Hackathon
What Is a Hackathon in Crypto?
In the crypto world, a hackathon is essentially a time-limited incubator. These events bring together programmers, designers, and blockchain enthusiasts to build initial versions or proofs-of-concept for new decentralized applications (dApps), tools, or protocols.
Hackathons can last anywhere from 24 hours to around a week, and challenge participants to solve specific problems or create unique use cases for a particular blockchain ecosystem. As such, they are often sponsored by existing blockchain companies or blockchain foundations.
Projects born in hackathons regularly go on to become major pillars of the crypto industry. Notable examples of DeFi projects first built during hackathons include the decentralized exchange aggregator 1inch, privacy protocol Tornado Cash, and pioneering Ethereum NFT project CryptoKitties.
How Do Hackathons Work?
Most crypto hackathons follow a similar structure:
- Organizers announce specific themes or categories that competitors must adhere to, e.g., DeFi app, privacy protocols
- Participants form teams, often combining different skills like smart contract coding, frontend design, and business strategy.
- Teams work intensively to build a working prototype, often referred to as a Minimum Viable Product (MVP).
- A panel of industry experts evaluates the projects based on innovation, technical achievement, and utility.
- Winners receive rewards, often in cryptocurrency, grants, or direct investment opportunities to turn their prototype into a real business.
How Hackathons Benefit Blockchain Ecosystems
- The time pressure around hackathons, along with an environment that attracts skilled professionals, can lead to highly creative thinking and breakthroughs that might not happen in a regular work environment.
- Hackathons are a primary recruiting ground for major crypto companies looking for skilled developers.
- They can foster a strong sense of community, connecting developers of all different backgrounds.
