How To Choose The Right Blockchain Development Company

How to choose the right blockchain outsourcing company?

That Bitcoin was created by Satoshi Nakamoto in 2008 marked a new era of blockchain technology and decentralized economy. Are you looking for the top blockchain development outsourcing companies for blockchain technology implementation? Check out our ultimate guide to choosing the right outsourcing blockchain development company below.

[Quick overview]

3 steps to choosing a trusted blockchain development service provider:

  • Step 1: Start by clarifying your needs.
  • Step 2: Decide your blockchain development approach.
  • Step 3: Choose the best blockchain vendor with reasonable costs and great blockchain solutions that fits your needs.

5 criteria to consider:

  • Company’s expertise
  • Blockchain development cost
  • Timely
  • Flexibility
  • Security policy

Step 1: Clarify your needs in blockchain technology implementation

Understanding your requirements is the first step toward an effective blockchain development outsourcing process. It helps you choose the most appropriate vendor and assists your partner in picking the right blockchain solutions for your business.

Here are some questions you can ask:

  • Your business idea: What is your product? What problems are you solving? What solutions do you provide?
  • Your timeline and budget plan: How long and how much you will spend to implement blockchain technology?
  • Your preferred technologies (if any): What blockchain solutions are preferred to deliver your best product and make it better than existing ones?

Step 2: Decide your blockchain technology approach

Typically, there are two ways for enterprises to realize blockchain solutions: Use an existing framework and build their own blockchain.

Use an existing blockchain

It means you develop your custom blockchain-based application on a layer-1 blockchain framework. This is probably the most popular way to apply blockchain technology because it’s easier, quicker, and cheaper.

So, why? Because you just need to develop your custom codes on the blockchain framework to build your dApp and you can utilize the enhanced security and scalability that the framework offers.

The top layer 1 blockchain platforms in 2022 for dApp developers: Ethereum, Solana, BNB Chain, Near, Avalanche, Corda, Stella, Cardano, etc.

Build your own blockchain

In opposite to the above method, this time you will build your custom blockchain for your business with your target balance of decentralization, security, and scalability. It will require lots of effort in building, maintaining, and safeguarding as million-dollar bugs may come at any time.

Normally, enterprises that need private blockchains or custom blockchain solutions to reduce dependence on outsources will consider this method. In this case, your blockchain developers will need solid ability in blockchain logic and architecture besides the 5 popular criteria below.

Step 3: 5 criteria to choose the best blockchain development company

1. Company’s expertise

Choose an experienced company

Hiring a blockchain partner is basically choosing a software development vendor that specializes in blockchain technology. The best blockchain solution provider should come with solid tech skills plus experience related to your target blockchain product.

The more blockchain products and blockchain platforms they worked with, the higher chances that they can propose the best solutions for your products, especially in terms of commercially viable blockchain technologies.

Still, as the blockchain technology just began to boom in 2017-18, you shouldn’t expect a ten-year experience company in all blockchain-based applications. Instead, look for some of the following in their portfolio:

  • Smart contracts development.
  • Public and private blockchain development.
  • Blockchain wallet development.
  • NFT marketplace development.
  • Decentralized exchange development.
  • Cryptocurrency development.

How to verify? You can check their portfolios on Clutch or Github to see what blockchain applications they have involved. Also, schedule a meeting with them to discuss their experience and see if their blockchain solutions match your needs.

Choose the best blockchain developers

Blockchain developers will directly build your applications. So, first, they should be able to use the programming languages needed for your applications/blockchain. Blockchain programming languages are similar to general software development, including Solidity, Python, Rust, Java, JavaScript, C#, C++, Golang, Go, etc.

Second, the best blockchain developers should understand blockchain data structure besides general software development knowledge. See if they are familiar with:

  • Data structure and distributed ledgers.
  • Blockchain trilemma: Decentralization, security, scalability.
  • Decentralized apps and smart contracts.
  • Networking systems (in private & hybrid blockchains)
  • Blockchain consensus algorithms and cryptography principles (to ensure blockchain security mechanisms).

How to verify? See their CV and portfolio, look at their repositories on Github (if any), interview them, and give them a test related to your target product.

2. Reasonable blockchain development cost

After ensuring the service quality you may wonder about the budget. So, how much does blockchain application development cost? It may start from $5,000 to hundreds of thousands of dollars, depending on the specific blockchain implementation scope. And the average global blockchain developer hourly rate ranges from $30 – $59 by Upwork statistics.

But let’s see what aspects you can control to reduce blockchain app development costs.

Normally, blockchain development costs consist of Consulting; Designing; Development; Testing; Deployment; Maintenance.

Two common blockchain outsourcing pricing models are:

  • Fixed-price contract: Pre-defined budget covering all the above costs
  • Time & Material model: Cost is calculated based on real effort spent to get the tasks done.

Two possible payment methods:

  • Accepting coins/tokens as part of the payment.
  • Accepting money only.

So, we recommend three tips to choose the most budget-friendly blockchain firm:

  • Outsourcing to top companies for blockchain development with low costs like India, China, and Vietnam if possible. As you can see a big gap in the developer salary range and you will be able to utilize the geographical prices in these countries.
  • Choose the fixed-price contract. First, it’s not easy for you to exactly estimate the effort required for a relatively new technology like blockchain. And second, it’s hard for you to estimate the cost if you are new to this kind of product.
  • Ask if your vendor accepts payment in coins/tokens to reduce the cost burden if your budget is not strong enough.

3. Timely

Another important aspect to consider when choosing a blockchain development company is if they are timely, proven by:

  • Quick responses: They quickly get back to you during the contacting, planning, and development phases. That means they have time to take care of your business.
  • Strict timeline: They provide a clear timeline and require less time for service delivery than other firms. Then high chance that they can deliver your product on time to not be left behind in the fast-evolving blockchain technology space.

4. Flexibility

Flexibility is also essential in blockchain development not only dues to the fast-evolving nature but also the “new” of blockchain technology. In this early blockchain stage that not everything is verified, things are often right until someone says that it’s wrong.

For example, Luna’s stablecoin algorithm was considered the best stablecoin model to apply until this technology appeared to issue, UST became unstable, and everyone realized that it was not as good as they thought.

So, regardless of the pre-defined plan in the fixed-price model, you should ask the vendor about handling significant changes such as:

  • Add new technology/new features that can improve any aspects: product efficiency, customer experience, etc.
  • Reconsider/replace anything that becomes unsuitable.

5. Security

Security in blockchain development consists of two aspects: security function and project information security. Still, security functions could be ensured via the company’s expertise in the first section so we won’t discuss them here.

As for information security, see if the vendor’s solutions work for your project. There are three main types of security that outsourcing companies apply as follows:

  • Physical security layers: CCTV system, fingerprint scanner, separated working space, etc.
  • Legal confidentiality: NDA (Non-disclosure agreement).
  • Network security: VPN (Virtual private network), data leak prevention solutions, etc.

Final words

That the demand for blockchain implementation is rising resulting in numerous blockchain development companies entering the market. What you should do is have a list of vendors based on your prioritized criteria and do what you can – double-check, interview, and compare them – to find the most suitable partner for your business!

LTS prides to be a trusted partner who has provided custom blockchain solutions for specific business needs at reasonable costs. Don’t hesitate to contact us at any time for a free consultation.

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