Cost Driving Factors For The Blockchain Development Project

Blockchain is a contemporary technology that has captivated the market’s attention. It is viewed as the beginning of a new era, where the traditional economy will be put behind modern cryptocurrencies like bitcoin, Ethereum, tether, BNB, etc. There is no dependency on banks for transactions. There is vast transparency concerning financial transactions, with no additional payments due to the absence of intermediaries.

Seeing such advantages, various businesses are looking forward to building a blockchain-based project. If you are one of them, keep reading this blog, and you will get all answers about the budget involved in the blockchain-based project.

Topmost Statistics Concerning Blockchain Development

• By 2029, the total worth of the blockchain industry will be $163.83 billion.
• The global expenditure on blockchain solutions will reach $19 billion by 2024.
• The blockchain market will be around $67.4 billion by 2026.
• Banking captures the highest share of the blockchain market, due to which financial institutions can save up to $12 billion/ year.
• The Blockchain IoT market is expected to witness an annual growth rate of 40% (2021-2026).

Witnessing its progress, it's considered as a rapidly growing technology in today’s time. Peeking into the benefits, the businesses want to explore and build the relevant platform. For that, a quick cost breakdown is needed.

Various factors are involved in the making of the blockchain project. Highly accomplished professionals with deep knowledge of the blockchain are required. This is the pre-requisite and a sophisticated blockchain development team consisting of skilled developers, leading marketers, efficient business analysts, a research team, and more.

Let’s begin!

Blockchain project cost is subjective. There is not any fixed price. There are a lot of factors that impact the budget. A few of them are mentioned as under; let’s have a look!

Size of The Firm

It would not seem like a big thing. But it truly is. The company’s size has much more to do while charging the money. There are three major categories of firms- small-scale, medium-scale, and large-scale.

Start-ups usually have fewer team members and have to create a profile of their work and gain positive reviews in the beginning. So, usually, they charge less as compared to others.

In the case of mid-sized companies, the total strength of the employees is decent. Also, the clients prefer them, as they quote small prices. On the contrary, large-size companies are selective in their choice of taking projects. They are more concerned about their reputation and have to pay for their massive team, thus charging enormous.

Company Size	Cost
Small Scale	3,000-$30,000.
Medium Scale	$45,000 – $400,000.
Large Scale	$450,000- $2,700,000.

Industry Type

Several industries are strengthening the global economy. Some of them are the real estate, gaming, healthcare, banking and finance, education, etc. Now, every sector varies from the others in terms of revenue generation, the profit it makes, its popularity among the people, and people’s need. The infrastructure also differs as per the money spent on it. Now, every industry has its prototype model, the app development process, the complexity involved, and the number of stakeholders.

If we take a rough idea, the following conclusions can be drawn;

Industry Type	Cost
Finance	$45K-$500K+
Real Estate	$60K-550K+
Healthcare	$50-$270K+
Education	$70K-$400K+
e-Commerce	$40K-375K+
Agriculture	$65K-$150K+

Complexities Involved

Here, the complexities are based on the issues the app is facing, the requirements of the people, the feasible method, the type of blockchain platform to be used, the tech stacks (including the programming languages, frameworks, databases, software, APIs, tools, technologies, etc.)

To understand deeply, the first thing that needs contemplation is with which objective the blockchain app is getting developed. One needs to consider the issues people face and find ways to solve them. Now, in the decentralized platform development, the consensus mechanism is used. The consensus mechanism involves Proof of Work (PoW), Proof of Stake (PoS), Proof of Elapsed Time, and more.so, depending upon the requirement, one needs to make a decision. The other elements include user permission, signatures, hand-shaking, and asset issuance.

This is the critical step that can make or break your project. So, one needs to consult a top blockchain development company.

Tech Stacks	Classification
Programming languages	Solidity, Java, Python, C++, Ruby, C#, etc.
Frameworks	Ethereum, Hyperledger, R3 Corda
APIs	Chain API, GetBlock API, CoinBase API

App Category

Blockchain is classified into two types which means the solutions it will provide are based on them. Therefore, the cost will be different in those two scenarios.

• Cryptocurrency-Based

They enable users to trade and perform transactions based on cryptocurrencies.

For example, Wallets, dApp, and crypto-exchange solutions.

• Non-cryptocurrency Based

Here, the transactions and trading occur irrespective of the cryptocurrencies. For example, inventory management systems.

• Blockchain App Services

The blockchain app services specifically for the crypto-based industry depend upon the following services and solutions.

Read More - Blockchain App & Software Development Cost Estimation and Breakdown

Depending Upon The In-House Team Or Freelancing

The blockchain development cost depends upon the services mentioned above, types, solutions, and industries. But the significant thing is who is going to develop such apps, whether it is a proper blockchain development company or any other freelancer.

In-House Team

The in-house team of developers takes more money. It is because they charge hefty salaries from their employers, and managing such a team is a task. But the advantage it offers is that the work is completed on time. Completing the work is their first priority, and their project development team will keep you updated regarding the project. The client will be able to know about every minute detail of the project.

It's understood that blockchain technology is in its initial stages, so the ratio of blockchain companies compared to the regular ones is quite less. So, depending on the project's needs, the cost could vary.

Freelancers

If you have a small budget, it’s not worth hiring a blockchain company, as they will charge massive. For that, one must employ freelancers that build projects at affordable prices. The only limitation is the risk involved in the handling of the projects. The are chances that the project may or may not be completed on time. It depends on their availability and response time. The project size also matters; smaller projects tend to get completed in a short time compared to bigger ones. Thus, depending on the project size, the price varies.

The thing is, the in-house team generally costs higher than the freelancers.

Cost Involved In Hiring The Blockchain Developer

It’s a no-brainer that the hype for blockchain developers is obvious in this era of technology. The popularity of blockchain apps is at its peak, and many businesses want to invest in such projects. Now, blockchain developers' cost also differs. There are numerous categories of blockchain developers, a few of them are illustrated under;

On The Basis Of The Time Invested

1. Working Full-time

2. Working Half-time

3. Woking on an Hourly basis

As Per The Core Skills

1. Knowledge of advanced programming skills

2. Understanding of cryptography and cybersecurity techniques

3. Smart Contracts Development

4. Blockchain Architecture

5. Data Structure

On The Premise Of Their Existing Projects

1. Developer's technical expertise

2. Work quality they deliver

3. Creativity

4. Time management

5. Getting feedback from their clients

Bottom Line!!

Looking into the complexities and intricacies, one thing is clear the blockchain app development cost varies in various aspects. Hiring blockchain developers is a task as attention to detail is required in developing a fantastic blockchain app with personalized solutions.

Suffescom Solutions Inc. will make sure that you get the best blockchain services for your project. Our team consists of outstanding experts that been active in this realm. You need to take care of multiple things, and only a superb development team like us can help you with all this.

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• Blockchain App Development for Business