Technology is developing quite quickly and all businesses are racing to catch up with these technological advancements or face the danger of going out of business in the long term. However, this implies that businesses frequently lack the time necessary to internally incorporate these new technologies and provide tech support from scratch. Cloud services can help with that. Vendors provide these technologies to other businesses as a service so they may concentrate on their core competencies rather than worrying about in-house development from the beginning.
Blockchain is the most recent technology to emerge. Because of this, Blockchain as a Service (BaaS) is gaining popularity, particularly among smaller and mid-sized businesses.
But what is Blockchain, exactly? What does "Blockchain as a Service" mean, too? Because of Bitcoin, Blockchain is a highly publicized technology, yet very few people know what it implies. So before discussing the benefits, drawbacks, and suppliers who provide this technology, let's try to comprehend the fundamentals of Blockchain and BaaS.
What is Blockchain?
A Blockchain is a series of interconnected digital information "blocks" connected by encryption. These blocks are constructed using the information associated with a nonce, a singular 32-bit whole integer. A 256-bit hash number is associated with the nonce. Because each hash in a block refers to the preceding block in the chain, the "chain" aspect of the Blockchain represents how these blocks are linked together to form a chain. Together, these three elements guarantee Blockchain security.
Because the Blockchain is distributed, everyone has access to a copy of it. Access to the Blockchain is not restricted to any one entity or piece of technology. As a result, changing the data on the Blockchain would require changing every copy of the data everywhere (which is near impossible). Because the data in each block is completely visible, the distributed nature of Blockchain encourages transparency. Blockchain is so well-liked in the cryptocurrency and other financial industries because it also results in the highest levels of security.
Blockchain as a Service (BaaS): What is it?
Blockchain is gaining popularity in financial transactions where security and transparency are essential, not only in cryptocurrency. However, building, maintaining, and running a Blockchain is highly costly and technically challenging. That's why, even though Blockchain has clear benefits, many smaller and mid-sized businesses are reluctant to engage heavily in it. Blockchain as a Service, however, can quickly fix this issue.
This is built on the Software as a Service (SaaS) paradigm, in which a business invests explicitly in developing, managing, and running a Blockchain. The benefits of Blockchain may then be provided as a service by this firm to other businesses in exchange for a charge. Along with the ancillary services like system security, bandwidth management, resource optimization, etc., they may provide Blockchain on any available distributed ledgers, including Ethereum, Bitcoin, R3 Corda, Hyperledger Fabric, Quorum, etc.
In this approach, many smaller and mid-sized businesses may still benefit from Blockchain for a little charge, even if they don't want to construct and operate their Blockchain systems from the start. These businesses may concentrate on their core activities while gaining value from the Blockchain without having to become computer specialists. So they benefit from Blockchain's advantages, such as its greater security, while lowering their investment risk by utilizing Blockchain as a Service (BaaS). Everybody benefits from the circumstance.
What benefits Blockchain does offer as a service?
- Low-cost, advanced infrastructure
Blockchain is a sophisticated technology that takes a lot of money to adopt from scratch and specialized skills. However, because businesses use a third-party provider to access the Blockchain, they may install Blockchain as a Service at a low cost. Most BaaS suppliers also offer unique subscription plans for businesses, allowing them to budget according to their needs. This is especially helpful for businesses that don't focus on Blockchain but instead want to use it for its benefits like security and transparency.
- Usage Ease
Because Blockchain is a sophisticated technology, businesses don't need to be experts in it to benefit from BaaS. This is not true if businesses want to build Blockchain from scratch, which calls for specific expertise and qualified professionals. The Blockchain providers offer pre-built platforms and templates. Other businesses may purchase these services, and developers can make minor adjustments to meet their specific needs without having to be specialists.
Drawbacks of Blockchain as a service
1. Reliance on Third Parties is growing
Services for Blockchain by default suggest that businesses are dependent on their service providers to give them the Software they require in accordance with their business needs. This is not negative because businesses may benefit much from Blockchain with only a small investment. Still, it does imply that businesses may suffer if there is a delay in communication, misunderstanding, or any other issue between them and their service providers.
2. Limited technological expertise
Considering how young Blockchain technology is, very few people are familiar with how it operates. In this case, a firm that invests in Blockchain as a Service risked failing to adopt Blockchain and losing all of its investment money if none of its workers even had the most basic understanding of how to use the service.
Which companies provide Blockchain as a service?
Managed Blockchain by Amazon
Companies utilizing the open-source frameworks Ethereum and Hyperledger Fabric can use Amazon's Blockchain services. Because Amazon manages this Baas, businesses can quickly set up and administer their Blockchain. If the number of apps grows, this Blockchain may be expanded. Depending on the firm's demands, there is also an option between using Hyperledger Fabric or Ethereum. The pricing options for Amazon Managed Blockchain are either a membership price or an on-demand peer node price.
Blockchain Service by IBM
Companies may research and set up their Blockchain services using IBM Blockchain Service to identify new business possibilities and enhance their chances. Companies have two options: they may join already-running client Blockchain networks, or, if they have particular requirements, they can co-create a new network using the IBM Blockchain Service. The Hyperledger Fabric platform, an open-source technology made available by the Linux Foundation, is used to develop the Blockchain.
Blockchain Service Azure
Companies can effortlessly utilize the potential of Blockchain thanks to Azure Blockchain Service, freeing up time to expand their businesses. The consortium Blockchain architecture, which supports Azure SQL, Cosmos DB, and the Event Grid, is relatively simple to build and operate. Basic and standard levels, with per-node pricing, make up the Azure Blockchain Service pricing scheme.
Blockchain Platform by Oracle
With Baas, Oracle offers a whole Blockchain platform in addition to its accessories. The Hyperledger Fabric platform, which includes peer nodes, Oracle REST proxy, and operation tools, serves as the foundation for the Blockchain. The price structure for the Oracle Blockchain Platform has two levels, Standard and Enterprise, with per-node pricing and Blockchain storage.
Overall, using Blockchain as a Service is a great way to take advantage of the technology's benefits and offer value without having to be an expert. BaaS offers several benefits, including modern infrastructure at a cheap cost and simple usage adaptable to the business's demands. So you may check out any of the BaaS mentioned earlier providers to advance technology and establish yourself as a leader in this field.