What is a roadmap?
A roadmap is a detailed, structured plan that outlines the main objectives and milestones of a project. It focuses on the short and long term goals that the project aims to achieve within an estimated time frame.
Cryptocurrency And blockchain projects usually describe their roadmap on their websites. It is presented as a visual representation that serves as a guide to the project team, community members and investors.
Importance of a crypto roadmap
The cryptocurrency industry is murky. There are so many projects that it is difficult to distinguish promising and legitimate projects from poorly prepared or fraudulent projects. With this in mind, most blockchain projects seek to provide the public with in-depth details about their goals, development process, and other technical details.
Here’s why roadmaps are important:
- Technical difficulties: Scaling public blockchain networks is a technically difficult task. Never in the history of humanity have public blockchains attempted to reach a mass scale. Therefore, a roadmap is the fusion of extensive research, planning and community discussions.
- Long-term play: The blockchain industry is still developing, it could take years to see decentralized finance Applications (DeFi) can compete with traditional financial companies like Visa and Mastercard. Slow development can make developers, investors, and community members less enthusiastic about the industry when expectations are not met. Having a roadmap not only balances short-term expectations, but also showcases the long-term promise and vision of crypto.
- Adaptability: A roadmap is not set in stone. It can change to adjust and adapt to new challenges and technologies. Therefore, a flexible roadmap is extremely important to navigate the ever-changing crypto landscape.
- Project alignment: A roadmap is a strategic plan. This helps ensure that all development team members and stakeholders use their resources toward a common goal. Having community members on the same page sets clear expectations and avoids conflict.
- Transparency and credibility: A potential investor or crypto enthusiast will typically look for a project’s roadmap during their research. Having a detailed roadmap will not only establish transparency but also give credibility to the project.
- Community Engagement: Every project needs a community behind it to grow. This is especially true in the crypto world, where you’ll find a cult following behind popular projects like Ethereum And Cardano. These projects have well-defined roadmaps that are constantly updated to keep their communities engaged and informed of ongoing development. A roadmap not only keeps the community excited about the future, but also fosters a sense of inclusion and participation, which can be invaluable to long-term success.
- Investor Confidence: The investment community is made up of some of the most informed people in the world. They do their due diligence and review every aspect of a project before committing their funds. It is also common to shortlist several potential candidates and compare each party to another.
Remember that there are a multitude of crypto projects and tokens to invest inTherefore, a project’s roadmap can ultimately decide whether it is worth investing in or not.
Roadmap Explained: Key Components
A typical crypto roadmap includes these key elements:
|Milestones||Milestones are significant achievements or events in the project development timeline. They may include mainnet launches, network upgrades, dApp launches, etc.|
|Time limit||Roadmaps include timelines or estimates of when each milestone should be achieved. These deadlines can be presented in weeks, months or even years.|
|Features and upgrades||Roadmaps often contain information about upcoming upgrades. A project may choose to explain why the upgrade or feature is introduced or how the upgrade is implemented.|
Examples of roadmaps
Let’s take a look at a real-world example of a crypto roadmap from two of the largest crypto projects in the world: Ethereum and Cardano.
Ethereum’s roadmap highlights its vision of becoming the world’s computer and explains how its roadmap will result in cheaper transactions, additional security, and a better user experience.
In 2022, Ethereum completed the first phase of its scaling roadmap called “Fusion“, which marked the transition of Ethereum from a proof of work (PoW) consensus mechanism has a proof of participation (PoS) consensus mechanism.
“The Scourge” is the third phase of the Ethereum roadmap which will focus on upgrades related to censorship resistance, decentralization and protocol risks of MEV.
It will be followed by “The Verge”, “The Purge” and “The Splurge”, which will likely take a few years and several revisions to complete.
The first era, named Byron, marked the founding of Cardano in 2015 and the launch of its mainnet in 2017. The second era, named Shelly, focused on decentralization by encouraging the participation of validators. The third era, named Goguen, introduced smart contracts and dApps to the Cardano blockchain.
The fifth and final era, called Voltaire, will see Cardano focus on governance with the introduction of a voting and treasury system.
Crypto projects like Ethereum and Cardano have demonstrated the power of clear and comprehensive roadmaps. Ethereum’s definitive roadmap has been so influential that the current focus on scaling via layer two rollups has seen the entire crypto industry turn to rollup technology .
Therefore, the power and importance of a roadmap should not be underestimated. It is not just a document: it is a strategic plan, a branding and marketing tool, a transparency mechanism and a prospectus for investors.