Detailed Guide On Blockchain App Development – Cost, Benefits & Processes

Market Overview of the Global Blockchain Industry

The blockchain realm has witnessed an unprecedented surge in recent years, catapulting from a $17.21 billion industry in 2023 to a projected $29.35 billion in 2024, with a remarkable compound annual growth rate (CAGR) of 70.6%.

This exponential growth trajectory is a testament to the transformative power of blockchain technology, fueled by key drivers such as the inception of Bitcoin, the widespread adoption of cryptocurrencies, the advent of Initial Coin Offerings (ICOs), corporate ventures into blockchain exploration, and the revolutionary smart contract development.

Looking ahead, the horizon is even more promising, with the global blockchain market poised to soar to a staggering $161.14 billion by 2028, boasting a robust CAGR of 53.1%.

This anticipated expansion is underpinned by concerted efforts towards environmental sustainability, the continuous evolution of smart contract functionalities, a heightened emphasis on privacy and security measures, innovative solutions catering to interoperability challenges, and the accelerating embrace of blockchain technology by governmental bodies and institutions worldwide.

As we delve deeper into the forecast period, several notable blockchain trends are set to shape the landscape of the blockchain industry. From the tokenization of assets and the meteoric rise of decentralized finance (DeFi) platforms to the burgeoning prominence of Non-Fungible Tokens (NFTs) and digital ownership concepts, the trajectory of blockchain innovation is nothing short of revolutionary.

Moreover, advancements in scalability solutions and the burgeoning enterprise adoption of blockchain technologies are set to redefine the operational paradigms across diverse sectors.

Indeed, the allure of blockchain technology extends far beyond its roots in cryptocurrency, permeating various industries and the public sector alike. From optimizing supply chain logistics to enhancing healthcare data management, from revolutionizing governmental processes to fostering innovation in finance and beyond, the transformative potential of blockchain is boundless.

Evidently, governments across the globe are recognizing the pivotal role of blockchain in shaping the future landscape of technology and innovation. Notably, Dubai has emerged as a frontrunner in blockchain adoption, leveraging the technology for all government-related financial transactions, thus setting a precedent for other nations to follow suit.

Similarly, China has laid out ambitious plans to establish itself as a global leader in blockchain technology by 2025, underscoring the strategic importance accorded to blockchain in national agendas worldwide.

In essence, the burgeoning demand for blockchain technology across industries underscores its pivotal role in driving innovation and fostering digital transformation on a global scale. As businesses and governments alike increasingly recognize the immense potential of blockchain to revolutionize traditional paradigms, the stage is set for a new era of unparalleled growth and innovation in the global blockchain landscape.

Getting Into the Nitty-Gritty of the Blockchain Technology

By now you must have gained some idea of the popularity of the blockchain. So before proceeding forward let’s understand what blockchain technology is all about.

In simple words, a blockchain is a collection of digital documents that are encrypted and kept in the form of a chain. These records are known as blocks, and the technology used to create them is known as blockchain. You have probably heard of cryptocurrency, or Bitcoin while making an online transaction; these are components of blockchain technology.

Blockchain is nothing more than a decentralized database in which digital records are kept in blocks and linked using a hash function so that the current block has the hash code of the previous entry and the next block has the hash code of the current one.

Top 5 Benefits of Blockchain App Development

Blockchain application development is gaining popularity due to the numerous benefits it provides to enterprises. The following are the five most significant advantages of blockchain apps:

1Transparency

With the introduction of blockchain, one is easily able to access the transaction history. Now as blockchain is a distributed ledger, all network members have access to the same updated ledger at any given time. A network consensus certifies the ledger, which implies that everyone must agree on it.

Changing a single record causes all future records to be modified. As a result, the data preserved on the blockchain is safer, accurate, transparent and is only accessible to members with permission. 

2Traceability

If your organization controls products distributed through a complex supply chain, you can easily understand how difficult it can be to trace an item back to its source. When the movement of commodities from one location to another is recorded on the blockchain, you have a comprehensive audit trail that shows where an asset came from and follows each stop along the way. Previous blockchain records can assist in verifying the legitimacy of products and prevent them from fraud.

3Speed & Efficiency

Blockchain technology streamlines operations, allowing transactions to be performed more quickly. There is no need to reconcile several ledgers because all documentation is recorded in the blockchain. Moreover, as there is no third party involved, everything moves much more quickly and smoothly.

There is also the option to automate procedures using “smart contracts,” which allow you to automate the next step in a transaction, increasing speed and decreasing the likelihood of human error.

4Security

Increased security is one of the most significant benefits of blockchain applications. Unlike traditional programs, which are vulnerable to hacker attacks and data theft, blockchain apps are impenetrable to third parties.

Data in blockchain applications is not stored on a server, but rather across a network of devices, making it impossible for hackers to access the information.

Users can identify changes promptly since they have access to a copy of all chains located on the devices of all network participants.

5Reduced Costs

Most businesses prioritize cost reduction. You don’t need intermediaries or third parties to establish confidence while using blockchain since network participants authenticate everything on the network through consensus. Moreover, everyone will have access to an immutable version, so you will not need to study any paperwork in order to complete the trade.

Types of Blockchain App Development

Blockchain solutions are categorized into 2 categories, so you can choose the one as per your specific business need.

1Network-Based

Network-based blockchain solutions are categorized into Permissionless and Premissioned Blockchains.

• Permissionless Blockchain: Bitcoin is the best example of a permissionless blockchain. You do not need any permission to access any database in this case, and anyone can access the network or establish an engagement in the network while hiding their identity.
• Permissioned Blockchain: When it comes to a permissioned blockchain, it is more of a closed ecosystem in which only authorized individuals can access the database while adhering to the defined criteria.

Also Read: How Permissioned Blockchains Revolutionize Business Landscape?

2Cryptocurrency Support Based

Blockchain solutions are further classified based on cryptocurrency support as cryptocurrency-based solutions and non-cryptocurrency-based solutions.

• Cryptocurrency-based Blockchain

These blockchain solutions, as the name implies, are based on cryptocurrency. The following are some of the most prevalent forms of cryptocurrency-based blockchain solutions:

Cryptocurrency Wallets: The best solution to transfer or receive cryptocurrencies.

Crypto Exchange: Crypto exchange systems, also known as Digital Currency Exchange (DCE) systems, are used to trade cryptocurrencies.

Initial Coin Offerings (ICO): An Initial Coin Offering (ICO), sometimes known as an Initial Currency Offering (ICO), is a mechanism that deals with the creation and sale of cryptocurrencies.

Decentralized App (dApp): dApp development services deal with apps that can be run in real-time by multiple users on a decentralized, P2P network.

• Non-Cryptocurrency-based Blockchain

These solutions do not rely on cryptocurrencies like bitcoins. They are built on Distributed Ledger Technology (DLT), a database distributed across multiple nodes and computing devices. Most crucially, no central authority governs these nodes or ledger. They are changeable by anyone.

Blockchain App Development Process

Developing a blockchain app is a complex process that demands thorough research apart from the tight tech stack. Well to make it easier for you to understand, here is a complete step-by-step development process.

Step 1 :Identify the Goal

First and foremost, it is critical to construct a problem statement and comprehend all of the concerns you wish to address with a proposed solution. Ascertain that the blockchain solution will boost your company’s capabilities. Determine whether you need to move your present solution to the blockchain or create a new application from scratch.

Assume you are a healthcare provider looking to create a blockchain-based health record exchange app. In that situation, you should be familiar with the applications’ numerous use cases and the benefits they will provide to users.

Once you have determined that a blockchain solution is required for your business operations, the next step is to choose the best blockchain platform and blockchain development tools for your project.

Step 2 :Choose a Blockchain Platform

Developing a blockchain from the ground up needs extensive research and can take months or years. As a result, you should create a blockchain app on top of a blockchain platform that matches your company’s needs. Choose the best blockchain platform for your application based on aspects such as the consensus process and challenges to be solved.

You can, for example, create an Ethereum-based application to create a decentralized public app with smart contracts. To make it easier, here are a few of the blockchain platforms with features that are currently ruling the market.

• Ethereum

With a market share of more than 60%, Ethereum is the most popular blockchain software development platform. It is a decentralized open-source platform that allows developers to create and deploy dApps using smart contracts.

Solidity; Ethereum’s programming language, is used to generate smart contracts. It also has a big developer community, which provides a network effect that makes finding assistance and resources easier for developers.

• EOSIO

EOSIO is a scalable and fast blockchain software development platform. It enables developers to design high-performance, low-latency dApps. C++, the programming language used by EOSIO, is used to develop smart contracts. It also contains a one-of-a-kind consensus method, Delegated Proof of Stake (DPoS), which allows quick transaction processing.

• Tron:

Tron is a blockchain software development platform for creating decentralized entertainment applications. Solidity; its programming language, is used to develop smart contracts. Tron employs a consensus process known as Delegated Proof of Stake (DPoS), which is similar to EOSIO’s.

• Corda

Corda is a blockchain software development platform aimed primarily at enterprises. It is a permissioned platform that enables companies to build private blockchain networks.

Corda employs smart contracts, dubbed “Corda Contracts,” to automate corporate operations and transactions. It is written in Kotlin and works with JVM languages such as Java and Scala.

• Hyperledger Fabric

Hyperledger Fabric is an enterprise-grade blockchain software development platform for creating permissioned blockchain networks. It is a Linux Foundation open-source project that provides a modular design that allows developers to tailor the platform to match their individual needs.

Smart contracts can be created using Hyperledger Fabric with programming languages such as Go, Java, and Node.js.

Step 3 :Perform Blockchain Ideation

Once you have chosen the platform for creating a blockchain application as per your specific requirement, you should concentrate on writing business requirements and brainstorming concepts. It is good to determine whether to add off-chain or on-chain technology components to the blockchain ecosystem.

Create a product roadmap to assist you in developing an application within a specified time frame. As far as the blockchain app is concerned, you should create a blockchain model and a conceptual process to make it easy.

Be sure of whether the application should be created on a permissioned or permissionless blockchain network. At this point, you should be clear with the front-end programming languages, servers, and external databases.

Also Read-Blockchain in Fintech – Key Trends & Use Cases for 2024

Step 4 :Go For Proof-of-Concept

A proof of concept is created to demonstrate a blockchain project’s practical applicability. It could be a design prototype or a theoretical construct. Each project under Theoretical Build-up requires theoretical instances so that users may grasp the product’s applicability and viability. Proposals might be written to outline the parameters of the project. 

Following the creation of a theoretical construct and the receipt of feedback, a prototype is designed, which includes, sketches, mockups, product evaluation, designs, architecture of data, etc.

Once the PoC has been approved by the client, the following stage is to create technical and visual designs for the application.

Step 5 :Visual & Technical Designs

Start building UIs for each software component now that you have planned a full app. Create APIs that will be coupled with user interfaces to run a back-end application. Visual designs are designed to give the program a look and feel, whereas technical designs represent the application’s technology architecture. The app is ready for development once the admin consoles and user interfaces have been designed accordingly as per the specific requirement.

Step 6 :Development

This is one of the crucial phases where you must either develop or integrate APIs for specific application use cases. The application is developed in several versions.

To begin, a pre-alpha version of an app is a version that has not undergone any rigorous testing so far. Once approved by the client, the program advances to the next stage, alpha, where engineers test the software using white-box methodologies. However, at this stage, the program may not include all of the functions.

The software is ready for the beta version after the alpha version is launched. During the Beta Phase, the software application contains all of its features but some unknown flaws. The beta version is shared with a specific group of persons outside the organization to test its functionality.

After the beta version has been accepted and tested, the program advances to the Release Candidate version, which is an advanced beta version that is ready to be a final application and can be launched. The application enters the production phase and is ready for distribution after extensive testing.

Step 7 :Deployment

Before deploying an app to the live network, it should be thoroughly tested on the test network.

When delivering an application, administrators can also manage which versions of the program must be delivered to specific resources via provisioning.

Once provisioned, an application must be hosted on the main chain. If your blockchain app is a hybrid solution, containing both off-chain and on-chain business entities, you must deploy it to a cloud server as well as the app store/play store.

Step 8 :Upgrade & Maintenance

The application should be able to upgrade in response to changing business requirements and prioritization.

For example, if there arises a situation where you need to upgrade the smart contract, you should be able to easily deploy the new contracts without any difficulty.

You are not finished after developing and launching an app. Instead, a software application must be maintained after it has been developed to ensure that it will work with all types of future upgrades.

Breaking Down Blockchain App Development Cost

When it comes to estimating the cost of blockchain app development, breaking down the various factors involved is crucial. However, to give you an idea, the blockchain development cost significantly ranges from $35,000 to $2,80,000 or more. The complexity of your project, the chosen technology stack, and the scope of features all play pivotal roles in determining the final cost.

Below is a table summarizing the relationship between complexity, estimated development cost, and the expected time frame.

Level of Complexity	Estimated  Cost	Time Required
Simple	$35,000-$55,000	3-6 Months
Medium	$55,000-$1,40,000	6-8 Months
Complex	$140,000-$2,80,000	9+ Months

Note: These estimates are approximate and can vary based on specific project requirements and market conditions. It’s essential to engage with experienced developers and consultants to obtain a more accurate estimation tailored to your project.

Now, going ahead, we will delve deeper into each factor, offering insights into how you can navigate them to arrive at a precise estimate for your blockchain app development project.

What are the Factors that Influence the Blockchain App Development Cost?

It’s essential to consider several key factors that can significantly influence the overall budget. These factors encompass both project-specific and industry-related elements. Let’s explore each factor to provide you with a comprehensive understanding.

1. Company Size and Expertise

The size of the development agency you choose can have a substantial influence on costs. They can be categorized into large, medium, and small-scale agencies.  

• Larger agencies often come with higher hourly rates due to the workforce they possess. They can charge you from $4,50,000 to $15,00,000 for a specific project.
• Being a medium-sized company, Blocktunix has 6+ years of experience, 100+ tech enthusiasts, and 120+ products delivered.  We provide a wider range of services and specialized expertise. Here at Blocktunix, the blockchain app development cost can range from $35,000 to $2,80,000. 
• Apps developed by Freelancers or small-scale firms can cost anywhere from $2000 to $25000. However, they lack the expertise and management which can affect results.

2. Blockchain App Category

When considering the development cost of a blockchain app, one critical factor to examine is the category of your application. Blockchain apps can be broadly categorized into two main groups, each with its unique cost considerations:

• Cryptocurrency-Based Solutions:Cryptocurrency-based blockchain apps revolve around digital currencies, tokens, and financial transactions. They offer a myriad of opportunities for innovation.
• Non-Cryptocurrency-based Solutions:Beyond cryptocurrencies, blockchain technology offers versatile solutions that cater to various industries and use cases. For instance, blockchain apps are used to enhance traceability and transparency in the supply chain by leveraging blockchain-based inventory management solutions.

3.Complexity of the Blockchain App

Let’s discuss the various aspects that contribute to the complexity of a blockchain app. Here are the details:

• Consensus Mechanism

Different blockchain platforms employ various consensus mechanisms like Proof of Work (PoW), Proof of Stake (PoS), or Delegated Proof of Stake (DPoS). The choice of mechanism can impact the app’s development complexity.

Some mechanisms require more robust security measures, while others focus on scalability, influencing the development effort.

• Blockchain Platform

The choice between Ethereum, Binance Smart Chain, Hyperledger, or other platforms can significantly affect the development cost of Blockchain applications.

Each platform has its smart contract language and nuances, requiring expertise to navigate effectively.

• Technology Stack

The selection of programming languages, libraries, and frameworks affects the development cost of Blockchain apps. For instance, Ethereum primarily uses Solidity, while other platforms may support different languages. Complex integrations with external systems or legacy software can increase development complexity.

• APIs

Incorporating external APIs, data feeds, or oracles to interact with real-world data sources can add layers of complexity. Ensuring data security and privacy while using external services can be intricate. However, there are pre-built APIs available in the market, but it’s important to get in touch with a blockchain development agency for your tailored requirements. 

• UX/UI Design

Crafting a seamless user experience and intuitive user interface demands attention to detail and user testing. Ensuring accessibility for a diverse user base can be challenging but essential.

• Proof Mechanisms

Businesses often start with a PoC to validate the feasibility of their blockchain app. Transitioning from PoC to a full-scale deployment introduces complexity. Rigorous security audits and testing are essential to ensure robustness, especially in complex apps.

Project Milestone	Average Cost Percentage
App Design	5%
UX/UI Design	15%
App Development	45%
Quality Assurance	20%
App Deployment and Maintenance	15%

• Scope and Objective

Evaluating the project’s scope and aligning its objectives with the intricacies of blockchain technology is essential for effective integration. When you seek to understand how to integrate blockchain into your operations, projects with expansive features and ambitious goals often demand more time and resources. 

4.Industry-Specific Requirements

Providing specific cost estimates for blockchain app development in different industries can be challenging. This is due to the variability of project requirements and market conditions. 

However, we can offer an overview of the cost of developing blockchain applications in various industries:

5.Blockchain App Service Model

In the world of blockchain technology, diverse services cater to a wide range of needs, offering businesses and users innovative solutions. As a trusted blockchain software development company, we can guide you through these services, helping you make informed choices for your project.

• Crypto Wallet

Crypto wallets are the gateways to blockchain networks, allowing users to store, send, and receive digital assets securely. Modern crypto wallets often support a variety of cryptocurrencies, providing users with flexibility. 

Also Read: Explore The Importance Of AI in Crypto Wallet Development

• Crypto Exchange Platform

Crypto exchanges facilitate the trading of digital assets, offering a marketplace for buyers and sellers. If you are intimidated by such a platform and want to know the cost of developing cryptocurrency exchange platforms like Coinbase, Blocktunix can help with end-to-end development services. 

• ICO

ICOs are fundraising events in which new cryptocurrencies or tokens are offered for sale to early investors. Developing tokens and white paper requires careful planning and security measures.

• dApps and DLT

Decentralized applications operate on blockchain networks, providing users with trustless and transparent experiences. dApps are growing rapidly demonstrating their potential. 

Distributed Ledger Technology solutions offer enterprise-level blockchain applications, often involving consortiums or private networks. It’s recommended to have an expert’s suggestion before making investment decisions.

• NFT Marketplace

Non-fungible tokens (NFTs) represent unique digital items such as art, collectibles, or in-game assets. Building NFT marketplaces involves creating platforms for buying, selling, and trading these unique tokens.

Here’s a table providing estimated costs and timeframes for developing various types of blockchain apps:

Type of Blockchain App Development	Description	Estimated Cost of Blockchain App	Timeframe
NFT Marketplace	Build a platform for buying, selling, and trading NFTs. Includes user profiles, NFT listings, and secure transactions.	$50,000-$1,20,000	8-10 Months
Cryptocurrency Wallet	Cryptocurrency Wallet Design and develop a secure digital wallet for storing, sending, and receiving various cryptocurrencies.	$20,000-$1,20,000	6-9 Months
Decentralized Autonomous Organization (DAO)	Create a DAO governed by smart contracts, enabling decentralized decision-making and fund management.	$10,000-$30,000	2-3 Weeks
Cryptocurrency Exchange	Build a crypto exchange platform with trading features, order book management, and security measures.	$25,000-$2,00,000	4-9 Months
dApp	Develop a decentralized application on a blockchain network, providing specific functionalities or services.	$30,000-$1,40,000	4-8 Months

Which Industries Can Benefit from Blockchain App Development?

Different industries have varying regulatory requirements. For example, Blockchain in healthcare sectors may demand rigorous compliance measures, which can increase development costs to ensure adherence to these regulations.

Many Industries have adopted blockchain technology to leverage transparency and data immutability. Let’s throw some light on the industries that can benefit from blockchain. 

Benefits of Blockchain for Various Industries

Type of Industry	Benefits
Fintech Sector	DeFi Efficient cross-border payments Error-free transaction
Real Estate Sector	Tokenization Immutable property records
Healthcare Sector	Enhance drug traceability Fraud Prevention Streamlined insurance claims
Education Sector	Financing Education Copyright Protection
Gaming Sector	Improved User Experience Resource trading and rewards
Supply Chain	Tracking Movement Cost Reduction

Blockchain technology offers unique advantages to each of these industries, addressing specific points and enabling innovative solutions. Businesses within these sectors can harness the power of blockchain to enhance operations, improve security, and create new opportunities.

Closing Remarks

Partnering with a professional blockchain development company like Blocktunix ensures a seamless and efficient journey from concept to launch. We offer comprehensive services that cover every aspect of blockchain app development, including ideation, design, development, testing, and deployment. Our team of experts leverages advanced technology and industry best practices to deliver high-quality, scalable, and secure blockchain applications tailored to your unique business needs.

Choosing us means benefiting from our extensive experience and commitment to excellence. We prioritize understanding your goals and challenges in order to provide customized solutions that drive value and innovation. Our transparent processes, combined with our agile development methodology makes sure that your project stays on track and within budget while delivering superior results on time.

Take the next step towards transforming your business with blockchain technology. Contact us today to discover how our blockchain app development services can elevate your operations, enhance security, and create new opportunities for growth. Let’s build the future together by amalgamating your vision and our expertise.