BlockChain Cost

How Much Does It Cost to Build a Blockchain Project ?

Cost of a block chain solution depends on a number of factors. I have cited a few major cost influencing
factors below.

App Features

App features is a very broad term which encompasses many critical factors of the solution and
directly adds on to the total cost of solution.

Factors which are included under the category of app features are

  • Consensus mechanism

All block chain solutions use a mechanism to allow the members to authenticate transactions like Proof of work, Proof of stake etc. There are many other key elements also to be taken into consideration like user permissions, key management and structure, signature etc. It’s one of the key parts of block chain solution and choices should be done with caution for successful implementation of the solution.

  • Selection of platform

There are more than 25 block chain platforms available in the market and each of these platforms has its own advantages and limitations. Yet again, it’s an important decision to make and wrong selection might lead to improper working of the solution or additional cost being injected.

  • Stack- Programming languages and tools

Once the selection of block chain platform is made, along with it comes selection of programming language and associated tools. With selection of platforms, choice of stack is narrowed down and we will have limited choices to make. In most cases it’s the choice of the developer to make the choice of the programming language and tools.

  • API- is the solution prebuilt or customized

If our solution matches with a prebuilt application programming interface we will be able to save on the cost. In case, the interface has to be customized it will add to the cost.

  • UI / UX of the solution

Once the backend solutions are finalized, the next step is to create a UI and admin console. The developer can decide the front end programming language, servers and external databases for the app development process.

  • Proof

Since the block chain is still in its nascent stage of application it’s highly recommended that we follow the approach of Minimum Viable Product (MVP) development. Once a workable solution with core features is prepared, it’s tested and launched.

A combination of all these factors decides the scale of complexity of the block chain application and can be classified in broad intersecting terms to 3 classes.

  1. A low complexity block chain solution might not need a crypto currency with implementation of only basic smart contracts. This would cost between 10k to 15k USD.

  2. A block chain solution of medium complexity might cost 15k to 35K USD wherein crypto currency would be required along with basic smart contracts as well.

  3. A more complex block chain solution would be of moderate decentralization with architecture consisting of both centralized and decentralized elements. dApps will be developed over the existing block chain platform. The cost of similar applications might go up to 100k USD or more. 

Block chain App Category

As explained above in terms of complexity, block chain solutions can be classified in terms of crypto currency application too. Considering the same level of complexity crypto currency based solutions are costlier than no-crypto currency based solutions.
  • Crypto currency based solutions

As the name implies, the solution relies on crypto currency for performing. This comprises DApp, wallets, crypto-exchange solutions and ICO (Initial Coin Offerings) with DApp (Decentralized Application) solutions. These solutions need secure digital wallets for storing, sending and receiving crypto currencies referred to as Crypto Wallet. Crypto Exchange empowers users to convert and trade crypto currencies in a centralized, decentralized or hybrid environment.

  • Non-crypto currency based solutions

These solutions are independent of crypto currencies and are based on distributed ledger systems. Similar solutions find the majority of applications in supply chain and related domains.

Nature of block chain networks- whether the network is private or public, level of decentralization, number of users and smart contract development are other factors which can bring in significant differences in cost.

Project Phases

    1. Design phase- UI / UX including wireframes, prototype and app flow
    2. Development phase- Coding and testing
    3. Deployment phase- Deployment on cloud platforms, delivery and DevOps
    4. Migration- Moving the existing solution to Block chai n platform
    5. Maintenance- Maintenance and testing of app
    6. Upgrade- New features and changes in smart contracts
    7. Third party tools- Hosting,  storage, notification and collaboration

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