
Blockchain-as-a-Service (BaaS) is now a practical business solution beyond banking for organizations because of advances in blockchain technology. Since the technology is still in its infancy, the adoption of blockchain technology will always face obstacles. However, there are still benefits to BaaS.
What
is Blockchain-as-a-Service?
BaaS
refers to cloud-based services that provide businesses and organizations with a
platform to develop, test, and deploy blockchain applications and smart
contracts. All these are achieved without the need for the organization to
build and maintain its blockchain infrastructure.
Smart
contract execution, cryptography, and consensus mechanisms are some of the
blockchain features and services that BaaS platforms offer. They also provide
tools for developers to create and deploy blockchain-based applications, such
as APIs, software development kits (SDKs), and pre-built templates.
Some of the major technology companies that offer BaaS platforms include Microsoft Azure, IBM Blockchain, Amazon Web Services (AWS), and Oracle Blockchain Platform.
How
Does the BaaS Model Work?
If a
company, referred to as the client, enters into a BaaS agreement with an IT
partner, they are essentially signing a contract where the BaaS partner
undertakes the responsibility to create all the required Blockchain
infrastructure for the client. In return, the BaaS partner receives a service
fee that is clearly stated in the contract agreement.
The
BaaS provider maintains and operates the blockchain network which users can
access via a web-based or an API interface. This eliminates the need for users to
worry about the technical details of establishing and sustaining the network
and allows them to focus solely on developing and managing their blockchain
applications.
Companies that choose to implement the BaaS model can concentrate on their primary business operations and competitive strategies, as the BaaS partner assumes responsibility for maintaining the blockchain infrastructure and ensuring its performance.
Read: How AI and Blockchain Technology are Changing Businesses
Benefits
of Business-as-a-Service
BaaS
allows businesses to leverage the benefits of blockchain technology without
having to invest in their infrastructure. It reduces the costs and technical
expertise required to develop and deploy blockchain applications and enables
businesses to focus on their core operations. Here are the top benefits of BaaS:
1. Enhancing
automation
A
key factor in business operations will be automation. As a result of
transactions being instantaneous, blockchain technology makes automation
simple. This promotes the adoption of self-executing computer software programs
that manage intricate legal contracts, like smart contracts.
Also,
to improve the productivity and efficiency of business operations, automation
can be achieved in internal processes like starting a project or an audit.
2. Cost
savings
The
earnings of companies may be significantly affected by operational costs.
However, the development of blockchain technology has made it affordable for
businesses to use as a service and cut costs.
For
instance, blockchain technology can promote the usage of smart contracts in
business. This suggests that the number of third parties who would typically
examine service agreements or contracts could be decreased or even eliminated.
3. Improving
data security
Data
integrity, transparency, and greater accountability are benefits of blockchain
technology. This makes it possible to employ smart contracts since businesses
can rely on transactions or processes that are synchronized and unchanged.
If
your IT team is creating a classified service or product, for instance, each
person who is involved in every step can be validated using a digital
certificate with their digital signatures and a distinct, unchallengeable hash
that is stored within a blockchain transaction.
4. Improved
collaboration
Relying
on third-party collaboration tools has inherent restrictions that might affect
an organization's success. On the other hand, BaaS platforms with private
blockchains have chances to enhance cooperation.
An
organization might have its own authorized parties-accessible distributable
private ledger of employee profiles. This enables the company to increase
production through enhanced collaborative efforts without as much reliance on
intermediaries.
5. Simplifies
complex processes
Understanding
the effectiveness of a technology without testing it can be difficult sometimes.
Furthermore, quality control testing becomes more complicated when technology
is as difficult to comprehend as blockchain technology is.
However,
the process can be simplified if your company chooses to implement BaaS.
Compared to systems that rely on centralized intermediate platforms, blockchain
technology makes executing a transaction less difficult because of its
decentralized structure.
Conclusion
Blockchain-as-a-Service
gives leading companies trusted and innovative ways of improving their operations
and making complex processes simpler. Therefore, consider BaaS when you are
looking for a service that will improve the operations of your company.
DISCLOSURE
Comments here are not of the author's opinion. Users are responsible for their comments.