How Much Does Blockchain Development Cost?
The Cost of Blockchain Development
Blockchain app-building requires a considerable investment, but it has several important advantages that other architectures don’t.
For example, blockchain applications can easily maintain 100% uptime with decentralized nodes — eliminating a single point of failure for your technology. Blockchain can also secure your databases and prevent malicious actors from tampering with sensitive data.
While the cost of implementing Blockchain depends on your app’s complexity, the size of the app and the level of expertise needed — its highly specialized nature makes it more expensive than standard development.
Blockchain development services are in high demand, and there are few developers today who are qualified to work on blockchain. This means that blockchain developers can often charge 50%, 100% or even 200% more than typical full-stack developers.
So if you’re looking to build a superb Blockchain app — you’ll have to do some proper budgeting.
App Complexity and Blockchain Technology
When looking at app complexities, there can be two types of Blockchain software development projects: Distributed Apps (DApps) and Enterprise Blockchain Apps. Your app type should match your business needs and objectives. Costs can vary for the two different projects as they require varying stacks, expertise and time.
- A project with low complexity can cost between $15,000 – $35,000
- A DApp’s project with medium complexity can can cost between $30,000 – $90,000
- An Enterprise Blockchain App or a high complex project can cost more than $120,000
Public Blockchain Software Development (Distributed Apps)
Distributed apps are Blockchain apps for decentralized businesses or games. In this case, most Blockchain engineers use the Ethereum network. Peer to peer’ (P2P) capabilities and encryptions are created using the Solidity programming language.
Blockchain development costs might be lower with DApps because the platform isn’t built from scratch. Apart from Ethereum, you could use other Blockchain development platforms like HyperLedger Fabric or Hydrachain. You will need to decide which one aligns well with your app’s goals.
Most of the app-building tools and languages for DApps are open source blockchain platforms. You will need to acquire a native cryptocurrency for your Blockchain platform when deploying the app.
Blockchain Development Costs for Distributed Apps
The only significant expense you will incur with Blockchain DApps development is the cost to hire a blockchain developer. There is a current shortage of Blockchain engineers in the market, which could cause higher costs for this premium charge.
Enterprise Blockchain Software Development
Private Blockchain software doesn’t run on a public platform like Ethereum. Enterprise Blockchains are useful when data privacy and limitless scalability are extremely important. You will have to build a Blockchain with permission networks to create restrictions on who gets to participate in the network.
Distributed Blockchain apps are for gaming and currencies. Conversely, enterprise Blockchain apps are useful in supply chain management, accounting, smart contracts and many of the benefits outlined earlier. To build an app from start to finish you will need these blockchain development platforms:
- Front end
- Storage space
- P2P network
- Smart contracts
You can expect to pay more for this project, given that you are not relying on open source tools. For instance, many enterprises turn to cloud service providers for infrastructure, network and storage solutions for their apps.
Next, you will have to create a P2P network with impenetrable encryption. P2P network acquisition can be considerably costly in private Blockchain software development.
You also have to decide on the consensus mechanism of your Blockchain app. Blockchain software uses different consensus algorithms including Proof of Work, Proof of Stake and Delegated Proof of Stake, among others. These consensus mechanisms have varying levels of energy efficiency and security.
During enterprise Blockchain software development, you will likely build your APIs for specific tasks including auditing, authentication, smart contracts, and many others, as opposed to relying on pre-built APIS.
There are additional costs for building a UI and admin console for your Blockchain apps, after dealing with all the back end processes. The expenses stem from servers, external databases, testing, and other factors.
In a nutshell, high complexity Blockchain software development involves more than just labor expenses. You can, therefore, expect to pay more than $127K.
So, How Much Does it Cost to Build a Blockchain App?
Blockchain software development is an intricate process that requires transparent budgeting at every stage. The factors that determine total Blockchain software development costs are; the app’s complexities, features, the agency you hire, and the platform.