Blockchain technology is one of the most trending technologies these days and is used for more than just economic transactions. Blockchain tech can transform the traditional ways to do business and transact with each other. The term Digital transformation perfectly blends into the definition of blockchain.
Blockchain represents the decentralized network essential these days, and companies do not want to let this go. Businesses seek a top mobile app development company with several years of experience in building the blockchain app according to their needs. But the question is: how much does it cost to build a blockchain-based app platform?
The cost to develop a blockchain-based app depends on multiple factors, including app features, blockchain type, complexity, a blockchain platform, and other tech stacks. Considering numerous factors, examples, & numbers, we have evaluated the cost of blockchain-based app platforms.
In this blog, we will look at the various factors that should be considered to estimate a blockchain app’s cost.
– Process or Phrases
– Development Resources
We will look into each one by one. Let’s begin!
Cost Determination of Blockchain-based App
1. Process / Phrases
Cost of blockchain implementation is invested in various activities or phrases of the project, including:
– Design: System Blueprint, UI/UI design including wireframes, low-fidelity designs with app flow & high-fidelity designs with a mock-up.
– Development: Coding & Testing
– Deployment: Deployment on DevOps, Cloud Platforms, and Delivery
– Migration: Moving the current solution to the Blockchain platform
– Maintenance: Maintaining new updates & testing if the app runs seamlessly on each OS release.
– Upgrade: New features, Modifications in Smart Contracts
– 3-rd Party Tools: Hosting, Storage, Collaboration, Notification System
Blockchain-based platforms also incur other costs, such as a developer paying some fee to deploy a contract on the blockchain.
Below are a few third-party tools that blockchain apps might use:
– Bug tracking tools like Instabug & Bugsee: Collecting and reporting live bugs
– Amazon web services: Computing, storage, and delivery
– Analytics with Mixpanel: Analytics of funnel, insights, data, and reporting
– Notification services like AmazonSNS: facilitating notifications inside the app
Project Management Cost
For instance, applying an agile method to execute frequent meetings or daily scrums, track the existing sprint, testing, bugs, timeline, and deliverables. And using tools like Jira and Trello to enable the agile technique. The cost of using such tools can also contribute to the cost of blockchain. For example, using the Jira tool to deliver action items to customers & track the internal team’s progress.
It is essential to preserve a pipeline of quality code. Every developer must write code and conform to a standard code depository to ensure that it works seamlessly with everyone else’s code. The correct way to check this is by using an automated process. The source code can be handled with tools like Github and Bitbucket. These tools also contribute to the blockchain-app cost.
Since this tech is still new in the market, and new platforms are entering the market each day, the apps can be converted to different platforms based on their flexibility, scalability, and confidentiality. Moreover, every year Google, Apple, and various blockchain platforms release new OS updates. This calls for a maintenance cost of 15-20% of the overall project cost, and it could differ based on the complexity.
The cost of blockchain depends on the complexity of your app, and the complexity depends on multiple factors.
We have segregated the blockchain app into 3 categories based on their complexity:
Low-Complexity Blockchain Apps
– Basic Smart Contract Development App
– Payment apps developed with current cryptocurrencies
Medium-Complexity Blockchain Apps
– Semi-decentralized apps
– dApps developed on blockchain platforms such as Hyperledger, EOS, Ethereum, Fabric/Sawtooth, and more
High-Complexity Blockchain Apps
– Developing a blockchain platform from the start
– Creating an entire decentralized network
3. Development Resources
The cost of recruiting a team for app development is a significant contribution to the estimated cost. Salaries to the software developers are the main expense, but other imp factors include vacations, incentive compensation, benefits, holidays, and payroll taxes.
There are several ways to develop a blockchain app, and some of them are as follows:
– Developing a blockchain-based app with an in-house team
– Recruiting a freelancer for a blockchain-based app platform
– Recruiting an agency to develop a blockchain-based app
Maintaining an in-house team of blockchain developers seems complicated only cuz’ of monetary factors. However, digging deeper, you will know there are plenty of issues. Although, you will have a dedicated team who will be on their toes if any problems arise. You will have complete control over your blockchain development and manage the team’s expenses, including their incentives, vacations, workspace, and more.
Since blockchain is still nascent, there is a lack of experienced developers in the market. The average pay of a blockchain developer is $150k annually. It can be more expensive to recruit an in-house team than outsourcing a blockchain development company.
Hiring freelancers can be the least costly for blockchain app development; however, 80% of businesses face problems like their availability, quality, response time, and more. You can recruit a freelancer if your project is small because the risk factor rises with the project scope.
Any blockchain specialized agency can be the best option. Agencies serve as a full-time service provider and are experienced in the app development practices like Agile & DevOps. The cost of a blockchain app is lower than the in-house team. Sign a contract before starting to work on your project, which includes deliverables with particular timelines. Hence, you can count on them for your core business competencies.