How to Determine the Blockchain App Development Cost?

How Much Does Blockchain App Development Cost? {Complete Guide}

From business leaders to government, students and almost everyone on this planet are discussing about Blockchain technology and blockchain app development cost. The headlines in the newspapers and digital media are taken by Blockchain and in fact, there are nearly 25 industries that are leveraging the benefits of Blockchain into their business processes.

The popularity of this megatrend breakthrough technology has grown to the extent that when a UK based firm called On-Line PLC changed its name to On-Line Blockchain PLC, the company experienced a significant traffic, their share prices surged by 394% and a large number of investors offered their investment in their business. Unbelievable figures, right?

Despite this, if you think that Blockchain is just a fad, don’t let the hype fool you. The Blockchain technology, the base of Bitcoin, has the potential to transform the entire industrial world.

Want some valid proofs? Have a look at these stats:

Blockchain Technology in Market
1. Gartner forecasted that the business value-add of Blockchain technology will reach to about $176 billion by 2025 and will touch $3.1 trillion by 2030. The prime reason behind this expansion would be widespread adoption of Blockchain technology in financial transactions and cross-border payments
2. As per IDC, the spending on blockchain app development and blockchain solutions will cross $2.1 billion by 2018, which is more than double of that spend in 2017.
3. IDC also revealed that the total blockchain spendings will be about $9.7 billion by 2021 with an annual CAGR of 81.2 percent.
4. Among all the countries investing in blockchain technology, the United States will remain on the top with more than 40% of worldwide spending, followed by Western Europe, China and Asia/Pacific.
5. According to Venture Scanner, there are 1,012 blockchain experts in the market currently that have successfully raised $6.3 billion venture capital funding, across 337 funds and 76 countries.
6. The number of LinkedIn job postings related to Blockchain has been tripled over the last year. The companies, seeing the higher demand of technology in future, are setting up training centres, outsourcing blockchain app development services and even hiring the graduated talented college goers to feed them with the right knowledge and make a profit.
7. According to IDG Connect Research, 13% of senior IT leaders have a clear vision to introduce blockchain into their processes.
8. The blockchain is also hoping to reinvent the Artificial Intelligence and IoT sector. According to the market reports, IBM is investing extensively in Blockchain-powered IoT systems with more than 1000 employees dedicated to Blockchain-based IoT projects only.

Considering these facts and the daily headlines related to Blockchain, if you are convinced about the paramount importance of Blockchain in the future and wish to invest in Blockchain application development, keep reading.

(And in case you have any doubt, consult with our experts today!)

Blockchain App Development – Types of Apps You Need to Know About

While you might have been living with the myth that Blockchain is all about Bitcoins and ICOs, there are various other options as well.

What is Blockchain All About

The blockchain app types (blockchain-powered solutions) are broadly categorized into two categories, namely:-

1.Cryptocurrency-based solutions: As depicted by name, these solutions rely on cryptocurrencies for performing utmost. This comprises DApp, wallets, crypto-exchange solutions and ICO with DApp solutions.
2. Non-cryptocurrency based solutions: These solutions/software are independent of cryptocurrencies. They are based on distributed ledger system and are highly utilized in Inventory management systems.

Surprised? Want to know about all the types of Blockchain-based solutions? Well, it can be quite typical to cover all, we will explain the major types here.

So, here we go!

1.Crypto Wallet: These are basically secure digital wallets taken into consideration for storing, sending and receiving cryptocurrencies like Bitcoins.
2. Crypto Exchange: The Crypto Exchange empowers users to convert and trade bitcoins and other cryptocurrencies in a centralized, decentralized, or hybrid environment.
3. ICO: ICO (Initial Coin Offerings) refers to the mechanism of generating and selling cryptocurrencies/ crypto tokens.

The starting cost of end to end development of ICO including marketing, whitepaper, ICO concept creation etc will be from $45K.

Types of Blockchain based Solutions
4.Distributed Ledger Technology (DLT) based solutions: In this type of non-cryptocurrency based solutions, a database is maintained independently by each particular node in the network; records are not communicated by a central authority.
5. Smart Contracts: These are self-executing protocols that process, verify or enforce any trigger based actions stored on the blockchain system – decentralized and transparent.
6.DApp: Decentralized apps (dApps) are the type of applications that are not regulated by a single entity. They run on a Peer-to-Peer (P2P) network rather than a single computer.

Bonus Point: DApp vs Smart Contracts – How do they differ?

DApp vs Smart Contracts How do they differ

People often get confused between the two terms, however, they are different. The dApps are basically ‘Blockchain enabled’ websites whereas the Smart Contracts are like a brick of logic that connects dApps to the Blockchain system.

Factors to Consider During Blockchain Application Development

With so many options available, the next question that arises is – how to determine what type of application to make for your business growth? To ease the process, here we are sharing the major pointers you need to consider while developing a Blockchain app:

Blockchain App Development Factors
1.Goal: The very first thing you need to consider is the purpose of your app. Have a clear idea of what problem end users are facing, what are the existing solutions, what is the need of investing in blockchain application development, and how your app can offer better services. This will help you in determining the type of blockchain app/solution you should invest in. If you are an enterprise, you should consider these questions before implementing blockchain
2. Consensus Mechanism: Every blockchain system use a specific consensus (a mechanism to allow all members to authenticate transactions), like Bitcoin uses Proof of Work while some other random blockchain-based system might use Proof of Stake, Delegated Proof of Stake, Proof of Elapsed Time, Federated, etc. So, you need to evaluate which is the ideal method based on your needs. Apart from this, you also need to ponder on other key elements such as user permissions, reissuance mechanism, asset issuance, key management and structure, atomic exchanges, hand-shaking, signatures and address formats. This is a vital step to opt. So, it is recommended to consult with a blockchain app development company if you are still a newbie to this technology.
3.Platform: There are more than 25 platforms on which you can build a blockchain app without beginning from scratch, including Ethereum, Hyperledger Fabric, BigChainDB, and Quorum. So, it is again advisable to consider what all platforms can go well with your app’s goal and then move forward.
4.Stack: With every platform, comes a different set of languages and tools you need to look out for. And each stack has its own benefits and limitations, which implies you need to focus upon the right set of stacks for effective development.
5.APIs: Although you might find various pre-built APIs for the development process available in the market, you might be required to build an API for a specific use case, including performing data authentication and auditing, generating key pairs and addresses, storing and retrieving data, managing smart contracts interaction with the system, etc. To get a detailed insight of APIs and the factors to consider for better outcomes, read this blog
6.UI/UX: Once all the backend things are decided, the next step is to create a UI and admin console. Here, you will decide the right front-end programming language, servers, and external databases for your app development process.
7.Proof: Blockchain is still in its nascent stage, so it is better to go for MVP development approach. In a layman’s language, it is recommended to create a workable solution with core features of the planned application and test it, rather than launching the complete solution.

This will help you to figure out the performance issues, crashes, memory crashes and various other technical/general shortcomings. On the top of it, this practice will make it easier to validate your app idea and save the resources that you otherwise would have spent on making a less-profitable blockchain based app.

Now, as you are well-versed with the types of Blockchain applications and the factors to look at for investing in the blockchain market, you must be looking forward to finding the cost for the same. So, without any further ado, let’s move to the process of estimating the blockchain app cost.

The Right Way to Calculate Blockchain App Development Cost

Just like mobile application development cost, the cost to make a blockchain app differs depending on the app goals, features and efforts you put into the development process. Keeping this into consideration, here are the different factors you need to look at to build a particular Blockchain app:

Cost for developing an ICO

When it comes to ICO development, the cost of building an ICO blockchain solution depends on key elements like:

1.Whitepaper – Since Whitepaper contains a detailed description of the whole idea and many times involves legal practitioners, the cost, and efforts invested in creating a whitepaper affect the overall cost of ICO development.
2. MVP: Is the product ready or you need to develop an MVP? The answer to this question matters in the process of calculating the blockchain app development cost since a prototype is must understand the future aspect.
3.Well-known Advisors: Reputed advisors can raise higher funds, but demands a share of the collected fund as the reward. This way, the number and composition of advisors involved also have an impact on the overall cost.
4.Advertising and PR: For effective marketing, you need to invest in traditional advertising and PR tasks like compiling a complete list of sites, materials, editors’ contacts, and registering for ICO trackers. This process again involves investing which eventually affect the cost of developing an ICO app.
5.Interaction on Social Channels: Likewise, the efforts, time and fund invested on social networking sites also adds to the ICO blockchain application development cost.

ICO website, creation of token and the development of a crowdsale smart contract will cost somewhere in the range of $10K to $15K based on the features of website and the panels for admin and investors.

Cost for developing a dApp (& DLT App)

The cost of developing a decentralized blockchain application and DLT (Distributed Ledger Technology) based app directly depends on the efforts invested, which includes:

1.Nature of Blockchain network: Are you choosing public or private blockchain development approach? This decision brings a significant difference in the cost to make a blockchain app. For example, Private blockchain network is a permission-based system where all the permissions are centralized to an organization. This implies you need to request the central authority every time for making any transaction; adding to the blockchain app development cost. Whereas, the Public blockchain network acts on a permissionless basis, which means you can create a blockchain application where anyone can participate in consensus process without compromising on security terms.When talking about Public blockchain network, you can either go for pre-existing blockchain solution which is cheaper but its service of platform might hurt, or you can create a customized blockchain solution where you can implement new features, but the development will cost you high.
2.Smart Contract Development: As already explained, smart contracts enable dApps to connect with blockchain system. Thus, the cost of smart contract development also adds to the Dapp development cost.
3.Level of Decentralization: The degree of decentralization you are proceeding with for effective content hosting also influences the app cost. If the level of decentralization is low, the process will be somewhat simpler and less expensive. Whereas, implementation of a higher degree of decentralization will lead to pure decentralization which will be complex and more expensive.
4.Block Explorer: Block explorer, in simpler terms, is an online blockchain browser where you can assess contents of individual blocks and transactions, the transaction histories along with the balances of the addresses.
5.Wallet: The cost of developing a crypto wallet or crypto asset wallet for making transactions within the decentralized application again influences the overall app cost.

An end to end development of a dapp, with all the features mentioned above, can range from a minimum of $45K- $50K to a higher side of hundreds and thousands of dollars.

To know more about blockchain app development cost, contact us today itself.

Now Is The Time To Craft Brilliance Together

So let`s get in touch and turn your app idea into a brilliant mobile app solution.

Go ahead & fill the form below

Confused? Request A Free Consultation
Call us
For Sales Inquiry +1-646-585-0501