Guide to Choose the Right Blockchain Development Service Provider
“Everything will be tokenized and connected by a blockchain one day.” – said Fred Ehrsam.
When the internet was born, it was simply thought of as communication between people. Web 1 brought email, while Web 2 brought social media and personalization. As we step into the world of Web 3, a new way of online interaction is born, blockchain. First used under the Bitcoin cryptocurrency in 2009, blockchain has achieved a total of $6.6B in 2021 alone and is projected to grow to $19B by 2024.
A key reason why financial institutions have flocked to cryptocurrencies and blockchains and now make up 30% of the total market is because of this. More and more companies have been allocating budgets for blockchain, and 24% of companies are expected to invest between $5MM to $10MM on blockchain development. If you are also looking for a blockchain development expert for your business, you might have to do some heavy lifting before zero in one. Or do you? Read on to find out what to look for before choosing a blockchain development service.
What is Blockchain and its benefits?
Blockchains are decentralized databases or digital ledgers that keep records of all transactions on a network in a decentralized, secure manner. However, the way the data is stored differs from conventional databases. For example, a blockchain stores data in groups called blocks instead of singular data entries. The storage of data in blocks helps guarantee the fidelity and security of records. Besides these, there are other benefits of using blockchain as well. They are:
A blockchain is a distributed ledger, and it is accessible at various locations. So, any transaction that has been done on that blockchain can be viewed by all the members that have viewing rights. This helps in promoting transparency.
With blockchain, you can set up processes that can be automated once prepaid conditions are met. This can help improve the overall efficiency and speed of all processes and, in turn, the human employees.
The entire architecture of Web 3 is built on blockchain. There is no central authority in command with blockchain, which helps create a certain level of trust in the user. Thanks to this model, the enablement of decentralization is a significant part of the blockchain.
With the amount of data the users and companies use for personalizing experiences on the internet, privacy has become a concern for many users. However, with blockchain, users are in complete control of their data which helps tackle privacy concerns.
How do you choose the right Blockchain Development Service?
To determine if the chosen blockchain development service is the right one for your business, you should make sure they fulfill specific criteria. The basic requirements expected from a blockchain development service are:
Does the solution match the price?
In many cases, businesses are ready to spend the finances to get blockchain development done without understanding how much it costs. For this purpose, you need to go through online sources to know if the price the service provider is asking matches the solution. Get quotes from vendors and then sit down for negotiation talks. If they ask $100 for a $10 solution, you should walk away.
Does the company follow the latest trends?
Blockchain development is a developing field and is evolving at a fast rate. To make sure that you are getting the most out of your investment, you have to ensure that you are not getting something obsolete in the name of the latest. Do a little groundwork and find out the latest technology trends available. Then ask questions about the utilization of the same from the vendor in question. Understand their methodology and whether they are apprised of the latest trends in the industry.
Does the contract match your business model?
In a lot of cases, an off-the-rack solution will not work. So, you should sit down with the blockchain development service provider to better understand how they can mold a custom-made solution for you. This will help lower or adjust the price they had quoted initially while getting you what you want. Talk to the vendor about your financial constraint, the project’s scope, and the business model you are targeting. If the vendor can understand and relate to those, you might get the best deal. Or, in some instances of financial constraint, you can work out a profit/revenue share agreement for that particular project deployment only for a fixed period.
What industry have they catered to in the past?
Blockchain has been deployed in various fields. And for that purpose, it is a well-established practice to determine which areas the service provider has catered to in the past. This will help you understand the experience they have and if they can understand and cater a custom solution for you. The higher the number of fields catered to, the better the chances of a good solution. If you are acquainted with the techniques needed for your area, you can ask them questions if they have experience with it or not.
How experienced are the professionals, and will they provide project security?
The most critical part of the process is checking whether you will get a dedicated team of professional blockchain developers or use the same resources for all the projects. Every project is unique, and hence, several different skills are involved. For this purpose, a dedicated team for your project is vital so that you can resolve all the queries in real-time. Furthermore, you should know whether you get project security or not. Ask the developers what security measures are being built to create the blockchain solution. Ensure that they are using a multi-signature function that can help deploy two-factor authentication of the user.
Does the service provide an extension?
Payments and timelines are frequently at the center of the contract agreement, but they can be amended in some cases. For example, this happens when the scope of the blockchain development course gets expanded. In this case, you have to check with the service provider beforehand that they are willing to extend the services they provide more than the timeline stipulated in the contract. Furthermore, are they willing to do it within the same budget, or will the extra amount be charged on a new contract basis?
How is the after-sales service?
Before deciding which company you will work with, find out from their older clients and how their after-sales service is through online forums. This research should focus on whether the service provider values its clients’ satisfaction or just about the payday they get. This will help decide if the service provider is someone to be associated with within the long term.
Conclusion- Who is the best blockchain development provider out there?
While blockchain development costs start around the $5,000 ballpark, they can go up to $200,000 or more for specific instances. And despite spending that money, there is no assurance that you will get the solution you want.
You would need an expert like Etelligens who can offer a tailor-made solution at the right price for every challenge. With over 200+ clients across the globe, they have the right expertise in blockchain development that can solve your problems in a jiffy.