Blockchain Development Cost- Why Is It So Expensive?

Blockchain is a public digital ledger that records transactions and tracks assets across many computers. It records and distributes digital information. Blockchain platforms also contribute to the blockchain app development cost. The cost for the Blockchain development app depends on various factors, including app features, complexity, type of blockchain, and a blockchain platform.

If you are looking to develop your app, it is important to look at the aspects involved in the app development cost estimation. The most critical part is the cost of hiring the right developers to build your app. The article will dive deep into the top factors affecting Blockchain development app cost. Thus providing valuable insights on how to reduce these costs and develop a profitable and successful app.

How much does a blockchain app cost to build?

Generally, the cost of developing a blockchain app may fall between $50,000 to $3,00,000. The estimation cost may depend upon the real-time needs and technological upgrades in the market. Hiring blockchain development companies in India can help to get a precise estimation.

The top 5 factors affecting the blockchain development cost are:

• Business Niche

• Developer Experience

• The complexity of the Project

• Types of Blockchain Technology

• Strength and Personalization

Let’s explore these factors in detail:

1. Business Niche

Blockchain app costs may vary according to industry standards and end goals. The approx investment cost for any industry is between $40,000 to $100,000. The industry needs to be clear of its requirements before finalizing a Blockchain development agency.

2. Developer Experience

Blockchain technology is a developing field. People working on Blockchain projects for years are continuously learning about new ideas that have been added to the platform. It is essential to take into account prior experience with relevant topics. The higher the cost of developing your Blockchain application may be, the more experience you bring to the table.

3. The complexity of the Project

There may be multiple complexity levels for different applications. The app architecture’s use of user-oriented components could lead to a simple user experience. You may need to invest between $50,000 and $100,000 to engage a group of Blockchain developers with intermediate experience.

You can also hire blockchain developers in India that can assist you in discovering your Blockchain app concept. You can also investigate fresh app concepts by speaking with a mobile app development business that designs, develops, and manages Blockchain app initiatives.

4. Types of Blockchain Technology

There are 4 main types of Blockchain networks: Public Blockchains, Private Blockchains, Consortium Blockchain, and Hybrid Blockchain. Different blockchain types are needed for various use cases. Check the advantages and disadvantages of the Blockchain types below:

Image Content:

5. Strength and Personalization

The strength required for a Blockchain app differs from business to business. If your Blockchain app requires more resources, you may need to invest more funds. For a smaller project, you may require a small team of 4-5 professionals, including a Blockchain developer, app designer, backend developer, QA and project coordinator.

The development of personalization of your Blockchain application is important to meet the varying customer demands and gain high ROIs. Personalization is also crucial as most users using this application might not be familiar with using DApps. The right set of features is important for your aspiring business.

Ways to reduce Blockchain development costs

The cost of Blockchain development can be a pain for some organizations. If you’re looking to reduce your blockchain development costs, here are some available options:

• • Software Development Kit: Software Development Kit (SDK) can help save time and money by providing tools and templates used to develop your application.
  • A cloud-based platform: Another way to reduce costs is to use a cloud-based platform. Cloud-based platforms can provide you with the infrastructure and tools you need to develop your application without investing in hardware or software.
  • Pre-developed blockchain platform: You can also try using a pre-developed blockchain platform. This can save time and money as you won’t need to develop your platform from scratch. Any business can manage costs and pursue blockchain adoption without breaking the bank by employing pre-built resources, commercializing and marketing a developed product, and working with key partners.
  • Process Monetization: Companies can control their costs by monetizing their developmental work. Companies can share their work with other businesses, making the technology more beneficial and widespread while recovering some of their initial investment in the blockchain.
  • Effective Collaboration: Numerous incubators – teams of investors and business experts- foster innovative projects. These resources contribute to a company’s successful implementation of blockchain technology. The implementation process of a company can be improved via strategic partnerships, which are cooperation between businesses without incurring additional costs.

What are other companies charging for similar applications?

When it comes to blockchain development, the price tag can be quite high. And there are a few reasons behind this. First, blockchain is a new technology. There aren’t as many experienced developers building applications on this platform. Thus, those who are experienced can charge a premium for their services.

To understand why blockchain development costs so much, it’s important to compare it to other software development projects. For example, developing a basic e-commerce website can cost anywhere from $10,000 to $500,000. Similarly, a CRM system can cost $100,000 to $1 million. So, blockchain development is on the lower end of the spectrum. Some of the Blockchain apps with respective costs are:

Read Also: 5 Use Cases where Digital Transformation Made a Big Impact

Wrapping up

While the cost of blockchain development may seem high at first glance, there are several reasons behind the price tag. First, blockchain is a relatively new technology that experienced developers lack. Second, blockchain projects tend to be complex and require a lot of customization. Finally, because blockchain is such a secure technology, it takes extra time and effort to ensure that all code is error-free. For these reasons, companies should not be discouraged by the cost of blockchain development but should view it as an investment in the future.

Businesses can enjoy increased security, transparency, and efficiency with blockchain technology. The initial price might be high, but the long-term benefits of blockchain make it worth the investment. However, as technology matures and more people become familiar with it, we expect development costs to decrease. In the meantime, if you’re looking to create a blockchain application, be prepared to spend more than you would for a traditional app.