Blockchain technology has been gaining popularity for the past many years, with many businesses and organizations starting to explore its potential applications. One area that has shown particular promise is the development of decentralized applications or dApps.
As reported by EmergenResearch, the global dApp market was valued at $10.52 billion in 2019 and is forecasted to reach $368.25 billion by 2027. This growth is being driven by the benefits that dApps can offer compared to traditional applications, such as increased security, transparency, and decentralization.
With the growing popularity of dApps, many businesses are interested in exploring this new technology. One important question they need to answer is: how much does it cost to develop a dApp? However, the cost of developing a dApp ranges from $50,000 – $100,000, depending on several factors that need to be considered.
In this blog post, we will outline some of the major factors businesses should consider when estimating the cost of developing a dApp and also look at keeping the costs down. So, without further ado, let’s get started.
|Feature||Time (Hours)||Cost (approx.)|
|Moderate App Development Cost (for 1 Platform)||$35,000 – $700,000|
|Payments||60-78||$3,000 – $3,600|
|Streaming||90-140||$2,500 – $3,500|
|Offline Mode||Up to 80||$4,500|
Major factors that determine the cost of dApp development
There are a number of factors that can impact the cost of developing a dApp. Let’s take a look at each of them individually.
Undoubtedly, different sectors will have different price tags for dApp development. The first thing they will look at is the business domain you are in and what kind of dApp you are looking to develop.
For example, developing a basic dApp for the healthcare, supply chain, insurance, and banking sectors will require more expensive and complex features than a simple game app.
This is because businesses in the healthcare, supply chain, and finance sector need to comply with stringent data privacy and security regulations. As a result, the cost of blockchain development services offered by various companies will differ. So, when determining how much it costs to develop a dApp, you first need to figure out which sector your business is in and what kind of dApp you want to develop.
The next step is to select a blockchain platform for your dApp development project. This decision will be driven by several factors, such as your budget, business needs, target audience, etc. Some popular blockchain platforms you can choose from include Ethereum, Centrifuge, and more. Each platform has its own strengths and weaknesses, so it’s important to select the one that is best suited for your project requirements.
The cost of blockchain development services can vary widely depending on the platform used. For example, Ethereum is one of the most popular blockchain platforms for dApps. However, it can be expensive to develop on Ethereum due to the high costs of gas fees. In contrast, platforms like TRON or EOS offer free transactions and lower gas fees, making them more affordable options for blockchain development.
The cost of developing a dApp will vary depending on the app’s complexity. A simple app with limited functionality may only cost a few thousand dollars to build, while a more complex app with multiple features and interactions could cost hundreds of thousands of dollars.
The level of complexity will also affect the time required to develop the app, with more complex apps taking longer to complete. In general, the more complex an app is, the more it will cost to develop. However, there are many factors that can affect the pricing, so it is important to consult with a professional before making any decisions.
Decide on the dApp features
After selecting a blockchain platform, the next step is to list the features you want to include in your dApp. This will help you to understand the development cost involved in building each feature. Some of the common features that dApps usually have include:
- Interactive user interface
- Backend for storing data
- Smart contracts for handling transactions
- Token system for powering the dApp
- Integration with external APIs
Decide on the design
An interactive design will make it easy for users to understand and use your dApp. A bad design, on the other hand, will make it difficult for users to figure out how to use the application, resulting in a high user abandonment rate.
Designing a dApp is different from designing a traditional web or mobile app, and this is because dApps need to be designed keeping in mind the decentralized nature of the blockchain. As a result, the design process can be quite complex and time-consuming.
Hire a development team
To build a dApp with many features, you must hire a team of experienced blockchain developers. This can be quite expensive.
Alternatively, you can choose to work with a blockchain app development company. This can be a more affordable option as companies usually have a team of experienced developers that can work on your project.
Tech stack and third-party integrations
Another factor that will impact the cost is the tech stack and third-party integrations. The tech stack refers to the software and tools used to build the application. For example, if you want to develop a dApp on the Ethereum platform, you will need to use Solidity for smart contract development.
Similarly, if you want to develop a dApp that uses an external API, you will need to use a tool like web3.js for integration. The cost of blockchain development services can vary depending on the tech stack and third-party integrations used.
Finally, you should also factor in the cost of post-launch maintenance when budgeting to build a decentralized application. This is because dApps need to be updated and maintained regularly to keep them running smoothly. Post-launch maintenance usually includes bug fixing, security updates, and performance optimization. The cost of post-launch maintenance will depend on the size and complexity of your dApp.
Now that you know the major factors that impact the development cost of dApps, let’s look into various tips on how to keep the costs down.
Tips to reduce the cost of dApp development
Businesses often compromise on features or quality when trying to reduce costs. However, certain measures can be taken to reduce the cost of dApp development without compromising on quality or features.
Use an existing blockchain platform
One of the easiest ways to reduce the cost of dApp development is to use an existing blockchain platform. This is because you will not need to spend time and resources developing a blockchain from scratch.
Use a hybrid or sidechain solution
Another way to reduce development costs is to use a hybrid or sidechain solution. This will help you use an existing blockchain platform and create a sidechain or hybrid blockchain for your dApp. This will be cheaper and faster than developing a dApp on a new blockchain platform.
Use open-source tools and frameworks
When budgeting for your dApp development project, make sure to use open-source tools and frameworks wherever possible. This is because these tools are usually free to use.
Many open-source tools and technologies, such as Flutter and Build.js can be used. This will help reduce the cost of development. But obviously, the company that offers blockchain app development services will help you with the best one.
Use an Agile development methodology
When developing a dApp, it is important to use an Agile development methodology. The main reason is that it will help you get your dApp to market faster.
Agile development is an iterative development methodology that helps deliver working software at the end of each sprint. This is opposed to the traditional waterfall methodology, which can take months or even years to complete. An Agile methodology will help reduce the time and cost required for dApp development.
Outsource development tasks
Outsourcing can be a great option if you want to reduce the cost further. Many development tasks can be outsourced, such as UI/UX design, quality assurance, and front-end development. Obviously, this will help reduce the overall cost of development.
Don’t forget the MVP approach
Last but not least, don’t forget the MVP approach. The MVP (Minimum Viable Product) approach is about building a dApp with only the essential features. This will help reduce the time and cost required for the development. And once the MVP is launched, you can always add more features later on.
So, those are some tips to reduce the cost of decentralized app development that will help businesses save money without compromising on quality or features. An experienced blockchain development company will help you with the best solution.
As we progress towards a more digital world, it is evident that blockchain technology will play a major role. And dApps will be at the forefront of this change. However, blockchain application development can be quite costly and time-consuming. But certain measures can be taken to reduce the cost of development without compromising on quality or features.
So, choose the tips that suit your business requirements and budget to start your dApp development project today!