Blockchain Procurement, Pricing and Cost Structure Intelligence Report 2030

Blockchain Cost and Pricing Analysis

In this blockchain procurement intelligence report, we have estimated the pricing of the key cost components. Block development, transaction volume, and transaction size form the largest cost component of blockchain implementation. Together with maintenance, node hosting, and designing they account for 60-70% of the total cost. The cost also depends on the type of blockchain such as private, public, or hybrid blockchain. For instance, in a private blockchain cost model, considering a daily transaction volume of 250,000, a transaction size of 500 bytes, and cloud-based node hosting, the total onboarding costs in the first-year range between USD 115,000 - 120,000. Cloud costs range between USD 50,000 - 52,000. Ongoing and maintenance costs range between USD 140,000 - 150,000. The costs of monitoring are between USD 19,000 - 22,000. Hence, over a period of five years, in a private blockchain model, on average, the annual costs range between USD 300,000 and 320,000 for 365,000 annual transactions. As a result, the average transaction costs come to around USD 0.8 - 1 per transaction.

On the other hand, in the case of a public blockchain model, over a period of five years, the average annual costs range between USD 22,000 - 25,000 for 365,000 transactions. As a result, the average transaction costs come to around USD 5 - 6 per transaction. The assumptions considered for this cost model are second-generation ZKPs with an average ZKP transaction gas limit of 2.5 million and a long-run price of ether USD 100.

Order your copy of the Blockchain category procurement intelligence report 2023-2030, published by Grand View Research, to get more details regarding day one, quick wins, portfolio analysis, key negotiation strategies of key suppliers, and low-cost/best-cost sourcing analysis

Operational Capabilities - Blockchain

Industry served - 20%

Years in Service - 15%

Geographical Service Presence - 15%

Employee Strength - 15%

Revenue Generated - 15%

Key Clients - 10%

Certifications - 10%

Functional Capabilities - Blockchain

Private - 25%

Public - 25%

Hybrid - 25%

Consortium - 25%

Rate Benchmarking

The geographical location and nature of the business play a vital factor in analyzing the rate benchmarking of blockchain category. For example, blockchain services in the U.S. are typically more expensive than services in India. For instance, in U.S the average hourly rate of a software developer is the highest ranging from USD 45 to 70, as compared to India which is around USD 20 to 40. This is due to a number of factors, including the availability of skilled labor, and the regulatory environment. The cost of blockchain services varies depending on the scale of the project. For example, a small business that is simply looking to implement a blockchain-based solution will likely pay less than a large enterprise that is looking to build a complex blockchain-based platform. Prices also depend on complexity of the blockchain application. For instance, a simple application may cost between USD 40,000 - 60,000 whereas a highly complex application may cost from USD 155,000 to 300,000.

List of Key Suppliers

• IBM Corporation
• ConsenSys AG
• LeewayHertz
• ELEKS Software
• Blockstream Corporation Inc.
• Bitfury
• Springcoin, Inc., d/b/a Spring Labs
• Chainanalysis
• Galaxy Digital Holdings Ltd.
• Markovate
• Appinventiv
• Accenture Plc
• Cubix

Supplier Newsletter

• In June 2023, EU’s EBSI Vector project announced collaboration with Protokol, a blockchain service provider for professional and educational credential verification. This project will simplify the recognition of EU citizens in different countries.
• In June 2023, Fujitsu announced the launch of its proprietary blockchain technology, ConnectChain, in collaboration with Asian Development Bank, ConsenSys Software Inc., R3, and SORAMITSU, LTD for facilitating and enhancing cross-border transaction safety of financial securities. By incorporating "ConnectionChain," the trials accomplished the establishment of a system capable of securely linking multiple blockchains to facilitate transactions across various economic regions. The primary objective of these trials was to enhance cross-border securities settlement within countries such as Japan, China, and South Korea.
• In June 2023, KOMARKCORP BERHAD announced a partnership with Ant Group Digital Technologies to tap into digital blockchain services. The partnership combines Komark's expertise in printing and labeling with AntChain's blockchain-based traceability technology. This collaboration aims to explore new markets and meet the increasing consumer demand for traceability, particularly in safety-sensitive industries like food and beverage, as well as the medical sector.
• In June 2023, J.P. Morgan partnered with six major Indian banks to use blockchain technology to settle interbank U.S. dollar transactions. The participant banks include ICICI Bank, HDFC Bank, Yes Bank, Axis Bank, and J.P. Morgan’s banking unit at Gujarat International Finance Tec-City. The blockchain pilot will remove barriers such as the non-availability of settlement on Saturdays, Sundays, or public holidays.
• In February 2022, 5ire, a blockchain network of the fifth generation, obtained a USD 100 million capital commitment from GEM Global Yield LLC SCS (GGY), as part of its intention to pursue an initial public offering (IPO).

Browse through Grand View Research’s collection of procurement intelligence studies:

• Office Supplies Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)
• Outplacement Services Procurement Intelligence Report, 2024 - 2030 (Revenue Forecast, Supplier Ranking & Matrix, Emerging Technologies, Pricing Models, Cost Structure, Engagement & Operating Model, Competitive Landscape)

Blockchain Procurement Intelligence Report Scope

• Blockchain Category Growth Rate : CAGR of 87.7% from 2023 to 2030
• Pricing Growth Outlook : 8% - 10% (Annually)
• Pricing Models : Cost plus pricing model, fixed price pricing model
• Supplier Selection Scope : Cost and pricing, Past engagements, Productivity, Geographical presence
• Supplier Selection Criteria : Type, technical expertise, security measures, cost and value, support and maintenance, regulatory compliance, and others
• Report Coverage : Revenue forecast, supplier ranking, supplier positioning matrix, emerging technology, pricing models, cost structure, competitive landscape, growth factors, trends, engagement, and operating model

Brief about Pipeline by Grand View Research:

A smart and effective supply chain is essential for growth in any organization. Pipeline division at Grand View Research provides detailed insights on every aspect of supply chain, which helps in efficient procurement decisions.

Our services include (not limited to):

• Market Intelligence involving – market size and forecast, growth factors, and driving trends
• Price and Cost Intelligence – pricing models adopted for the category, total cost of ownerships
• Supplier Intelligence – rich insight on supplier landscape, and identifies suppliers who are dominating, emerging, lounging, and specializing
• Sourcing / Procurement Intelligence – best practices followed in the industry, identifying standard KPIs and SLAs, peer analysis, negotiation strategies to be utilized with the suppliers, and best suited countries for sourcing to minimize supply chain disruptions