Building a blockchain app can be a challenging task, especially for businesses with limited experience in blockchain technology. Choosing the right technology such as implementing Ruby on Rails to develop a blockchain app can also be a piece of work.
But one of the biggest challenges is estimating the app development cost. Therefore, businesses that are interested in exploring blockchain-based solutions must weigh the benefits against the potential cost and challenges of implementation.
According to a recent study by Grand View Research, Inc., the size of the global blockchain technology market is anticipated to reach USD 1,431.54 billion by 2030, expanding at a CAGR of 87.7% from 2023 to 2030. The total investment in technology will therefore keep rising much more quickly. It’s opening up countless chances for tech-savvy business owners to successfully transform their companies.
However, developing a blockchain app is not cheap, and the cost-benefit analysis is crucial to ensure that your investment pays off according to IBM. In this article, we'll explore the elements affecting the blockchain app development cost and help you estimate how much it costs to build a blockchain app.
Advantages of Blockchain App Development
According to USM Systems, there are several advantages of blockchain app development as we can see below:
1. High Security
The utilisation of blockchain technology is an ideal approach to ensure security in mobile app development. Mobile apps that enable blockchain technology for banking or investment purposes serve as protective measures for user transactions and confidential banking data. Such apps function as firewalls that guarantee secure and intelligent data access, prevent unauthorised transactions, and ensure safe currency exchange functions.
2. Transparency
The development of apps utilising blockchain technology promotes transparency in the banking process and fosters a positive relationship between users and service providers. By utilising a centralised distributed ledger, blockchain-based Android or iOS apps are capable of immediately alerting users about privacy concerns after each action.
Additionally, investment apps powered by blockchain technology are able to notify users about the most favourable investment opportunities and optimal currency exchange rates.
3. Easy access
Cloud-based blockchain applications provide users with the convenience of accessing their accounts and data from anywhere and at any time. Due to this feature, banks and insurance companies are investing in blockchain development in order to enhance brand visibility across global markets. It also provides greater flexibility to their customers.
4. Faster service process
Blockchain applications for iOS or Android are proving to be valuable tools for businesses by streamlining transaction processing and increasing efficiency. These apps automate loan lending processes and calculate equated monthly instalments (EMIs). This automated and secure approach not only saves users time but also enhances the reputation of the brand in the digital world.
5. Lowered operational costs
Businesses have the opportunity to invest in highly secure blockchain solutions and reap the benefits. Since this technology is decentralised so it does not require users to pay additional fees to third-party external parties. For example, investment applications powered by blockchain enable users to purchase or sell stocks, ETFs, or options at a commission rate of zero per cent.
6. Fraud prevention
Mobile applications utilising blockchain technology have the ability to effortlessly identify fraudulent behaviour and prevent unauthorised access to users' data. These advantages of adopting a blockchain solution illustrate how it can revolutionise the way services are provided to customers.
Elements affecting the blockchain app development cost
Similar to a mobile app development cost, the cost of developing a blockchain app can vary depending on the technologies and features employed in the development process. According to Appinventiv, there are various factors that should be taken into account when building a blockchain app, including:
1. The size of the agency
The cost of developing an app varies depending on the size of the app development company. Small agencies charge less to build their portfolio, while large companies have higher costs. Mid-size blockchain app development agencies are a preferred option for brands entering the blockchain sector as they have the expertise and reasonable pricing. Large companies cost between $450,000 to $1,500,000, mid-size companies cost between $40,000 to $300,000, and small agencies cost between $2,000 to $25,000.
2. The industry
The cost of developing your blockchain app can be greatly impacted by the industry it belongs to. Factors that influence the cost can differ from one industry to another. These factors can be the complexity of the app, the number of stakeholders who will use the app, and industry regulations. These differences can result in varying costs for blockchain app development across different industries.
3. How complex is the Blockchain App
Developing a blockchain application is a complex process that requires careful planning and implementation. There are several factors that contribute to the complexity of the application, including:
- Goal
- Consensus algorithm
- Platform
- Stack
- APIs
- UI/UX
- Proof
4. The category of the Blockchain App
The two main categories of blockchain apps (blockchain-based solutions) are:
- Cryptocurrency-based category: As implied by the name, this option lets users purchase, sell, and transact in other ways with cryptocurrencies.
- Non-cryptocurrency-based category: This category is not related to cryptocurrency. They are built on distributed ledger technology and are widely used in inventory management systems.
5. Services included in the Blockchain App
There are several services in the blockchain app, including:
- Crypto Wallet
- Crypto Exchange
- ICO
- dApp and DLT
- NFT Marketplace
The Blockchain App development cost
Before determining the cost of implementing blockchain, you need to categorise the type of blockchain solution that best suits your business needs. The complexity of the app is an important factor that can affect the cost and time required for the development. In general, blockchain app development can cost anywhere from $40,000 to $300,000 or even more depending on the specifics of the app.
Several factors affect the overall blockchain development cost, including the app's niche, user interface and user experience design, the Initial Coin Offering (ICO) launch, and proof of concept development. Therefore, it is essential to consider all these factors to estimate the actual cost of blockchain app development for your business.
Wrapping Up
Blockchain technology can be used to develop secure apps that offer several advantages such as increased transparency, easy access, and lower operational costs. However, developing a blockchain app can be expensive. As a business owner, you must evaluate the potential cost and challenges of implementation.
There are several factors that can affect the cost of developing a blockchain app, including the size of the agency, industry, complexity, and category of the app, as well as the services it offers. The complexity of the app, industry regulations, and the services it offers are also factors that can impact the cost of developing a blockchain app.
At VirtualSpirit Technology, we pride ourselves on delivering top-notch service and support. Our team of experienced developers specialises in creating customised blockchain solutions that cater to your specific business needs. Contact us today and let us help you develop the perfect blockchain app for your needs!
