Blockchain as a Service

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

Blockchain-as-a-service, or BaaS, refers to the process of creating and managing cloud-based networks by third parties for businesses that develop blockchain applications. This is a relatively recent development in the expanding realm of blockchain technology: third-party services. Blockchain technology is increasingly being used for safe transactions of many kinds, far beyond its most well-known application in Bitcoin transactions. There is a need for hosting services as a result.

BaaS operates similarly to software as a service (SaaS) and is based on the same principles. It enables users to create, host, and manage their blockchain applications and associated services by utilizing cloud-based technologies. The cloud-based service provider maintains the infrastructure's flexibility and functionality concurrently.

BaaS is likely to increase blockchain adoption in enterprises as a development in the larger blockchain ecosystem. For a price, BaaS allows an outside service provider to put up all required blockchain infrastructure and technologies. After creation, the supplier continues to manage the client's intricate back-end functions.

Typical support services provided by the BaaS operator include bandwidth control, appropriate resource allocation, hosting needs, and data security features. The BaaS operator frees the client to concentrate on the main task, which is the blockchain's functionality.

How Does the Business Model for Blockchain-as-a-Service Work?

The process via which third parties set up, host, and manage a Blockchain network on behalf of enterprises is referred to as the blockchain-as-a-service business model. In exchange for fees, the service provider provides to set up Blockchain technology and infrastructure.

Blockchain-as-a-service for businesses functions much like a web hosting company in many aspects. It gives clients access to cloud-based tools for creating and hosting smart contracts and Blockchain applications within the provider-managed ecosystem.

Below is a graphic demonstrating the working model of Blockchain-as-a-Service Hyperledger Cello, a BaaS-like blockchain module toolkit and utility system under the Hyperledger project.

In traditional businesses, BaaS integration offers assistance for resource allocation, bandwidth control, data security features, and hosting needs. The largest effect of BaaS on companies is the ability to focus on their core competencies rather than the intricacies of Blockchain operations.

A BaaS provider's role is similar to that of a web hosting provider. Website creators create and run all the website content on their personal computers. They may hire support staff or sign up with an external hosting provider like Amazon Web Services or HostGator. These third-party companies take care of the infrastructure and maintenance issues.

Use cases of BaaS in Industries:

1. Healthcare:

Blockchain maintains a universal and transparent version of patient medical data, significantly altering the healthcare industry. Thanks to well-organized and updated records, blockchain technology has facilitated the provision of immediate care to individual patients by several medical specialists.

Additionally, blockchain helps verify the legitimacy of pharmaceuticals. This implies that the source of any medicine or chemical can be determined. Manufacturers that have been recalling certain ingredients for prescription medications have greatly benefited from this.

2. Automotive

Managing supply chains and fending off fake parts present the automotive industry with its greatest challenges. Here, the blockchain platform as a service comes to the rescue by providing transported automobile parts with end-to-end accessible data. This makes it easier for auto companies to locate and distinguish between real and bogus spare parts.

3. Financial Technology (FinTech)

Every typical banking consumer now feels at ease thanks to blockchain technology in FinTech, since it has simplified several financial procedures, such as the KYC and AML verification processes. In addition to enhancing transparency and immutability to avert conflicts. Customers can now use smart cards thanks to blockchain services. These smartcards facilitate quicker financial payments without requiring central authority certification.

4. Logistics and transportation

Identity verification is critical to the logistics and transportation industries, respectively, for both passengers and products. Passengers can complete the full process quickly and easily with just one identity token. In a similar vein, freight movement, verification effectiveness, and fault tolerance.

Blockchain platform-as-a-service offers different sectors and data silos a failsafe mechanism.

5. Documentation monitoring

Document tracking is made possible by distributed, immutable blockchain technology. Maintaining the papers on blockchain grants equitable access to the information to all participants. Additionally, the documents are secure because Blockchain technology is unchangeable.

6. Storage of data

The risk of data loss is greatly decreased when data is kept on a decentralized blockchain. This safe, immutable data storage feature on the blockchain is very beneficial to regulated businesses like real estate, healthcare, etc.