Blockchain-As-a-Service (BaaS) Definition
Blockchain-As-a-Service (BaaS) is a cloud-based service that enables users to develop, host, and maintain their own blockchain apps, smart contracts, and functionalities on a blockchain while the cloud-based service provider manages all the necessary tasks and activities to keep the infrastructure agile and operational.
Blockchain-As-a-Service (BaaS) Key Points
- BaaS is a cloud-based service that allows the use of blockchain without infrastructural investing.
- It is akin to the Software as a Service (SaaS) model, but specific to blockchain applications.
- It reduces the technical and financial barriers to embracing distributed ledger technology in the business environment.
- Notable companies offering BaaS platforms include Microsoft (Azure), Amazon (AWS), and IBM.
What is Blockchain-As-a-Service (BaaS)?
BaaS is a third-party cloud-based infrastructure and management for companies building and operating blockchain apps. Similar to how a web hosting provider keeps the website operating, a BaaS provider keeps the blockchain applications running. By leveraging BaaS, businesses can focus on their core operations, customer services, and blockchain solutions’ implementation.
Why is Blockchain-As-a-Service (BaaS) Important?
BaaS is important because it provides businesses an opportunity to implement distributed ledger technology without the cost or risk of creating and maintaining a proprietary blockchain. This not only reduces the technical barriers to entry, but also the substantial cost of setting up blockchain in-house. It represents a means for companies to use blockchain technology in a convenient, low-cost manner.
Who uses Blockchain-As-a-Service (BaaS)?
Companies across various industries, including finance, supply chain, logistics, and healthcare, use BaaS. It is primarily utilized by firms looking to leverage the benefits of blockchain technology without the need for in-depth knowledge or expertise of Blockchain infrastructure. Startups and entrepreneurs also use BaaS services to test use cases before a full roll-out.
When to Use Blockchain-As-a-Service (BaaS)?
Companies should consider using BaaS when they want to use the advantages of blockchain technology, such as enhanced security, transparency, and traceability, but lack the resources or skills to build and maintain a blockchain infrastructure in-house. It is especially beneficial for companies that want to focus on core operations without worrying about the backend development.
How does Blockchain-As-a-Service (BaaS) Work?
The BaaS provider sets up all the necessary blockchain technology and infrastructure for a customer. The business is then able to build its own applications on top of this infrastructure without worrying about performance or network management issues. The provider takes care of the backend and makes sure the infrastructure is running smoothly, allowing the client to focus solely on their own application or product.
