Today many companies utilize blockchain technology in their businesses due to its several advantages. Yet, the technology hasn’t reached larger business communities due to time-taking development and implementation process. To tackle this issue, big firms like Microsoft and Amazon offer their blockchain development services to other firms. Known as blockchain-as-a-service (BaaS), these firms offer infrastructure for blockchain development that eliminates the need for project development from scratch. So, businesses can now enjoy the benefits of a blockchain without investing time in research, planning, and developing a blockchain project. Learn the working, importance, and advantages of this relatively new blockchain-related development with this blog.
Blockchain-as-a-Service (BaaS) is a third-party service that offers cloud-based networks to develop blockchain applications. Moreover, BaaS aids businesses in avoiding operational overhead and technical complexities related to a blockchain. So, businesses of all sizes can access blockchain-based technology without investing in in-house development with BaaS.
Businesses can use BaaS for services like record keeping, stocktaking, securing confidential data, etc. Many industries can benefit from this BaaS model, including finance, healthcare, advertisement, retail, and more.
Now, let us understand the working of this model.
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BaaS works similarly to software-as-a-service (SaaS), which involves developing applications over the internet without any software download. It acts as a web host that provides cloud-based solutions for blockchain-based applications and smart contracts development. This model gives a process via which third parties develop, host, and maintain blockchain applications on organizations’ behalf. You need to pay an external supplier to install blockchain technology and infrastructure and maintain nodes. Moreover, the service provider supports the back-end dynamic for firms and their customers. The operator will also allocate capacity, regulate bandwidth, identify security risks, and manage critical objects related to a blockchain. Essentially businesses can focus on blockchain technology without thinking about its infrastructure and working.
Data drives the working of any business. So, obtaining information quickly and accurately can increase the efficiency of an organization. Here, blockchain-as-a-service can provide immediate and transparent data to any firm. BaaS uses blockchain to store all the data on an immutable ledger. Businesses opt for permissioned network blockchain that only gives access to network members. BaaS is an affordable alternative for organizations that cannot invest time and money in end-to-end blockchain development solutions. Thus, it lets enterprises focus on their business rather than think about blockchain complexities.
Also, Read: Increasing Inevitability of DevOps for Blockchain Development
BaaS provides a range of advantages to businesses, including low-cost access to blockchain technology, accessibility, foolproof software, and more. We have curated the following list of all benefits of blockchain-as-a-service that your business requires:
A blockchain is a distributed ledger that stores data in blocks. Every computer in the network has this data. However, you cannot change, edit, or manipulate data once stored in a blockchain. One component of a blockchain that prevents manipulation is a cryptographic hash that connects blocks without any data manipulation. Thus, making the information immutable.
Usually, personal data, such as home addresses, card details, etc., in cloud-based software is vulnerable to privacy breaches and thefts. As a result, many people tend to avoid using such software. But, a blockchain ensures high data security due to cryptography hashing, which is difficult to hack. So, customers will trust businesses using BaaS since their data will be more secure. Consequently, BaaS enhance customer loyalty for a firm.
Businesses can place all the information, including manufacturing records and the documentation of every piece of equipment, on a block. Blockchain technology makes this data indisputable. This feature makes it easier for businesses to trace the entire lifecycle of a product. Additionally, it lessens paperwork processing. Enterprises can also identify counterfeits o fake transactions due to traceability.
BaaS can increase the capability to automate sales. It can automate many processes, including payment management, customer validation, transaction processing, and metering functionalities. One area where BaaS can bring automation is in billing cycles, which need human intervention. Automation in this area can reduce this dependency and eliminate delays. As a result, BaaS can make transactions trustworthy and enhance business reliability.
End-to-end blockchain development requires creating an entire infrastructure and skilled people. At times, it becomes expensive for small firms or businesses. So, many organizations cannot adopt blockchain technology despite its numerous benefits. BaaS gives you the benefits of a blockchain without getting into the technicalities of a blockchain.
BaaS gives firms low-cost access to blockchain technology. Businesses can save the cost of servers, components, storage, upgrades, and more with Baas. Thus, it becomes an affordable alternative to developing a blockchain from scratch.
Blockchain technology removes the need for any intermediary to execute any contract. It uses smart contracts that are auto-executing in nature. With these smart contracts, businesses do not have to check into various systems to monitor progress.
Also, Read: A Walkthrough of Blockchain Development Service Benefits
Now, big firms are providing blockchain-as-a-service to many people. More and more firms are adopting BaaS to source blockchain functionality rather than themselves developing blockchains. It is making blockchain technology accessible to a larger audience. If you are also interested in tapping the potential of blockchain technology, then Oodles Blockchain can assist you. Our expert blockchain developers can help you develop scalable blockchain networks. For more information, talk to our experts.