A hackathon is a relatively simple and resource-saving way to tap into the creativity of the developer and creator scene. But behind the concept exists a bigger world.
A bigger world where more and more companies (yes, blockchain companies are not the only ones to use this methodology) are discovering diverse solutions by hosting hackathons to engage developer and creative communities. After all, alternative perspectives lead to better solutions and more creative ideas.
Blockchain hackathons, a multiverse solution
In the particular case of web3 and blockchain companies, hackathons have the advantage of building brand awareness and collecting valuable feedback to improve their technology based on developer experience and the applications built during the event, which otherwise would require significant time and resource investment through internal testing.
A great example of a blockchain hackathon is the Starknet Winter Hackathon, hosted by Starkware on TAIKAI
One of Starkware’s scaling solutions is Starknet, a permissionless layer 2 network where any user or developer can deploy smart contracts developed in the Cairo language. This technology was the focal point of the recent Starknet Winter Hackathon, which challenged developers to build innovative applications leveraging Starknet’s capabilities.
By hosting a hackathon, Starkware was able to have a community of +390 builders testing their stack and providing valuable insights.
These developers worked on a wide array of projects, ranging from DeFi applications to innovative NFT platforms, each highlighting Starknet’s potential. The collaborative environment created during the event allowed developers to exchange ideas, troubleshoot issues, and optimize their solutions in real time, showcasing the flexibility and power of Starknet’s infrastructure.
Besides benefiting companies and participants, these events also positively contribute to the blockchain ecosystem as a whole by encouraging collaboration and networking among developers, entrepreneurs, and industry leaders.
Learn the full story of how TAIKAI made Starkware’s hackathon a success by reading the complete case study here.
Why should your blockchain company run a hackathon?
Many tech giants, such as Facebook, Google, NASA, and Telcel, have hosted numerous hackathons over the years to drive digital transformation and foster the innovation they strive to achieve.
While hackathons are known for generating business ideas and viable products for web2 companies, how do they benefit blockchain and web3 companies?
That’s what we’ll take a look at now…
Different eyes, different solutions
Over 80% of Fortune 100 companies conduct hackathons to drive innovation. More than 50% of these hackathons are recurring events, highlighting their reliability as a tool for sustained innovation. This is perhaps their most crucial benefit, as hackathons bring together diverse talents to generate initiatives that address common problems.
Through this accelerated idea generation, insights emerge that can evolve into projects, positively impacting the company and its products. For example, blockchain companies and other firms often gain significant problem-solving expertise from hackathons, which also have the added benefit of being cost-effective.
Be a top-of-mind market solution
The more people who know about your company, the better — especially if you opt for digital promotion. Blockchain markets are very competitive, so the key to maximizing the impact of your hackathon and expanding your company’s reach is to spread the word effectively. Partner with universities, sponsor social media campaigns, use traditional media ads, and employ any other strategies necessary to attract the most registrants and audience.
How can hackathons help blockchain companies in this regard? Hackathons serve as an effective PR and marketing strategy, quickly strengthening your company’s presence in the industry and associating your brand with innovation
Your next recruitment tool
This exchange of experiences will expand the participants’ networks and, in the case of an external hackathon, grow the organization’s own network.
Some companies use hackathons as recruitment and promotion tools because they give recruiters access to innovative ideas and skill sets that might not have been considered otherwise.
Hackathons also provide excellent exposure for job seekers by generating buzz around hiring opportunities.
Companies often sponsor or host these events as part of their recruiting strategy because, as all tech players know, talent in this area is constantly evolving. The better the participants, the better the solutions for your blockchain needs.
Diminish your errors, give your company security
It is worth remembering that blockchain was developed to create a reliable and efficient system for recording financial transactions, preventing fraud, cyber-attacks, and user errors. This is why financial services present several application cases for blockchain technology. A hackathon can serve as an excellent playground for identifying security vulnerabilities in your project.
In 2016, a hackathon focused on cybersecurity was held in Ukraine. In less than 48 hours, 16 teams of IT specialists, business analysts, and blockchain/Bitcoin enthusiasts brainstormed and designed viable business ideas based on blockchain-distributed technology. An open-source solution was developed in this case, available to anyone.
The objective was to encode user data with OpenSSL, allowing access via a personal security key. The Ethereum blockchain app platform would provide routing between the client and server and perform an escrow function, ensuring transparency in transactions.
Hackathons could mean new products
Many startups and businesses that host hackathons aim to test new aspects of their company or product with external developers before implementing them internally. The diversity and teamwork generated during hackathons make them ideal environments for testing and developing new ideas.
For example, Hasbro Toys famously created 45 products during a single hackathon. Similarly, successful ventures like GroupMe and WorkFlow have emerged from hackathons; in GroupMe’s case, this led to an $85 million acquisition by Microsoft.
In the blockchain world, companies like Digital Asset and SE2 organized a hackathon focused on Daml, a multi-party application platform created by Digital Asset, to develop innovative blockchain and smart contract applications.
Increase adoption of technologies
Digital transformation requires changes in company culture, and these changes often involve investments that may initially impact the budget. By hosting a hackathon, an organization can stay updated on technological trends and develop solutions to reduce costs and streamline processes.
In the blockchain niche, speed and agility are essential for driving business value. Hackathons serve as a valuable tool for accelerating organizational change and fostering a proactive, customer-centric culture.
Sense of community
Many innovative business managers understand how hackathons can benefit blockchain companies by recognizing the value of developing a self-sustaining, positive ecosystem around them. Hackathons, as an effective marketing technique, can also help expand a company’s external network, particularly among engineers who often participate in feedback and content development.
For instance, DailyCoin argues that community participation simplifies learning the core values of blockchain technology. Those who engage in and participate in hackathons are typically intelligent and capable individuals who will likely maintain contact with the company’s external relations staff for future events if the experience is memorable.
Blockchain hackathons need to be planned to work
A hackathon is an event that needs to be prepared and managed. It’s not just the cost of location, food, staff, and equipment. You also need to provide a creative atmosphere and a proper methodology to ensure the teams’ high productivity.
Moreover, the solutions developed during a hackathon are not always immediately usable, but with further development in a post-event phase, they can become viable applications.
If the topic is not attractive enough to participants, expectations for solutions are too high, or the prize pool is insufficient to draw quality participants, a hackathon can still be valuable for driving cultural change within the organization.
Last but not least, to summarize, if you have a blockchain company you want to:
- Cost reduction through reduced supervision and fewer intermediaries;
- Time savings with fast sprints, creating to prototypes in days against traditional R&D processes that can take weeks;
- Build proof-of-concept blockchain pilots for your business
- Increased security by preventing fraud, manipulation, and cyber-attacks;
- Increased efficiency, embracing digital transformation over traditional systems.
Looking to take your web3 project to the next level?
Hosting a hackathon is a great way to engage your community and get developers to test and use your protocol or EVM.
TAIKAI simplifies that work for you with its all-in-one virtual hackathon platform that makes an online hackathon event much easier to host.
TAIKAI goes a step further by offering consultancy services, drawing on our experience from organizing over 180 hackathons.
We handle every detail from start to finish, managing all aspects necessary to create a smooth and effective event. This includes planning and organization, technical support, participant engagement, event promotion, and all-around online logistics.
Reach out to us or Request a demo! We’re always here to help :)
About TAIKAI
TAIKAI is the leading hackathon hosting platform. It enables you to host development challenges and improve your company’s visibility by providing participants with a gamified experience. Our all-in-one system allows you to effortlessly manage registrations, live stream your event, evaluate submissions, and more.
Our consultancy plan is designed to provide end-to-end support for your hackathon, ensuring a seamless experience from initial concept to final execution.
