Table of Contents
- What Is Blockchain Development?
- What Does A Blockchain Development Company Specialize In?
- What Are The Different Types Of Blockchain Companies?
- Which Businesses Should Consider Hiring A Blockchain Development Company?
- How Much Do The Top Blockchain Companies Charge?
- 5 Reasons To Hire A Blockchain Development Team
- How To Hire A Blockchain Development Company?
- 10 Questions To Ask Before Hiring A Blockchain Development Company
- Last Tips To Consider Before You Hire A Blockchain Company
What Is Blockchain Development?
A Blockchain app development company is qualified in developing transaction systems using blockchain technology.
Although blockchain is considered one of the most disruptive technological innovations in the 21st century, its history dates back in the 1990s when Stuart Haber and W. Scott Stornetta improved efficiency by enabling the collection of more documents on a single block
In 2009, the first blockchain was implemented and it was connected to the operation of bitcoins.
And, nowadays, businesses count on the help of blockchain developers to improve their infrastructures. These experts combine their skills and expertise to allow companies to establish higher transparency and receive secure transactions.
What Does A Blockchain Development Company Specialize In?
A blockchain developer generally takes part in the development of blockchain systems.
The primary responsibilities of these experts include:
- Creating blockchain protocols
- Designing network architecture
- Developing security patterns for the network security
- Creating smart contacts and custom app frameworks
- Laying foundations for NFTs (Non-Fungible Tokens)
- And more
Blockchain developers have strong analytical abilities, programming skills and are proficient in different languages including Python, Java and C++.
What Are The Different Types Of Blockchain Companies?
Based on their responsibilities, we distinguish two primary types of blockchain development companies:
- Core blockchain developers: They are responsible for developing the architecture of the blockchain system and the design of the protocol.
- Blockchain software developers: They use the architecture and protocols that the core blockchain developers develop to create decentralized apps that run on blockchain technology.
Furthermore, we can also divide these software developers according to the type of blockchain systems they create:
- Public blockchain development: Public blockchains are open-source and they allow transactions to be fully transparent, decentralized and highly censorship-resistant.
- Private blockchain development: Private blockchains offer private transactions that are available only for users that have received permission to join the network.
- Hybrid blockchain development: Hybrid blockchains are a combination of permissions and private blockchain and give businesses the flexibility to pick what data to keep it public or private.
Which Businesses Should Consider Hiring A Blockchain Development Company?
The global spending on blockchain solutions is expected to hit $15.9 billion by 2023.
Blockchain has changed the way businesses perceive problems and allowed them to solve their key issues.
This is why more and more companies are investing their time and money in blockchain developers since it helps them run their businesses smarter while increasing their productivity.
According to research by Statista, blockchain systems are mostly used by businesses in the following industries:
- Manufacturing and resources
- Distribution and services
- Public sector
- NFT marketplaces
However, all businesses that are engaged in transactions should consider partnering with a blockchain development company to take advantage of the benefits this technology carries.
How Much Do The Top Blockchain Companies Charge?
Here is how much you can expect to pay for a blockchain system:
- $15,000 – $35,000 for a project of low complexity
- $30,000 – $90,000 for a project of medium complexity
- $120,000+ for a project of high complexity
When blockchain developers set the price per project, they take into consideration the following:
- Design and development
- Third-party tools
- Maintenance and support
What’s more, top blockchain development companies also charge per hour. Then, the cost will drastically vary starting from $25 and going up to $150.
In this case, the companies’ location, team size, experience and seniority will influence the average rates.
5 Reasons To Hire A Blockchain Development Team
Blockchain technology is as beneficial as it is complex.
And to leverage its potential you need to turn to the top blockchain development companies since they have the skills and the expertise to provide you with a fully functional product.
Here are the top five reasons to consider partnering with a blockchain developer:
1. Improved Efficiency
Blockchain systems automate the time-consuming transaction process while maximizing efficiency. They make payments easier and faster and allow you to keep track of every single action.
Once the system validates transactions, it stores them in the form of blocks in one place.
This technology also removes the need for middleman assistance which eradicates human-based errors and increases trust between workers.
2. Better Security
Because of its digital signature and encryption, blockchain technology is secure. The system encrypts and links every new transaction to the previous one using a hashing method.
Moreover, before transactions are recorded, they need to be agreed upon according to the consensus method.
Blockchain systems are also formed by a complicated string of mathematical numbers. So, once it is set up it is impossible to be changed.
Its unbribable nature makes it secure from any falsified data and hackers rejecting their requests to change the transactions in the network.
3. Enhanced Traceability
Every time the Blockchain system records an exchange of goods, it tracks where they come from while making sure they are nor misused or replaced.
This not only improves the security and prevents fraud, theft and loss of goods, but it also allows businesses to track the supply chain.
Thanks to this advantage, manufacturers and distributors can increase their productivity and run their businesses more effectively.
4. Increased Transparency
Even though blockchain systems keep personal data private, the technology is open source.
All network users are able to share the same documentation and they can modify the code to fit their needs through consensus or with the majority of members agreeing on it.
For businesses that deal with finances, this adds an unprecedented layer of accountability that allows each sector of the companies to act with integrity towards its business growth.
5. Lower Costs
With blockchain technology, you can reduce your costs when third party vendors need to be engaged. Such an example is verifying transactions by paying to banks.
Blockchain systems remove the necessity to pay for any vendor costs since there are no inherited centralized players. Instead, cryptocurrency payments are handled by peer-to-peer networks.
In other words, making guarantees is not required because it makes no difference whether you can have trust in the trading partner.
What’s more, less communication is also required which makes the process smoother.
How To Hire A Blockchain Development Company?
Before you start your search for the right blockchain app development company, make sure you determine your goals first.
Think about your requirements and about the end product you want to receive. The clearer objectives you have, the sooner you can find a blockchain development team that can meet your expectations.
Here are a few factors to consider when hiring a blockchain development company:
- Their experience: Go through the companies’ work or portfolios to see what projects they have worked on and how they’ve helped other businesses in your niche. What’s more, ask how long they have been working on blockchain development and whether they have received any awards or achievements in the field. This will give you an insight into their technical abilities.
- The tools they use: Ask what tools every blockchain development company uses to manage their projects and how they monitor their progress. This will help you understand how they manage collaboration between team members, how they meet deadlines and they keep track of their timeline.
- Their teams: See who are the software development specialists who will work on your blockchain projects and get to know how skilled they are. Also, find out their strengths and their ability to work with different technology to understand their technical expertise.
- Their location: Find out where the top blockchain development companies are located. Then, ask how you are going to communicate and if they work in different time zones. Or, more precisely whether they can function according to your timezone and if not how will that affect your partnership and your project.
- Their reviews: Read what previous clients say about the best blockchain developers and don’t hesitate to contact any of their references. They will give you first-hand info on how reliable these companies are.
Finally, think about the cost of blockchain development and see how much you can allocate for such technology.
Then, ask these companies for a price estimate to see which of them can fit your budget.
Blockchain as a concept emerged in the 1990s.
10 Questions To Ask Before Hiring A Blockchain Development Company
- Can you summarize your experience in developing blockchain systems?
- How will my business benefit from this technology?
- What type of records can it keep? Are there any restrictions we should be aware of?
- How will data be analyzed and stored?
- How is the security of data maintained?
- What platforms do you use to develop custom blockchain products?
- What is your approach to the development process?
- What project management tools do you use?
- Who will work on our project and how often should we communicate?
- How do you form your pricing structures? How much will my project cost?
Last Tips To Consider Before You Hire A Blockchain Company
The demand for blockchain systems is on the rise.
Businesses in the major industries such as manufacturing and finance are investing in a blockchain development team to leverage the benefits this technology offers including:
- Improved efficiency
- Better security
- Enhanced Traceability
- Increased transparency
- Reduced costs
To find the right blockchain development team, go back to our table, set interviews with every potential agency and make sure you consider their experience, location, reviews, project management and technical expertise.
To further shorten your list of the best blockchain developers down, here are a few more factors to take into consideration:
- Post-launch services: Make sure the blockchain development company you choose to work with offers support and maintenance after the project ends. Your product will need to be updated from time to time and the developers who will create it will be able to offer the best support.
- Hidden costs: Ask whether the price of your project will also include the after-launch services. Or, you would have to pay an extra amount of money. This will help you avoid any hidden costs.
Best of luck!