How Much Does It Cost to Build a Blockchain Application

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 blockchain cost in different projects. You will discover how much does it cost to create a cryptocurrency such as 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!

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.

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. 

See the key considerations for building a blockchain app below:

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. 
• 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.
• 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. It is advisable to consult with a blockchain app development company if you are new to this field.
• 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:

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

The blockchain development costs depend significantly on the type of blockchain you choose for your application. Let’s review the most popular ones:

• Open, decentralized networks accessible to anyone.
• Ideal for creating cryptocurrencies, decentralized apps (dApps), and transparent systems.
• Blockchain development cost is higher due to scalability and security requirements.

Ex: Bitcoin, Ethereum.

• Used by enterprises for internal operations.
• Permissioned network controlled by a single organization.
• Suitable for secure and efficient supply chain management or financial services.
• Lower blockchain app development cost due to centralized control.

Ex: Hyperledger Fabric, Corda, Quorum.

• Combines public and private blockchain features.
• Useful for industries like healthcare and finance that need both transparency and data privacy.
• Offers a balance of cost and functionality.

Ex: XinFin, Ripple, IBM Food Trust.

• Permissioned blockchain operated by multiple organizations.
• Commonly used in industries such as banking, insurance, and supply chain management.
• Cost depends on complexity and the number of stakeholders involved.

Ex: R3, Energy Web Foundation, B3i.

Independent platforms for creating new cryptocurrencies and large-scale dApps.
High blockchain development cost due to the need for building infrastructure from scratch.
Ex: Ethereum, Solana, Binance Smart Chain.

The blockchain development cost is heavily influenced by the industry in which the app will operate. Each domain has unique requirements, such as compliance, scalability, and complexity, which drive the cost of development.

Moreover, for the finance sector, costs can rise significantly if the app requires integration with existing banking systems or advanced fraud detection mechanisms.

Some categories are simpler, such as crypto wallet development cost, while others like professional trading exchanges demand advanced features and higher investments.

Keep in mind that professional crypto exchanges require real-time data processing for advanced trading functionalities like OrderBook, making them complex and costly.

The blockchain development costs depend on the services you require, such as:

• Smart contract development: A vital element in dApps, contributing to the overall cost.
• Block explorer integration: A tool for monitoring blockchain activities, adding complexity and cost.
• Compliance and security: Ensuring regulatory adherence and data protection significantly influences expenses.
• API integration: Enables seamless communication between the blockchain and external systems, such as payment gateways or analytics tools.
• Tokenomics design: A strong economic model (supply, incentives, and distribution) adds strategic value.
• Decentralized storage solutions: Integrating systems like IPFS or Filecoin for secure, decentralized storage of files and data is essential for dApps or NFT marketplaces.
• Testing and auditing: Provide the reliability and safety of the blockchain app. This is especially critical for smart contracts to prevent vulnerabilities.

For comprehensive projects, web3 development cost rises as additional features should be added for .

Each model has its strengths and trade-offs based on the project's complexity and budget.

For complex projects like professional crypto exchanges or Layer 1 blockchain development, collaborating with medium-sized or large enterprises is better due to the access to a diverse team of experts and proven methodologies.

When planning for blockchain development, the vendor's geographic location and team structure play a critical role in determining the overall blockchain development cost. Geographic disparities in labor rates mean that the cost of hiring developers can vary significantly across regions. For instance:

• United States or Western Europe: Generally have higher hourly rates due to higher living costs and market demands, leading to a substantial increase in the cost of blockchain development. 
• Eastern Europe or Asia: Often provide highly skilled developers at more affordable rates, offering an opportunity to reduce the web3 development cost without compromising on quality.

The composition of the team required for custom blockchain app development varies depending on the project's complexity. Below are the common roles and their importance:

1. Blockchain developers: Core team members who design and implement the blockchain architecture, smart contracts, and other core functionalities.
2. UI/UX designers: Essential for creating a seamless and user-friendly interface that encourages adoption.
3. Project managers: Oversee the project's scope, timelines, and deliverables, ensuring that the development process remains efficient and organized.
4. Quality assurance engineers: Conduct rigorous testing to ensure the app is bug-free and operates smoothly.
5. Security experts: Play a critical role in securing the blockchain network, smart contracts, and user data from vulnerabilities or attacks.

Building a blockchain app isn’t just about coding—it spans multiple stages, each playing a critical role in shaping the final product. Let’s see the main of them:

The discovery phase is where everything begins. This phase includes brainstorming your goals, defining the app's purpose, and choosing the right blockchain platform. A solid discovery phase can answer big questions like how much does blockchain cost for your idea or whether you need a public or private blockchain. It’s where strategy meets innovation.

Here’s what happens during the discovery phase:

• Market research: Understanding user needs and competition.
• Choosing the blockchain type: Public, private, hybrid, or consortium.
• Goal setting: Clarifying what success looks like for your app.
• Budget estimation: Getting an initial sense of your blockchain app development cost.

Your app might be powered by cutting-edge tech, but if it’s clunky and confusing, users won’t stick around. That’s why UI/UX design matters so much. For blockchain apps, especially ones like crypto wallets or NFT marketplaces, intuitive and secure interfaces are non-negotiable. This is where a chunk of the web3 development or crypto wallet development cost is spent—crafting designs that make users go "Wow!" while keeping their assets secure.

Here’s where the real magic happens. Developers build the backbone of your blockchain app, from writing smart contracts to integrating features like crypto wallets or tokenomics. Whether it’s a simple dApp or a complex blockchain network, this phase is usually the most expensive. 

Testing is equally important—it’s where developers iron out bugs, patch vulnerabilities, and make sure everything works seamlessly. If you’ve been wondering how much does it cost to create a cryptocurrency, this stage is where most of that cost gets allocated.

Finally, it’s time to launch. Deployment is about taking your app live on the blockchain, setting up nodes, and ensuring it scales effortlessly. For crypto projects, this might also mean listing tokens on exchanges—a key part of making your cryptocurrency accessible. 

Here’s what deployment involves:

• Node setup: Creating the blockchain network.
• Smart contract deployment: Activating the contracts on the blockchain.
• Scaling: Ensuring the app can handle a growing user base.
• Token listing: For crypto projects, making your token available for trade.

While you obviously learn the primary aspects of blockchain development when learning how much does it cost to create a cryptocurrency, such as the app's purpose and complexity, additional factors can heavily influence the blockchain development cost. 

The complexity of smart contracts varies widely. Functionality plays a major role, as simple token transfers are more cost-effective than complex, multi-step workflows. Security is another critical element; advanced auditing and rigorous testing to identify and eliminate vulnerabilities can significantly increase expenses. Blockchain compatibility also matters, as the choice between widely used networks like Ethereum or Binance Smart Chain and building a custom blockchain impacts both development time and cost.

Advanced contracts, like those required for decentralized finance (DeFi) or supply chain solutions, increase expenses. For custom blockchain app development, these variables directly influence the cost.

The degree of decentralization in your blockchain app also affects the overall blockchain cost. Let’s look at a simple comparison:

A fully decentralized system is ideal for public trust and transparency but comes at a premium, especially when calculating web3 development costs.

Many blockchain solutions need to integrate with existing business software, such as ERP systems, CRMs, or payment gateways. Here’s what you should consider for integration:

• Custom APIs: These connect your blockchain app to legacy systems.
• Data mapping: Synchronizing blockchain data with your internal software.
• Testing and debugging: Ensuring seamless communication and error-free operations.
• Ongoing updates: Regular improvements to maintain compatibility with evolving software ecosystems.

This factor is particularly critical for businesses incorporating crypto wallet development into existing systems, significantly adding to the blockchain app development cost.

Why is maintenance so important? First, it addresses bug fixes—critical for eliminating vulnerabilities and ensuring the app functions as intended. Performance optimization is another key factor, allowing your blockchain to handle increased user demand without compromising speed or reliability. 

Feature upgrades, like implementing Layer 2 scaling or adding new dApp functionalities, keep your solution innovative and aligned with user expectations. Lastly, compliance updates are essential to staying ahead of evolving regulatory requirements, ensuring your app remains legally compliant and trustworthy.

So, how much does blockchain cost? From $5,000 for a DAO to $200,000+ for a professional trading exchange—explore where your project fits!

For accurate estimates, collaborate with a blockchain development partner to define project needs and optimize 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.

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.

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

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

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. We have a vast portfolio of outstanding blockchain and software solutions like Poof Marketplace, for example. 

Now, we would like to present the blockchain cases that the Peiko firm has successfully worked on.

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,5 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.

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, professional web development was applied 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. Don't worry if you don't have technical skills. We will help you to decide on a tech stack for your solution, Node.js or Django, or other technologies.

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.