What Is Blockchain-as-a-Service (BaaS)?
Let me explain Blockchain-as-a-Service (BaaS) directly to you: it's when third parties create and manage cloud-based networks for companies building blockchain applications. This is a newer development in the expanding world of blockchain technology. Blockchain has gone beyond just cryptocurrency transactions and now handles secure transactions of all types, creating a real demand for these hosting services.
Key Takeaways
You should know that BaaS means third-party cloud-based infrastructure and management for companies working on blockchain apps. It acts like a web host, handling the back-end for blockchain-based apps or platforms. I believe BaaS could be the push that leads to widespread blockchain adoption.
Understanding Blockchain-as-a-Service (BaaS)
BaaS follows the Software as a Service (SaaS) model and operates in a similar way. It lets customers use cloud-based solutions to build, host, and run their own blockchain apps and functions. Meanwhile, the provider keeps the infrastructure flexible and running smoothly.
In the broader blockchain ecosystem, BaaS is viewed as a way to increase adoption among businesses. Major players include Microsoft, which partnered with ConsenSys for Ethereum BaaS on Azure in 2015; Amazon with its Managed Blockchain using Ethereum and Hyperledger Fabric; R3 with its Corda ledger for finance; PayStand for business payments; the Hyperledger Foundation with its customizable open-source ledger; and IBM with its Blockchain Platform based on Hyperledger Fabric.
You see, consumers and businesses are more open to blockchain, but the technical complexities and overhead of setting up and maintaining it create barriers. BaaS providers step in with external services to set up the blockchain tech and infrastructure for a fee, then manage the complex back-end for the client.
These operators handle support like bandwidth management, resource allocation, hosting, and security, freeing you to focus on what the blockchain is for in your core work.
Example of Blockchain-as-a-Service (BaaS)
Consider Hyperledger Cello as an example—it's a BaaS-like toolkit with an operational dashboard for deploying, managing, and operating blockchains. The role of a BaaS provider mirrors a web hosting provider: they manage servers and maintenance, just as third parties like Amazon Web Services handle infrastructure for websites.
BaaS could drive wider adoption of blockchain across industries. Instead of building your own blockchain, you outsource the complex parts and stick to your main activities.
Is Blockchain an SaaS?
Blockchain resembles SaaS, as it's programmed and maintained by an entity that rents out its software and services.
What Is the Future of Blockchain as a Service?
Blockchain solutions for enterprises are still developing, with companies building in-house or using services. Many will likely turn to BaaS to cut development costs.
What Is an Example of a Blockchain Service?
The Hyperledger Foundation's open-source blockchain lets enterprises customize it, and IBM built its Blockchain Platform on Hyperledger Fabric as a service for businesses.
The Bottom Line
BaaS is an enterprise answer to the costs of developing a blockchain for specific uses. Large tech firms have created and marketed these services, and more are coming.
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