• Home
  • Blog
  • How Much Does It Cost to Build a Blockchain Project: Full Guide
  • Blog
How Much Does It Cost to Build a Blockchain Project: Full Guide

How Much Does It Cost to Build a Blockchain Project: Full Guide

Blockchain
Reading time:
20 min
Views:
1410
Published:
10.07.2024

The transition to a decentralized universe, often referred to as Web 3.0, has caused a significant increase in demand for blockchain technology. As a result, blockchain has become one of the fastest-growing technologies on the Internet today. So, many entrepreneurs aim to enter this market with a competitive blockchain solution. But how much does it cost to build a blockchain app? 

In our comprehensive article, we will explore the various factors influencing the cost of implementing blockchain in different projects. You will discover how much budget you need to create an NFT marketplace, decentralized applications, DAOs, crypto wallets, P2P exchanges, or new cryptocurrencies. The standard range of price for blockchain project development is from $25,000 to $100,000, and higher. But there are a lot of nuances.

Let's dive into the details!

Forecasts of the blockchain technology growth

According to Fortunly, an impressive 74% of technology enthusiasts have expressed their belief in the futuristic potential of blockchain technology. Moreover, a recent report by Grandviewresearch predicts that the global blockchain technology market share will reach a staggering USD 1,431.54 billion by 2030, with a remarkable compound annual growth rate (CAGR) of 85.9% from 2022 to 2030. 

Furthermore, the Statista research platform predicts that the global blockchain market will reach $163 billion by 2027.

Given the huge potential, it's no wonder that business owners are eager to launch their next blockchain project. However, determining the cost of developing blockchain projects is not an easy task. 

Valuation is critical for blockchain projects as return on investment (ROI) becomes more complicated in the blockchain application development field. It requires not only expertise and knowledge but also detailed organization, including building a development team, implementing marketing strategies, creating a project plan, conducting market research, and ensuring proper auditing.

It is important to emphasize that the complexity of the tools used in a project often correlates with increased development costs. As with any other project, blockchain costs can vary depending on the functionality of the application to be developed, the level of effort required, and the goals of the project.

Blockchain technology and its specifics

While the topic of blockchain is too actual, there is still a lack of clarity about what blockchain truly means and how it works. Despite its apparent complexity, the fundamental idea behind blockchain is quite clear, and it has enormous potential to revolutionize various industries.

In essence, a blockchain refers to a decentralized and public digital ledger, or a distributed database, that maintains a continuously expanding list of ordered records known as blocks. These blocks are connected through cryptographic techniques. 

Each block consists of a cryptographic hash of the previous block, a timestamp, and transaction data. Essentially, blockchain is a shared database across a network of participants, facilitating the availability of real-time information to all participants simultaneously, enabling the permanent, unchangeable, and transparent recording of data and transactions. 

This is a feature that allows for the exchange of anything possessing value, whether it be tangible assets like houses, cars, cash, or land or intangible assets such as intellectual property, patents, copyrights, and branding. 

Now, why is blockchain so important? The foundation of business relies on information, and the faster and more accurate it can be obtained, the better. 

Blockchain is an ideal solution for the rapid delivery of information, as it provides instant access to shared data that only authorized members of the network can access. A blockchain network has the capability to track various elements such as orders, payments, accounts, production, and more. That is why a broad view of end-to-end transaction details can be obtained, instilling greater confidence.

This technology offers transformative possibilities by combining decentralized consensus, cryptographic security, and transparent record-keeping. Its potential to revolutionize industries lies in its ability to provide real-time, tamper-proof data and facilitate secure transactions. Thereby, this technology enhances trust, efficiency, and collaboration across diverse sectors.

Factors affecting the blockchain app development cost

Gaining an understanding of the various factors that can impact the overall development budget requires you first to identify the type of blockchain app you require. Additionally, it's important to have a clear comprehension of the app's purpose, the problems faced by end-users, and how your blockchain solution can address those issues and bring about transformation. 

Taking all these factors into account, here are the key considerations for building a blockchain app:

Agency size

When examining the blockchain developer cost, you'll find variations among three categories: large companies, medium-sized blockchain app development agencies, and small-cap agencies.

Smaller agencies typically charge less than medium and large companies as they aim to build their portfolio. On the other hand, large companies are selective with their projects, often due to managing a large team or maintaining a specific standard for their portfolio.
Considering these scenarios, businesses planning to enter the blockchain sector often prefer medium-sized blockchain app development companies like Peiko. 

The cost to hire a blockchain developer varies as per the agency’s size:

Agency sizePrice
Huge app development companies with a team of over 3,000 experts$450,000 to $1,500,000.
Medium-sized app development companies with a team of over 1,000 experts$100,000 to $300,000
Freelancers or small companies with a team of 10 to 50 experts$25,000 to $150,000
Boutique specialized agencies with a custom amount of experts$25,000 to $200,000

So, choose the most suitable blockchain developer cost according to your project’s requirements and its scale. By the way, choosing a boutique specialized agency like Peiko is the most suitable choice for the development of blockchain projects. You will gain skilled professionals by your side, and you will save on cost management.

Industry specifics

The field to which your blockchain app belongs also significantly influences the development cost. Several factors impact the prices, including the complexity of the decentralized app (dApp), the number of stakeholders interacting with the app, and industry compliance requirements, among others.

The blockchain implementation cost can vary based on the industry the app belongs:

IndustriesPrice
Finance sector$50,000 - 300,000+
Public sector$70,000 - 100,000+
Healthcare$55,000 - 200,000+
On-demand$40,000 - 1000,000+

Blockchain app development services

Below, we offer you to consider the main types of blockchain projects and their peculiarities:

Cryptocurrency

Over 2000 different cryptocurrencies are available today. Gaining trust for a new form of money requires significant effort to convince that the new crypto coin is a worthwhile investment.

There are several key aspects to consider: assembling a team of experts, developing and marketing the crypto coin, and ensuring legal compliance.

Another critical aspect is ensuring the legal compliance of your cryptocurrency. Therefore, the guidance of a legal advisor is essential for any blockchain project.

So, how much does it cost to create a cryptocurrency? Once the marketing strategy is determined, you can proceed with developing the blockchain network. It typically takes developers from several months to half a year to build the main network (Layer 1, Layer 2) and networks within it from scratch. The blockchain development cost, in this case, can start from $100,000, depending on various technical factors.

Ultimately, the cost to create a cryptocurrency or token can start from $500 (a meme coin, for example) and be higher for the project with a complex blockchain with its original token (for example, Solana).

Crypto wallet

These are secure digital wallets for storing, sending, and receiving cryptocurrencies like Bitcoins. There are three types of wallets: custodial, non-custodial, and MPC (multi-party computation). The first type is generally more user-friendly. It is a wallet where private keys and control of the digital assets are managed by third-party service providers. Non-custodial wallets provide users with greater control and ownership of their digital assets. MPC wallets have the best security, because of the dividing private keys between many parties. 

Typically, the application is designed to be compatible with three platforms: Android, iOS, and Web. By utilizing cross-platform technologies like JavaScript and its frameworks (such as ReactJS, React Native, or Vue), you can reduce development expenses.

The estimated cost for developing a minimum viable product (MVP) of a cryptocurrency wallet that supports the three major cryptocurrencies (Bitcoin, Litecoin, Ethereum) is approximately $40,000.

Crypto exchange

Crypto exchanges allow users to convert and trade Bitcoins and other cryptocurrencies in a centralized, decentralized, or hybrid environment. There are different types of crypto exchanges. 

P2P exchanges
The P2P (peer-to-peer) exchange is a specialized platform that enables direct transactions between buyers and traders. These platforms are designed to facilitate the seamless matching of buyers and sellers. 

The estimated cost for developing a minimum viable product of a cryptocurrency wallet that supports the three major cryptocurrencies (Bitcoin, Litecoin, Ethereum) is approximately $32,000- $45,000.

Simple exchanges
These are user-friendly platforms tailored for entry-level traders and investors. These exchanges provide straightforward interfaces and basic functionalities for buying, selling, and storing cryptocurrencies. They prioritize ease of use, making them ideal for beginners exploring the world of digital assets. The development of this type of exchange requires simple functionality, so the cost starts at $25000 to $45000. 

Professional trading exchanges
Advanced platforms designed for seasoned traders and institutional investors. These exchanges offer a comprehensive suite of tools and features, including various order types, advanced charting tools, and extensive market analysis capabilities. Geared towards executing complex trading strategies, they typically provide high liquidity, margin trading, and support for derivatives.

These exchanges include complex features such as TradingView, different types of orders, and OrderBook. Such solutions comprise tens of cryptos and thousands of transactions per second, so they should be robust and complex. So, the price to develop the crypto exchange is around $70,000-$200,000.

ICO

An initial coin offering (ICO) refers to the process of generating and selling cryptocurrencies. For ICO development, the cost of creating an ICO website, tokens, and a crowd sale smart contract typically ranges from $10,000 to $15,000, depending on the website features, admin panels, and investor features.

NFT marketplace

An NFT marketplace is a blockchain-based platform that enables users to buy and sell non-fungible tokens (NFTs) online. NFTs are stored on a public blockchain and contain information such as the creator, creation date, buyer, purchase date, and the purchase price of an asset, as well as real-time ownership. The cost of creating an NFT marketplace typically varies from $40,000 to $70,000.

dApps and DLT-based solutions

Decentralized apps (dApps) are a kind of application that performs without the control of a single entity. They work in a peer-to-peer network, not on a single computer. The expense of creating a decentralized blockchain app and an app based on DLT (distributed ledger technology) directly depends on the amount of effort invested, which includes:

DAO: This term means the decentralized autonomous organization. It is an innovative legal framework that operates without the governing body, where all members are collaborating together towards the advancement or prosperity of a unified entity. In the frames of DAO, decision-making and governance processes are decentralized. Individuals who participate in this organization’s activities based on a shared set of rules and protocols are defined by smart contracts.

Smart contract development: These contracts allow dApps to interact with blockchain systems. Therefore, the cost of developing smart contracts also contributes to the overall dApp’s development cost. The end-to-end development of a dApp, including the mentioned features, can range from a minimum of $1,000 to $150,000, depending on the complexity of the project.

Level of decentralization: The degree of decentralization chosen for effective content placement also impacts the app's cost. If the level of decentralization is low, the process will be relatively easier and cheaper. However, implementing a higher degree of decentralization for pure decentralization will be more complicated and costly.

Block explorer: A block explorer is an online browser for exploring blockchain, where you can view the contents of individual blocks and transactions, transaction histories, and address balances.

Nature of the blockchain network: Do you choose a public or private blockchain development approach? This decision significantly affects the cost of blockchain app development. For instance, a private blockchain network is a permission-based system where all permissions are centralized in an organization. 

This means you need to get approval from the central authority for every transaction. On the other hand, a public blockchain network operates on a permissionless basis, allowing anyone to participate in the consensus process without compromising security.

The complexity of the app

To determine the complexity of your specific blockchain application, consider the following:

Goal: Clearly define the purpose of your app, the problems faced by end-users, the need for blockchain application development, and how your app can offer enhanced and improved services. These considerations will help determine the type of blockchain app development services you should invest in. For enterprises, it's essential to address these questions before implementing blockchain technology.

Consensus mechanism: Each blockchain system utilizes a specific consensus algorithm, such as Bitcoin's proof of work or Ethereum’s 2.0 proof of stake. Evaluate which mechanism is ideal based on your requirements. Additionally, consider other crucial elements such as user permissions, re-issuance mechanism, asset issuance, key management and structure, signatures, and address formats. It is advisable to consult with a blockchain app development company if you are new to this field.

Platform: There are many platforms available for building a blockchain app without starting from scratch, including Ethereum, Hyperledger Fabric, BigChainDB, and Quorum. Consider which blockchain platforms fit with your app's goals before proceeding.

Stack: Each platform has its own set of blockchain programming languages and tools. Familiarize yourself with the different stacks and their respective benefits and limitations to ensure effective development.

An application programming interface (API): While pre-built APIs are available in the market for development purposes, there may be instances where you need to create a specific API. For example, this may be required for tasks like data authentication and auditing, generating key pairs and addresses, storing and retrieving data, and more. 

UI/UX (user interface and user experience) design: Once the backend decisions are made, the next step is to create a user interface (UI) and an admin console. This involves choosing the appropriate front-end programming language, servers, and external databases for your app development process.

Evidence: Developing a complete blockchain app from scratch can significantly increase your development budget at the initial stage. It is advisable to adopt a minimum viable product development approach instead. This means creating a working solution with the core features of the planned application and testing it before launching the complete solution.

Now, when considering all these factors, the complexity of a blockchain app is determined. The cost structure based on the complexity of the blockchain app would look like this:

Kind of appDescriptionPrice
Low-complexity blockchain app1) Payment applications developed on the basis of existing cryptocurrencies. 2) Development of basic smart contracts, P2P, simple exchange, NFT marketplace. $25,000 to $60,000
Medium-complexity blockchain app1) Apps created on top of the existing blockchain platform (crypto-wallets, DEX, simple CEX, Layer-2 blockchains). 2) Architecture has centralized and decentralized segments. $60,000 to $150,000
High-complexity blockchain app1) A healthcare app (as an example) created on a blockchain platform. 2) Layer-1 blockchain, professional trading exchange. 3) Modern decentralization app based on Web3. $150,000 to $300,000

Keep in mind that these numbers are approximate and depend on your blockchain services provider, their hourly rates, and their location.

The comparison of different blockchain project costs

In recent years, blockchain technology has evolved from a complex tool to a scalable, decentralized platform suitable for industry-specific apps. Nowadays, both crypto startups and large corporations utilize these blockchain-based applications.

The versatility of blockchain allows it to be applied across various industries, including cybersecurity, healthcare, manufacturing, legal and government, charity, retail, real estate, tourism, media, and many others. This wide range of applications demonstrates that blockchain is not limited to financial transactions; it can effectively support almost every sector.

However, determining the exact development possibilities and associated costs of implementing blockchain is not straightforward. The price of blockchain implementation varies depending on the specific project requirements since blockchain is a technology that relies on its features.

It is important to note that the blockchain app development cost can start from around $5,000 and can range up to $450,000, depending on the complexity and scope of the project.

Deciding the exact price of blockchain app development is a difficult task that requires analyzing and deciding the specific type of blockchain app you want for your business. By carefully considering these factors, you can make informed decisions when it comes to budgeting and developing your blockchain app.

Below, we provide you with a blockchain cost calculator of developing applications based on their types:

Type of blockchain app developmentEstimated blockchain app development costTime frame
NFT marketplace with NFT-minting function$25,000-$55,0003-8 months
dApp$25,000-$90,0002,5-8 months
DAO$5,000-$19,0000,1-2 months
Wallet (custodial or non-custodial)$25,000-$85,0002-6 months
P2P exchange$25,000-$45,0002-4 months
Simple exchange$25,000-$45,0002-4 month
Professional trading exchange$70,000-$200,0004-8 month
Cryptocurrency$15,000 to $50,0001-6 months

Please note that these numbers are approximate. For more price estimates, turn to your blockchain development partner. 

Peiko is your reliable partner for creating a blockchain project

We are a skilled blockchain development team recognized by many trusted companies such as Clutch, GoodFirms, and more. At Peiko, we offer full-cycle development services to make a blockchain project: market analysis, interface development, software development, testing, and deployment. Now, we would like to present the blockchain cases that the Peiko firm has successfully worked on.

The Bitcoin Additional modern mobile crypto wallet

One of the vivid examples of the creation of a crypto wallet by a company is the Bitcoin Additional case. Bitcoin Additional is a user-friendly and feature-rich mobile cryptocurrency wallet. It offers seamless transfers to contacts, supports multiple coins, and even provides an offline payment feature.

However, if we are talking about the project's initial stages, the primary concern revolved around the application's security. To address this, we proposed incorporating industry-leading practices to ensure a high level of bank-grade security. 

As a result, we made the decision to implement robust processes in the application's lifecycle that enable efficient detection and elimination of vulnerabilities. Additionally, we established regular monitoring of the source code's security to maintain a secure environment.

The Quan2um robust crypto exchange

Another illustrative instance of showcasing the building of a blockchain project at Peiko is the Quan2um case. The Peiko team encountered the task of developing a trading platform that enables traders to monitor real-time market conditions while ensuring the price of currency pairs remains within the average market range.

A resource management system with flexible settings was implemented to effectively manage roles and facilitate the straightforward administration of coins and trading pairs. A key component of the project involved the development of a matching system that facilitated bidding between users, accommodating various types of buy and sell orders. 

Emphasizing liquidity and swift currency transactions were vital aspects, alongside prioritizing the safety and security of user funds. Lastly, the website was optimized and indexed by search engines to enhance its visibility and accessibility.

The outcome was that Quan2um stands as a reliable cryptocurrency exchange platform where individuals can engage in the trading of popular listed coins. It upholds a robust security infrastructure in alignment with European standards.

You are welcome to turn to Peiko for diverse blockchain development services. These include dApps and cryptocurrency creation, smart contracts development, and many more.

Summing up

We really hope that this article has provided you with the necessary insights to comprehend the blockchain app development cost. It is crucial to recognize the increasing popularity of blockchain apps and the advantages they can bring to your business, ensuring optimal ROI. 

The price of blockchain development ranges from $25,000 to $100,000 and higher. But the total numbers are individual, depending on the complexity of your solution, agency size, type of services, and the specifics of the industry. 

At Peiko, we are a committed blockchain app development company that can deliver top-notch solutions tailored to your specific business needs, integrating cutting-edge technologies. 

If you are interested in incorporating blockchain into your business, feel free to reach out to our team. We would be delighted to assist you with all your questions and hope for future cooperation.

FAQ
How much does it cost to build a blockchain?
How much does it cost to start a blockchain?
Got a question? Drop us an email at [email protected]
Rate this article
5.0 / 5.0
Comments 0
Let's build something great together
Upload a file
Peiko logo