How Much Does it Cost to Build Blockchain Projects?

Want to know the cost of blockchain project development? You’re on the right page. We will share with you the exact factors and resources that affect the cost of building a blockchain Project. Before we get to a number, we must understand the logic behind it. 

In translation, we shall first understand what types of blockchain projects can be built. Then we will see which tools & languages are used for developing a blockchain app. We’ll also help you conclude what’s better- hiring freelancers or a development team for your next dApp.

Blockchain Market Overview

The global blockchain technology market size was valued at USD 17.57 billion in 2023 and is projected to grow from USD 27.84 billion in 2024 to USD 825.93 billion by 2032, exhibiting a CAGR of 52.8% during the forecast period (2024-2032).

The rise of blockchain hinges on two key trends: wider adoption of cryptocurrencies and a surge of practical applications in finance and retail. Additionally, Blockchain as a Service (BaaS) is poised to fuel market expansion.

By offering pre-built solutions, BaaS empowers small and medium businesses to leverage the power of blockchain and smart contracts without the burden of building their own infrastructure. This simplifies entry and accelerates innovation across industries.

Source: Fortune Business Insights

Types of blockchain projects:

There are 3 types of projects in a nutshell:

1. FOMO Projects:

These types of projects are made to increase your target audience and to make sure that your company is keeping at par with the latest technologies.

FOMO literally means Fear Of Missing Out. This acts more like a marketing tactic than an actual project. 

FOMO projects should be avoided by companies that are unsure about blockchain technology or are unprepared for it. This might lead to a bad impression on the company, and they might never retry again.

2. Opportunistic Solutions:

Opportunistic solutions are software/ applications that are custom-built to solve very specific problems that are already known. 

Often it has to do with bookkeeping, recordkeeping, or smart contracts. Thus, this might be a lucrative way for the company to get good clients. 

However, there is a challenge to opportunistic solutions. The challenge is that firms risk losing control over the data or the contract as they are integrated into the blockchain. Thus, the data will be stored across many different devices.

3. Decentralized Apps (or Dapps): 

Decentralized apps or dApps run on a peer-to-peer network of computers and devices instead of a single computer or device. These are outside the purview or control of a single authority.

Apps like Uber, Lyft, and Facebook run on a specific server, giving the parent company complete control over their apps. However, in the case of dApps, it is not running on any particular server, so the organization can’t have absolute control.

Read more: How do you develop a dApp, and which technologies are used for it?

Price of Your Blockchain App: A Breakdown

Developing a blockchain app can set you back anywhere from $40,000 to a whopping $300,000 or more. The final price tag depends on various aspects like your app’s niche, user interface design, and even if it involves an initial coin offering (ICO). While complexity is a major cost driver, here’s a breakdown of estimated costs based on different development levels to give you a starting point.

Complexity	Description	Estimated Cost
Simple App	Basic functionalities, limited features. Examples: Simple voting system, basic supply chain management.	$40,000 – $60,000
Moderately Complex App	More features and functionalities. Examples: Decentralized marketplace, dApp with user authentication.	$100,000 – $200,000
Highly Complex App	Highly intricate features, integrations with other systems. Examples: Cryptocurrency exchange, Decentralized finance (DeFi) platform.	$250,000+

What’s cheaper for building blockchain projects: hiring freelancers or outsourcing?

Factor	Freelancer/hour	Outsourcing/hour
Turnaround time   Front-End Developers UI Designers Blockchain Developers Tools Hosting Miscellaneous  Maintenance Total Cost	50 hours   $61-$80 $20-$40 $100-$200 $1500/month $100 – $1000 $2000 $3800 – $7000 $16450 – $27500	30 hours   $40-$70 $40 $70-$200 $1000 (starting from) $200+ $1500 Variable $3000- $20,000

From this table, it is clear that outsourcing is clearly the better choice if you want to build a blockchain project. Although outsourcing might have a larger cost bracket, it takes up way less time. In addition to that, you don’t need to worry about managing hosting solutions, tools, hiring developers, etc.

Outsourcing will allow you to focus more on marketing and how to improve your application overall. In addition to that making, all the freelancers coordinate with each other is very difficult. Outsourcing bypasses that problem. 

Idea Usher has an experienced team of expert developers and designers who can help you create beautiful blockchain projects.

Factors affecting the blockchain app development cost

Whenever you are building anything, there are costs associated with various factors of the build. There are: materials, tools, labor, etc. Blockchain technology is not an exception to this. These can be hosting solutions, infrastructure services, choice of the P2P network, the native currency, development tools, and programming languages. 
Let’s take a look at these in detail:

1. Infrastructure

You will need IaaS (Infrastructure as a Service) providers to give you access to the infrastructure that you require. 
There are various IaaS providers, such as AWS or IBM Cloud IaaS. These are a few big brands that can help you greatly with your projects. This is especially helpful for startups as they don’t need to invest in an in-house infrastructure build.

2. Development team size and location

The size of the development team is another factor that affects the cost of blockchain app development. A larger team will typically require more resources, which can increase the cost.

Additionally, the location of the development team can also affect the cost. Developers in regions with higher living costs and salaries will typically charge more for their services than those in regions with lower costs of living.

3. P2P Network

Building a P2P network from scratch can be a difficult task, and you have to get capable networking engineers and cryptography experts on your team. 

FYI: network engineers specialize in managing and developing P2P networks, while cryptography experts deal with encrypting and securing your data on the network. 

Also, you will need skilled front-end developers to make your projects more appealing to the users. These are the wizards that make your work look better and sharper in every way. 

4. Buying native currency

Whichever blockchain network you choose, you have to buy some cryptocurrency native to that particular network. So, if you are working with the Ethereum blockchain, you have to buy ETH or some other cryptocurrency that works on the same chain. 

This again will cost you money. As ETH and other cryptocurrencies’ value against USDT keeps fluctuating, it is difficult to predict the exact amount of ETH you are going to require. But, you can check it out on crypto exchanges like Robinhood, Coinbase, etc. 

5. Tools used to create Blockchain projects

Some of the tools that cost money while making the blockchain projects may also cost money. Let’s look at the various tools used by companies to make blockchain projects:

• Web3.js: Web3.js is a tool used to connect the Ethereum JS APIs to the generic JSON-RPC.
• Remix: It allows the development and management of smart contracts for Ethereum-like blockchains. Remix can also be used as a learning platform. Remix is open source and free.  
• Truffle: Truffle is an open-source IDE that uses Ethereum Virtual Machine. The purpose of Truffle is to make development easier.
• Infura: Infura is a micro-service-driven architecture that scales to support the APIs.The core version of Infura is free, but paid versions are Developer – $50/mo, Team – $225/mo, and Growth – $1000/mo. You can check the details here. 
• Hardware Wallet:

Investing in a good hardware wallet is also very important as it will help you store the cryptocurrencies you bought offline and some of the data. Hardware wallets go for cheap and can start from as low as $119. Ledger is a company that has many hardware wallets you can choose from according to your requirements. Although not mandatory, it will be a good addition to securing your data/ crypto on the network. 

6. Testing and deployment

Proper testing and deployment of a blockchain app is crucial to ensure that it works correctly and securely. Testing and deployment require specialized tools and infrastructure, which can add to the overall development cost.

7. Regulatory Compliance

Depending on the industry and jurisdiction, blockchain apps may need to comply with regulatory requirements, such as data privacy laws or financial regulations. Compliance can involve additional development work to ensure that the app meets these requirements, which can add to the overall development cost.

8. Maintenance and Support

Once the app is deployed, ongoing maintenance and support will be required to ensure that it continues to function correctly and securely. This ongoing work can add to the overall cost of development.

9. Complexity of the App

Sure, the complexity of a blockchain application directly impacts its development cost. Here’s a breakdown of this relationship:

Intricacy Breeds Investment:

• Core Functionalities: Straightforward applications with fundamental functionalities like token creation and simple transactions involve less development effort. These projects typically require building the core blockchain structure, implementing basic functionalities, and integrating a user interface.
• Elaborate Features: Introducing complex features like smart contracts, decentralized exchanges (DEXs), or integration with other blockchains significantly increases development time and cost. Smart contracts require meticulous coding to ensure error-free execution, while DEXs involve building intricate order matching systems and secure transaction mechanisms. Integrating with different blockchains necessitates additional coding to handle communication protocols and data exchange formats.
• Security Audits and Scalability: Robust security audits are paramount for ensuring the integrity of the blockchain and user funds. Complex applications often require multiple rounds of audits, driving up the cost. Additionally, scaling a blockchain to accommodate a large user base and high transaction volume necessitates sophisticated architecture and ongoing maintenance, further inflating the development budget.

Complexity Spectrum:

• Low Complexity Apps: Simple tokenized assets or basic voting systems fall under this category. Development costs typically range from $40,000 to $60,000 and can be completed within 3 to 6 months.
• Moderately Complex Apps: These involve features like smart contracts with conditional logic or integration with existing payment gateways. Development costs can vary between $60,000 to $150,000 and take 6 to 8 months to complete.
• Highly Complex Apps: Decentralized exchanges, prediction markets, or complex supply chain management systems with intricate smart contracts and multi-blockchain integrations belong to this category. Development expenses can soar beyond $300,000 and take over 9 months, depending on the specific requirements.

10. Blockchain App Service

Crypto Wallet:

Development complexity varies depending on features like multi-currency support, security measures, and integration with other blockchain platforms. Simpler wallets incur lower costs, while feature-rich ones require more development time and expertise, increasing the price.

Crypto Exchange:

Exchanges involve complex functionalities like order matching, secure trading systems, and integration with various payment methods. Regulatory compliance also adds to the development workload. Expect significantly higher costs compared to basic wallets due to the intricate functionalities involved.

ICO (Initial Coin Offering):

While the core ICO functionality can be built, additional features like investor portals, KYC/AML verification, and legal documentation significantly impact cost. Consulting fees for legal and financial expertise also factor in.

Whitepaper:

The cost depends on the level of detail, technical complexity, and the desired level of expertise in the writer. In-depth whitepapers with comprehensive technical explanations require more involvement from experienced blockchain professionals, leading to higher costs.

MVP (Minimum Viable Product):

Striking a balance between functionality and cost is crucial. Focusing on core functionalities in the initial MVP helps manage development expenses. However, including too few features might hinder user adoption.

dApps (Decentralized Applications) & DLT Solutions:

The complexity of the application’s logic and the chosen blockchain platform significantly affect cost. dApps with intricate functionalities and smart contract interactions require more development resources, pushing the price upwards.

Smart Contract Development:

Smart contracts are the backbone of dApps and require careful coding to ensure security and functionality. The level of complexity directly impacts cost. Simpler contracts with well-defined functions are less expensive, while intricate smart contracts involving extensive logic and interactions necessitate more development time and expertise, thereby increasing the cost.

Level of Decentralization:

Choosing a fully decentralized approach often requires building custom infrastructure, leading to higher costs. Conversely, partially decentralized solutions can leverage existing blockchain platforms, potentially reducing development expenses.

NFT Marketplace:

NFT marketplaces involve functionalities like token minting, auction mechanisms, and user management. The complexity of these features and the level of customization desired directly affect the development cost.

Selecting a P2P network:(and why ETH is the developer’s first choice)

The Ethereum network is the industry standard when it comes to blockchain projects. This is because it has a lot of miners, which makes the system more decentralized and secure. (Miners are computer systems that continuously try to solve the same problem; whichever system does it faster wins. And gets a little bit of ETH as a reward).

In addition to that creating your own P2P network will be much more expensive than just using ETH, which is basically open-source and mostly free. This allows you to spend less time, energy, and money on the P2P aspect of your project.

Other networks you can think about:

Other free networks that can be used to create blockchain projects are:

• Polkadot
• EOS
• Cardano

Cost of Hiring Blockchain Developers

Blockchain developers in the United States will cost you an average of $100 per hour. That too, with costs even going as high as $200 per hour. The cost varies depending on several factors, viz. their experience, the particular project, and the location. 

A blockchain developer should be capable of using networks like Ethereum, Polkadot, Cardano, etc. Also, he/she must be familiar with tools like Web3.js, Truffle, Remix, Infura, etc. 

In contrast, outsourcing will help you save on expenses here. You can get developers who charge starting $30-$80. Idea Usher already has a team of experienced blockchain developers who can help you facilitate and speed up your blockchain project with a price tag that you will be comfortable with. We also have front-end developers, UI/ UX designers, and all the tools you will require for your project. 

The typical lifecycle of a blockchain project

To know how much it costs to build blockchain projects, we must look at the fundamental steps involved in the process, and how much each of them is roughly going to cost you.

1. Design 

To give the app a structure and a good user interface, you will need UI designers and front-end developers in your team, which will cost you anywhere between $20-$40 per hour and $61-$80, respectively. 

2. Development

We have already discussed the cost of blockchain developers, which ranges between $30-$200 depending on many factors. 

3. Deployment 

Depending on which P2P network you choose to deploy your project into, the cost might vary. Most networks are open-source, but the native currency is going to account for a part of the capital. Also, the tools you are going to use can cost money, just like Infura. 

4. Maintenance 

On average, maintenance costs around 30-35% of the total cost. This includes regular updates and upgrades. 

5. Integration 

Third-party tools for hosting, notifying, storing, numbering, and collaborating for iOS development also cost a substantial amount of money.

Factors on which blockchain project depends

To answer the question “How much does it cost to build blockchain projects?” we must first look at the primary factors that account for the cost.

The infographic given above will give you an understanding of how much it costs to build blockchain projects. Whether you talk about freelancer cost or outsourcing cost, these factors are valid for both.

How do you market your new blockchain projects?

To market your blockchain project properly, you need to look at some of the SaaS marketing tips such as:

• examine your customer base properly,
• Compare your SAAS tool with competitors,
• write content that engages,
• create conversion-driven case studies, and 
• offer a free trial.

If you follow these basic marketing tips and maintain a vibrant social media presence, you should generate clients faster and more effectively. 

Conclusion

Now that you are well aware of how much it will cost to build blockchain projects, you will have to decide on multiple things, such as what kind of app you want to build.

Building blockchain projects is not enough. You also need to market it correctly. Then, you can enjoy a good return on investment that went into development once you acquire a good user base.

A thorough estimation is always required when approaching a project as complex as blockchain. You also need to analyze your direct competitors for the features they have incorporated into their applications and improve upon the same.

This will give you a considerable edge over their products and will add value to your consumer base. When it comes to balancing cost and quality, Idea Usher is the best option for you. You can contact us to get an exact quote on your blockchain solutions.

FAQ

Q. How much does it Cost to Build a Blockchain Project?

A. Developing a blockchain can range from $40,000 to millions, depending on factors like complexity, type (public vs private), and developer rates.

Q. Why is blockchain expensive to implement?

A. Blockchain development requires specialized skills and robust infrastructure to ensure security and scalability. This expertise and technical foundation come at a premium.

Q. Is it hard to build a blockchain from scratch?

A. Yes, building a blockchain from scratch requires a deep understanding of cryptography, distributed computing, and consensus mechanisms. You can also enlist the help of a blockchain development company like IdeaUsher.

Q. How much does it cost to build on the Ethereum blockchain?

A. Ethereum blockchain development costs vary based on project complexity but generally fall between $40,000 and $300,000+ due to factors like smart contract development and gas fees.