How Much Does It Cost to Develop a Blockchain-Powered eWallet App?
Over the years, cryptocurrencies are gaining immense popularity. As of March 2022, there are over 18,465 cryptocurrencies in existence, and that number is continuously increasing.
Looking at the rising popularity, many business owners want to invest in developing Blockchain-powered eWallet apps. The Blockchain apps offer a transparent remittance of transactions and allow easy and convenient transfer of digital currencies.
If you want to leverage the benefits of the Blockchain wallet, you might be wondering about its development process and the cost associated with it.
This blog has explained various cost-affecting factors of developing an eWallet app.
What is a Blockchain-Powered eWallet App?
An eWallet service provided by Blockchain technology allows people to store and trade cryptocurrencies and other digital assets. With Blockchain wallet apps, users can view their cryptocurrency balance and transact them using blockchain transactions.
These wallets hold the unique address of the digital currency like Bitcoin and Ether. It enables its users to trade and manage these cryptocurrencies and the ability to convert them back into a user’s local currency.
So, if you want to make a purchase using cryptocurrencies, you need a Blockchain wallet.
Why Use Blockchain Wallet Apps?
As technology advances and people demand more convenient and faster digital solutions, it is outdating the traditional banking system. Furthermore, conventional banking systems pose various issues like a slow process, disruption from intermediaries, keeping track of account and balance information, and data manipulation. Therefore, it is more prone to failure of the transaction.
The advent of eWallets had made the revolutionary change of going cashless in today’s advanced time. These wallets have made the money transaction process much effortless and faster by using your smartphone, tablet, desktop, laptop, or similar devices.
Nowadays, the cryptocurrency payment system is getting more popular due to its various benefits like security, no intermediary, no data alteration, etc. Moreover, Blockchain eWallet allows hassle-free cryptocurrency trading. They are accessible from the web or any other mobile device. Also, it maintains the privacy and identity of the user during a transaction.
Therefore, a Blockchain wallet assures safe and secure trading of cryptocurrencies between different parties.
Types of Blockchain Wallets
We can categorize the Blockchain wallet into two categories; Hot and Cold wallets.
Hot Wallets and Cold Wallets
In Hot and Cold wallets, internet connectivity plays an important role. These wallets are available online. Hot wallets are more user-friendly and conduct transactions quickly. However, these wallets are more prone to security attacks due to being online. Coinbase and Blockchain.info are the typical examples in this category.
Cold wallets are digital offline wallets that are signed offline and disclosed online. These wallets do not require internet connectivity and are stored offline. Due to offline management, these wallets prevent the users from unauthorized access or any other malicious activities. For example, Trezor and Ledger.
The further division of Blockchain wallets are:
- Software Wallets
- Hardware Wallets
- Paper-based Wallets
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Software Wallets
A Software wallet is an application downloaded on a device like a computer or smartphone. Also, web-based wallets that can be accessed online fall in this category. For instance, BRD – bitcoin wallet, Jaxx Liberty Blockchain Wallet, and Copay wallet are some of the common blockchain-powered wallets.
1. Desktop Wallets
Blockchain wallets are installed on computers and designed to run on desktop operating systems like Windows or macOS. These are cold wallets and one of the best ways to store private keys on cold servers.
Also, they are one of the most secure methods of cryptocurrency transactions as they are easy to use, offer privacy, and eliminate third-party involvement. Regular backing up of the computer is required for these wallets.
2. Online Wallets
These are hot wallets that use the Internet for their execution and the private keys are stored online. Users can access these wallets on any device, from a tablet or a desktop to a mobile browser. Also, it allows third-party management of private keys.
For example, GreenAddress has an Android app, is available on iOS and desktop, and on the web.
3. Mobile Wallets
These wallets are similar to online wallets; however, they are specially developed for the users of mobile phones. These extremely user-friendly Blockchain wallets provide easy accessibility and conduct transactions effortlessly. For example, the Mycelium Bitcoin Wallet app is available on the PlayStore.
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Hardware Wallets
Hardware wallets store the user’s private keys on protected hardware devices like a USB, and can connect to the computer for access. These are cold wallets, similar to portable devices connecting cold storage devices.
You have to plug your hardware wallet, stored in a portable device, into your computer to make transactions. Hardware wallets are not stored online; therefore, they are prone to hacking and malicious online activities.
The typical examples of hardware wallets are Ledger, Trezor, and KeepKey.
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Paper-based wallets
In paper wallets, your private and public keys are printed on paper, and user can get the access through a QR code. Some of the paper wallets also use scannable barcodes provided by the app. These wallets take the process of your storing and trading cryptocurrency offline.
If you choose to print your keys, they are generally removed from the cryptocurrency network and become inaccessible without your keys; however, the tokens remain. These wallets allow you to transfer funds from your software wallet to the public address shown on your paper wallet.
Blockchain-Powered eWallet App Features
1. Authorization: The two-factor authentication ensures an extra layer of security protocol during the transaction.
2. Multi-Currency Support: Based on your budget and feature complexity, you can decide whether you want your app to support multi-currency.
3. Push Notifications: Keep your users updated with the upcoming offers or other information through push notifications.
4. Reports and Analytics: Data plays an essential role in the Blockchain wallet. Therefore, make sure your application provides updated data graphically to its users.
5. QR Code Scanning: You can add this additional feature of a QR code scanner to your Blockchain wallet app.
6. Ease of Transaction Functionality: Make sure your users are able to securely and quickly trade digital currency.
Cost Driving Factors
1. Company Size
When you hire a Blockchain development company, it is necessary to consider the company’s size that will develop your app. The larger the company size is, the higher its app development charges will be.
If you decide to work with a large-sized company, it can cost around $15,00,000 or more.
With a medium-sized company, the estimated cost can range between $4500 to $200,000 (or more with advanced features).
If you are considering a small-sized company, its cost can range between $2000 to $25,000. However, with less manpower to handle your project, you might struggle here with the quality services.
2. Features Complexity
The features you decide to integrate into your Blockchain digital wallet are one of the major contributors to cost estimation. Your features requirements might change as per the business needs, which will affect the complexity of developing an app.
You can design the app wireframe to get an idea about the look and feel of the app, which will give an average estimation of the cost associated with the app’s features complexity.
3. App Design
Whether it is a digital wallet or any other app niche, an app’s success depends on its attractive design and simple layout. The UI/UX design and wireframes will take some effort and time to create; in instance, it will also contribute to the cost of building an eWallet app.
With the right plan and strategy, designing a prototype will help you in the long run. Consider that if you decide to design an intricate and interactive prototype, the Blockchain digital wallet cost will be slightly higher.
4. App Platform
The platform you choose to deploy your Blockchain wallets, such as Android, macOS, or Windows, will also determine the cost of the eWallet app development. For building an eWallet powered by Blockchain, you can use some of the most common and preferable Blockchain frameworks like BigChainDB, Hyperledger Fabric, and Quorum.
The Blockchain framework you choose to work on will depend on your app idea and features, and also, it will be a determining parameter of the estimated development cost.
5. Technology Stack
You must know that some sets of languages and tools are associated with digital wallet app development.This technology stack depends upon the features you choose to develop in your eWallet and the company you hire.
The company you hire to develop the Blockchain wallet must be familiar with the latest technicalities and details of the framework. Therefore, getting to know the technology stack of Blockchain wallet development helps you determine which one of these languages and tools will work best for you and fit your budget.
Conclusion
We have provided specific parameters that might affect the development cost of the Blockchain wallet. Largely, how much you can spend on building an eWallet app depends on your app objective and the development process associated with it. However, if you change the feature or app scope, the price will change accordingly.
The estimated average cost of a Blockchain wallet can be between $80,000 to $100,000 or more as per the project scope.
Author’s Bio
Tom Hardy is a Sr. App Developer in a leading Blockchain development company. In his free time, he writes blogs on advanced technologies like Blockchain, AI, AR/VR, etc.
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