What Is Blockchain-as-a-Service And Its Business Benefits?
Category : Blockchain / by Andrew
It’s no secret that blockchain technology is revolutionising every single sector on this planet and transforming the way businesses operate. However, with the pace at which this technology is growing, it is quite clear its potential would go beyond cryptocurrency and financial transactions. Having said that, it is also true that developing blockchain infrastructure is very challenging and expensive. This is where Blockchain-as-a-Service (BaaS) comes in. BaaS enables businesses to take advantage of blockchain solutions without the need to set up and maintain their infrastructure. But exactly how? To fully understand, it’s essential to explore what it is and how BaaS can help businesses.
What Is Blockchain-as-a-Service?
BaaS, or Blockchain-as-a-Service, is the development and maintenance of a cloud-based blockchain network by a third party that acts as a blockchain platform’s service provider. This service-based business model is similar to Software-as-a-Service (SaaS), Infrastructure-as-a-Service (IaaS), and Platform-as-a-Service (PaaS) models.
BaaS typically involves the designing and development of blockchain-based applications that help businesses in their different business operations. BaaS providers offer a comprehensive blockchain framework that includes not only hosting but also various tools and development features. Businesses can leverage the read-made BaaS paradigm without spending money on their Blockchain Development and benefit from blockchain applications with minimum investment.
Features of Blockchain-as-a-Service
- BaaS providers offer integrated key management services in order to enhance security and support key pair generation for data encryption. It aids in maintaining the integrity of messages within the blockchain network.
- Through APIs, BaaS platforms provide blockchain capabilities and functionalities. It is quite easier to integrate these APIs for dApps integration with existing systems.
- BaaS platforms come with an admin dashboard that helps businesses control and administer blockchain networks. This dashboard provides complete information about the configuration and performance of nodes as well as peers.
- Blockchain’s smart contract service acts as a dedicated platform that allows businesses to implement and execute contracts with full transparency and security.
- The BaaS platform comes with blockchain developer tools such as Block Explorer, Token Explorer, etc. that help to manage blockchain applications.
- BaaS platforms don’t require many changes to the code of the existing system. Its plug-and-play modular framework allows easy integration, removal, or replace software components.
How Does the Blockchain-as-a-Service Model Work?
The Blockchain-as-a-Service (BaaS) model aids in simplifying the blockchain network from its design to development, final deployment, and event management for companies with cloud-based solutions. Blockchain-as-a-Service works on a cloud computing infrastructure that optimises different business operations by offering them a pre-configured blockchain environment.
When a business opts for a BaaS service, it can use the special features and tools provided by the service provider along with the blockchain infrastructure to streamline blockchain development and deployment. Thus, the BaaS providers manage all the complexities of the infrastructure and blockchain nodes, distributed across various data points to ensure resilience. Thus, with complete customisation control, businesses can concentrate on creating DApps and smart contracts.
Here is an example of Blockchain-as-a-Service Hyperledger Cello. It is a BaaS-like blockchain module toolkit and utility system.
Also Read: How Web 3.0 Blockchain Would Impact Businesses?
How Does The BaaS Business Model Benefit Businesses?
The BaaS industry is experiencing significant growth globally. The market, which was valued at $632 million in 2020, is projected to reach $11.5 billion in 2026. BaaS continues to gain traction due to the numerous benefits it offers businesses. Some of these advantages are mentioned below:
Automation
Automation is the demand of businesses, as it not only reduces workload but also enhances the speed and efficiency of operations. One of the primary advantages of adopting Blockchain as a Service (BaaS) is that it introduces automation into business processes.
Blockchain technology facilitates faster transactions that are carried out through self-executing software applications such as smart contracts. These are deployed immediately and automatically once the preset conditions are met. Thus, the automation brought through BaaS platforms helps in making business operations more effective.
Data Security
BaaS platforms are equipped with advanced security features such as encryption, theft management, and more to secure business data against unauthorized access. Moreover, blockchain development provides better accountability, reliability, data integrity, and openness for businesses.
Less Ramp-up Time
If a business develops its own private blockchain from the ground up, it can take a lot of time and even need resources. They might even need to invest in infrastructure, talent, and training about this new technology. However, BaaS allows businesses to shorten the ramp-up time by avoiding the time-consuming process of building back-end cloud computing capabilities to create a private blockchain.
Cost Reduction
Operational expenses significantly impact a company’s overall profitability. Although implementing blockchain technology can be costly for a firm, Blockchain as a Service (BaaS) allows companies to utilise blockchain while reducing expenses. Additionally, blockchain technology itself helps lower operational costs by eliminating the need for third-party intermediaries. Its distributed ledger technology maintains and records data, facilitating transactions without intermediaries.
Streamlining Complex Processes
When employing a new technology, rigorous testing is required to ensure it will work before final deployment. Moreover, when the technology is as complex as blockchain, quality testing becomes even more crucial. However, testing a blockchain-based system can be a daunting task for businesses that don’t have much experience in blockchain development.
BaaS platforms simplify this by offering pre-tested frameworks and support. Thus, they streamline the process for businesses and reduce the unnecessary burden, ensuring a seamless and efficient deployment.
Scalability
As businesses grow and evolve, they require services that can scale up or down to meet their changing needs. For that very reason, BaaS solutions are designed to be scalable, allowing businesses to adapt quickly to market changes and adjust their blockchain infrastructure accordingly.
What Industries Benefit The Most From Blockchain-as-a-Service?
Blockchain works as a data management platform, due to which it benefits the different industries in the following ways:
FinTech
The blockchain platform as a service has allowed finance companies to simplify financial processes such as KYC and AML verification. Blockchain solutions in FinTech improve speed and enhance security in business operations. Moreover, it brings transparency, immutability, and tamper resistance to avoid any conflicts. However, the best part is that companies don’t need to rely on traditional banks to carry out the transactions.
Healthcare
Blockchain maintains a transparent, immutable record of patient information, strengthening the security of their data. Thus, healthcare providers get well-organised and updated information about the patient’s medical details. This well-structured patient data allows medical specialists to treat serious patients immediately without wasting a bit.
Apart from the healthcare professionals, blockchain assists the individuals working in the pharmaceutical industry. The blockchain platform as a service helps to verify the legitimacy of the medicines and checks their source and ingredients to offer safe and genuine products to the patients.
Automotive
The automobile industry faces 2 major issues one is handling the supply chain and the other is maintaining their brand by keeping fake components away from their production. However, blockchain platforms as a service are helping automobile companies deal with this. They get complete access to data about transported automobile parts, which makes it easier to distinguish between real and bogus spare parts.
Real Estate
Blockchain-as-a-service allows real estate companies to simplify their property transactions for their customers without relying on intermediaries such as brokers. Companies can streamline their business operations with this Blockchain Development Service and keep track of all transactions for various properties to reduce the risk of fraud.
Transport and Logistics
Verification of the authenticity of both the individuals and goods involved is quite critical in the logistics and transportation industry. Blockchain platform-as-a-service offers an effective mechanism for complete, quick, and easy verification and even keeps proper track of the same. It aids in preventing chances of counterfeiting, tampering, and other forms of fraud, which are common issues in the logistics and transportation industry.
Conclusion
Blockchain-as-a-Service (BaaS) presents an excellent solution for businesses looking to streamline business operations without the need to build blockchain solutions from scratch. By leveraging blockchain, companies can make their processes more effective, reliable, and secure without spending money on infrastructure, design, development, or research. If you also benefit from Blockchain-as-a-Service, you can trust Webcom Systems. Our expertise in creating reliable BaaS models can help you leverage this decentralised technology effectively. Contact us today to learn more about our services.
Also Read: How Does Blockchain Consulting Drive Innovative Business Solutions?
