Don't build from scratch unless you're a billionaire. Why hire outsourced blockchain teams?
01.01.2023 | 3 min read
Which is better, outsourcing or doing things in-house? If you're the creator of a blockchain business, you've probably run into this predicament more than once. You have every right to be concerned about the impact this choice may have on the future of your project. Although both options have their benefits and drawbacks, a simple recommendation can be made regarding blockchain development: if you are a billionaire, build your own, but if you are a startup, it is best to rely on outsourcing teams. Read on for the rationale behind this.
The blockchain has been dubbed "The Technology of Trust" for good cause. As a result, it has revolutionized commercialbusiness transactions around the globe. Companies can rest easy knowing they're using a system that brings together the best features of both the internet and cryptography. In exchange, they have access to a more efficient and secure method of doing digital commerce.
Grand View Research predicts that the blockchain technology market in the United States would increase by $1,431.54 billion by the year 2030. Companies in the financial sector, healthcare industry, media and entertainment industry, government, and retail sector will set the tone for this development. As a result, finding qualified blockchain developers will be difficult for startup entrepreneurs.
How to choose the right blockchain development team
When looking to staff a development team, companies can either choose to outsource their work or keep it in-house. Generally speaking, it may be beneficial to hire a blockchain development team through outsourcing in order to gain access to specialist talents, reduce costs, and concentrate on core business operations.
Numerous positives suggest the possibility of success while outsourcing a blockchain development team:
- Cost: In terms of budget, outsourcing can be preferable than building an in-house team if you only need to build one project or if you run a tiny organization with few resources.
- Expertize: When you outsource, you gain access to a team of blockchain programmers who have already accumulated the experience and knowledge to build your product.
- Time: The time and effort spent on in-house recruitment, training, and management can be reduced by outsourcing.
- Flexibility: In the event that your project's specifications or your company's demands change, an outsourced workforce may be more flexible and able to adjust to these shifts.
- Focus: One benefit of contracting out the development of your blockchain project is the freedom to concentrate on your company's core competencies while the specialists take care of the technical details.
“If you're planning on creating your own blockchain, it's probably not a good idea to start from scratch unless you have hundreds of millions of dollars and years to spare. In my opinion, the two most prominent blockchain frameworks are Substrate and Cosmos. In my opinion, the best piece of advise I can give to blockchain developers is to pick one of these Frameworks and improve upon a single feature rather than attempting to overhaul the entire thing,” said Adam Gągol, CTO and co-founder of Aleph Zero.
Aleph Zero is a layer 1 blockchain that improves privacy and guarantees developers scalability, low transaction fees, and the most security possible. It was made to help solve problems with the security, scalability, decentralization, privacy, and user and developer experience of the blockchain network.
For the upcoming Mainnet launch, Aleph Zero needed to work on its infrastructure, and they didn't have time to wait a few months before hiring people to work on the project in-house. They needed someone who could build an AWS infrastructure for their devnets, testnets, and Mainnet. That's why they reached out to 10Clouds to add more people to their own team. Within a week, our DevOps experts joined them, which made it easier for the team to grow.
“You helped us start from scratch with our DevOps team. It was not only a team extension but actually a team building,” said Gągol.
Blockchain development as a service
In a survey by Deloitte, about 39% of companies said they were using or planned to use external development resources for their blockchain projects in 2020. This suggests that companies that want to build blockchain projects often use outsourcing. But it's important to keep in mind that this survey may not be a good representation of the blockchain industry as a whole, and that different sectors and regions may have different preferences for whether development should be done in-house or by a third party.
Still, there are a few reasons why companies might want to build their own blockchain projects:
- Control: When a company develops a blockchain project in-house, it has more control over the development process and the end product. This is especially important if the project involves sensitive or proprietary information that the company wants to keep within the organization.
- Ownership: When a company develops a blockchain project in-house, it keeps ownership of the technology and the ideas that go with it. This can be important for businesses that want to keep their investments safe and stay ahead of the competition.
As blockchain technology continues to spread and improve, it's likely that more companies will have the resources and skills to build their own blockchain projects in-house. At the same time, there is likely to be a high demand for specialized blockchain developers. This could make outsourcing a popular choice for companies that don't have the skills or resources to do it themselves.