Blockchain is one of the most trending technologies of recent and upcoming time. 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.
In the below article, we will provide you with an understanding of how to create a Blockchain-based application and its involved cost. Next to this, we are also going to help you with the benefits of Blockchain and factors affecting the Blockchain app development cost. Let’s discuss all these points in detail:
What is Blockchain Application?
Before building a Blockchain application, it is necessary to know all the details about it. A Blockchain is considered a digital ledger or database that has a large collection of encrypted chunks of digital asset data supported by a network of peer-to-peer computers that makes the data alteration or modification hard to happen.
Here Blockchain app developers use cryptography to link the blocks (list of records) altogether. In this, every transaction gets verified separately by peer-to-peer computer networks, time-embossed, and then, added to an evolving chain of data. Data can’t be edited after being recorded.
Blockchain apps are basically known as distributed software programs that provide valuable & secure services by using the core Blockchain technology. Blockchain apps don’t work like conventional centralized software as these can’t be powerfully shut down because they are not dependent on a single server only for their working functionality. Creating a Blockchain application can make changes to several industries and their operations.
An app created with Blockchain permits developers and users for using it for different purposes. As we know security is ensured as if anyone tries to modify or delete an entry in one copy of the shared ledger, the other ledger will not indicate these changes and the modification will be declined. Though Blockchain was introduced in 2008 but with the launch of Bitcoin in 2009, it pulled Blockchain from a theoretical concept to real-world use, proving that this digital shared ledger technology works in reality.
How Does a Blockchain Work?
The main purpose of Blockchain is to let digital information be stored and shared, but it can’t be altered or modified. Hence, we can say that a Blockchain is a core for unchangeable ledgers or records of transactions that can’t be edited, destroyed, or removed. That is why we call Blockchains a DLT (Distributed Ledger Technology). The use of Blockchains has got enormous after the adoption of cryptocurrency development, dApp development services, NFT development, and smart contract development.
There are mainly three leading technologies consisted in the Blockchain that are-
- Cryptographic keys
- A peer-to-peer network including a distributed ledger
- A method of computing, to record the transactions and network
Have a look at the must-considered Blockchain transaction process:
- Whenever a new transaction is requested, it is transmitted to the peer-to-peer computer network distributed worldwide.
- This computer network unravels the equations to get assurance about the transactions’ validity.
- After getting confirmation about the legitimate transaction, they are assembled collectively into blocks.
- Now, these blocks will be connected forming a long record of permanent transactions.
- And the transaction is completed.
Why Should You Invest in Blockchain App Development?
Blockchain is a technology that has taken the world by storm via its linked benefits. This technology is said to be a list of changing records using cryptography to connect and also includes transactional data. Secure records of transactions and resistance to alteration are two main reasons why businesses are looking for how to create a Blockchain platform.
Before thinking to go for Blockchain app development services and invest in this sector, they must take a tour of the market size and growth of Blockchain technology worldwide. To know the currents stats and future scope, you can go through the below representation-
From the above stats, we can say that the global Blockchain technology market was predicted to mark $5.85 billion in the year 2021. It is also forecasted to value at $1,235.71 billion by the year 2030 along with a CAGR of 82.8%.
Some Famous Blockchain Platforms Helpful to Build an App
While finding out how to develop Blockchain application, it is necessary to get a suitable Blockchain platform for developing an application. Below, we have penned down some popular Blockchain platforms, have a look-
It is the most used and popular Blockchain platform that is used by a large segment of developers to create a Blockchain app. This open-source and decentralized platform includes smart contract functionality. It helps businesses to build their own ecosystem via using Solidity. Ether is the native cryptocurrency of Ethereum.
2. R3 Corda
This platform permits ventures for transactions directly via smart contracts. It builds permissioned Blockchains that improve the user data privacy in the network. It mainly focuses on healthcare, eCommerce, supply chain, and trade finance.
3. Hyperledger Fabric
It has a modular architecture and is beneficial when it comes to how to build a Blockchain app or solution. Hyperledger fabric is used for permissioned networks where it allows only renowned authorized identities to enter the system. IBM is the most popular community-based Hyperledger Fabric platform.
4. Hyperledger Sawtooth
This open-source Blockchain platform is largely used by developers for creating, executing, and launching shared ledgers.
It is an appropriate Blockchain platform if you want to create a financial tool. It allows businesses to transact from anywhere as it connects them with banks and payment providers worldwide via RippleNet. It has a fast process and is able to do five TPS.
It is a Blockchain-based operating system consisting of a smart contract used to leverage protocols, proof-of-stake principles, and a cryptocurrency native Tronix. It can manage 2000 TPS (Transactions per second) and charges zero transaction fees.
It is a scalable and secure Blockchain platform that is used for creating dApps. Some specific features are supported by EOS that couldn’t find in Ethereum and Bitcoin Blockchains. Hence, it can be called an improved version of these Blockchains. It has everything such as smart contract power, decentralized storage, and dApps hosting for enterprise solutions while improving their scalability issues.
Are you in search of a free-to-use platform while obtaining Blockchain app development services? End your search with Quorum, an open-source Blockchain platform. It implements vote-based algorithms to deal with several transactions per second.
Oracle is helpful to build a preassembled Blockchain supported by a virtualization hypervisor. It is known as a comprehensive shared ledger cloud platform used to deploy and run smart contracts to keep the ledger updated.
Check Out Amazing Benefits of Blockchain Solutions
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.
1. 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.
2. 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.
5. 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.
6. 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.
8. Decentralized Structure
With the help of a decentralized network of Blockchain, members are no longer needed to trust or be known by other members. Blockchain allows data sharing within the business ecosystem where no single object has the complete charge. In this, every member gets to have the same data copy as others in the form of a shared ledger. For instance, be it any sector, from transportation firms to suppliers, to wholesalers, to manufacturers, if they need any kind of information in the supply chain, they will find no single in charge for data sharing. This problem can be solved by the decentralized nature of Blockchain.
9. Data Controlling
With the Blockchain app, it has become easier and more convenient to manage one’s digital data. Today, users’ data has become a valuable asset, and Blockchain technology ensures to keep one’s data is protected while allowing them to cope with it. The technology enables organizations to choose which segment of data they want to share and with whom for how long time. They can also use Blockchain-enabled smart contracts to impose limits on it.
All the recorded transactions on the Blockchain platform can’t be altered or modified or deleted, it is called immutability. Blockchain records these transactions permanently along with their date and time. Hence, it can be used in the future to get the information along with facilitating a trustworthy and secure data audit. It is way better than paper-based filing and inherited computer systems that could be hacked or distorted.
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.
Step 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.
Step 2: 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.
Step 3: 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.
Step 3: 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.
Step 5: Determining the 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.
Step 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.
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 60 to 90 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.
Factors to Determine the Blockchain App Development Cost
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
- List of Features
- Third-party Integration
- Decentralization Level
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.
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:
a) Cryptocurrency-based solutions
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.
b) 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.
6. List of Features
In order to bring growth and efficiency to the business, the Blockchain app needs to have various essential features but that doesn’t mean integrating unnecessary features into the app. Adding a large number of features can hamper your average Blockchain app development cost. Hence, organizations must decide carefully about the must-have features of the Blockchain app.
7. Third-party Integration
Sometimes, there is a need for the involvement of third-party tools that enhance the app’s performance, reliability, and efficiency. These third-party tools are-
- Amazon Web Services
- Notifications (Kumulos, Twilio, Amazon SNS)
- Monitoring Services (Statuspage.io and Uptime Robot)
- Analytics (Mixpanel or Flurry)
- Bug Tracking Tools (Bugsee and Instabug)
8. Decentralization Level
The level of decentralization is also considered a deciding factor when it comes to Blockchain development costs. The higher the level of decentralization is, the more its process will get complex and high-priced. And, if you keep the decentralization level lower, the process will go simple and smoother, and less expensive as well.
How Much Does It Cost To Develop A Blockchain App?
Before entering the Blockchain industry, every business wants to get an answer to the question ‘how much does it cost to develop a Blockchain’? Pointing out the above-mentioned diverse factors, the complete cost can be varied more or less based on the different requirements of businesses. To get a scalable Blockchain solution, you need to hire a top Blockchain app development company.
The development procedure can take around 6 to 10 months or more to get completed. It can be done in numerous ways and the app development’s cost varies time-to-time depending on several factors. Here, we are going to tell you about different types of Blockchain apps that will highly affect the potential cost of development. They are-
NFTs (Non-fungible Tokens) have been quite popular among businesses these days and they are acquiring NFT development services at a large level to expand their operations. And guess what, it is not limited to only small or mid-scale businesses, various leading tech market giants such as Twitter, Facebook, Microsoft, etc. are also adopting this trend. The list doesn’t end here, it includes some top fashion brands as well such as Gabbana, Gucci, Louis Vuitton, Nike, and Adidas.
These all are enthusiastically going ahead to use this amazing cryptographic asset comprising Blockchain technology. They are spending both money & time, and even hiring a top NFT development company that can help them to analyze the concept and build the desired solution. The cost of an NFT marketplace would cost you around $40,000 or above than that.
DApps comprise a shared ledger to keep the transactions’ records and there is no dependency on a third party to manage the data flow. While developing a decentralized app, there are used different decentralized technologies to provide users with an amazing experience. Your chosen DApp development company must think about your specific requirements in order to deliver you a result-driven app. If you are thinking to get a DApp, it may cost you around $40,000 to $80,000 which can differ depending on your needs.
Decentralized Finance Application
The market is crammed with the demand for building decentralized finance apps because it alleviates the need of acquiring a centralized finance model. It enables users to use finance-related services irrespective of place and time. These solutions help people to manage their money more efficiently via using personal wallets and trading services. With all the features included, a DApp can range from $45,000 to $50,000 or can go above or down as per your requirements.
Cryptocurrency Wallet Application
Nothing is better than crypto wallets when it comes to gathering cryptocurrency tokens, transacting money, and data management. Cryptocurrency wallets are beneficial as they make unique transactions possible while managing them using different cryptocurrencies. While looking for a feature-rich crypto wallet app with the purpose of data management for crypto transactions, let us tell you the cost to develop a crypto wallet app will range from $30,000 to $50,000.
Cryptocurrency Exchange Application
The cryptocurrency exchange app sector is continuously heading towards growth by offering reliable and feature-rich app infrastructure to facilitate users with crypto token trading. Getting crypto exchange app development services are providing numerous benefits to the business. Users are choosing this app to take up the advantages of modern-edge technologies and advanced digital resources to support crypto enthusiasts to trade efficiently. Including all the factors and elements such as apps’ design, development, and deployment, the overall crypto exchange app development cost will start from $40,000. It can go higher depending on its complexity and added features.
To provide you with an estimation, we can say that the overall cost to develop a Blockchain app would be around $30,000 to 1,00,000 including ultra-modern features and up-to-date technologies and tools. Depending on your conditions of hiring Blockchain app developers, we have mentioned the estimated prices above. To maintain the cost, just keep in mind to add only significant aspects, otherwise, you will end up having an out-of-the-budget solution.
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.
Enterprises need to clear all their doubts regarding Blockchain app development before hiring a leading mobile app development company. You can find the FAQs here-
- What is Blockchain App Development?
Blockchain is deemed as a decentralized shared ledger that records all the user's transactions on a network of computers across the world. With Blockchain app development, businesses can facilitate their users with transparency and security. Including it, building Blockchain mobile apps can get businesses to scale in user base.
- How much does it cost to build a Blockchain app?
While getting to know about Blockchain app development cost estimation, there are various cost-driving factors you should think about. These factors are- selected niche & Blockchain app category, experience, and location of the Blockchain app development company, app complexity, app type, app industry, team size, and customization. The final cost of Blockchain app development can be estimated after determining all these factors.
- How long does it take to develop a Blockchain app?
Basically, it takes around 6 to 10 months to develop a reliable and scalable Blockchain mobile app with all essential features. But ultimately, it will depend upon the project scope and the client’s requirements.
- Is Blockchain Development Expensive?
As per the industry experts, it is said that Blockchain is still going through its early stage, hence there is a shortage of experienced and expert Blockchain app developers. If you are looking to hire Blockchain developers, it can be more expensive for you rather than hiring a Blockchain development company.
- How to build an app on the Blockchain?
To build a Blockchain app, you need to follow some step-by-step procedures only. The development process should include-
• App Conceptualization and Problem Identification
• Idea Confirmation
• Selecting the Right App Platform
• Deciding the Technical and Visual Aspects
• App Development & Testing
• Deployment & Maintenance