Blockchain technology is witnessing an increasing demand for leveraging in the business processes. As Blockchain is gaining tremendous popularity, the expenditures for bringing in or hosting the technology did not reduce significantly. The discrepancies between increasing acceptance of blockchain in the business, and hiked costs for housing the technology, led to the unveiling of Blockchain-as-a-Service (BaaS).
Considered as an economical solution, BaaS might fully eradicate the constraints of the industries, making Blockchain more available than before. Being a relatively newer concept, Blockchain-as-a-Service needs more limelight on what it means and what are its business benefits. Below you will find everything that you must know about BaaS for your business.
What is Blockchain-as-a-Service?
Blockchain-as-a-Service can be interpreted as the assimilation of blockchain technology and the cloud as a service model. Similar to the popular cloud models viz IaaS, PaaS, and SaaS, the functionality of BaaS is to allow everyone to utilize the cutting-edge tools of blockchain without investing in and managing the lofty blockchain infrastructure in-house.
The BaaS allows businesses of all shapes and sizes to get in touch with the providers of the service and develop costly blockchain applications without spending a huge amount of money. Blockchain-as-a-service, the huge money-saving technology is also a part of blockchain’s major trends of the present time.
Working of Blockchain-as-a-Service
Blockchain-as-a-Service allows you to develop complex blockchain applications without worrying about managing the costly infrastructure and investing larger capital. You are left only to pay the service usage fees and utilize the applications while the BaaS providers take care of the infrastructure and the security.
In other words, BaaS lets you rent the features of the infrastructure without caring for where the servers are located, how they are managed, and how the servers are protected.
Leveraging Blockchain-as-a-Service facilitates the business in better bandwidth management, resource allocation, and accessing enhanced security features. With BaaS, the businesses are freed from the burden of getting into the blockchain operation complexities like hiring resources for the blockchain management, and resolving and penalizing for the faulty working of the infrastructure, and better focus on their working goals.
What are the Business Benefits of Blockchain-as-a-Service?
Blockchain has become one of the most sought-after technologies today. While the domain of blockchain is still residing under the umbrella of research, and the technology is not yet fully discovered, businesses are looking towards blockchain more heavily than ever before.
BaaS is extended cloud technology and encompasses most of the cloud benefits. Though still new, the Blockchain-as-a-Service aims at solving multiple practical blockchain technology constraints and problems which are hurdles in the way for large-scale implementation of blockchain in the businesses.
- No more hidden is the fact that businesses invest blood and sweat for maintaining and managing the complex in-house blockchain infrastructures. A dedicated technical team keeps working throughout to ensure flawless deployment of the blockchain technology.
- But with the advent of the revolutionary Blockchain-as-a-Service model, the providers abstract the businesses from the underlying architectural complexities leaving them to focus on their goals only.
- Scalability is another feature, driving a plethora of businesses to use Blockchain-as-a-Service. BaaS allows businesses the flexibility to scale up or down according to the requirement. Within very short notice, such scalability allows renting more features when the demand hikes, and terminate on the services and save money when the demand has stopped.
- When a dedicated team of BaaS service providers works to ensure the security of the blockchain infrastructure, you will receive more reliable and impermeable facilities.
- For the businesses that deal with outsourcing technical aspects need not be deeply rooted in learning the hosting and deployment of BaaS. Instead, they can get acquainted with the overview of BaaS, and provide technical support to their clients.
Cost of In-House Blockchain vs Blockchain-as-a-Service
By now, the remarkable business benefits of Blockchain-as-a-Service over hosting blockchain in the house are clear to you. However, some of you might not be still convinced of BaaS as a better alternative to hosting blockchain on-premises.
Financial constraints emerge out as primary hurdles in leveraging the blockchain in the business processes. Well, apart from easing out your maintenance worries, Blockchain-as-a-Service helps in reducing your budget considerably.
The ownership of blockchain technologies hikes up the costs exponentially. Major sectors like operations, security, and maintenance of premised blockchain consume major financial allocations. You already know that all of these crucial sectors are abstracted from the BaaS users, so the costs of BaaS are bound to minimize than the premised blockchain.
The costs of hosting blockchain on-premises consume at least a hundred thousand dollars, with additional costs for managing and maintenance. Whereas in BaaS, the rental charges can go as low as $0.29 per CPU hour, without any extra maintenance charges. Blockchain technology on-premises are way costlier than BaaS.
How to Choose the Right BaaS Platform?
There are a host of BaaS providers in the market. Since technology is a newer concept, not all platforms can be considered to provide quality services. So, choosing a BaaS platform wisely plays a pivotal role in the fate of blockchain in your business. Depending on your business requirements, you must pick out the best BaaS providers according to the below-mentioned parameters.
- Identity Access Management (IAM) Platforms
- Distinct Frameworks and Runtimes
- Smart Integration of Contracts
- Identity-based Mechanism of Consensus
Technologies never stop from getting innovated. No sooner than the development of a technology to tackle the existing problems, humankind comes up with all new sets of graver problems. When blockchain came up, businesses were delighted to leverage cutting-edge technology to solve a range of business problems.
However, even when blockchain became a widely popular technology, the prices to host blockchain did not dropdown. Dissatisfied by the cost structure, businesses are warmly welcoming the economical alternative of Blockchain-as-a-Service.
Though the fate of BaaS in businesses is not yet predicted precisely, BaaS is here to stay for longer than the expected tenure. With the evolution of cloud models, BaaS is all-set for innovation and surprises everyone with newer functionalities and benefits.