In-House vs. Outsourced Blockchain Development

Written by Scott Craig|Posted on August 25, 2023

header image

Blockchain is more than just a hot trend in the IT industry. The distributed digital ledger technology is here to stay, finding use cases far beyond cryptocurrency and NFTs. Fintech platforms, cross-border payment systems, supply chain management, logistics, and other industries are all using blockchain thanks to its advantages in providing secure and decentralized data management.

As more and more companies consider using blockchain as the primary tech stack for their next software product, be that a mobile app, website, or web3 application, the question often comes up–should you do it in-house or outsource blockchain app development?

Here’s a rundown of the pros and cons of both approaches.

In-House Blockchain Development

This involves assembling your own team from scratch that can handle all the development work as part of your company.

Pros of in-house development

  • You have complete control of your team and project, as they work directly under you, often in the same building
  • You have hired and onboarded each team member, and can quickly and easily communicate requirements and personally guide them
  • Allows your company to be more independent

Cons of in-house development

  • Headhunting, interviewing, onboarding, and retaining staff–as well as office space and equipment–can cost considerably more than outsourcing
  • Your technical expertise is limited to the team you can afford to keep in-house and convince to work at your company
  • High developer turnover rate makes it hard to retain talent

Outsourcing Blockchain Development

This involves contracting a third-party vendor, usually a specialist blockchain development services company based in another country, to handle the development process for you.

Pros of outsourcing

  • Lower cost compared to hiring, training, and retaining an in-house team
  • Can easily and quickly upscale or downscale team as needed
  • Specialists have greater practical expertise with blockchain
  • Experienced team with established processes and tools
  • Access to global talent pool

Cons of outsourcing

  • Less direct control over the project
  • Language and time zone differences can cause communication issues

Final Thoughts

Generally speaking, the advantages of outsourcing mean that it is usually the preferred approach. There are ways that you can mitigate the risks of outsourcing, for example, by contracting a partner that offers project monitoring tools, or by choosing a nearshore development company that speaks English and is aligned with your time zone.

To read the original article, click here.

Scott Craig

Scott Craig



Kirkland, WA, USA

View profile