A key part of this growing technology is blockchain. Blockchain technology permits entities to share data fast, securely without compromising on security. No one party is responsible for safeguarding or processing the transaction.
Blockchain technology is usually very complex, so just building, maintaining, and monitoring a blockchain system for a given application is too time-consuming. With blockchain as a service (BaaS) becoming more prevalent, businesses can utilize distributed ledgers as a more accessible alternative, particularly with regard to cutting costs and overhead. Blockchain solutions have extensive real-world applications, yet industries are still struggling to harness their full potential. Also, blockchain can be offered as a cloud service. Why is that so? To deliver maximum benefits to the target audience through blockchain-based services.
According to predictions, global spending on blockchain solutions will increase to 6.6 billion dollars in 2021, and it is forecasted that spending on blockchain solutions will reach almost 19 billion U.S. dollars by 2024.
What is Blockchain as a service and how can a business benefit from it?
BaaS (Blockchain-as-a-Service) is a third-party service that allows companies to create and manage blockchain-based networks utilizing cloud technology. Providing third-party services within the sector of blockchain technology is a relatively new development. Blockchain applications have progressed far beyond their best-known use in cryptocurrency transactions and have widened to cover secure transactions of all kinds. As a result, hosting services are in high demand.
Blockchain technology is now being used to deliver services to a broader audience through the cloud-as-a-service model. This model works in a similar manner to SaaS, PaaS, and IaaS models which enable the use of cloud-based apps and storage.
BaaS is a low-cost method for businesses of all sizes to employ blockchain technology. BaaS enables enterprises to obtain blockchain providers’ services at minimal cost to develop blockchain apps.
According to the Fortune Business Insights report, the Global BaaS market size is projected at USD 24.94 Billion by 2027, showing a CAGR of 39.5% between 2020 and 202.
Why blockchain as a service is so important?
An organization’s operations are driven by information. It’s better to receive it as quickly as possible and as accurately as possible. As a method of providing that information, blockchain is ideal, since it provides immediate, shared, and transparent information stored on an immutable ledger that can only be accessed by members of the permission network. Blockchain networks are used to track orders, payments, accounts, production, and much of the above. Members can view all the details of a transaction in one place, giving them more confidence, while generating greater efficiencies and opportunities.
The adoption of blockchain technology is increasingly being explored by IT organizations in a wide range of industries. Despite this, the inherent technical complexities, a lack of domain expertise, and the operational overhead costs of developing, operating, and maintaining the Blockchain often slow down plans for adoption. BaaS, however, is currently being seen as a possible solution to this problem.
The right Blockchain as a Service provider can ease businesses’ transition to Blockchain technology by giving them access to skilled Blockchain developers, process and governance experts as well as the required cloud infrastructure without worrying about startup and overhead costs.
A reputable BaaS provider will also offer a rich source of experience and wisdom that can be leveraged to upgrade the security of the systems. As a result, it significantly reduces the number of risks that would have to be dealt with if it had been developed in-house.
How Blockchain-as-a-Service Works?
BaaS is when an external supplier sets up for you all the necessary “blockchain technology and infrastructure” and you pay the provider for setting up and maintaining the nodes. BaaS providers handle the back-end dynamic for the users and their companies.
The BaaS operator ensures the preservation and management of critical objects and services related to blockchains. Additionally, it can regulate bandwidth, allocate capacity, and assess storage needs, and identify security risks. BaaS lets consumers concentrate on their core activity — blockchain technology — instead of worrying about infrastructure and performance issues.
As an example, consider BaaS as a hosting provider. It takes you just a few minutes to design a web page that reaches millions of people every day. In fact, you can run your own website from your own office using your own computer/server and either does the work yourself or hire a support team. Moreover, a website can also be hosted at a location that is not convenient for you.
A good example of blockchain technology is Hyperledger Cello, which is a utility system and toolkit for blockchain modules that is similar to a BaaS platform.
The Hyperledger Cello (HLC) system is a distributed computing platform that helps people manage and use blockchain systems more efficiently.
Cello provides the following major features based on blockchain technology and modern PaaS tools:
- Automatically manage blockchain network lifecycles, such as creating, stopping, deleting, and keeping healthy.
- Allow customized blockchain network configurations, including network type and size.
- Support bare-metal, virtual machines, vSphere, native Docker hosts, Swarm, and Kubernetes
- With the integration of existing tools like ElasticStack, the platform offers advanced features like monitoring, logging, health, and analytics capabilities.
In a nutshell, Blockchain as a Service could be the catalyst for the wide-scale adoption of blockchain throughout various industries and firms. Big or small companies can now simply “outsource” their technological complex tasks so they can focus on their core business rather than managing and developing their own blockchains. Big technology companies are already putting their hats in the blockchain ring for their own BaaS deals. Microsoft offers its Azure platform to support the BaaS system. Its own BaaS focuses on private blockchains, while its cloud services are provided by Amazon and Oracle.
The Bottom Line
Now, big tech companies are offering blockchain as a service to assist clients in adopting this world-changing technology and staying competitive. Blockchain as a service is offered by big providers like Microsoft and IBM. Their services enable executives to source blockchain functionality instead of developing these kinds of platforms on their own. A blockchain-based service can be a disruptive innovation in almost any industry since blockchain technology has so much potential.
Overall, BaaS is the technology you need if you want to take your business to the next level. Blockchain as a Service solution not only makes blockchain technology accessible to a wider audience but also supports all the rapidly emerging use cases of the technology, effectively expanding your business scope.