Blockchain Development Pricing Guide 2024

Do you know blockchain development pricing is more affordable than you think? Discover ways to bring cost-effective blockchain tech to your business.

Between the hype around Bitcoin, Ethereum tokens, and NFTs, it’s easy to believe that blockchain development is all about cryptocurrency and the costs associated. As you probably know, decentralized technology goes far beyond what’s inside your friend’s cryptocurrency wallet.

Blockchain technology is a decentralized, distributed ledger that records transactional information across a chain of computers. In creating a series of ‘blocks,’ developers ensure that information cannot be changed retroactively without approved alterations in each block of the chain. Thus, making a secure yet transparent way to share important information across networks.

Blockchain technology has already revolutionized how companies operate across sectors like healthcare, supply chain, and real estate.

Across these industries, blockchain development costs vary by several thousands of dollars. As more and more companies turn to the technology for real-time transparency and scalability, it’s important to identify how blockchain development is priced.

Blockchain Development Costs by Type of Service

There are various factors that contribute to cost estimations for blockchain implementation and development. One of those is the type of blockchain services providers are contracted for.

This chart gives a better idea of what companies can expect to pay for top types of blockchain development services.

Note: Price ranges above are in U.S. dollars

What is the Real Cost of Blockchain Development?

The average cost of hiring a blockchain development company on Clutch is $25–$49 per hour.

The development process is more complex when creating a web or mobile application. In addition to costs stemming from common tasks like JavaScript code, you’ll need to factor in the costs of block-chain-specific tasks, depending on the type of blockchain and consensus model you wish to use.

• Private Blockchain vs. Public Blockchain: anyone is free to use a public blockchain, but a private one is limited to verified participants that an operator is responsible for allowing and disallowing user permissions.
• Proof of Stake vs. Proof of Work: proof of work being the most common model, it requires miners to purchase third-party equipment and continuously run programs, which causes fluctuating costs over time. However, proof of stake validators only need to buy tokens to obtain blocks in the chain, meaning they only need to pay up once.

Blockchain Application Development Pricing Models Vary

• Fixed-price model: the developer and client agree on a set price that the client will pay regardless of the hours and team it takes to complete it. This model is popular for small projects or projects with well-defined requirements.
• Time and Material Model: The time and material model is a flexible pricing model that involves charging the client based on the actual time and materials used to complete the project. Under this model, the client pays for the actual hours spent on the project, and the cost of materials used.
• Dedicated Team Model: Under the dedicated team model, the developer provides a dedicated team to work on the project. The client pays for the time and effort of the dedicated team, who work exclusively on the client's project.

Third-Party Technology and Tools Dictate Cost of Blockchain Projects

While you won’t necessarily see the cost of third-party tools required for dApps (decentralized applications) and associated APIs reflected directly in your contract, they’ll affect the overall cost of your engagement.

Why Do Software Development Teams Invest in Blockchain Technology?

Blockchain technology use cases tend to all come back to the concept of safely storing, managing, and sharing data.

Secure & Trustworthy

The blockchain's decentralized architecture makes it difficult for hackers to tamper with data, which boosts a system’s ability to be secure and safe for user interaction.

In a blockchain, data is spread across a decentralized network of nodes, which is more secure than storing information centrally. Cryptographic algorithms add an extra layer of security to the data for companies that require maximum security.

Further, the decentralized nature of the blockchain eliminates the need for intermediaries, reducing the risk of fraud and errors.

Transparency

Blockchain technology provides a transparent and immutable record of all transactions, which means that it’s much easier to confirm the authenticity of data.

Transparency without the risk of fraud means that tracking supply chains, auditing financial transactions, and maintaining regulatory compliance is much easier and more reliable than before.

Efficiency

As stated above, blockchain technology reduces the need for intermediaries, which offers both transparency and efficiency. Without going through intermediaries, transactions are sped up and costs can be reduced.

Additionally, blockchain is also popular for its ability to enable smart contracts that automatically execute when predefined conditions are met.

Innovation

Blockchain technology can place companies on the cutting edge of Web3, making them leaps and bounds more appealing to clients than competitors.

What’s more, blockchain facilitates the creation of new digital assets and guarantees functionalities such as secure voting systems. Innovations such as these work to provide more efficient ways to manage information in data-critical industries.

What Services Do Blockchain Solutions Companies Deliver?

Blockchain developers, project managers, and QA testers work together to offer a multitude of services to account for all different scopes of work.

• Blockchain Consulting: working with clients to determine possible use cases for blockchain and implications for integrating the technology. Further, consulting companies can build out the beginnings of a blockchain strategy and offer development help.
• Blockchain Development: building the blockchain solutions that will address the needs defined during the consulting phase. Here, they’ll craft blockchain-based applications, smart contracts, and other software that can operate on a blockchain network.
• Blockchain Integration: bringing blockchain solutions into tech environments that already exist to secure the systems better. Their work ensures that legacy software works seamlessly with the blockchain solution.
  
• Blockchain Maintenance: providing ongoing maintenance and support services to ensure their clients' blockchain solutions remain effective. To achieve this goal, they monitor the blockchain network, identify potential issues, and provide timely solutions to maintain its functionality.

While the services listed are the most common, it doesn’t mean that they have to be offered over the course of multiple projects. Many blockchain companies have full-service options for companies that need several services in a single engagement.

Factors That Influence Blockchain Development Costs

The final cost of a blockchain development project depends on a number of factors. The primary factors impact the difficulty of work for app development companies.

• Project Complexity: Projects that require more complex solutions, such as those involving multiple stakeholders, complex smart contracts, and unique consensus mechanisms, are likely to be more expensive than simpler projects.
• Development Time: The longer the project takes to complete, the more expensive it will likely be.
  
• Expertise: Projects that require specialized knowledge or skills, such as developing a custom consensus algorithm or implementing complex cryptography, are likely to be more expensive.
  
• Blockchain Platform: Different blockchain platforms have different features; some are more complex than others. Projects developed on more advanced platforms may be more expensive than those developed on simpler open-source platforms. Examples of blockchain platform options include Ethereum, Hyperledger Fabric, and EOS.
  
• Customization Requirements: Projects that require more customization, such as those that need to be integrated with existing systems or platforms, may be more expensive than those that require less customization.
  
• Support and Maintenance: Outsourcing projects that require ongoing support and maintenance may be more expensive than those that do not.
  

Hire Blockchain Developers According to Needs and Budget

Whether you’re a startup or an enterprise company, blockchain is accessible and more valuable than ever. The difficulty is that in addition to blockchain-specific skills, most projects will also require the skills necessary for any mobile app development project. This includes knowledge of programming languages, front-end development, and back-end development.

To avoid leaning too hard on internal resources, connect with a company that does it all. Primarily, it’ll be essential to collaborate with a blockchain development company that has mastered an understanding of decentralized networks.