Understanding the Challenges of Software Project Estimation
Estimating a software project is one of the most challenging aspects of cooperation between a startup and a dev agency.. The most common founder question is: "How much will it cost, and how long will it take?" Unfortunately, the answer, "It depends," is both true and frustrating.
This is especially relevant in blockchain projects, where technology evolves rapidly, and standards are not yet as well established as in traditional web development. A precise estimate requires detailed information. So, what does a software house (dev shop) need to estimate your blockchain project accurately?
Understanding Business Vision & Operating Model
Before throwing out any numbers, the development team needs to understand what you’re building and why. Answers to several crucial questions will allow us to start:
- What problem does your product solve?
- Who are its users?
- What is the business model?
- What are the key MVP features?
You don’t need a 50-page specification document right away, but a well-thought-out vision helps avoid underestimation or overestimation.
Scope of Functionality & Technical Requirements
A software house needs to know which features are absolutely essential for the MVP and which can be added later. A common approach is dividing features using the MoSCoW method:
- Mo: Must-have - The product won’t work without it (e.g., smart contracts in DeFi).
- S: Should-have - The product will work, but this feature is highly recommended
Co: Could-have - This can be included in a later version (e.g., automated user reports). - W: Would-have - It's a cool feature, but we really don’t need it at this time.
If you already have technical preferences (e.g., choice of blockchain, modular architecture), estimating the effort required is easier.
Choice of Blockchain & Technology
Not all blockchains work the same way. The choice of technology affects the estimation since different blockchains have different tools, optimizations, and costs.
- Ethereum? You might need gas optimisations and a smart contract audit.
- Solana? Keep in mind that Rust development is less common than Solidity.
- L2 solutions? Often a cheaper option but requires additional integrations.
The dev shop also needs to know whether your software project requires integration with:
- Payment gateways,
- Oracles (e.g., Chainlink)
- Cross-chain bridges
- Other infrastructure layers
- Logistics providers
Do You Have Technical Documentation or a Prototype?
If you have at least a technical document, UI mockups, architecture diagrams, or a proof of concept (PoC), the estimate will be more precise.
No documentation? That means more uncertainty, leading to higher time and cost estimates. If the dev shop has to design the system from scratch, the estimation will include a discovery phase and consultations.
External System Integrations
Your blockchain product likely won’t operate in isolation. You might need:
- Integrations with CEX/DEX (e.g., Binance API, Uniswap).
- User wallets (e.g., MetaMask, WalletConnect).
- Fiat on/off ramps (e.g., MoonPay, Ramp Network).
- KYC/AML solutions (e.g., Sumsub, Onfido).
Each integration adds time and potential risks. The software house needs to know your integration plans to accurately estimate the required effort..
Project Team & Roles
Not every project requires the same team structure. In blockchain development, you often need:
- Blockchain developer – for smart contracts.
- Backend developer – for APIs and integrations.
- Frontend developer – for dApp or admin panel.
- DevOps – for deployment, monitoring, and infrastructure.
- Auditor – if smart contract security is crucial.
The more complex the project, the more specialists are needed, which directly impacts cost and timeline.
Testing & Security Audits Strategy
Blockchain doesn’t forgive mistakes. Smart contract errors can mean losing funds. That’s why a dev shop needs to know:
- Do you require a full smart contract audit?
- Will testing include attack simulations (e.g., MEV, reentrancy)?
- What’s the rollback strategy if something goes wrong?
Thorough testing adds extra time, but cutting corners on blockchain security is not a good idea.
Deadlines & Time Constraints
Are you under time pressure? If so, the dev shop might propose a sprint-based delivery model, but this could mean:
- Higher costs
- A more limited MVP scope
Some delays might be beyond your control - e.g., if your project requires approval from a blockchain foundation (such as an Ethereum Foundation grant), it can take time.
Budget & Collaboration Model
You don’t need to have an exact budget, but providing a rough range helps the dev shop determine if the project is realistic.
- Fixed price? Good if you have an extremely detailed specification (which is rare in startups).
- Time & Material? A flexible approach that allows for adjustments as the project evolves.
- Dedicated team? If your project is long-term, having a permanent team might be a better option.
The more flexibility, the easier it is to adapt to inevitable changes.
Summary
What to Prepare Before Talking to a Software House? If you want a reasonable estimate, prepare:
✔ Product description (business & technical).
✔ List of key features (must-have vs. nice-to-have).
✔ Choice of blockchain & technology (if decided).
✔ Info about integrations (CEX, wallet, fiat on/off ramp).
✔ Prototype, mockups, or documentation (if available).
✔ Budget & collaboration model (if you have preferences).
The more information, the better. This helps the dev shop avoid guessing, and you get a faster, more accurate estimate and roadmap for your project.
Want to Estimate Your Blockchain Project Quickly?
It all starts with a conversation with a well-prepared tech team! 🚀
Neti can help! Our expert team specialises in precise blockchain project estimations to ensure you get the most accurate cost and timeline assessment.
✔ Tailored estimation for blockchain projects
✔ Comprehensive security & testing strategies
✔ Integration with leading Web3 technologies
