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 development. 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.

Note: More complex tools usually increase development costs.

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 who are unsure about blockchain technology or are unprepared for the same. 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. And thus, the data will be stored across many different devices.

3. Decentralized Apps (or Dapps): 

SaaS of a blockchain project

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 to develop a dApp and which technologies are used for it?

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

cost of blockchain projects

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 bracket for the cost, 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 that can help you create beautiful blockchain projects.

Grow Your Business With The Best Marketers

Get your message out with powerful digital marketing

What makes up the bills:

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 especially is helpful for startups as they don’t need to invest in an in-house infrastructure build.

2. 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. 

3. 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 working 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. 

4. 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 developing and managing smart contracts for Ethereum like blockchains. Remix can also be put into use 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. 

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

Ethereum P2P network

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 the computer systems that are continuously trying 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 P2P networks

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

  • Polkadot
  • EOS
  • Cardano

Cost of Hiring Blockchain Developers:

good blockchain project 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, going with outsourcing will help you in saving 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:

SaaS 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, number, and collaboration for iOS development also cost a substantial amount of money.

Factors on which blockchain project depends:

factors affecting cost

To answer the question “how much does it cost to build blockchain projects?” we must first look at what are 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 to market your new blockchain projects?

marketing tips

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 like what kind of app you want to build.

Building blockchain projects is simply not enough. You also need to market it correctly. And 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 application 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.

A Skilled Developer For Every Project

Trusted by 100+ clients

FAQ Section:

1. What is the cost of blockchain implementation?

Private Blockchain: $1500/mo, Public Blockchain: $0.01/ transaction-based for public blockchain: $750 for 3rd party.

2. How does blockchain reduce costs in the supply chain?

As blockchain allows real-time tracking of a product within the supply chain without Removing middlemen from the process, it prevents extra costs, counterfeits, and frauds.

3. Why does blockchain reduce costs?

Since blockchain technologies no longer require third-party entities to deploy and maintain systems that keep a record of these transactions, the cost per transaction should be reduced.

4. Does it cost money to make a Bitcoin wallet?

You do not have to pay any fees when receiving bitcoin, and most wallets let you control the fees you want to pay.

5. Which companies are investing in blockchain-based projects?

Recently blockchain has gained quite a lot of traction in the tech world. Big companies like Visa, HSBC, Ford, and others are implementing blockchain technology into their arsenal. Once you have decided to use this enchanting technology.

6. What is the forecast on blockchain technology market?

Blockchain technology ETFs and the Crypto markets are booming, and this is the time to incorporate the same into your company’s infrastructure. This sector of the market is expected to grow to a massive USD 64.7 Billion by 2025, with a CAGR of 68.4%, making it one of the fastest-growing sectors of the market. 

 

Leave a Comment

Idea Usher is a pioneering IT company with a definite set of services and solutions. We aim at providing impeccable services to our clients and establishing a reliable relationship.

Newsletter

© Idea Usher. 2021 All rights reserved.

Open chat
1
Hello 👋
Can we help you?