Comments Akke Svenson, Rahakott.io founder
Blockchain, bitcoin and the whole crypto world is hype. Hype gives the opportunity to make business on it. There is huge demand on all crypto-related apps. And crypto currency wallets are among the most popular. But does it make any sense to invest in crypto wallet software? To understand it we need to calculate, how much does it cost to develop?
Actually, it’s not a big deal to surf through different libraries giving standard functionality that serve to synch with the blockchain. There are also services that provide “plug and play” API for the blockchain. It’s a very attractive option for those who want to develop a crypto currency wallet app from the scratch.
So, here is the algorithm.
First, you need to study the market and understand what key features will be available in your wallet? Even small feature makes your app more expensive by several thousand dollars. However, please, keep in mind – the number of features may significantly enhance your compatibility in the highly competitive market, as it influences the level of satisfaction your clients get.
There are some “must have” features like user-friendly registration with a mnemonic phrase, two-factor authentication and password protection as well as generation of new address for each transaction and QR code scanner.
But most services already have that, and you need to have something special to win in a highly competitive battle.
Among them might be:
- conversion rates with the choice of more attractive price. It will give the user the overview of the current crypto currency rates, giving the opportunity to compare and choose the best price among many.
- access to most frequently addresses. Recurrent payments save time and effort. And users will definitely appreciate that.
- alerts on transactions, changes in Bitcoin price etc. It will give the user the thorough picture of the current crypto currency market trends.
- auto denial of duplicate payments. This option is the perfect solution, as we know that Bitcoin & other cryptocurrency systems does not allow charge-back.
- optional session logout for higher security. System will automatically logout user after certain time. The feature makes it hard for frauds to follow the ownership of coins.
And of course you need to take care of security. Recently, Tether platform that used to claim its security and transparency thanks to blockchain technologies, lost $31 mln from its main wallet. It happened through malicious action by an external attacker.
Given that Tether is not going to redeem any of stolen tokens, the key questions arises again – what’s about security? This case has shaken the global belief in crypto currency market, and even put the key digital currencies under pressure. Not for long, though. New scams pop up all the time.
So, let’s do the calculations:
First of all keep in mind what is your focus – “nice picture” or “great functionality”. In the first case the designer work will significantly increase the price and time of the app development. In the second case we may get less expensive and more user friendly application.
And please, keep in mind that hiring a team of developers may come up more expensive, but less time-consuming, as cryptocurrency wallet is not an easy task involving different experts with specific expertise.
Another question – what kinds of apps do you need? Native apps specifically developed for iOS/Android are more expensive than Web apps, for example. However, the owners and users may get more satisfaction with the level of service they get.
And one more thing. Will your app require a server? If the answer is positive, you will have to pay more. The current practice is different. Some wallets do not require a server (for example, BitcoinJ Wallet), and other need that (like in case with Blockchain or Coinbase).
So, now we come to the key parts of the development process:
- Backend may cost you about $10K
- If you are thinking of developing only apps for Android or iOS, the price will range within $30K-$35K, and web app creation will add another $5K to the price.
- Design may cost much, if you want to make something really unique. But usually that batch of work won’t take more than $7.5K.
- Quality assessment/ project management will add another $4K to the total. And be very cautious at the stage. Each application needs to go through the stage of testing. We live in a very competitive environment, thus, users have the right to be very picky. They are really sensitive to application bugs. And even small troubles can easily disappoint your potential clients and make them move to other wallets.
Be ready to spend time and money
All in all, the minimal price for crypto currency wallet is around $51,5K, and the highest one may depend on your ambition. It’s important to discuss each brilliant idea with your developers because you may not realize all the details of the hard and complicated process. But now you at least approximately understand the scope of work and expenditures.
Although the development of this app might consume time and money, we need to keep in mind the supply and demand issue. Crypto wallet apps are on the list of the most up-and-coming business ideas.
Figure 1. Number of Blockchain wallet users worldwide from 1st quarter 2014 to 3rd quarter 2017
According to Statista.com data, the total number of Blockchain wallet users worldwide, from the first quarter of 2014 to third quarter of 2017 grew 12 times! The number of Blockchain wallets has been growing since the creation of the Bitcoin virtual currency in 2009, and now it reached approximately 15 million Blockchain wallet users. The latest available data is from September, 2017. However, given the recent price surge of Bitcoin and Co, the number may reach 30 mln users by the end of the year.
And all of them will be looking for the perfect crypto currency wallet. So just catch the hype!
Akke Svenson, Rahakott.io cryptocurrency wallet founder
Entrepreneur, IT specialist, blockchain enthusiast. Graduated from the Royal Institute of Technology in Sweden and Stanford University in the US. He began his career at Ericsson, then worked on developing services for financial companies in Europe. For a few years he served as CTO at a Silicon Valley fintech startup. After that, he returned to Sweden and founded his own company, specializing in IT consulting. He became interested in blockchain in 2013, believing that modern technology will help build new economic relationships in the world.
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