Many people are curious to know the cost involved in a blockchain development process. Blockchain is already showing huge potential in many industries like healthcare, supply chain management, etc. It is not an easy process by any means and involves several complexities. There are a lot of different aspects you need to keep in mind when you talk about blockchain development costs. Today we going to discuss Cost of Blockchain Development Services?
Check out factors and determine the costs
Blockchain app building process needs a significant amount of investment and brings a lot of advantages over other architectures. A blockchain application finds it easy to manage 100% uptime with the decentralized nodes. It can eliminate a single point of failure for the technology you are dealing with. Blockchain is also favorable for securing sensitive data and preventing a possible malicious cyber attack. The overall cost of blockchain development can largely depend on the complexity of the service you opt for. The level of expertise required and the elements involved can truly influence the cost of blockchain development.
Blockchain development services in high demand and usually more expensive than any other technique. Not every developer can carry out blockchain mechanisms and that is why the costs are higher. At times, blockchain developers can charge almost 100% – 200% more than full-stack developers. So, if you are planning to utilize blockchain development services, then you must know the costs.
Factors That Affect Blockchain App Development Cost
The overall cost for choosing blockchain development services depends on a wide range of factors. These factors have a direct impact on the price asked for the services. Take a look.
Size of The Agency
The very first thing that is going to affect the overall price of the development process is the agency. A big sized and well-known agency is obviously going to charge you with more money. The companies are divided into 3 main categories – large-cap, mid-cap, and small-cap. Small agencies charge a lot less than the other two categories. They are new to the industry and want to create a successful portfolio. That is why these agencies are more than willing to offer their services at a much cheaper rate.
On the other hand, all large-cap or most mid-cap agencies, offer their services at a premium. They have more experience and employ highly trained professionals, which gives you better efficiency. The really high-cost blockchain development services come with the best quality and reliability. Their stream of blockchain services is more diverse, so the charges are higher than a small agency.
Typically, blockchain development services offered by large companies costs anywhere between $4,50,000 to $15,00,000. The Mid Cap development agencies offer their services in the range of $25,000 – $2,00,000. Finally, a small-cap or freelance blockchain expert can offer such services at a $4000 – $50,000 tag.
The cost of software and tools, add to the overall cost of the blockchain development. Big companies offer more diverse services to their clients and that is why they make use of more software and tools. Automatically, the costs go up when you give them the contract. The ability of a company to manage the project results in the overall success in the long run.
The cost of blockchain development services depends on overall project management as well. There are a lot of processes that are involved in this task. Developers need to carry out testing, check for bugs, deliverables, etc. A wide range of tools is used in order to facilitate all the different techniques that we have mentioned. So, that involves a great amount of monetary support.
Blockchain technology is a new technology in the market that still needs considerable developments. New platforms are coming up very frequently and all the apps or frameworks that are developed need to support them. Scalability is of great importance in the blockchain industry. Apps need to have the ability to switch between different platforms and must offer high levels of flexibility.
In order to keep the apps and framework flexible, regular maintenance is required. That adds to the cost of your overall budget. You can witness around 15%-25% of your budget is spent on the maintenance of the service. The costs can go up or come down, depending on the complexity of the blockchain development services you have opted for. Keeping all the elements updated is an integral part of blockchain development nowadays.
Smart Contract Development
An integral part of blockchain services is smart contract development. Without any complex logic, it can cost anywhere between $200 – $2000. They can easily serve really simple operations of transferring values. This was the only activity it was able to perform before, but not anymore. You can now include a guarantor and add the data in a registry. By doing so, the prices are going to rise to $3500 – $8000. More advanced contracts can start from $50,000.
Such contracts offer a wide range of services like transfer of money, gives access to information, change documents, etc. Contracts of this scale can offer better logical help. As the demand for smart contract development is increasing, services are more affordable now.
Development of Blockchain Wallet
It is very important to develop a blockchain wallet. Creating such a conventional wallet can cost anywhere between $35,000 – $55,000. But, if we are talking about the development of a web wallet, the costs can come down to $15,000. The price of this development process depends on the platforms it supports and the scope offers to the users. Creating your own wallet can prove to be really beneficial for many. This is a vital part of blockchain development services that a lot of people tend to work on.
Final Words –
Blockchain development is now more popular than ever before. A lot of companies are planning to work on blockchain development in order to bring more efficiency and productivity in their system. Each case of a blockchain development can be unique in its own way. It is the future and as we progress, more companies are investing their resources in blockchain development. The overall cost of blockchain development services requires thorough observation and analysis. This can help the company to get a clear estimate. Check out all the factors that we have discussed in this blog that influence the prices.