How Much Does It Cost to Build a Blockchain Application

Factors influencing blockchain price include the complexity of the solution, developers' salaries, the type of app, etc. Let's discover the impact of each aspect on the cost of blockchain technology.

The cost of implementing blockchain app depends on the complexity of a blockchain mobile application. Different levels of complexity require varying degrees of technical expertise from blockchain developers, development time, and resources. Here, we break down the technical characteristics and development costs by the complexity of the blockchain application:

Blockchain technology offers various types, each of them has unique characteristics and suitability for different use cases.

• Public blockchain is a decentralized network accessible to anyone without restrictions. These blockchains offer transparency and immutability, making them suitable for applications requiring openness and trustlessness. Examples: Bitcoin, Ethereum, and Litecoin.

• Private blockchain is controlled by specific organizations or groups, limiting access to authorized participants. They offer enhanced privacy and control over data, making them suitable for enterprise applications. Examples: Hyperledger Fabric, R3 Corda, and IBM Blockchain.

• Hybrid blockchains combine characteristics of both public and private, allowing for flexibility in access control and transparency. They suit apps requiring a balance between privacy and transparency. Examples: Quorum, Multichain, and Energy Web Chain.

• Custom blockchains are developed from scratch to meet specific business or application requirements. They offer tailored solutions with full control over functionality and design, making them suitable for unique use cases. Examples: Chaincode, Sawtooth, and AntChain.

It is important to identify the type of blockchain you need before estimating the budget since the cost of blockchain technology will vary depending on complexity, scalability, and security requirements.

The industry to which your app will belong greatly impacts the cost of implementing blockchain technology. Various factors influence the price across different sectors, including the complexity of the dApp, the number of stakeholders interacting with the app, and industry-specific compliance.

For each industry, developing a blockchain application has certain technical characteristics. Here are the specific technical features to build a blockchain app for some key business domains:

• Healthcare. Developing of blockchain-based healthcare apps involves creating solutions ensuring secure patient data exchange, immutable medical records, and streamlined patient consent management, all while complying with HIPAA regulations.
• Supply chain. Blockchain in supply chain development services involves creating systems that ensure transparent and traceable product movement from origin to end-user. These applications focus on improving efficiency by providing real-time tracking, reducing fraud, lowering transaction costs, and preventing counterfeiting.
• Retail and e-commerce. Developing blockchain solutions for retail and e-commerce involves enhancing transaction security, reducing fraud, and enabling transparent supply chain management. These applications facilitate secure payment processing, customer data protection, and loyalty program management.
• Real estate. Developing blockchain-based real estate applications involves creating platforms for secure and transparent property transactions. These solutions ensure immutable property records, streamline title transfers, and facilitate smart contracts for lease agreements and sales.
• Finance and banking. Fintech blockchain software development services focus on creating applications for secure, transparent, and efficient financial transactions. These solutions focus on enhancing payment processing, enabling decentralized finance (DeFi) platforms, and providing robust anti-fraud mechanisms.

There are two primary categories of blockchain applications:

Cryptocurrency-based blockchain apps facilitate transactions involving cryptocurrencies. They include various applications such as decentralized apps (dApps), wallets, crypto-exchange platforms, and Initial Coin Offering (ICO) solutions with integrated dApps. Developing cryptocurrency-based solutions requires high security, integration with various blockchain networks, and robust smart contracts.

Note: Read our guide explaining how to build a DeFi app to learn more about cryptocurrency-based blockchain application features.

Non-cryptocurrency-based blockchain apps leverage blockchain technology but do not primarily deal with cryptocurrencies. Instead, they use distributed ledger systems to enhance processes in various industries. These applications are highly utilized in supply chain management, healthcare, and finance. Non-cryptocurrency-based solutions often involve integrating blockchain with existing systems and require extensive customization.

The specifics of building each application category will impact the development cost for blockchain mobile application. Still, it is impossible to calculate the exact cost without knowing your needs and business goals. To find out the cost of your blockchain application, contact our Blockchain domain experts, who will analyze your requirements and calculate the cost of blockchain implementation.

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. Different types of blockchain services come with varying levels of complexity, security requirements, and development time, all contributing to the overall cost.

Here are several of the most common blockchain services included in applications:

• NFT marketplace. NFT marketplace development includes creating a solution that acts as a public Blockchain platform and allows users to sell and buy NFTs.
• Decentralized application (DApp). A DApp operates independently through the use of smart contracts, which run on blockchain or a distributed ledger.
• Decentralized Autonomous Organization (DAO). A decentralized autonomous organization operates without any governing body, with all members working collectively toward the success of a single entity.
• Cryptocurrency wallet. A mobile app that allows users to buy and sell cryptocurrencies, store them, and effectively manage transactions.
• Cryptocurrency exchange. A trading app that allows users to exchange multiple cryptocurrencies and buy and sell digital or fiat currencies.

Understanding these different types of blockchain applications and their associated costs can help businesses make informed decisions about their development projects. Each type of application has unique features and requirements that will influence both the price and the time.

When estimating how much it costs to develop a blockchain, you should remember that the cooperation model you choose means a lot. You can select one of these popular options:

• In-house team. You can hire all the specialists you need for your blockchain app project to work with your team. This option offers complete control over all processes but implies significant investments in salaries, office rent, hardware, etc. Moreover, finding the experts in your region can be challenging.
• IT team augmentation. If you still want to maintain control over the blockchain app development process, you can turn to outstaffing. Find a reliable outsourcing blockchain app development company that will provide you with only necessary specialists to build your product, so you don't have to hire a complete team, reducing blockchain development cost.
• Full app outsourcing. You can opt for dedicated development team services to hire the specialists who will work exclusevily on your project. This cooperation model allows you to lower blockchain development cost similarly to outstaffing, but it also involves outsourcing project management, allowing you to free your time for other business tasks.

The last but not least factor that influences the cost of implementing blockchain technology is your IT team's location. Software development hourly rates vary greatly in different regions according to their average salaries, laws, taxes, and government support for the IT sector. Here are the hourly rates of blockchain specialists in the most popular IT outsourcing regions:

• North America: $100 - $150
• Latin America: $20 - $50
• Western Europe: $100 - $150
• Northern and Central Europe: $50 - $80
• Asia: $20 - $40
• Australia: $80 - $120

The structure of the blockchain app development team also significantly influences the cost of blockchain application development. A well-rounded team ensures that all aspects of the project are handled efficiently, but it requires a diverse set of skills, contributing to overall expenses. Here’s an example of blockchain app development team structure:

• Project Manager
• Blockchain developers
• Frontend developers
• Backend developers
• UI/UX designer
• Business Analyst
• Solution Architect
• DevOps

Now that we've explored the main factors of blockchain implementation cost let's dig deeper and explore what services are typically included in the estimation:

At this stage, your vendor’s business analysts work closely with you to create a detailed feature list for your blockchain application, outline requirements, discuss business needs, and mitigate risks. They also help you choose your app's type and category and the kind of blockchain.

The solution architect conducts a quality attributes analysis to define non-functional requirements. At the and of this step, specialists compile a rough estimation of costs, timeline, and team composition based on the Feature Breakdown List (FBL) and other key factors. Discovery phase services are essential to accurately estimate blockchain development costs and plan the project efficiently.

UI/UX design is a critical factor that significantly influences both the blockchain app development cost and the user perception of the application. UI/UX designers collaborate closely with you to create a compelling design concept and user experience (UX) map. This process includes developing wireframes, prototypes, and user interfaces that align with the project's goals and user needs.

A well-executed UI/UX design ensures that the application is intuitive, visually appealing, and easy to navigate, which enhances user satisfaction and engagement. However, creating such a high-quality design requires meticulous attention to detail and extensive iteration, which can increase the blockchain development cost. Investing in superior UI/UX design services is essential for making a strong impression on users and ensuring the application's success in a competitive market.

The development and integration phase involves building the blockchain application and ensuring it works seamlessly with other systems. At this stage, developers focus on coding the software and integrating it with existing solutions and third-party services.

You can start with building a Minimum Viable Product (MVP), which allows you to build a basic application version with core functionalities, gather user feedback, asses demand for blockchain solutions, and make informed adjustments, leveraging the benefits of blockchain app development. This approach helps prioritize essential features and optimize resources, ultimately controlling the budget and reducing the overall cost of building a blockchain.

Quality assurance (QA) is also an important part of the development stage, ensuring the blockchain application is bug-free and functions as intended. QA involves rigorous testing, including unit, integration, and performance tests, to verify the app’s functionality, security, and usability.

Once blockchain app development and testing are finished, IT specialists go to deployment, which makes the application available for users. This stage involves setting up the necessary infrastructure, configuring servers, deploying smart contracts, and ensuring the network is secure and efficient. It also includes launching the app on the blockchain network, whether it’s public, private, or hybrid.

Beyond the initial development, elements like smart contract complexity, the level of decentralization, integration with existing business software, and ongoing maintenance all play crucial roles in determining the final budget. Here's a closer look at how these factors contribute to the cost of blockchain implementation:

Developing secure blockchain smart contracts essential for automating and enforcing agreements on the blockchain. This task requires specialized skills in blockchain platforms, cryptography, and secure coding, which can significantly impact development costs. More complex smart contracts with intricate business logic, multiple conditions, and interactions with other contracts or systems require more time and expertise, raising the costs. Additionally, rigorous testing and auditing processes are crucial to ensure security and correctness, further contributing to higher expenses.

The degree of decentralization in a blockchain application greatly influences its complexity and cost. A higher level of decentralization means more nodes are involved in maintaining the network, increasing computational and storage requirements. Complex consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) necessitate more resources to achieve agreement among nodes. Designing decentralized applications (dApps) to handle interactions between multiple nodes and ensure network consistency requires robust architecture and error handling, leading to increased development costs.

Ensuring that blockchain applications integrate seamlessly with existing business software and third-party systems adds to development costs. This process involves extensive customization and potential modifications to both the blockchain application and the existing software to ensure compatibility. Developing APIs, middleware, or other integration tools for smooth data interchange between the blockchain and business systems requires significant effort. Thorough testing is necessary to validate integration, ensuring data consistency and reliable performance. Additionally, maintaining integration compatibility with updates can incur ongoing costs.

Post-deployment support ensures a blockchain application continues to run smoothly after launch. This phase includes regular maintenance to keep the application up-to-date, continuous performance monitoring to identify and fix inefficiencies, and addressing bugs or technical issues promptly. Additionally, ongoing security management through audits and updates is crucial to protect against new threats, and providing user support enhances user satisfaction.

Note: The support and maintenance expenses are not included in the initial price estimation, but they typically add about 10-15% to overall blockchain app costs.

The blockchain app development costs can vary from $40,000 to $300,000+, depending on its unique characteristics and your needs and requirements. When planning a blockchain project, one of the most fundamental factors influencing the overall cost is the application's complexity.

This characteristic dictates the number of features, the level of integration with external systems, the robustness of security measures, and the overall user experience. By understanding and clearly defining the complexity of your blockchain application, you can make more accurate cost estimates and better allocate resources to ensure a successful implementation.

Beyond the complexity and scope of work, estimating blockchain implementation costs must include the development team's fees, technology stack expenses, and security and compliance costs. Moreover, the factors include the type and category of blockchain app, the services included, and other application characteristics.

Feel free to contact our experts to simplify the budget planning process. We are ready to provide you with a detailed estimate that considers all your blockchain application requirements and guides you through all stages of development, ensuring that all aspects of the project are fully considered.

Choosing the right software development company for your blockchain application is crucial for your project's success since the vendor's proficiency can impact the blockchain development cost. Here are key points to consider when looking for a blockchain development partner:

Look for a software development company with proven experience in blockchain application development. Review their portfolio, case studies, and customer reviews to assess their expertise in the field. Experienced blockchain developers will ensure higher quality and efficiency, which increases return on investments and lowers the cost of implementing blockchain technology.

We would like to demonstrate our blockchain expertise with a case study of one of our clients - Video-on-Demand Platform For NFT Artists, Fans, and Buyers. We built an NFT marketplace for our client integrated with Cere Network's Decentralized Data Cloud (DDC). This platform allows users to browse, buy, and auction various NFT collectibles directly. The smart contracts underlying the platform govern user interaction, automating NFT sales and auctions, eliminating the need for intermediaries.

Ensure the development team possesses a robust technical foundation in blockchain architecture, cryptography, and smart contract development. They should be well-versed in:

• Specific blockchain platforms (e.g., Ethereum, Hyperledger)
• Smart contract languages like Solidity (Ethereum) or Rust (Solana)
• Understanding consensus algorithms such as Proof of Work (PoW) or Proof of Stake (PoS)
• Proficiency with development tools like Truffle, Remix, and Ganache
• Knowledge of programming languages such as JavaScript, Python, and Go
• Familiarity with frameworks and libraries like Web3.js or ethers.js

Blockchain app development often requires iterative processes and frequent updates. Choose a company that uses Agile SDLC methodologies to ensure efficient collaboration, flexibility, and speedy delivery. Agile practices can help manage and potentially reduce blockchain development costs by allowing adjustments and improvements throughout the project lifecycle.

We at Cleveroad successfully use Agile development methodology to provide our clients with enhanced flexibility, faster time to market, and improved product quality.

Given the sensitive nature of blockchain applications, select a company that emphasizes strong security practices, including code audits, penetration testing, and secure development lifecycles. Investing in security upfront can prevent costly issues and breaches down the line, affecting the overall cost of blockchain app development.

Cleveroad blockchain app developers employ robust blockchain security measures to ensure the highest level of protection. They include:

• Smart contract auditing
• Data encryption
• Multi-factor authentication
• Regular updates and patches

Effective communication is essential for successful blockchain app delivery. Choose a company that values open communication, provides regular progress updates, and maintains transparency throughout the development cycle. Clear and transparent communication can help avoid misunderstandings and delays, fostering development and lowering blockchain costs.

We at Cleveroad ensure transparency and effective communication through regular client meetings, sprint reviews, and demo calls. During the development process, we provide detailed delivery reports that include project metrics, current progress (readiness in percentage), a list of completed tasks, and time spent on each activity. This approach keeps our clients fully informed and involved throughout the development.

If your blockchain application targets a specific industry, such as healthcare, FinTech, or supply chain management, select a company with relevant industry experience. Industry-specific knowledge can streamline the blockchain app development process and ensure that your application meets regulatory and market requirements, potentially lowering the overall cost by avoiding common pitfalls.

Cleveroad is a software development company with tech expertise across industries. Our expertise spans healthcare, logistics, fintech, education, e-commerce, and more. We leverage cutting-edge technologies and agile development methodologies to deliver robust, scalable, and secure software solutions that perfectly align with your unique business needs and objectives.

Cleveroad is a proficient software development company with 12+ years of experience in blockchain software development. We offer our clients top-quality blockchain software development services, including custom blockchain software development, legacy software modernization with decentralized technology, integration of third-party blockchain services, and system optimization.

Our experts use an innovative set of blockchain programming languages and tools to optimize development time and blockchain cost, including EOS, Ethereal, Solidity, Ripple, Hyperledger, Bitcoin, Tezos, BNB chain, etc. **Here are several examples of the blockchain solutions our team can create: **

• Ethereum-based platforms
• Dynamic and decentralized blockchain apps
• P2P money transfers
• Smart contracts development
• Native cloud blockchain apps, etc.

Since 2023, Cleveroad has been certified with two key international standards — ISO 9001:2015 for quality management and ISO/IEC 27001:2013 for information security management systems. Additionally, we have achieved Amazon Web Services (AWS) Select Tier Partner status within the AWS Partner Network (APN). These certifications and partnerships highlight our commitment to delivering top-notch blockchain applications with the highest quality and security standards.

At Cleveroad, we estimate the cost of blockchain app development through a structured process. We provide three estimates:

• Rough estimate at the Solution Workshop stage
• Rough estimate at the Discovery phase
• Detailed estimate

During the Solution Design Workshop, we start with a first rough estimate, which gives a broad budget overview based on our team's past experiences. This initial estimate helps clients understand the general cost and development stages.

During the Discovery Phase, we refine this estimate by analyzing business processes and defining detailed requirements, creating a second, more accurate rough estimate. This estimate covers:

• General preparation work
• Development tasks
• Integration of frameworks and libraries
• Non-development activities
• Improvement suggestions

This comprehensive approach ensures all project aspects are considered, from coding and UI/UX design to technical documentation and potential enhancements.

After the Discovery Phase, we create an almost 100% accurate detailed estimate. We consider all necessary documentation, non-development activities, and integration needs. If clients provide a complete documentation package, we can deliver a detailed estimate even faster, ensuring a clear and precise cost projection for the blockchain app development.