A vital component of this growing technology is Blockchain. Blockchain technology allows businesses to exchange data quickly and securely without compromising security. Neither party is responsible for securing or settling any transaction. Blockchain technology tends to be very complex, and building, maintaining, and monitoring blockchain systems can be far too time-consuming for specific applications.
As Blockchain as a service (BaaS) becomes more popular, organizations can adopt distributed ledgers as a more accessible alternative, especially in reducing costs and overhead. Blockchain solutions have extensive real-world applications, but the industry is still struggling to reach its full potential. Blockchain can also be offered as a cloud service. Why is that? Provide maximum benefit to your target audience through blockchain-based services. According to forecasts, global blockchain solutions spending will grow to $6.6 billion in 2021, and blockchain solutions spending is projected to reach about $19 billion by 2024.
What is Blockchain as a Service?
Blockchain as a Service (BaaS) is a service offering that enables customers to develop, use, and host blockchain apps, functions, and smart contracts using cloud-based services. BaaS involves a cloud-based service provider that keeps the infrastructure operational and agile. This promises to accelerate the adoption of Blockchain in various companies.
Both businesses and individuals are ready to implement blockchain technology. However, the technical complexity involved in creating, operating, and maintaining blockchain infrastructure is a barrier to its mass adoption. Blockchain as a Service offers a solution that frees businesses from new technology hurdles.
How does the blockchain-as-a-service business model work?
The blockchain-as-a-service business model describes the process by which a third party installs, hosts, and maintains a blockchain network on behalf of an organization. Service providers offer to set up blockchain infrastructure and technology for a fee. In many ways, the role of enterprise blockchain as a service is similar to that of a web hosting provider.
It enables customers to use cloud-based solutions to develop and host blockchain applications and smart contracts in provider-managed ecosystems. Here’s an image of how Hyperledger Cello Blockchain-as-a-Service, a BaaS-like blockchain module utility system and toolkit, work as part of the Hyperledger project.
Traditional store BaaS integration helps with resource allocation, bandwidth management, data security features, and hosting requirements. The Blockchain as a Service model frees businesses from having to worry about the operation of blockchains.
How Blockchain-as-a-Service is shaping business
According to MarketsandMarkets, the size of his BaaS in the world is expected to grow to $11.519 billion by 2026, a vast fortune for modern businesses. Blockchain-as-a-Service only characterizes startups and small businesses that rely heavily on large data silos. BaaS comes with an intelligent privacy and competitive advantage package, not to mention the exclusion of the third-party delegate part. This works as an advantage over cost. Returning to his BaaS in the market, the global numbers are below.
Businesses and consumers are adapting to blockchain technology. However, the operational overhead and technical issues associated with developing, configuring, operating, and maintaining the infrastructure act as barriers. The benefits of Blockchain for small businesses, regardless of size, are very resource-intensive and energy-consuming, hindering the mass adoption of the technology.
Renting blockchain infrastructure with BaaS allows companies to acquire the skills necessary to run blockchain infrastructure. Additionally, service contracts can be extended or terminated quickly, reducing the investment required to enter the technology segment. It allows companies to stay on the cutting edge of technology without taking unnecessary risks.
Pros and Cons of BaaS
As with any business or service offering, potential customers always want to analyze the opportunities and risks associated with Blockchain as a Service before signing up with a service partner. Here are some cues you can use to paint your perspective.
Cost Saving Measures
Organizations often look for value beyond cost savings when partnering with an IT service provider. The same applies to his BaaS. However, the cost and effort benefits, in this case, are far more overwhelming than everything else. By outsourcing the tasks associated with implementing, operating, and maintaining a blockchain to a BaaS partner, companies can reduce the costs and hassles of hiring developers, maintaining staffing, and coaching teams, as well as software, platforms, and infrastructure.
BaaS providers often offer customizable templates and plug-and-play modules that users with basic programming know-how can quickly set up. This allows companies to avoid the entire learning curve and investment associated with the research and planning stages. Therefore, rather than building an architecture from scratch, businesses can leverage pre-built platforms and templates from blockchain-as-a-service partners to integrate with their existing systems and applications.
Focus on customization
BaaS allows companies to use pre-built platforms and templates, allowing in-house development teams to focus primarily on their business needs and ensuring that blockchain services complement their needs. Once the blockchain infrastructure is in place, it is maintained by a BaaS partner, typically with bandwidth management, resource allocation, hosting, and security monitoring.
Personnel and resource optimization
Limited local IT means little physical effort in device space, power, and cooling. This translates directly into staff and fire department reductions. This frees her IT staff in the organization to focus on their core business and strengths, allowing them to be involved in more business-critical, value-added projects.
Limited depth of knowledge
Blockchain is still a new technology, and many organizations need a deep understanding of how the technology works. In this scenario, immature implementation decisions can put your existing business processes at risk of failure, wasting your investment.
Some of the most popular BaaS providers on the market
The first provider to offer BaaS was when Microsoft founded Azure Blockchain Service in 2015. They partnered with Consensys to develop Microsoft Azure based on the Ethereum blockchain. The service aims to enable developers and enterprise customers to experiment with blockchain technology in a “one-click cloud-based blockchain development environment.”
Microsoft Azure Blockchain-as-a-Service also enables users to build public, private, and consortium blockchain environments using industry-standard frameworks and launch blockchain apps. Distributed ledger technology is more easily understood and implemented with Azure’s AI-based virtual assistant, Cortana.
Amazon created “Amazon Managed Blockchain,” a BaaS service, just like other significant businesses. With only a few clicks, users can build up and administer scalable blockchain networks thanks to Amazon Managed Blockchain, a completely managed service. Amazon Managed Blockchain supports its two popular blockchain development frameworks, Ethereum and Hyperledger Fabric, allowing customers to easily manage permissions and public blockchain networks through a single managed service. Amazon’s BaaS offering will enable you to choose the right combination of memory and CPU for your workload through various instance types.
Blockchain platform ChainStack has released a managed R3 Corda service, giving enterprises access to one-click provisioning of cloud-based Corda nodes. The managed R3 Corda platform reduces blockchain node provisioning time to minutes, enabling businesses, R3 partners, and governments to host Corda networks in just three clicks.
Based on the latest version of Corda 4.1, a developer can develop private networks for test environments and install his CorDapps on remote network nodes. This saves effort and resources and provides scalability in a short period. Developers no longer have to focus on maintaining the network.
Reveation Labs is a blockchain development company with deep knowledge and experience in developing and managing decentralized solutions. Here, blockchain experts offer a wide range of decentralized solutions that provide scalability, security, and transparency for the ecosystem.
With the Blockchain as a Service framework, Reveation Labs can improve your business processes.
Blockchain as a Service is a good product that helps companies prepare for the future with scalable solutions based on blockchain technology.