How to determine the blockchain application development cost?

Every mobile application is built with different protocols and costs differently. Similarly, a blockchain app’s cost also differs following your goal, efforts, features, and other factors needed in the development process.

So, how would you determine the blockchain app development cost you wish to build? This article will provide you different factors to consider to get the value of your particular blockchain app:

Size of the Agency

For the mobile app development industry, the cost breakdown depends on the three sets i.e. small size blockchain application development companies, medium cap agencies, and large size companies.

You might have interpreted that the small size company charges lesser than the medium and large size development companies as at this stage their focus is to create a work portfolio. On the other hand, large and popular companies take up selective projects. They charge higher to manage a big team of experts and deliver more quality work to set the standard of the portfolio.

If you are entering the blockchain sector, investing in a mid-size enterprise blockchain development company is advisable. They have the proper bandwidth to handle your project and quote a reasonable price.

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Blockchain app development cost as per industry

The development cost also depends on the industry your app will belong to. The complexity differs from sector to sector. Many other factors affect different industries such as dApp complexity, industry compliance, and the stakeholder’s interactions and more. For instance, if you want to develop an app for the healthcare industry, it would cost you around $55k — 100k and $40k — 80k for social media.

Blockchain App complexity

Firstly, determine your goal and purpose of building the app. Think about what problem you are solving for your users. This will help you to come up with the kind of app you are looking for. Here, are some other factors to determine the complexity of your blockchain app:

  • Consensus Mechanism

The blockchain system uses a particular consensus algorithm. For instance, Bitcoin uses Proof of work while others might use proof of Elapsed Time or Stake. So, choose the ideal method for you as per your requirement.

  • Platform

Platforms like Hyperledger Fabric, Ethereum, Quorum, and BigChainDB will allow you to build blockchain apps without starting from scratch. So, consider all the platforms which can go well with your purpose.

  • Stack

Different blockchain-based application development is built on different sets of blockchain programming languages and tools. Focus on the right stack for you as every stack has its benefits and limitations.

  • APIs

Though, there are many pre-built APIs are available in the market, it is advisable to build your specific API. This will help to cater to your need for storing and retrieving data, generating addresses, managing smart contract interaction, etc.

  • UI/UX

After deciding on the backend things, you need to look into creating a UI and admin console. From front-end program language, external databases to servers, you need to decide everything for your blockchain solutions.

  • Proof

As blockchain is in its nascent stage, one should use the MVP development approach. In short, before launching a complete blockchain solution, it is advisable to develop a workable solution with core features and test it.

Category of Blockchain app

There are two categories of the blockchain app:

  • Cryptocurrency-based solutions

To get maximum performance, this solution depends on cryptocurrencies. It consists of wallets, DApp, ICO with DApp and crypto-exchange solutions.

  • Non-cryptocurrency based solutions

This software is independent of cryptocurrencies. They are mainly used in inventory management systems and based on distributed ledger systems.

Blockchain App Services

  • Crypto Wallet

To send, store, and receive cryptocurrencies like Bitcoins, these digital secure wallets are built.

  • Crypto Exchange

With the help of this tool, the users can trade and convert cryptocurrencies in a decentralized, centralized, or hybrid environment.

  • ICO

Initial Coin Offerings (ICO) is used to generate and sell crypto tokens. As for the ICO development cost, take into consideration its elements like a white paper, MVP, advisors, advertising and PR, and social channel interaction.

  • Smart Contract Development

As you already read above, to connect with a blockchain system, DApp is enabled by a smart contract. Emerging tech companies invest a good amount on smart contract development which also adds the cost of DApp development.

  • Level of Decentralization

The cost is also influenced by the level of decentralization in content hosting. If the degree is low, it would take a simpler and less expensive process than a higher degree of decentralization.

Conclusion:

As you know, now multiple factors influence the cost of your blockchain application development. Hence, it is better to take blockchain consulting before deciding on the final product. Blockchain is an emerging technology and if developed properly, it can do wonders for your business.

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