{% hint style="info" %} More on this topic can be found here: https://zksync.mirror.xyz/rWlsCglbXl-2ZrjJukDfRdgX4k7OIP6rgRea-4d_AKM {% endhint %}
In crypto, "DYOR" (Do Your Own Research) is crucial due to the highly adversarial nature of the space, where smart contract vulnerabilities and malicious actors abound. One of the most important things to understand is that blockchains are public networks that are “permissionless.” This means that anyone can build on top of that blockchain, or can even copy it and create their own version. This is very different from web2 business models like app stores, where a responsible company reviews the apps before going live.
In crypto, there is no such review process, and although most participants in this space operate with good faith and shared community values in the interest of building public goods, there are bad actors who use the permissionless structure dishonestly for their own advantage.
This guide outlines basic steps for researching web3 projects but is not exhaustive, is solely for educational purposes, and should not be understood as an endorsement of any particular project. Always exercise caution and seek additional information when making investment decisions.
Familiarize yourself with concepts such as blockchain, rollups, bridge, decentralized finance (DeFi), smart contracts, and cryptocurrency wallets to provide a solid foundation for your research. The Ethereum website can be a good starting point: https://ethereum.org/en/developers/docs/intro-to-ethereum/.
On zkSync Era, you can find more information on our documentation: https://era.zksync.io/docs/
When analyzing a web3 project, start by researching the project’s goal. Understand the problem the project aims to solve and its competitive advantage. Compare it to competitors.
Most serious projects will have documentation describing technical aspects, goals, and roadmap of the project. Have a look for instance at the Uniswap Docs which is made of a whitepaper, full technical documentation, and glossary. It is crucial to read and understand them to grasp how the project aims to achieve its goals. Look for clarity in the document, as well as the feasibility of the outlined plans. If something is unclear, ask questions, it is on the project to make sure the information is digestible, accurate, and clear.
Look into the backgrounds of the team members, their experience, and their past projects. Are the project members anonymous or reputable developers (doxxed)? Is it the first project the team is shipping? What is their track record? This will help you gauge the likelihood of the project's success. Projects led by anonymous team members, with no track of records, can be highly risky.
Review the project's code repositories and development progress. Frequent updates and a large number of contributors are positive signs of an active development team.
On the zkSync Era block explorer, you can check whether the contract has been “verified”. In this context, “verified” means that the smart-contract code running at the deployed address corresponds to the code that is shown to the public.
{% hint style="info" %} For example the smart contract of the VC (Velocore token): https://explorer.zksync.io/address/0x85D84c774CF8e9fF85342684b0E795Df72A24908#contract {% endhint %}
Look for completed security audits by reputable firms to ensure the project's smart contracts and codebase are secure. Please find below a non-exhaustive list of reputable auditing firms: OpenZeppelin, ConsenSys, Trail of Bits, Hacken, Spearbit, Halborn, Quantstamp.
Tokenomics refers to the economic model and distribution of a cryptocurrency's tokens. Assess the token's utility, supply, demand, distribution, and potential for growth. This information is usually available in the project's documentation.
A strong community and partnerships with established companies can be indicators of a promising project. Join the project's social media channels, such as Telegram, Discord, and Twitter, to observe the community's sentiment and engagement. Do not hesitate to ask questions to community members, but always critically evaluate the information. In the process, remember to never share your private keys with anyone.
Please note that some projects could inflate their numbers with bots. Investigate the channels/tweets and see if there is real engagement (1-5 likes or reactions for 10k followers would look suspicious for instance). Look for partnerships that add value and credibility to the project.
When conducting your research, consult multiple sources such as news websites, Twitter, forums, blogs, and expert opinions. This will help you gain a comprehensive understanding and minimize the risk of biased (“echo-chamber”) information.