Factors to Consider During Blockchain Application Development
Just like mobile application development cost, the cost to make a blockchain app differs depending on the app goals, features and efforts you put into the development process. Keeping this into consideration, here are the different factors you need to look at to build a particular Blockchain app:
1. Agency Size
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 the team size of cost 3000+ experts – Cost $4,50,000 to $15,00,000
Apps Developed by Mid Cap app development companies, like Appinventiv, with the team size of 500-1000 experts-cost $25,000 – $2,00,000.
Apps Developed by freelance or small shop companies, with the team size of 10 to 50 experts – cost $2,000 to $ 25,000.
2. Blockchain App Category
The blockchain app types (blockchain-powered solutions) are broadly categorized into two types, namely:-
Cryptocurrency-based solutions:
As depicted by name, these solutions rely on cryptocurrencies for performing utmost. This comprises DApp, wallets, crypto-exchange solutions and ICO with DApp solutions.
Non-cryptocurrency based solutions
These solutions/software are independent of cryptocurrencies. They are based on distributed ledger system and are highly utilized in Inventory management systems.
3. 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/solution 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.
4. Blockchain App Services
Crypto Wallet
These are basically secure digital wallets taken into consideration for storing, sending and receiving cryptocurrencies like Bitcoins.
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.
Originally Published On - https://appinventiv.com/guide/blockchain-app-development-cost/
