This clashes with our role as solutions architects. We design systems for efficiency, customer engagement, data security, and clear outcomes.
In contrast, many Web3 projects emphasise token economics over quality engineering. Budgets frequently favour marketing and influencers rather than strong development.
Short-term exits dominate, not long-term company building.
For clients, this means risking investment in speculative instruments masked as technology projects.
Key Risks We Identified
Web3 projects carry substantial risks across security, regulation, and technical fit. We outline these to highlight why they concern us.
1. High Security Vulnerabilities
Blockchain’s “code is law” principle makes errors permanent and exploitable. Once deployed, smart contracts on immutable chains cannot be easily patched.
The ecosystem has seen billions lost to breaches.
Common threats include smart contract exploits like reentrancy attacks. Rug pulls occur when developers abscond with funds.
Phishing targets complex wallets.
51% attacks can reverse transactions. As partners, we avoid building on such unforgiving foundations.
The cost of one failure to reputation and finances is too great.
2. Regulatory and Legal Uncertainties
Rules for crypto and NFTs vary widely and change often.
Many tokens risk classification as unregistered securities.
Compliance with anti-money laundering and know-your-customer requirements adds complexity.
Tax treatments remain unclear. Legal recourse against fraud is often limited.
This shifting landscape prevents us from offering reliable long-term guidance.
3. Technology Often Misfits Business Needs
Blockchain rarely proves the best solution for most problems. Centralised systems outperform in key areas. Compare these aspects:
- Performance: Blockchain offers slow speeds; traditional systems provide high throughput.
- Cost: Gas fees fluctuate highly; centralised options stay predictable and low.
- Scalability: Blockchain struggles with the trilemma; cloud setups scale easily.
- Privacy: Public ledgers expose data; centralised controls protect it.
- Updates: Immutable code hinders fixes; traditional software evolves quickly.
- User Experience: Crypto wallets confuse users; standard logins feel familiar.
Many blockchain pitches follow trends, not rational needs assessments.
Examining Popular Web3 Concepts
NFTs rely on hype for value, with practices like wash trading inflating demand. Utility beyond art is limited, and real-world links raise legal issues.
Real-world asset tokenisation faces reliability issues with oracles and enforcement gaps.
Decentralised finance involves volatility, unaudited code, and complex risks like impermanent loss.
These make dependable business foundations challenging.
Our Focus on Proven Solutions
We step away from Web3 to uphold our commitment to your success. We innovate by matching the right tools to your problems.
Our strengths lie in secure, scalable systems that drive real value.
We specialise in custom software tailored to your operations. We excel in cloud architecture using AWS, Azure, or Google Cloud. We provide data analytics for informed decisions.
We handle system integrations and APIs for seamless stacks.
These deliver compliance, performance, and strategic alignment.
Developers often use these additional tools to build robust solutions:
- Docker: Containers for consistent deployment across environments.
- Kubernetes: Orchestrates containers for scalable, resilient applications.
- Git: Version control to track changes and collaborate effectively.
- Jenkins: Automates builds, tests, and deployments in CI/CD pipelines.
- Terraform: manages infrastructure-as-code for reproducible setups.
- Postman: Tests and documents APIs to ensure reliable integrations.
Conclusions
Our Web3 evaluation confirmed that excessive speculation, security threats, regulatory gaps, and technical mismatches make it unsuitable for serious clients.
We choose responsibility by building on firm foundations.
We partner with you to provide pragmatic, secure guidance and development that foster enduring success.
If you face a business challenge needing reliable technology, contact us today to discuss building valuable solutions together.
