A blockchain app can be created in various ways, each of which will have a different price and set of benefits and drawbacks. In this blog, we will be discussing the resources that are needed for blockchain app development and also various factors that affect the cost of blockchain app development.
What Kind of Resources Are Needed When Developing a Blockchain Application?
You must be aware of the resources required for blockchain development to understand the cost of developing the blockchain app.
Yes, the developer plays a crucial role in your budgeting. Finding a coding expert is so vital. There are two different sorts of hourly rates that developers charge, according to Codementor.
- Lower Range
- Higher Range
You might make some savings if you decide to outsource your work.
Considering that bitcoin is the first successful implementation of blockchain technology, every blockchain project has at least one unique coin. Therefore, creating your cryptocurrency and making it distinctive from more than 2000 other cryptocurrencies is necessary.
In order to introduce a coin to the market properly, you need a team of marketing managers, software developers, technologists, and PR executives. They can help you find financiers who will give your project credibility. To navigate the industry, you’ll also need a consultant. Engaging your target customers is also crucial.
When earning money, you must learn how to market fresh cryptocurrencies. The key to success is to appeal to the audience’s desires, communicate the benefits of your project, demonstrate your cutting-edge technology, etc. Having a marketing consultant coordinate your marketing activities is essential.
3. Crypto Wallet
A cryptocurrency wallet is a piece of software that functions just like a physical wallet and is used to send, receive, and store digital currencies safely. The majority of cryptocurrencies have recommended third-party wallets or official wallet software. In other words, to access any cryptocurrency, you are going to require a cryptocurrency wallet.
Therefore, we must deal with the REST API on the server side as well as the client side for mobile devices or the Internet. Building an application as a standalone is an additional choice. Every strategy has advantages and disadvantages.
Factors Affecting the Cost of a Blockchain Application
1. The market for the Application
Well, first and foremost the most important factor which impacts the development cost of any application is the industry to which the application belongs.
Variables that affect costs vary from sector to sector – the complexity of the dApp, the number of stakeholders who interact with it, and, among other things, industry compliance requirements.
2. The Project’s Complexity
There are a lot of criteria that need to be taken into account to define the intricacy of a Blockchain mobile application. The first thing you have to think about is the purpose of the app.
You need to have a good understanding of the problems that end users are facing, the available solutions, the need for investing in the development of blockchain apps, and how your app can offer superior services. All of these will assist you in determining the blockchain application or solution in which you should invest.
First and foremost, understanding an app’s goal is crucial. Learn about the issues that consumers face, the benefits of investing in blockchain, how it is developed, and how an app may provide better services.
Apps with Less-Complexity
- App for Basic Smart Contract Development.
- Simple DApp with consensus mechanism.
Apps of Moderate Complexity
- Semi-decentralized applications
- DApps created using blockchain technology, including those built on Ethereum, Hyperledger Fabric/Sawtooth, EOS, and other
Apps with High Complexity
- Building a blockchain platform from the ground up
- Constructing a comprehensive decentralized network
In addition to the blockchain application’s complexity, the cost of a blockchain app is frequently influenced by employees, equipment, technology, designing processes, and running expenses. Let’s explore each of these factors in greater depth.
3. The Type of App You’re Requesting
Every company needs a digital solution to increase efficiency and expand the business. You need software that either enhances the value of your product or brings in a lot of money, or you need to find a solution to the broader business issue.
Businesses can benefit from traceability, accountability, and trust due to a blockchain architecture while also saving money on other intermediaries. You can build blockchain applications for a range of industries, including education, fashion, healthcare, utilities, transportation, gaming, and more. And you might need a SaaS application to provide business subscription services.
4. Cost of the Third-Party Tools
- AWS: Storage, Delivery, and Computing (Depending on the number of users, between $100 and $1000)
- Monitoring services like Statuspage.io and Uptime Robot: Sending downtime notifications ($10 to $50)
- Services for alerts like Twilio, Kumulos, and Amazon SNS: ($10 to $50) Allowing notifications within the app
- Tools for tracking bugs, such as Instabug and Bugsee: Live bug collection and reporting ($10 to $100 per month)
- A flurry of Mixpanel analytics: Data analytics, funnel analysis, insight analysis, and reporting ($0 to $150)
There is currently a shortage of competent & skilled blockchain developers in the market because blockchain technology is still in its infancy. An average blockchain developer makes $150,000 a year.
5. Cost of the People Involved
What kind of resources are required to create an application? The cost of engaging a team to develop a blockchain app is a sizable portion of the projected costs.
The main expenses are software developers’ salaries. But in addition to income, there are other crucial considerations, such as insurance, holidays, pay for promotions, payroll, and vacation days.
Don’t forget to factor in the costs associated with hiring, which could involve management time and advertising to acquire the necessary resources for the blockchain project. It can be difficult to find expertise because blockchain is new to many people. Resources for training must be continually heavily funded by organizations.
The expense of training may involve paying for online courses or traveling to significant blockchain-related events.
6. App Development Process
The price of deploying blockchain depends on a number of initiatives or phases of the development cycle:
- Design: Blueprint for the system, wireframes for the user interface and experience, high-fidelity designs with a prototype, and low-fidelity designs with an app flow.
- Development: Coding and Testing
- Deployment: Delivery & DevOps, Cloud Platform Deployment
- Migration: Adapting the current method for use with the Blockchain platform
- Maintenance: Maintaining new updates and ensuring that the app functions properly on each new OS version
- Upgrade: Smart Contracts changes, new features
- Tools from Third Parties: Collaboration, hosting, storage, and notification system.
The costs of various tools and technologies are incurred during the blockchain development process in addition to the costs of the blockchain developers and designers.
7. Project Management Approach
They track recurring sprints, tests, timelines, defects, and deliverables using an agile methodology, which includes weekly scrums and regular meetings. Confluence, Trello, and Jira are three examples of software that can help with the agile technique.
These software tool costs are included in the overall cost of putting blockchain into use. For instance, we utilize the Jira project management platform to give clients action items and monitor our internal team’s progress.
8. Continuous Integration
Each developer will write and evaluate code in a shared code repository to ensure that it integrates neatly with everyone else’s code. A software quality pipeline needs to be managed carefully.
The best approach to verify this is through an automated process. The cost of the blockchain app has increased due to the utilization of Bitbucket and GitHub for source code management.
An average blockchain developer makes $150,000 a year. By contrast, employing a full-service organization as opposed to a blockchain developer could end up being far more expensive for any company.
It seems like new platforms are entering the market every single day, and blockchain technology is still in its infancy. As a result, alternative systems should be used exclusively based on their ability to scale, be flexible, and maintain secrecy.
Additionally, every year, new OS updates are released by Apple, Google, and several blockchain platforms. Depending on the app’s complexity, the maintenance of a blockchain app often costs between 30 and 35 percent of the total project cost.
Blockchain Application Development Cost: Summary Table
|Turnaround time||50 hours||30 hours|
|Tools||$1500/month||$1000 (starting from)|
|Hosting||$100 – $1000||$200+|
|Maintenance||$3800 – $7000||Variable|
|Total Cost||$16450 – $27500||$3000- $20,000|
This table makes it clear that, if you want to develop a blockchain project, outsourcing is unquestionably the best option. Even though the cost range for outsourcing may be wider, it requires much less time. Additionally, you won’t have to bother about recruiting engineers, managing hosting services, managing tools, etc.
You can concentrate more on marketing and how to make your application better overall by outsourcing. Additionally, it is exceedingly challenging to coordinate with all the independent contractors. That issue can be avoided via outsourcing.
Parangat offers a skilled team of developers and designers who can assist you in producing stunning blockchain products.
With roll up sleeves, dive in and get the job done approach, it was in the year 2010 when Sahil started Parangat Technologies. Emphasizing a healthy work culture and technology-driven company, he has successfully created a workplace where people love to work and live. He is a software engineer and a passionate blockchain enthusiast.