Blockchain is one of the fastest-growing internet technologies today. So, naturally, everyone wants to build their next project or business on the blockchain and wants to know the Cost to Build a Blockchain Project.
But, it’s easier said than done.
Cost to Build a Blockchain Project from scratch, you’ll not only need to have good experience in and knowledge of the blockchain industry, but also you’ll need to arrange for things like the developers’ team, marketers, a project plan, market research, audit, and among others.
Most importantly, you’ll need to figure out the cost of building the blockchain project and whether you’ll need to raise funds.
If you are wondering about the estimated cost of developing your blockchain project and the smart contract development cost, here you’ll get a complete blockchain development cost template, along with details about the factors that affect this cost.
Contents of Article:
- Is blockchain the right choice for my business?
- Why you should know the estimated cost of building your blockchain project
- Things you can build on a blockchain
- Factors that affect the cost of a public blockchain project
- Cost factors of developing on a permissioned blockchain
- Hyperledger Fabric for enterprise blockchain development
- Cost To Hire A Blockchain developer
- Code audit cost
- Cost of blockchain project marketing
- Cost of ICO project development
- Cost of ICO project marketing
Is Blockchain The Right Choice for Your Business?
Blockchain technology concept with diagram of chain and encrypted blocks.
Double exposure of businessman hand working with new modern computer and business strategy and social media diagram as concept
Blockchain is growing at a rapid pace and has already become one of the most popular technologies of modern times.
According to a study, the global blockchain market will reach USD 39.7 billion by 2025. That means the best is yet to come.
Since the blockchain is still in its early stage, you stand to get the beginner advantages, in terms of low competition and cost.
Blockchain has brought the possibility of creating a trustless, middleman-free and transparent financial system, which itself is no less than a revolution.
However, the number of companies or people developing on the blockchain is still limited, which gives you a perfect opportunity to seize the day and make your mark on the world by developing something unique on the blockchain.
Not only is blockchain the perfect technology for your next project, but also this is the best time to start developing in the blockchain.
Why it’s important to know the estimated cost of building your blockchain project
Cost estimation is a critical part of any project, even more so in case you’re building your project on blockchain.
Unless you have a good idea of how much your project is going to cost, how can you expect to get the funding approved for the same?
Also, how will you bring investors to spend their money on your project when you don’t even know how much it will cost in the first place.
This is even more crucial for blockchain projects because determining the return on investment is more complex in the case of blockchain app development.
Things you can build on a blockchain
If you are just starting out in the blockchain development space, you must first figure out exactly what you want to build on blockchain.
Now, there are a number of things you can build on blockchain, such as:
- A Decentralized App (DApp) on a public blockchain
- A private enterprise blockchain
- A blockchain smart contract
- Token development
- Blockchain supply chain solutions
Most of the blockchain projects come under the DApp category, where you build a distributed, decentralized application with the ability for P2P transactions.
In other cases, when someone is looking to build a blockchain solution for their enterprise with a focus on privacy, security and scalability, it is recommended to go with an enterprise blockchain.
The cost of Blockchain Development Services will naturally depend on the type of blockchain and product you are going to build.
Factors that affect the cost of a public blockchain project
If you are planning to build a decentralized product on a public blockchain like Ethereum, you are essentially building a DApp.
This involves building smart contracts, a cryptocurrency/token, etc.
Since you are using an existing blockchain network, you’ll not be required to build an entirely new infrastructure from scratch, which means the cost of development will be significantly lower compared to the cost of enterprise blockchain development.
Another benefit of developing your product on a public blockchain is that most of the tools you’ll need for development are open-source and therefore, free.
Once your DApp is developed, you’ll need to deploy it on the public blockchain and will need to have a native cryptocurrency such as ETH for the same.
The good thing is that most ETH web wallets are free to use.
In addition, you may need to invest in a hardware wallet to keep your cryptocurrencies safe. The one-time cost will depend on the wallet type.
Now, the most significant cost, as always, is the cost of developers, which we will discuss later in this article.
Cost factors of developing on a permissioned blockchain
An enterprise looking to build a proprietary blockchain solution to increase efficiency won’t generally use a public blockchain because of issues like privacy and scalability.
In that case, developing on a private, permissioned blockchain is usually the best option.
When building a project on a private blockchain, you need to build/buy everything separately, including the blockchain infrastructure, network, storage, speed, encryption, front end, and smart contracts.
And each product has a separate cost, which makes private blockchain development a much costlier deal than building a project on a public blockchain.
While you can purchase the infrastructure, speed and storage from a third-party provider like AWS or IBM Cloud IaaS, you’ll still need to develop a P2P network and use encryption to protect the network.
For this, you’ll have to hire networking engineers with a specialization in P2P networks and encryption experts.
Besides that, you’ll need to build the front end of your blockchain project and will have to hire front-end blockchain developers for that.
The next step is to build the consensus algorithm for your blockchain. You can choose from Proof of Work (PoW) or Proof of Stake (PoS) consensus, depending on your needs and budget.
The overall cost can be calculated by combining the cost/fee of individual developers, engineers and specialists. Make sure to also consider the cost of the Project Manager.
Are you still in confusion? We can help you in finding the best smart contract development cost and assist you in the complete project.Contact us now and get started!
Hyperledger Fabric for enterprise blockchain development
Alternatively, you can build your enterprise blockchain project on Hyperledger Fabric, which is a low-cost yet equally powerful blockchain development platform.
Hyperledger Fabric is a distributed ledger software that can be used for building DApps and decentralized networks for enterprises.
It comprises plug-and-play components that can be used by enterprise blockchain developers for creating blockchain-based products and solutions in a fast & low-cost manner.
The benefit of using the Hyperledger Fabric for building your blockchain project is that you get a readymade blockchain platform along with all the tools & features such as encryption, file sharing, P2P network, and consensus algorithm.
Many top companies, including IBM and AWS, provide readymade blockchain platforms based on Hyperledger Fabric, allowing developers to rapidly build their applications at a low cost.
With Hyperledger Fabric, all you have to worry about is the platform cost and the cost of hiring a Hyperledger Fabric developer.
Cost To Hire A Blockchain Developer
Naturally, the Cost to Build a Blockchain Project will largely depend on the cost of the developer.
So, the question you should ask yourself is: how much does it cost to hire a blockchain developer?
According to some top freelancing platforms, including Upwork, blockchain was one of the fastest-growing tech skills of the decade (2011-2020).
Developers building on the blockchain generally uses the Solidity programming language to code smart contracts.
The thing to note here is that the number of blockchain developers is far lower than the market demand, which is one of the reasons why the cost of blockchain development is usual.
The cost of a blockchain developer will also depend on factors like:
- The developer’s location;
- Competition in the industry;
- Expertise and experience.
Talking about the salaries of blockchain developers starts at $50k and goes up to $175k per year, depending on the experience, expertise and location of the developer.
Freelance blockchain developers usually charge in the range of $100-$150 per hour.
In India, however, you can hire top blockchain companies like SAG IPL at a much lower rate, starting from $20 per hour for an expert blockchain developer. As I said, the developer cost can vary with the location.
Code audit cost
So far, we have already covered the costs of developers for building projects on both public and private blockchains.
Another cost that you should consider when planning your blockchain development project is the cost of testing. In blockchain terms, it’s called a code audit.
There is a big difference between normal software development and blockchain development. Blockchain smart contracts cannot be changed or modified once you deploy them, so, you need to be 100% sure that your code is correct and bug-free before you can launch it.
That is why you need to thoroughly test as well as audit the code.
There are dedicated professionals, called blockchain code auditors, mostly blockchain developers with huge experience, who can review your code and identify bugs.
They will review the project documentation and the entire code, analyze the code, identify vulnerabilities & bugs, analyze the overall functionality, and report any flaws.
Depending on who you ask, it can be costly to hire such a professional for your blockchain code audit.
The best option is to hire a blockchain development company that also provides a code auditing service.
Cost of ICO/STO/IEO Project Development
Once you’ve developed your blockchain project, or even before you’ve developed the project/product, you might need to raise funds to hire the developers and arrange for the other costs mentioned above.
ICO (Initial Coin Offering) is the most preferred way of raising funds for a blockchain project.
It involves creating and selling your cryptocurrency/token in exchange for investors’ money.
ICO, however, is an old and outdated concept, which became infamous because of the rising fraudulent activities.
The newest terms in use are ITO (Initial token offering), STO (Security token offering), and IEO (Initial Exchange Offering).
The key to a successful ICO/ITO/STO/IEO campaign is quality development plus brilliant marketing.
ICO development might involve the development of the campaign website, token or coin development (if not already covered in blockchain development), whitepaper creation & documentation, wallet development, etc., depending on your project needs.
Advanced ICO solution development may also include user registration/log-in, referral, fund transfer, wallet integration, and other advanced functionalities.
Depending on the features you want in your ICO website and the ICO development company, the cost of developing an ICO campaign could go up to $5K-$10.
At SAG IPL, however, our ICO development package pricing starts at just $999. The price goes up as more advanced features & options are included.
Other than a coin and token offerings some people also prefer fully featured Decentralised Exchange (DEX) development. It is a different path but requires expertise to make it a success. Luckily, SAG IPL is a full-service IT company that can help you in DEX development as well.
We are here to help you in every possible to get your project completed and to promote your project to audiences across the globe.We at reachable now!
Cost of blockchain/ICO/STO/IEO project marketing
Once the blockchain is developed, or when you are looking to raise funds for your project through an ICO or IEO, you’ll also need to focus on marketing.
The marketing of a blockchain (ICO/IEO/STO) project involves a number of things such as listing on ICO platforms, Airdrop/Bounty campaign, Influencer Marketing, Paid Advertising, Social Media Marketing, Email Campaign, Content Marketing, SEO, Video Marketing, Inbound Marketing, Community Marketing, etc.
Similar to a coin/token offering initiative a Decentralised Exchange (DEX) also requires proper exposure through marketing. Marketing attracts users and makes people aware of the project and its features.
If you are also planning to promote your blockchain project in order to raise funds or extend the reach, you’ll obviously need to hire a dedicated blockchain marketing team.
Depending on the services you want to include and the number of experts you wish to hire, the cost may range from a few hundred dollars to several thousand.
How it works
When you choose to hire ICO marketing services from SAG IPL, here’s what you get:
- ICO listing – First, we will list the blockchain project on a number of top ICO listing websites, including BestCoins, ICOholder, ICObench, etc., to expand the reach and let more people (investors) know about it.
- Community Marketing – We use top blockchain communities, such as Bitcointalk.org, Bitcoin forum, etc. to promote the project through threads, regular posting, and answering users’ questions.
- ICO Airdrop is a giveaway event that is organized to create a buzz in the industry by allowing interested users to promote the project in exchange for free tokens.
- Email Marketing involves creating and sending regular emails to potential investors, users, and market leaders telling them about the project and encouraging them to invest.
- Content Marketing involves the use of highly curated, relevant content to promote the project.
- Social Media Marketing is all about the use of social channels to reach and promote to potential audiences.
- We also use video marketing to further expand the project’s reach and make it easy for users to learn/know about it.
- SEO or Search Engine Optimization involves creating high-quality & relevant inbound links to the project websites in order to boost its search engine (Google) rankings.
- Paid Advertising – We also use paid tools such as Google Adwords and social media ads to extensively promote a project to its target audience.
A successful blockchain or ICO marketing campaign is a combination of all the above techniques. Of course, finding a blockchain marketing company that provides all the services will not be easy.
Thankfully, we have the experience and resources to provide everything you need related to blockchain marketing in one place.
As for the cost, our Basic ICO Marketing package starts at $500 per month, which covers listing on top ICO portals, basic email campaigns, content marketing, etc.
For advanced marketing services, including community promotion, airdrop campaigns, video marketing, and paid advertising, you can choose from Advanced or Premium ICO Marketing services.
Come and join us for a quick quotation on your complete development project cost and marketing. We are ready to jump start with your projectContact Us!
Developing a blockchain project is no longer difficult, given that you have access to the best resources and team.
The difficult part is, however, to find the right blockchain development & marketing team that can fit your budget.
Now that you have a good idea of the factors that contribute to the Cost to Build a Blockchain Project, such as developer costs, infrastructure & hosting costs, code audit costs, etc. and the funds you’ll need to develop your own blockchain project from scratch, you can start right away.
If you are looking to raise funds for your blockchain project, ICO is the best way to start with. Here is a guide to creating and launching a successful ICO campaign.
If you want to discuss your blockchain development project with an expert or need to hire cost-friendly blockchain developers from SAG IPL, give us a call at +917023472073 or drop an email to firstname.lastname@example.org.