How Much Does It Cost to Build a Blockchain Application

17 Jun 2024

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The blockchain app development cost is influenced by various factors you need to consider while planning your budget. They include type and complexity of solution, services included, developers salaries, etc. Our guide on blockchain app development price will explore all the factors influencing the cost of implementing blockchain technology and the development stages included in the price estimation. By the end, you'll have a clear picture of what to expect and how to budget effectively for your blockchain projects.

What Factors Influence Blockchain App Development Cost

Factors influencing blockchain price include the complexity of the solution, developers' salaries, the type of app, etc. Let's discover the impact of each aspect on the cost of blockchain technology.

Blockchain app scope and complexity

The cost of implementing blockchain app depends on the complexity of a blockchain mobile application. Different levels of complexity require varying degrees of technical expertise from blockchain developers, development time, and resources. Here, we break down the technical characteristics and development costs by the complexity of the blockchain application:

Low-complexity blockchain apps

Primarily involve payment systems around existing cryptocurrencies and basic smart contract development. They are simpler to build and require less time and resources.

Medium-complexity blockchain apps

Typically involve decentralized apps (dApps) with moderate decentralization. They integrate centralized and decentralized elements, making the process of developing a blockchain more intricate and costly.

High-complexity blockchain apps

Advanced blockchain mobile app development involves complex data handling, regulatory compliance, and advanced blockchain features, demanding significant development time and expertise.

Type of blockchain

Blockchain technology offers various types, each of them has unique characteristics and suitability for different use cases.

  • Public blockchain is a decentralized network accessible to anyone without restrictions. These blockchains offer transparency and immutability, making them suitable for applications requiring openness and trustlessness. Examples: Bitcoin, Ethereum, and Litecoin.

  • Private blockchain is controlled by specific organizations or groups, limiting access to authorized participants. They offer enhanced privacy and control over data, making them suitable for enterprise applications. Examples: Hyperledger Fabric, R3 Corda, and IBM Blockchain.

  • Hybrid blockchains combine characteristics of both public and private, allowing for flexibility in access control and transparency. They suit apps requiring a balance between privacy and transparency. Examples: Quorum, Multichain, and Energy Web Chain.

  • Custom blockchains are developed from scratch to meet specific business or application requirements. They offer tailored solutions with full control over functionality and design, making them suitable for unique use cases. Examples: Chaincode, Sawtooth, and AntChain.

It is important to identify the type of blockchain you need before estimating the budget since the cost of blockchain technology will vary depending on complexity, scalability, and security requirements.

Cost of blockchain technology by type

Type of blockchainCharacteristicsDevelopment cost ($)

Public

Decentralized, accessible to everyone

$10,000 +

Private

Controlled access, enhanced privacy

$25,000+

Hybrid

Blend of public and private characteristics

$50,000+

Custom

Tailored to specific needs, full control

$100,000+

Business domain

The industry to which your app will belong greatly impacts the cost of implementing blockchain technology. Various factors influence the price across different sectors, including the complexity of the dApp, the number of stakeholders interacting with the app, and industry-specific compliance.

For each industry, developing a blockchain application has certain technical characteristics. Here are the specific technical features to build a blockchain app for some key business domains:

  • Healthcare. Developing of blockchain-based healthcare apps involves creating solutions ensuring secure patient data exchange, immutable medical records, and streamlined patient consent management, all while complying with HIPAA regulations.
  • Supply chain. Blockchain in supply chain development services involves creating systems that ensure transparent and traceable product movement from origin to end-user. These applications focus on improving efficiency by providing real-time tracking, reducing fraud, lowering transaction costs, and preventing counterfeiting.
  • Retail and e-commerce. Developing blockchain solutions for retail and e-commerce involves enhancing transaction security, reducing fraud, and enabling transparent supply chain management. These applications facilitate secure payment processing, customer data protection, and loyalty program management.
  • Real estate. Developing blockchain-based real estate applications involves creating platforms for secure and transparent property transactions. These solutions ensure immutable property records, streamline title transfers, and facilitate smart contracts for lease agreements and sales.
  • Finance and banking. Fintech blockchain software development services focus on creating applications for secure, transparent, and efficient financial transactions. These solutions focus on enhancing payment processing, enabling decentralized finance (DeFi) platforms, and providing robust anti-fraud mechanisms.
Cost to develop a blockchain

Cost of implementing blockchain technology for various industries

Blockchain app category

There are two primary categories of blockchain applications:

Cryptocurrency-based blockchain apps facilitate transactions involving cryptocurrencies. They include various applications such as decentralized apps (dApps), wallets, crypto-exchange platforms, and Initial Coin Offering (ICO) solutions with integrated dApps. Developing cryptocurrency-based solutions requires high security, integration with various blockchain networks, and robust smart contracts.

Note: Read our guide explaining how to build a DeFi app to learn more about cryptocurrency-based blockchain application features.

Non-cryptocurrency-based blockchain apps leverage blockchain technology but do not primarily deal with cryptocurrencies. Instead, they use distributed ledger systems to enhance processes in various industries. These applications are highly utilized in supply chain management, healthcare, and finance. Non-cryptocurrency-based solutions often involve integrating blockchain with existing systems and require extensive customization.

The specifics of building each application category will impact the development cost for blockchain mobile application. Still, it is impossible to calculate the exact cost without knowing your needs and business goals. To find out the cost of your blockchain application, contact our Blockchain domain experts, who will analyze your requirements and calculate the cost of blockchain implementation.

Blockchain services included

Determining the exact cost of developing a blockchain app is a complex task and requires you to first analyze and decide the type of blockchain app you wish to develop for your business. Different types of blockchain services come with varying levels of complexity, security requirements, and development time, all contributing to the overall cost.

Here are several of the most common blockchain services included in applications:

  • NFT marketplace. NFT marketplace development includes creating a solution that acts as a public Blockchain platform and allows users to sell and buy NFTs.
  • Decentralized application (DApp). A DApp operates independently through the use of smart contracts, which run on blockchain or a distributed ledger.
  • Decentralized Autonomous Organization (DAO). A decentralized autonomous organization operates without any governing body, with all members working collectively toward the success of a single entity.
  • Cryptocurrency wallet. A mobile app that allows users to buy and sell cryptocurrencies, store them, and effectively manage transactions.
  • Cryptocurrency exchange. A trading app that allows users to exchange multiple cryptocurrencies and buy and sell digital or fiat currencies.

Here's an estimated blockchain app development cost for different type of services included:

Type of blockchain app serviceApprox development time (m)Approx development cost ($)

NFT marketplace

8 – 9+ months

$55,000 – $125,000+

DApp

4 – 8+ months

$35,000 – $150,000+

Decentralized Autonomous Organization (DAO)

1 – 2 weeks

$10,000 – $30,000

Cryptocurrency wallet

6 – 9+ months

$125,000 – $200,000+

Cryptocurrency exchange

4 – 5 months

$135,000 – $190,000+

Understanding these different types of blockchain applications and their associated costs can help businesses make informed decisions about their development projects. Each type of application has unique features and requirements that will influence both the price and the time.

Cooperation model

When estimating how much it costs to develop a blockchain, you should remember that the cooperation model you choose means a lot. You can select one of these popular options:

  • In-house team. You can hire all the specialists you need for your blockchain app project to work with your team. This option offers complete control over all processes but implies significant investments in salaries, office rent, hardware, etc. Moreover, finding the experts in your region can be challenging.
  • IT team augmentation. If you still want to maintain control over the blockchain app development process, you can turn to outstaffing. Find a reliable outsourcing blockchain app development company that will provide you with only necessary specialists to build your product, so you don't have to hire a complete team, reducing blockchain development cost.
  • Full app outsourcing. You can opt for dedicated development team services to hire the specialists who will work exclusevily on your project. This cooperation model allows you to lower blockchain development cost similarly to outstaffing, but it also involves outsourcing project management, allowing you to free your time for other business tasks.

IT vendor’s location and team structure

The last but not least factor that influences the cost of implementing blockchain technology is your IT team's location. Software development hourly rates vary greatly in different regions according to their average salaries, laws, taxes, and government support for the IT sector. Here are the hourly rates of blockchain specialists in the most popular IT outsourcing regions:

  • North America: $100 - $150
  • Latin America: $20 - $50
  • Western Europe: $100 - $150
  • Northern and Central Europe: $50 - $80
  • Asia: $20 - $40
  • Australia: $80 - $120

The structure of the blockchain app development team also significantly influences the cost of blockchain application development. A well-rounded team ensures that all aspects of the project are handled efficiently, but it requires a diverse set of skills, contributing to overall expenses. Here’s an example of blockchain app development team structure:

  • Project Manager
  • Blockchain developers
  • Frontend developers
  • Backend developers
  • UI/UX designer
  • Business Analyst
  • Solution Architect
  • DevOps

Learn the cost of your blockchain app

Contact us, our Blockchain experts are ready to analyze your business requirements to provide you with comprehensive blockchain app development cost estimation

What Blockchain Development Cost Is Spent On

Now that we've explored the main factors of blockchain implementation cost let's dig deeper and explore what services are typically included in the estimation:

Discovery Phase

At this stage, your vendor’s business analysts work closely with you to create a detailed feature list for your blockchain application, outline requirements, discuss business needs, and mitigate risks. They also help you choose your app's type and category and the kind of blockchain.

The solution architect conducts a quality attributes analysis to define non-functional requirements. At the and of this step, specialists compile a rough estimation of costs, timeline, and team composition based on the Feature Breakdown List (FBL) and other key factors. Discovery phase services are essential to accurately estimate blockchain development costs and plan the project efficiently.

Note:

Discovery Phase expenses comprise about 10% of the total blockchain development cost.

UI/UX design

UI/UX design is a critical factor that significantly influences both the blockchain app development cost and the user perception of the application. UI/UX designers collaborate closely with you to create a compelling design concept and user experience (UX) map. This process includes developing wireframes, prototypes, and user interfaces that align with the project's goals and user needs.

A well-executed UI/UX design ensures that the application is intuitive, visually appealing, and easy to navigate, which enhances user satisfaction and engagement. However, creating such a high-quality design requires meticulous attention to detail and extensive iteration, which can increase the blockchain development cost. Investing in superior UI/UX design services is essential for making a strong impression on users and ensuring the application's success in a competitive market.

Note:

UI/UX design expenses make up about 15% of the total blockchain app development cost.

Development and testing

The development and integration phase involves building the blockchain application and ensuring it works seamlessly with other systems. At this stage, developers focus on coding the software and integrating it with existing solutions and third-party services.

You can start with building a Minimum Viable Product (MVP), which allows you to build a basic application version with core functionalities, gather user feedback, asses demand for blockchain solutions, and make informed adjustments, leveraging the benefits of blockchain app development. This approach helps prioritize essential features and optimize resources, ultimately controlling the budget and reducing the overall cost of building a blockchain.

Quality assurance (QA) is also an important part of the development stage, ensuring the blockchain application is bug-free and functions as intended. QA involves rigorous testing, including unit, integration, and performance tests, to verify the app’s functionality, security, and usability.

Note:

Development and QA expenses comprise about 70% of the total blockchain app implementation cost.

Deployment

Once blockchain app development and testing are finished, IT specialists go to deployment, which makes the application available for users. This stage involves setting up the necessary infrastructure, configuring servers, deploying smart contracts, and ensuring the network is secure and efficient. It also includes launching the app on the blockchain network, whether it’s public, private, or hybrid.

Note:

The costs for deployment are approximately 5-10% of the overall blockchain app price, based on the blockchain type and peculiarities.

These are all the critical steps included in blockchain app development cost. Here’s how each of them impacts the cost of developing blockchain or a distributed ledger:

Blockchain app development stagesBlockchain app development cost ($)

Discovery Phase

$4,000 - $30,000+

UI/UX Design

$6,000 - $45,000+

Development and Testing

$28,000 - $210,000+

Deployment

$3,000 - $22,500+

Maintenance

$5,000 - $37,500+

Additional Factors That Can Affect Blockchain Development Cost

Beyond the initial development, elements like smart contract complexity, the level of decentralization, integration with existing business software, and ongoing maintenance all play crucial roles in determining the final budget. Here's a closer look at how these factors contribute to the cost of blockchain implementation:

Smart contract development

Developing secure blockchain smart contracts essential for automating and enforcing agreements on the blockchain. This task requires specialized skills in blockchain platforms, cryptography, and secure coding, which can significantly impact development costs. More complex smart contracts with intricate business logic, multiple conditions, and interactions with other contracts or systems require more time and expertise, raising the costs. Additionally, rigorous testing and auditing processes are crucial to ensure security and correctness, further contributing to higher expenses.

Level of decentralization

The degree of decentralization in a blockchain application greatly influences its complexity and cost. A higher level of decentralization means more nodes are involved in maintaining the network, increasing computational and storage requirements. Complex consensus mechanisms like Proof of Work (PoW) or Proof of Stake (PoS) necessitate more resources to achieve agreement among nodes. Designing decentralized applications (dApps) to handle interactions between multiple nodes and ensure network consistency requires robust architecture and error handling, leading to increased development costs.

Integration with business software

Ensuring that blockchain applications integrate seamlessly with existing business software and third-party systems adds to development costs. This process involves extensive customization and potential modifications to both the blockchain application and the existing software to ensure compatibility. Developing APIs, middleware, or other integration tools for smooth data interchange between the blockchain and business systems requires significant effort. Thorough testing is necessary to validate integration, ensuring data consistency and reliable performance. Additionally, maintaining integration compatibility with updates can incur ongoing costs.

Maintenance

Post-deployment support ensures a blockchain application continues to run smoothly after launch. This phase includes regular maintenance to keep the application up-to-date, continuous performance monitoring to identify and fix inefficiencies, and addressing bugs or technical issues promptly. Additionally, ongoing security management through audits and updates is crucial to protect against new threats, and providing user support enhances user satisfaction.

Note: The support and maintenance expenses are not included in the initial price estimation, but they typically add about 10-15% to overall blockchain app costs.

Estimating the Cost of Blockchain Implementation

The blockchain app development costs can vary from $40,000 to $300,000+, depending on its unique characteristics and your needs and requirements. When planning a blockchain project, one of the most fundamental factors influencing the overall cost is the application's complexity.

This characteristic dictates the number of features, the level of integration with external systems, the robustness of security measures, and the overall user experience. By understanding and clearly defining the complexity of your blockchain application, you can make more accurate cost estimates and better allocate resources to ensure a successful implementation.

Here is a brief breakdown of typical development costs segmented by the complexity of the blockchain app.

Blockchain app complexityBlockchain app characteristicsApprox development timeApprox development costs

Simple blockchain app

  • Minimal features
  • Basic smart contracts
  • Minimal integration with external systems
  • Basic UI/UX design
  • Limited security measures

3 - 5 months

$40,000 - $60,000

Medium blockchain app

  • Moderate complexity
  • More advanced smart contracts
  • Integration with external APIs and services
  • Enhanced UI/UX design
  • Standard security protocols

5 - 9 months

$60,000 - $150,000

Complex blockchain app

  • Multiple advanced smart contracts
  • Extensive integration with external systems and APIs
  • Advanced UI/UX design and features
  • Robust security measures
  • Compliance with industry standards and regulations

9 - 12+ months

$150,000 - $300,000+

Beyond the complexity and scope of work, estimating blockchain implementation costs must include the development team's fees, technology stack expenses, and security and compliance costs. Moreover, the factors include the type and category of blockchain app, the services included, and other application characteristics.

Feel free to contact our experts to simplify the budget planning process. We are ready to provide you with a detailed estimate that considers all your blockchain application requirements and guides you through all stages of development, ensuring that all aspects of the project are fully considered.

How to Hire a Blockchain App Development Partner

Choosing the right software development company for your blockchain application is crucial for your project's success since the vendor's proficiency can impact the blockchain development cost. Here are key points to consider when looking for a blockchain development partner:

Blockchain proficiency

Look for a software development company with proven experience in blockchain application development. Review their portfolio, case studies, and customer reviews to assess their expertise in the field. Experienced blockchain developers will ensure higher quality and efficiency, which increases return on investments and lowers the cost of implementing blockchain technology.

We would like to demonstrate our blockchain expertise with a case study of one of our clients - Video-on-Demand Platform For NFT Artists, Fans, and Buyers. We built an NFT marketplace for our client integrated with Cere Network's Decentralized Data Cloud (DDC). This platform allows users to browse, buy, and auction various NFT collectibles directly. The smart contracts underlying the platform govern user interaction, automating NFT sales and auctions, eliminating the need for intermediaries.

Technical expertise

Ensure the development team possesses a robust technical foundation in blockchain architecture, cryptography, and smart contract development. They should be well-versed in:

  • Specific blockchain platforms (e.g., Ethereum, Hyperledger)
  • Smart contract languages like Solidity (Ethereum) or Rust (Solana)
  • Understanding consensus algorithms such as Proof of Work (PoW) or Proof of Stake (PoS)
  • Proficiency with development tools like Truffle, Remix, and Ganache
  • Knowledge of programming languages such as JavaScript, Python, and Go
  • Familiarity with frameworks and libraries like Web3.js or ethers.js
Daria Yukhymenko

Daria Yukhymenko

Delivery manager at Cleveroad

"Technical expertise is crucial for blockchain application development. A team with deep understanding of blockchain technology ensures robust, secure, and scalable solutions. Their proficiency not only accelerates development but also mitigates risks associated with this innovative and complex field."

Agile development method

Blockchain app development often requires iterative processes and frequent updates. Choose a company that uses Agile SDLC methodologies to ensure efficient collaboration, flexibility, and speedy delivery. Agile practices can help manage and potentially reduce blockchain development costs by allowing adjustments and improvements throughout the project lifecycle.

We at Cleveroad successfully use Agile development methodology to provide our clients with enhanced flexibility, faster time to market, and improved product quality.

Security principles

Given the sensitive nature of blockchain applications, select a company that emphasizes strong security practices, including code audits, penetration testing, and secure development lifecycles. Investing in security upfront can prevent costly issues and breaches down the line, affecting the overall cost of blockchain app development.

Cleveroad blockchain app developers employ robust blockchain security measures to ensure the highest level of protection. They include:

  • Smart contract auditing
  • Data encryption
  • Multi-factor authentication
  • Regular updates and patches

Communication and transparency

Effective communication is essential for successful blockchain app delivery. Choose a company that values open communication, provides regular progress updates, and maintains transparency throughout the development cycle. Clear and transparent communication can help avoid misunderstandings and delays, fostering development and lowering blockchain costs.

We at Cleveroad ensure transparency and effective communication through regular client meetings, sprint reviews, and demo calls. During the development process, we provide detailed delivery reports that include project metrics, current progress (readiness in percentage), a list of completed tasks, and time spent on each activity. This approach keeps our clients fully informed and involved throughout the development.

Industry experience

If your blockchain application targets a specific industry, such as healthcare, FinTech, or supply chain management, select a company with relevant industry experience. Industry-specific knowledge can streamline the blockchain app development process and ensure that your application meets regulatory and market requirements, potentially lowering the overall cost by avoiding common pitfalls.

Cleveroad is a software development company with tech expertise across industries. Our expertise spans healthcare, logistics, fintech, education, e-commerce, and more. We leverage cutting-edge technologies and agile development methodologies to deliver robust, scalable, and secure software solutions that perfectly align with your unique business needs and objectives.

Blockchain app development cost: choosing a tech partner

What to look for when choosing a blockchain app development company

Blockchain App Development Cost Estimation at Cleveroad

Cleveroad is a proficient software development company with 12+ years of experience in blockchain software development. We offer our clients top-quality blockchain software development services, including custom blockchain software development, legacy software modernization with decentralized technology, integration of third-party blockchain services, and system optimization.

Our experts use an innovative set of blockchain programming languages and tools to optimize development time and blockchain cost, including EOS, Ethereal, Solidity, Ripple, Hyperledger, Bitcoin, Tezos, BNB chain, etc. **Here are several examples of the blockchain solutions our team can create: **

  • Ethereum-based platforms
  • Dynamic and decentralized blockchain apps
  • P2P money transfers
  • Smart contracts development
  • Native cloud blockchain apps, etc.

Since 2023, Cleveroad has been certified with two key international standards — ISO 9001:2015 for quality management and ISO/IEC 27001:2013 for information security management systems. Additionally, we have achieved Amazon Web Services (AWS) Select Tier Partner status within the AWS Partner Network (APN). These certifications and partnerships highlight our commitment to delivering top-notch blockchain applications with the highest quality and security standards.

At Cleveroad, we estimate the cost of blockchain app development through a structured process. We provide three estimates:

  • Rough estimate at the Solution Workshop stage
  • Rough estimate at the Discovery phase
  • Detailed estimate

During the Solution Design Workshop, we start with a first rough estimate, which gives a broad budget overview based on our team's past experiences. This initial estimate helps clients understand the general cost and development stages.

During the Discovery Phase, we refine this estimate by analyzing business processes and defining detailed requirements, creating a second, more accurate rough estimate. This estimate covers:

  • General preparation work
  • Development tasks
  • Integration of frameworks and libraries
  • Non-development activities
  • Improvement suggestions

This comprehensive approach ensures all project aspects are considered, from coding and UI/UX design to technical documentation and potential enhancements.

After the Discovery Phase, we create an almost 100% accurate detailed estimate. We consider all necessary documentation, non-development activities, and integration needs. If clients provide a complete documentation package, we can deliver a detailed estimate even faster, ensuring a clear and precise cost projection for the blockchain app development.

Request the cost estimation of blockchain app

Contact us, our Blockchain subject domain experts are ready to create for you a personalized estimate of your blockchain app cost and match your business needs with technical implementation

Frequently Asked Questions
How much does it cost to build a blockchain?

The cost of building a blockchain can range from $40,000 to over $300,000+, depending on the complexity, features, and type of blockchain (public, private, hybrid, or custom).

How long does it take to develop a blockchain app?

Developing a blockchain app typically takes between 3 to 9+ months, depending on the app's scope, complexity, and requirements.

How much does it cost to create your own blockchain?

The cost of creating your own blockchain can vary significantly depending on several factors such as it’s complexity, developer’s rates, etc. Here's a ballpark range of blockchain development cost to consider:

  • Simple blockchain for internal use: $10,000 - $50,000
  • Complex blockchain with unique features: $100,000 - $400,000+

Remember, these are just approximate estimates, and the actual cost can be higher or lower depending on your specific requirements.

How to estimate the cost of implementing blockchain?

To accurately estimate the cost of implementing blockchain technology, it's crucial to consult with an experienced software development company. They will assess factors including the app’s scope and complexity, the type of blockchain required, the category of application and decentralized services to be integrated, as well as consider their location and cooperation model. This approach ensures a thorough evaluation and a reliable cost estimate tailored to your project's specific needs and goals.

How much does it cost for blockchain?

The cost of implementing blockchain technology varies widely depending on the type of application and its complexity. Here are some approximate development costs based on different blockchain services:

  • NFT marketplace: Typically ranges from $55,000 to $125,000 or more.
  • DApp (Decentralized Application): Costs between $35,000 and $150,000, depending on features.
  • Decentralized Autonomous Organization (DAO): Generally ranges from $10,000 to $30,000.
  • Cryptocurrency wallet: Typically costs between $125,000 and $200,000 or more.
  • Cryptocurrency exchange: Generally ranges from $135,000 to $190,000.

These estimates provide a range of costs associated with various blockchain applications. For an accurate assessment tailored to specific project requirements, it's recommended to consult with a blockchain development company.

Author avatar...
About author

Evgeniy Altynpara is a CTO and member of the Forbes Councils’ community of tech professionals. He is an expert in software development and technological entrepreneurship and has 10+years of experience in digital transformation consulting in Healthcare, FinTech, Supply Chain and Logistics

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