The whole world is moving toward Web3 due to limitations posed by Web2, which was centralized, less secure, and lacked transparency. In contrast, Web3 brings a completely new level of security, decentralization, and enhancing overall reliability. It leverages blockchain technology to create a peer-to-peer and operate autonomously, reducing the reliance on intermediaries.
That is why, businesses—whether long-running enterprises or new startups—are eager to adopt Web3 technology to capitalize on its advantages. However, a primary concern for many is the cost of Web3 development. In this blog, we will explore the market value of Web3 and break down the costs associated with Web3 development.
Future Market Growth Of Web3 Development
Many businesses are currently opting for Web3 development company, and forecasters are predicting the investments of businesses will grow exponentially in the upcoming years. Here are some of the statistics that reflect the same:
- The current market value of Web3 was found to be $2.86 billion in 2023, and it is expected to reach $49.1 billion by 2030.
- Active users of Web3 gaming increased by 60% in the year 2022.
- The NFT market became $40 billion in 2021 and is growing rapidly.
- 81% of top public enterprises are actively exploring blockchain and Web3 solutions.
Understanding Web3 Development Costs
As Web3 applications offer numerous perks over their traditional counterparts, that is possible due to the intricacies and technologies involved in Web3 development. The decentralized nature of the blockchain and other underlying technologies, such as peer-to-peer networking, smart contracts, and distributed ledger for data storage, needs a different approach to development. This complexity can significantly influence the overall costs associated with Web3 development. Along with this, there are some more factors influencing Web3 development prices mentioned below:
Factors That Impact the Web3 Development Cost
Blockchain Type
The chosen blockchain type for Web3 development also influences the overall web3 development cost. Blockchains such as Tron, Binance Smart Chain (BSC), Polygon, and Solana are less costly than Ethereum and Tether. It is because blockchains, considering Ethereum for instance, have high gas fees, thus it is expensive for high-frequency transactions.
Technical and Security Integrations
Although all the Web3 applications are highly secure, the industries that deal with sensitive data and financial transactions have high-security needs. These Web3 development projects need in-depth security audits and testing which considerably impact the Web3 development Prices.
Project Complexity
Web3 developers usually charge less for simpler single-purpose decentralized applications. However, Web3 development applications that have multiple functionalities such as Web3 gaming platforms that include play and earn models requiring tokenomics and NFT integrations are more costly.
Tokenomics and Governance Structures
Web3 development projects that have staking mechanisms, native tokens, decentralized autonomous organization (DAO) or other governance models require additional programming and have higher Web3 development costs.
Integration with Web2 Systems and Cross-Chain Interoperability
Building and launching a Web3 development application is one thing, but integrating it with existing Web 2 systems is a complex process. Similarly, bringing interoperability of a developed blockchain with other blockchains is also a complicated task. Such scenarios are quite common in supply chain platforms that hold large data and require integration with a Web3 application or some third-party systems. Thus, these projects are costlier than other Web3 development projects.
Enterprise Size
It might seem surprising, but the scale at which web3 development companies operate can significantly impact the development cost of Web3 applications they build. Basically, companies that have a larger number of experts charge more than small to medium-sized enterprises.
How Much Does Web3 Development Cost?
Typically, Web3 development costs range from $10,000 to $200,000 and could be even higher, depending on the complexity of the project, features required, security, and the choice of blockchain platform. A Web3 development company can provide you with a detailed estimate based on the specific scale and requirements of your project.
Small-Scale Web3 Projects (Basic dApps)
General decentralized applications such as developing normal Basic dApps, such as simple NFT minting platforms, voting dApp or basic token issuance platforms cost between $10,000 to $50,000.
A small team of developers can complete the whole project, including a front-end developer, smart contract developer, and UI/UX designer. These applications include the development of a basic interface with no more than a couple of smart contracts and a minimal backend system. Moreover, these contracts can be employed on single blockchain platforms such as Avalanche, Ethereum, Polygon, etc. which aren’t also very costly.
Mid-Scale Web3 Projects (Advanced dApps)
More complex dApps than basic ones require the use of robust backend infrastructure, advanced tokenomics, and multi-step processes for their development that could cost $50,000 to $100,000. It could be a multi-currency NFT marketplace, a DeFi lending platform, or a Web3 game integrated with tokenized assets and reward systems.
The development process comprises building extensive backend infrastructure and interactive frontend, as well as integration with multiple blockchains such as Binance Smart Chain, Ethereum, etc. Additionally, these projects need a bigger and more specialized team, including blockchain architects, backend developers, frontend developers, and most importantly, security experts.
Large-Scale Web3 Projects (Complex dApps)
Large-scale, enterprise-level Web3 projects such as a large-scale metaverse platform, a cross-chain ecosystem, decentralized exchange (DEX), or a custom blockchain for a company or organization belonging to the healthcare or finance sectors. They could start from $100,000 and go to $200,000 and beyond.
The high cost is due to the multi-layered nature of these Web3 development projects demanding highly customized Web3 solutions. Moreover, they need integration with highly secure payment gateways, multiple third-party systems (like KYC/AML checks), advanced tokenomics, and advanced smart contract development to support multiple transactions. These projects require highly experienced and knowledgeable experts such as blockchain architects, security specialists, UX/UI experts, project managers, legal consultants, and more.
Additional Insight on Company Size and Development Costs
The size of the Web3 development provider can also impact costs:
- A larger company (1000+ employees) can have an App Development Cost of around $4,50,000 – $15,00,000 for enterprise-level Web3 development projects due to greater overhead cost and availability of better resources.
- A smaller company (fewer than 100 employees) may offer services ranging from $2,000 to $25,000 for simpler projects. They are cost-effective options for smaller-scale projects.
Some Tips to Manage Web3 Development Costs
If you really want to benefit from Web3 development, it would definitely cost you much, but these strategies to make this investment more efficient:
- Before choosing a service provider for your Web3 application development, have a clear picture of the features and functionalities you wish to integrate as per your business needs.
- You could opt for blockchain platforms such as Polygon, Binance Smart Chain, or Solana, which have lower gas fees and reduced operational costs.
- Always pick the Web3 development company that has a team of experienced professionals, as it might cause higher upfront fees but prevent costly rework and delays.
- You can suggest the developers opt for Open-Source development tools and Frameworks such as Truffle, Hardhat, and IPFS. They aid in cutting down on development time and costs.
- Ensure the security is integrated right from the start of the project to reduce future expenses.
Conclusion
Investing in Web3 development can help businesses adopt a decentralized, secure, user-focused blockchain solution that can aid in business operations and prepare them for the future. However, Web3 development costs can vary significantly, influenced by a range of factors—from project complexity and security requirements to blockchain selection and much more. Whether you want to launch a DeFi platform, NFT marketplace, or custom blockchain solution, we can provide you with Web3 development services at a reasonable cost. Contact us today to discuss your Web3 development project and get a free estimate.
Recommended Read: How to Develop DApps in Web 3.0: A Comprehensive Toolkit for Developers
