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Blockchain is a groundbreaking technology that provides a decentralized solution, offering a new level of security and transparency to traditional barriers. This innovative approach to data management aims to streamline processes and eliminate the need for intermediaries, thus reducing costs, increasing efficiency, and promoting trust.
The global Blockchain-as-a-Service (BaaS) market is expected to reach $39.74 billion by 2027, growing at a compound annual growth rate (CAGR) of 42.2%. This rapid growth is driven by the increasing adoption of BaaS by businesses of all sizes across various industries.
According to a recent study by IBM, 70% of businesses plan to adopt BaaS by 2024. The top three industries using BaaS are financial services, supply chain management, and healthcare.
To take advantage of this exponential demand, business needs to understand Blockchain as a service. This article will explain Blockchain, how it works, its benefits, and use cases for businesses in various industries.
What is Blockchain-as-a-Service?
Blockchain-as-a-Service (BaaS) is a cloud-based service that makes it easier for businesses to build and use blockchain technology. It eliminates the need for businesses to set up and maintain their own blockchain infrastructure, which can be complex and expensive. Instead, BaaS providers offer pre-built blockchain networks that businesses can rent access to.
To understand it in layman’s terms, let’s take the example of an e-commerce store. Someone who wants to start a store has a product, marketing skills, and everything but doesn’t have a budget or understanding of web development; this is where a platform like Shopify comes in. They provide the tools and infrastructure you need to create and run your online store without the hassle of coding and maintaining your website.
BaaS works similarly. It’s like a cloud-based e-commerce platform for blockchain applications. Businesses can use BaaS to build and deploy blockchain applications without having to worry about the complexities of managing and supporting the underlying blockchain technology. This allows them to focus on developing and using blockchain solutions for their specific needs.
How Does Blockchain as a Service Work?
Blockchain development services providers create cloud-based networks that customers can easily access and integrate with their applications. Customers can configure and set up a blockchain network as per their requirements without installing any nodes. The BaaS provider handles complex tasks in the background, like running consensus algorithms, validating transactions, storing blocks, managing nodes, and others. Customers can access test networks for development or opt for production-grade networks. They can focus on building business logic and interfaces for their decentralized apps while the blockchain network is maintained, scaled, and secured by the BaaS provider on the cloud.
Adopting the Blockchain-as-a-Service model allows customers to delegate the upkeep of the Blockchain infrastructure and its functionality to the BaaS partner, freeing them up to concentrate on their core business operations and competitive strategies.
Blockchain as a Service Development Process
Businesses can approach the BaaS service provider to develop their own blockchain as a service. Here is how they complete the process.
| Step |
Description |
| Business signs up for BaaS |
The business creates an account with a BaaS provider and selects the services it requires. |
| BaaS provider sets up blockchain network |
The BaaS provider establishes a blockchain network for the business, either on a public network like Ethereum or a private one. |
| Business develops application |
The business utilizes the BaaS provider’s tools and SDKs to create its blockchain application. |
| Application deployed to blockchain |
The business deploys its application to the blockchain network. |
| BaaS provider handles security and maintenance |
The BaaS provider manages the security and upkeep of the blockchain network, ensuring the smooth and secure operation of the business’s application. |
Benefits of Blockchain-as-a-Service Utilization (BaaS)
Organizations may save time and money by using the blockchain-as-a-service (BaaS), which provides them with a secure way to use the technology. At the same time, businesses can hire dedicated blockchain developers from blockchain service providers to reduce costs and streamline development.
Businesses are using blockchain technology to satisfy modern client demands for high transaction transparency and traceability levels, along with saving and sharing vital information.
Businesses have the opportunity to choose the features they need and save the development cost. With these essential features, they can streamline their process and improve productivity.
Blockchain development services providers can offer templates that users quickly integrate into pre-existing systems and apps, giving them the trouble of beginning from scratch with their architecture.
The most intriguing result of blockchain technology may be its ability to allow businesses to test new technologies without worrying about the prospect of an ineffective inside deployment.
Blockchain development service provider can help businesses achieve operational and financial efficiencies by eliminating the need to develop and manage their blockchain infrastructure. Blockchain development service providers also offer a comprehensive suite of tools and services to help businesses develop, deploy, and manage blockchain applications more quickly and efficiently.
Use Cases of Blockchain-as-a-service
Blockchain serves as a platform for data management, so keeping data will be at the center of every solution offered within its domain. Use cases described here show how businesses utilize blockchain technology for transparency and immunity.
1. Finance Technology
As blockchain technology makes most financial processes simple, it has given peace to the average banking consumer in FinTech. It also improves transparency and immutability to prevent disputes. Customers can now utilize crypto wallets through blockchain services. These cryptocurrency wallet development services help quicker money transfers without the need for central authority verification.
2. Document Tracking
Document tracking is made possible by distributed, immutable blockchain technology. Equal access to the information is provided to all participants by maintaining the papers on Blockchain. Additionally, the documents are secure because Blockchain technology is unchangeable.
3. Data Storage
The risk of data loss is significantly decreased when data is kept on a decentralized blockchain. This secure, immutable data storage feature on Blockchain benefits regulated industries like real estate, healthcare, etc.
4. Healthcare
Blockchain has revolutionized healthcare by enabling a universal and transparent view of patient’s medical data. This organized and updated data has helped medical professionals provide instant care to individual patients. It also helps to ensure the authenticity of medicines. This means that any drug or chemical can be traced back to its source, which is beneficial for manufacturers recalling specific chemicals or drugs.
5. Logistical and Transportation
Identity verification for passengers and cargo is critical to the transportation and logistics industries. Passengers find the entire process simple and quick with just one identification token. The same applies to cargo movement, verification efficiency, and fault-proofing. For industries and other data silos, blockchain platform as-a-service offers a failsafe mechanism.
6. Automotive
Supply chain management and minimizing fake parts provide the automotive industry with its most significant 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 automobile producers to track down and distinguish between real and fake spare parts.
Conclusion
Blockchain development is a rapidly growing market that offers several benefits to businesses of all sizes. With the growth of the market for security and privacy, businesses are opting for Blockchain as a service. They offer faster time to market, scalability, and reduced cost.
Blockchain-as-a-Service provider can help you overcome the challenges of setting up and maintaining your blockchain infrastructure and allow you to focus on developing innovative applications that will benefit your business.
