A model for blockchain costs
How much do blockchain projects cost? And who pays? Well, first you need to know: are you planning to "create" a new network or buy and "join" an existing one? If the answer is "join" then you need to know the cost per transaction and the cost to on-board. If the answer is "create" then a second question applies: "is the network going to be your baby" or "are you helping to found a Industry Marketplace Utility Network?" In other words: are the costs all on your tab or will you share the costs with the other consortium members via a new governing entity?
For "create" there are three cost buckets to consider
- Develop
- Govern
- Operate
And these costs occur and grow over a 3-stage timeline from
- Minimum Viable Product
- Production Pilot (add integration and exception paths)
- Scale and expand (on-board: members, products and new use cases, inter-operate with other blockchain networks)
For "join" your costs will be:
- On-board (legal, integration, membership)
- Transaction or usage fees
Blockchain Value Design engagements address all these points and many more.
Senior Advisor @ DIF | PhD, Cybersecurity, Chairman of the board DBE Core, Top 100 IT and digi influencer in Finland since 2005
6 年A nice conceptual model of a blockchain network's internal cost drivers. I like your work as we need real world examples and related conceptualizations instead of overly generic descriptions of BC / distributed ledger technologies. BC/DLT, similar to other technologies, offers new improved solutions to some needs (e.g. secure distributed transaction flow control, immutability and/or integration of electronic transactions between multiple parties) but does not suit to all needs. We do not know the boundaries of BC/DLT yet and from that perspective conceptual, even theoretical, work is needed?