A Comprehensive Guide on Blockchain App Development Cost

The well-intentioned shift to the decentralized universe, also known as Web 3.0, has radically increased the demand for blockchain technology. The latter can revolutionize businesses and transactions, allowing business owners to create a robust, well-designed, and transparent distributed system capable of ensuring maximum ROI.

Enterprises are swiftly integrating blockchain technology into their operations to revolutionize efficiency, transparency, and security across diverse sectors. This adoption is propelled by blockchain’s prowess in optimizing intricate processes like supply chain management and digital payments, thereby slashing costs and time. The immutable nature of blockchain ensures data integrity, countering risks of fraud and tampering. Moreover, blockchain facilitates frictionless cross-border transactions, cutting out intermediaries and reducing transaction fees.

According to a recent report from Grandviewresearch, the global market share of blockchain technology is expected to witness a value of $1,431.54 billion by 2030, thereby observing a CAGR of 85.9% from 2022 to 2030. Thus, the total investment in technology is bound to increase much faster, making way for infinite opportunities for tech-savvy entrepreneurs to pivot their businesses successfully.

Now, for an investor looking to pervade the blockchain technology market, estimating the blockchain app development cost is one of the most important aspects that can help you make better financial decisions. As per various niches, blockchain implementation requires you to understand multiple aspects of cost estimation. This guide will tell you everything you need to know about the cost of building a blockchain system and the factors that affect it.

In addition to the blockchain app cost, we will also look at various industries that can benefit from creating a blockchain app and the cost and timeframe to develop multiple blockchain apps.

Now, without further ado, let us jump to the most critical aspect of our discussion and interpret the blockchain app cost as per the app’s complexity.

Simplifying the blockchain app development cost

To give you a rough estimate, the blockchain app development cost varies from $40,000 to $300,000, or more. Certain factors affect the overall blockchain development cost, including the app’s niche, its UI/UX design, launching of the ICO, proof of concept, etc.

Since the overall complexity of the app is the crucial deciding factor that can determine the blockchain app cost and the time frame, let us try and offer you the estimated cost to build a blockchain system as per the varied complexity levels.

Furthermore, for determining the exact cost of implementing blockchain, it is first essential to categorize the blockchain solution you wish to get for your business. Now, blockchain solutions are based on network or on cryptocurrency and our effectual blockchain app development guide will help you understand the technicalities associated with this technology from scratch.

A dedicated blockchain app development company like Appinvetiv can help you with better estimates of the cost of developing a blockchain project as per various milestones to be achieved. Let us try and offer you the percentage of cost allotted to multiple milestones of a successful project.

Now, before diving into the various types of blockchain app development solutions you can develop for your business, let us discuss in detail the multiple factors that affect the blockchain app cost.

Factors affecting the blockchain app development cost

Getting a gist of various factors that can affect your overall budget of development requires you to first identify the type of blockchain app you require. In addition to this, you should have a clear understanding of the purpose of your app, what problems are faced by the end-users, how your blockchain solution can resolve those problems and bring in the transformation, etc.

Just like mobile application development cost, the cost of developing a blockchain app differs depending on the features and technologies you put into the development process. Keeping this into consideration, here are the multiple factors you need to consider while building a particular Blockchain app:

01. Agency Size

When you look into the mobile app development industry and how the cost breakdown structure is planned in the domain, you will find it varying between three sets – Large Size Companies, Medium Size Blockchain App Development Agencies like Appinventiv, and Small Cap Agencies.

Small size agencies generally charge a lot less than the medium and large size app development companies, as they are in a dire need to create their work portfolio.

Large-cap companies, on the other hand, are very selective in terms of projects that they take up. The reason behind this high cost estimate can be any – from the Monetary management of a big team to the aim to maintain a set standard of the portfolio.

Noting both the situations, brands who are planning to enter the Blockchain sector generally prefer to invest in Mid-size Blockchain App Development Companies, as they have the team to handle the project and at the same time they don’t quote a price that would burn a hole in the brand’s pockets.

Now the cost difference that comes between the three Blockchain App Development Company sizes, look something like this –

Apps Developed by large app development companies, with a team size of 3000+ experts – Cost $400,000 to $500,000 or more.

Apps Developed by Mid Cap app development companies, like Appinventiv, with a team size of 1000+ experts cost $40,000 – $300,000.

Apps Developed by freelancers or small shop companies, with a team size of 10 to 50 experts – cost $2,000 to $ 25,000.

02. Industry-wise Blockchain App Development Cost

The industry in which your Blockchain app will belong to also impacts the development cost to a great extent.

There are a number of costs affecting factors that vary from one industry to another – complexity of the dApp, number of stakeholders who would be interacting with the app at any given time, and the industry compliances, amongst others.

The blockchain app development cost difference as per various industries

Also Read: 10 ways blockchain is leading business transformation across different industry verticals

03. Complexity of the Blockchain App

There are a number of factors that are combined to define the complexity of a Blockchain mobile application.

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 development services you should invest in. If you are an enterprise, you should consider these questions before implementing blockchain:

Consensus Mechanism

Every blockchain system uses a specific consensus algorithm (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.

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.

Stack

With every platform, comes a different set of blockchain programming 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.

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, head to our complete guide to API development.

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, etc.

[Also Read: Importance of UI UX Design in an App Development Process]

Proof

Since designing a full-fledged blockchain app can increase your development budget at an initial stage, it is better to go for MVP development approach. It is recommended to create a workable solution with core features of the planned application and test it, rather than launching the complete solution.

Now, a cumulation of all these factors is what decides the scale of complexity of a Blockchain app. A cost breakdown structure defined by the complexity of the dApp would look like this –

04. Blockchain App Category

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

Cryptocurrency-based solutions:

As depicted by name, these solutions allow users to sell and buy cryptocurrencies and make other transactions with the same . This comprises DApp, wallets, crypto-exchange solutions and ICO with DApp solutions.

[Also Read: The Ultimate Guide on How to Monetize With Your dApp]

Non-cryptocurrency based solutions

These solutions/software are independent of cryptocurrencies. They are based on distributed ledger systems and are highly utilized in Inventory management systems.

05. Blockchain App Services

Crypto Wallet

These are basically secure digital wallets taken into consideration for storing, sending and receiving cryptocurrencies like Bitcoins. Know how much it costs to develop a crypto wallet app on blockchain.

Crypto Exchange

The Crypto Exchange empowers users to convert and trade bitcoins and other cryptocurrencies in a centralized, decentralized, or hybrid environment.

ICO

ICO (Initial Coin Offerings) refers to the mechanism of generating and selling cryptocurrencies/ crypto tokens. When it comes to ICO development, the cost of building an ICO blockchain solution depends on key elements like:

White Paper – Since White Paper 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.

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 must understand the future aspect.

Well-known Advisors: Reputed advisors can raise higher funds, but demand 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.

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 affects the cost of developing an ICO app.

Interaction on Social Channels: Likewise, the efforts, time and fund invested on social networking sites also adds to the ICO blockchain 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 the website and the panels for admin and investors.

dApps and Distributed Ledger Technology (DLT) based solutions

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.

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.

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

Nature of Blockchain network: Are you choosing a 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 the consensus process without compromising on security terms.

When talking about Public blockchain networks, you can either go for a pre-existing blockchain solution which is cheaper but its service or platform might hurt, or you can create a customized blockchain solution where you can implement new features, but the development will cost you high.

Smart Contract Development: As already explained, smart contracts enable dApps to connect with blockchain systems. Thus, the cost of smart contract development also adds to the Dapp development cost.

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, the implementation of a higher degree of decentralization will lead to pure decentralization which will be complex and more expensive.

Block Explorer: Block explorer, in simpler terms, is an online blockchain browser where you can assess the contents of individual blocks and transactions, the transaction histories along with the balances of the addresses.

An end to end development of a dApp, with all the features mentioned above, can range from a minimum of $75K – $150K to a higher side of hundreds and thousands of dollars.

NFT Marketplace

An NFT marketplace is a blockchain-based platform that allows users to buy and sell non-fungible tokens (NFTs) online. An NFT  usually represents an authenticity certificate related to an online or a physical asset. NFTs are stored on a public blockchain and includes information about:

• Who created an asset?
• When was the asset created?
• Who bought the asset?
• When was the asset bought?
• The price at which the asset was bought.
• Who owns the asset in real-time.

[Also Read: How Much Does NFT Marketplace Development Cost?]

Now, determining the exact cost of developing a blockchain app is a complex task and requires you to first analyze and decide the type of blockchain app you wish to develop for your business. Let us try and offer you an estimated cost and time frame required to create different types of blockchain applications:

Now that you have looked into various types of blockchain apps you can get developed from a dedicated blockchain app development agency, it is time to move on and understand the various industries that can benefit from custom blockchain app development.

Industries that can benefit from blockchain mobile app development

As per the report of Fortune Business Insights, finance (BFSI), government, and healthcare industries lead in adopting blockchain technology, followed by manufacturing, telecom, and retail sectors, all tapping into its potential benefits.

Blockchain technology combines complex and encrypted data in a secure system and offers solutions for various industries. In fact, many industries, such as healthcare, fintech, and media, have taken notice of the technology. They have provided commendable solutions to their user base, making them climb to the top of their respective ecosystems. Have a look at these popular enterprise blockchain use cases to get a better understanding about the usage of blockchain technology across numerous industries.

Please note that the benefits of blockchain app development is not only limited to the above mentioned sectors only. Other sectors that can further benefit from blockchain apps include media and entertainment, real estate, insurance, travel, education, IoT, etc.

Summing Up

We hope this guide has given you all the clarity you need to understand the cost of blockchain app development. It is essential to acknowledge the growing popularity of blockchain apps and how they can benefit your business when it comes to offering cost-effectiveness, added security, fraud prevention, and more. Integrating blockchain in your business constructs can help you pave the way for a successful business that guarantees maximum ROI.

As a dedicated cryptocurrency exchange development company, Appiventiv can offer you best-in-class blockchain solutions based on your custom business requirements and integrate preeminent technologies that can work wonders for your business.

We recently created a blockchain-based education app, NOVA Learning, which transformed the education sector with a decentralized LMS. The app is now in the second phase of development, allowing the use of cryptocurrencies to avail of various education courses.

Get in touch with our team if you wish to incorporate blockchain into your business.

FAQs

Q. How much does it cost to build a blockchain app in 2024?

A. The blockchain application development cost can vary from $40,000 to $300,000 or more. There are a number of factors that affect the overall blockchain development cost and those include hourly rate of developers, location of blockchain android app development agency, blockchain app features and technologies, etc.

Q. How long does it take to develop a blockchain app?

A. The time frame required to create a blockchain app depends on the overall complexity of the app. A highly complex app with an extensive feature list requires a time frame of around 9 to 10 months for development. On the other hand, a simple app with minimal features will require around 3 months for development.

Q. How to create a blockchain app for your business?

A. Here is the stepwise procedure to carry out blockchain app development process:

Step-1: Gather app requirements and make thorough market analysis

Step-2: Choose the right blockchain app development platform to base your app on

Step-3: Finalize the feature list and technologies to be implemented in your blockchain-based mobile app

Step-4:Create the front-end UX/UI designs nand make sure it promotes user engagement

Step-5: Develop application modules

Step-6: Carry out thorough app testing

Step 7: Deploy the app on the app store

Step-8: Maintain the app as per your target audience demand and upgrade the features that offers optimum performance

THE AUTHOR

Sudeep Srivastava

CEO, Appinventiv