What is Blockchain as a Service? Working and Profitability for Businesses

The Global Blockchain-as-a-Service market at USD 1.90 Billion in 2019 is expected to increase at a CAGR of 39.5% from 2022 to 2029, valuing USD 24.94 Billion in 2027.

We have seen multiple modifications in blockchain technology in the past few years. New tools, methods, solutions, and apps for businesses open doors for endless opportunities. Using Blockchain-as-a-Service (BaaS) is trending nowadays. BaaS eliminates the need of hiring full-fledged development teams to run your system on the blockchain network. Instead, you can operate and manage your blockchain application on the cloud.

Transform your Business Seamlessly with InvoBlox’s Blockchain Development Services

Sounds good?

BaaS is getting attention from different industries. It has become one of the most popular trends in the blockchain world, especially when tech giants such as Amazon start offering prototypes by using Hyperledger and Ethereum technologies. Businesses can opt for public or private blockchain networks easily. Look at the global BaaS market share by industry (2019).

 

 

What Is Blockchain-as-a-Service (BaaS)?

BaaS is booming in the blockchain world. It allows businesses to create and manage cloud-based networks. BaaS helps you design and develop blockchain applications for all types and sizes of businesses. It also helps them employ the benefits of blockchain at zero in-house development cost. In simple terms, it is a third-party cloud-based managing system for companies to create and operate blockchain apps.

Blockchain software development has moved beyond the best-known use of crypto transactions and has now broadened to offer real-world applications and secure transactions. Due to this, an increase in demand for hosting blockchain services can be seen. BaaS is based on the software as a service (SaaS) model and works the same way. It offers services and allows users to leverage solutions to create, host, and manage their apps on the blockchain. Consequently, the BaaS service providers maintain the agility and efficiency of the system.

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How Does BaaS Work?

When an organization signs an agreement with a blockchain consulting services company to use Blockchain as a Service (BaaS), it becomes the responsibility of the vendor to manage the entire blockchain network. It is the duty of the vendor to set up blockchain technology for the company and deploy all the critical resources and tools.

The configuration of the distributed ledger of the blockchain network depends on the ultimate business requirements. Some popular blockchains include Hyperledger Fabric, Ethereum, Corda, Chain Core, and Block apps. A company can easily focus on core business values and other factors after outsourcing its operations to BaaS service providers.

Reasons Why Organizations Should Use BaaS Business Model?

In recent years, companies have geared up the use of blockchain technology. Deciding on a blockchain solution comes up with manifold challenges for companies. For instance, an in-house development team, technical issues, operating costs, configuration, maintenance, etc. are some of the major concerns that restrict companies from developing their own application. Instead, Blockchain as a Service is considered a viable solution to prevent these challenges.

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Some other reasons to pursue BaaS solutions include

• Choosing the right pool of talent (developers, designers, software testers, and security engineers)

• Lack of expertise in this domain

• Updated knowledge of trending tools and technologies in the blockchain

• Considerable investments

• High cost of development

Considering these, companies find it convenient to integrate their blockchain projects into ongoing operations. It is a less costly and more efficient solution. Currently, multiple industries are employing BaaS solutions for transactions, payment processing, smart cards, supply chain management, etc. Below are some noticeable use cases of startups and multinational companies for which BaaS is used.

• To secure confidential customer data

• For fundraising or to launch ICOs

• To track the ownership status of customers

• To improve stocktaking

• To process secure and faster payment

 

 

Let’s discuss some of these use cases in detail.

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Real-World Applications Hosted on BaaS

BaaS is the next hot technology that clearly contributes to the future of blockchain solutions.

Data Management & Storage

Companies keep the data of thousands of customers and it is important to store and secure it to avoid data breaches. Data storage in decentralized applications mitigates cyberattacks and protects the data through strong cryptographic mechanisms. Therefore, companies are shifting their data to the blockchain network to ensure authorized access.

Data Monitoring

Blockchain allows companies to keep the record on the network and allow access to participants to the same data. It can be easily monitored to help owners make effective decisions. Blockchain is immutable which means the data stored on it cannot be tampered with or altered. Each participant of the blockchain network gets an updated copy of data in real-time.

Automation

Blockchain makes use of smart contracts to code functionalities. Smart contrast automates regular business functions after embedding conditions and rules in the code. Enterprises can embrace smart contracts to execute processes transparently. BaaS employs advanced methods to write smart contracts to ensure security, robustness, and efficiency in the blockchain network.

Identity Verification

The transportation and logistics industry relies on customer KYC (Know Your Customer) processes to verify the passengers and goods respectively. Due to a unique identification token, a fail-safe process can be implemented. Blockchain processes activities faster and in an automated manner. It eliminates the involvement of intermediaries and therefore speeds up the process.

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How can InvoBlox help you with Blockchain Development Services?

InvoBlox is one of the top blockchain technology development companies with the right pool of talent and profound knowledge in this ever-evolving domain. Our decentralized solutions are highly customizable as per your organization's needs. Our dedicated teams of blockchain experts offer BaaS solutions that align with your business infrastructure, communication, and workflow.

Contact us for personalized suggestions.