Blockchain is one of the most trending technologies of 2020. Many people know blockchain just due to bitcoin and cryptocurrency, but there is a lot more to it. This technology has completely transformed the way businesses work and transact with each other. The word digital transformation fits perfectly and defines this technology the best.
Blockchain represents the decentralized network, which is a must these days, and businesses are leaving no stone unturned to encash this opportunity. They are constantly in search of a good blockchain development company that can create customized solutions per their requirements. But what would be the cost to develop blockchain solutions is the main concern for many.
Today, in this article, we will walk you through the cost of blockchain app development and what all are the factors that may impact the overall cost. But before we begin talking about the factors, let’s have a loot t some of the benefits which this technology offers to businesses.
Benefits of Blockchain
Blockchain is a growing technology, and more and more businesses are getting attracted to it. There are too many reasons for entrepreneurs to opt for blockchain app development services: transparency and security being on the top.
So here, we are going to see some of the benefits that blockchain offers and how it can transform your traditional way of doing business.
i) Added Security
Blockchain and security are synonyms to each other, and most businesses integrate these smart solutions to keep their transactions and data safe and secure. It is viewed as a profoundly secure framework because of its computerized mark and encryption. The framework is uniquely intended to be secure, helpful, and sealed.
ii) Fraud Prevention
Blockchain solutions are highly secured, and this is the main reason why any sort of fraud can be easily avoided by integrating them. A framework that depends on information put away in various spots is safe to programmers; it isn’t so natural to gain admittance to it, and assuming this is the case, any snippet of data can be handily recouped
Blockchain works on the principle of a distributed ledger, and this ledger is shared by the team members, which can be validated at any given point of time. Banks, just as the customers, are promptly informed about the finishing of exchanges, which is both advantageous and reliable.
One of the major concerns of a business owner is to reduce operational costs. Deploying blockchain app development services is really cost-effective as blockchain is a decentralized solution hence, there are no charges for third-party payments.
v) Easy access
Clients need to pick between open blockchain networks accessible for anybody and the ones requiring consent where every hub ought to be approved first for the client to enter.
vi) High speed
Transactions done using a blockchain solution are quicker than expected as there is no compelling reason to incorporate installment frameworks, which lessen the expense and speeds up the whole process.
The legitimacy of exchanges is checked and affirmed by members, subsequently, they additionally affirm their own validness. Also, the entire trail of transactions can be traced as there is a record for everything in the digital space.
Now that you know the need to integrate blockchain technology into your business, let’s move on to the most crucial part of our article, i.e. the time and cost to develop a blockchain app for your business. And for that, you must know the factors that affect the blockchain app development process. So, quickly jump onto it.
Factors affecting Blockchain App Development
Every blockchain app development company follows a different process to create a blockchain app, and thus the cost also differs from company to company. However, there are a few factors, just like the factors affecting mobile app development costs that are responsible for impacting the cost of blockchain app development. Let’s talk about them.
- Size of the blockchain development company
- Type of the blockchain app
- App Complexity
- Team size
- Industry niche
Let us discuss each factor in detail and know how they can affect the cost of your blockchain app development project.
1. Size of the blockchain app development company
This is a very much obvious factor to consider. Companies offering blockchain development services are often divided into three categories:
Based on the team size and the expertise, the blockchain development companies charge their clients differently.
Companies having a smaller team and have just started working in this industry usually charge really less as compared to the large-scale companies, as they are in a critical need to make their work portfolio. Companies having a team of 10 to 50 blockchain experts cost somewhere near $15,000 to $ 30,000.
If you are planning to enter the Blockchain market by getting an app developed, going for a medium-scale company can be a great choice. This is because they have a great team to deal with your project, and simultaneously they don’t provide a cost estimate that would beg to be spent. If you are someone who has just started and has less budget, you may hire blockchain developers from these companies it would approximately cost $30,000 – $70,000.
Large-scale companies, on the other hand, are too costly as they have an enormous team working for them, and also, they are quite particular about the project they take as they do not want to invest their time on something that does not make their portfolio more impressive. Getting a blockchain app developed from such companies may cost you somewhere around $60,000 to $1500,00.
Read Also: Tips to hire A Blockchain Developer
2. Type of the Blockchain App
Each entrepreneur, independent of its size, requires a smart solution that can efficiently maintain its business capacities. Building a blockchain application likewise constructs trust and transparency towards the business alongside eliminating the middle people from it. Before starting with the app development process, you must reconsider all your business requirements first and then decide the type of app you need for your business. You need to look into the perfect kind of an app that can meet your business prerequisites and how various its expenses is over the business.
So, blockchain-powered solutions are of two types:
As the name clearly states, these solutions are completely dependent on crypto currencies for offering the best results. DApp, wallets, and ICO are some examples of these kinds of solutions.
Non-cryptocurrency based solutions
Solutions that do not rely on cryptocurrencies fall under this category. These solutions are based on a distributed ledger system and are highly preferred in many industries like banking and logistics.
3. App complexity
Various elements are consolidated to characterize the multifaceted nature of a Blockchain portable application. Objective: The absolute first thing you have to consider is the motivation behind your application. You must be very clear about the issues your users are facing, what are the current arrangements that your business is working on, why you need to put resources into blockchain application advancement, and how your application can offer better administrations. This will help you in deciding the kind of blockchain application you ought to put resources into. And this will also help you in finding the right type of blockchain app development services for your project.
If you ask any blockchain app development company for the cost, they will always answer it based on the complexities involved in the app. App complexity is often determined based on the following factors:
- The mechanism involved in creating the app
- The platform on which the app is developed
- Technology stack
- API integration
- UI/UX design
Seeing the complexity if you are planning to get an app that does not involve too many things, may cost you approx. $5,000 to $35,000. On the other hand, the one with too many complexities may go beyond this price, depending upon the features you want to integrate.
4. Team Size
Now this is an important aspect to consider. While planning to get an app developed, you must always consider the size of the team that will be working on your project. This is because the hourly rate when you hire blockchain developer is the average of the rate of every individual in a team. So, the more people working, the more will be the cost.
Also, based on how you plan to hire blockchain developers affects the cost. While calculating and planning the budget of your project, you must consider the following points:
- Hiring in-house blockchain experts
- Opting blockchain app development services from a freelancer
- Hiring an expert and proficient blockchain app development company
Based on what selection you make for your project, the cost will vary. For example:
Hiring an in-house blockchain app development team may cost you around $50,000 for beginners to $100,000 for an expert team.
On the other hand, if you go for a freelancer, it may cost you less than the in-house team and the development company, but you will have to compromise on many things here and there. Hiring an expert freelancer may cost somewhere approx. $50,000 to $ 90,000.
Hiring a proficient blockchain development company is always a better choice as they have a dedicated team working on your project. And in our first point, we have discussed the cost of blockchain app development based on the size of the development company.
5. Industry Niche
The industry for which you are planning to get an app developed also affects the cost. Each industry has separate requirements and needs different technology stacks and features; this is why the cost also varies. These elements can change the application improvement cost in light of the fact that the prerequisite for each situation varies from the other. For example, healthcare companies may require different solutions, and companies in the public sector may require different solutions and both may cost differently.
Now that we are done with discussing the factors that affect the cost, it’s time to discuss the time required to create a blockchain solution and deploy blockchain development services.
Time required to create a Blockchain App
Blockchain app development came a long way and a lot of technological advancements have changed the way things used to be earlier. From being a bulky answer for digital money into an exceptionally versatile decentralized stage for building up an industry-explicit application, things are quite different. Blockchain applications are widely utilized across new companies just as huge partnerships to deal with their business measures. Blockchain innovation isn’t restricted to monetary exchanges rather, it can offer virtual types of assistance to clients across various segments. Blockchain is additionally an element subordinate arrangement and the specific reason for application advancement can never be exact in light of the fact that it might shift for various undertaking prerequisites.
The span of squares and application development relies on the application’s necessities and innovation. The venture for any such application is started with PoC trips of around 20 to 30 days. When that is accomplished, it takes another 30 to 40 days to bring a base suitable item having restricted highlights. To dispatch an application it takes a few months depending on its necessities.
Also, the time taken to create an app depends on the process involved in creating it. So, to get an idea of the time required for blockchain app development, let’s understand the whole process first. Though every mobile app development company follows a different process, what we are talking about here is the standard process, which remains more or less the same everywhere.
Process of Blockchain App Development
Also, the time taken to create an app depends on the process involved in creating it. So, to get an idea of the time required for blockchain app development, let’s understand the whole process first. Though every blockchain app development company follows a different process, what we are talking about here is the standard process, which remains more or less the same everywhere.
Stage 1: Identifying the Problems
Before starting with blockchain app development it is vital to understand the main problem. Once the problem is identified and only then the solution can be worked upon. It is basic to dissect whether the app you are planning to get developed is needed to move the current answer for a blockchain rendition for your business or not, whether it will be useful for your users or not. Once the intention is clear, the next step would be deciding the technology and platform.
Stage 2: Choosing the Right Platform
Building a blockchain application without any preparation needs a careful comprehension and examination that may take years, which opting a proficient blockchain development company may solve. Accordingly, you should build up the blockchain solution on the head of a similar stage that can meet your business necessities without creating any burden. You should choose a platform that can satisfy your prerequisites. Choosing the right platform is very important for the success of your app.
There are too many platforms available in the market like Tezos, Ethereum, Hyperledger Fabric, Hyperledger Sawtooth, Hedera Hashgraph, Ripple, Quorum, Hyperledger Iroha, Corda, EOS and many more that you can choose to get a blockchain solution developed for your business, just the way you want to.
Stage 3: Brainstorming
When you have recognized the blockchain application improvement stage you can zero in on drafting business prerequisites and begin conceptualizing thoughts. Zero in on what innovation or parts can be added to the off-chain or on-chain elements of the application that can increase the value of the arrangement. You can make a guide for the application that will assist you in building a task that underlines and potential strides to take. You should likewise concoct an application model that speaks to the theoretical work process of the application. Choose if the arrangement should be created on authorization or consent for less organization.
Stage 4: Idea Confirmation
Confirmation of idea for a versatile application advancement development is a must. Think twice about the plan an idea before turning to reality and start working on it. Once you are sure and have created a blueprint of it, only then developers proceed with the plan. This is to ensure that everything turns perfectly fine and there are no hiccups in the journey forward.
Stage 5: Technical and Visual Aspects
At this stage, UI/UX is decided. The task to bring out the app from the papers to the table begins here. Technical and visual aspects are taken into consideration. The back-end and front-end of the app are decided here. Special visualizations and plans are created to give an alluring look and feel to the application while the specialized perspectives are intended to speak to its innovative engineering. When the administrator reassures, and the application interfaces are planned it prepares for the additional turn of events.
Stage 6: App Development
Here comes the final stage where everything done in the above stages are collected together and worked upon. Here developers strive to bring everything together and work on the features to be integrated. Once a layout is designed and developed it is then tested for any bugs and errors. Once the functioning of an app is tested, it is then moved to the final stage of development, and a beta version is launched for a few users. After powerful testing, the application moves to the improvement stage and prepares for conveyance.
Blockchain app development is no more a new concept these days. Many industries have already integrated such solutions and those who have not are already working on it. In the last few years, blockchain technology has evolved, and many things have changed. According to blockchain experts, if these solutions are deployed correctly, they can do wonders for your business. From security to transparence, money transactions will no longer be a point of worry for the entrepreneurs.
If you are also planning to get your business more streamlined, this is the right time to get a blockchain app developed, and all you need is find the right blockchain app development partner who can help you create a customized solution that can solve all your problems.