How Can Businesses Use Blockchain-as-a-Service?
With the increasing popularity of this novel technology, businesses and enterprises around the globe are seeking ways to improve their operations by implementing blockchain technology into their work. But, doing so remains a far-fetched dream for a majority of businesses. There are possibly two reasons why businesses are still struggling to leverage the true potential of blockchain:
- Implementing blockchain technology is a costly affair
- Working around blockchain technology requires some level of knowledge and expertise
The question that arises here is whether Blockchain-as-a-Service is the much-needed solution for businesses. Let’s understand.
What is Blockchain-as-a-Service (BaaS)?
The demand for blockchain technology is growing with each passing day. Still, the technical and operational complexities involved in creating and maintaining a blockchain network pose a troublesome task, especially for small and medium-sized enterprises.
Blockchain-as-a-Service, or BaaS, is the creation and management of cloud-based blockchain platforms that allow businesses to build blockchain applications and digital services. The infrastructure and blockchain-building tools are provided by the third-party in this distributed network.
The model is akin to Software-as-a-Service, or SaaS, enabling businesses to utilize cloud-based services such as building, hosting and operating applications without hassle. Similarly, BaaS offers businesses of all sizes the ability to build, host and operate their own blockchain applications without deploying their limited resources. The third-party service providers charge a nominal fee for providing the infrastructure and handling the back-end complexities.
Why Do Businesses Need BaaS?
Blockchain-as-a-Service is a perfect opportunity for businesses and enterprises who want to reap the benefits of blockchain technology without getting involved in the technical know-how. BaaS enables businesses to get a glimpse of how this technology can ease complicated daily operations without having to develop a blockchain of their own. Renting a blockchain infrastructure is also beneficial as it helps businesses accustom themselves to the technology in advance if they plan on developing a new blockchain.
The service enables businesses to focus on growth and innovation instead of losing sleep over challenges like the menace of intermediaries, potential data theft, lack of transparency in operations, and many other similar issues. It also empowers businesses to stay at the edge of technology by offering pre-configured networks and infrastructure that are customized to serve every business’s unique needs. Business participants can operate independently and manage their resources separately.
Additionally, BaaS has the following advantages:
- High Performance: Blockchain-as-a-Service helps businesses, especially SMEs, to perform better by introducing immutability and transparency into daily operations and accelerating processes.
- Affordable: Renting a blockchain infrastructure costs much less than developing a brand-new one. Businesses get to enjoy the same benefits and customized services at a much lower cost. It also saves daily operating and maintenance costs.
- Ease of Use: BaaS allows businesses to quickly build an enterprise-level blockchain network, which helps enterprises and businesses to get started as soon as possible. The services are user-friendly as there are no technicalities involved.
- Knowledge & Expertise: The hosting company assists businesses at every stage, from developing a customized blockchain infrastructure to deploying it effectively. Businesses get to work with blockchain experts who help in adding scalability, transparency and security to operations.
