BaaS is a web host and helps in completing the back-end operation for blockchain-based apps or platforms. It helps customers utilize cloud solutions to host, operate, and build blockchain apps and perform functions. The cloud-based service provider can improve the agility of infrastructure and allow it to remain operational. The role of a BaaS provider is similar to that of a web hosting provider. Microsoft, Amazon, R3, Hyperledger Foundation, PayStand, and IBM are some of the major players in the BaaS space.
Concept of BaaS
BaaS providers allow users to deploy, manage, and scale blockchain applications with ease. It helps ordinary individuals and organizations to utilize blockchain as a service without having much technical expertise and infrastructure. The providers also act as a catalyst and help in the scaling of blockchain applications with ease. Therefore, BaaS fundamentally is similar to software as a service (SAAS) because it rents out both services and software.
Benefits of BaaS
BaaS is highly beneficial for a wide range of applications and users. It is undoubtedly the best alternative to gain maximum benefits from blockchain without maintaining or owning blockchain infrastructure.
Scalability
BaaS has high levels of scalability that make it accommodating for different uses and helps in increasing transaction volumes. Thus, the scalability option invariably makes this technology customizable. Customization helps in meeting diverse needs of different sectors and it promotes better coordination and cooperation too.
Cost Reduction
Cost reduction is one of the USPs. Most choose BaaS because it either minimizes or eliminates the need for upfront investments in software, hardware, and network infrastructure. Therefore, there is always a possibility for more cost savings.
Improves Focus on Domains
It streamlines resources and permits organizations to improve their focus on their core domain. Hence, it also helps customers to manage complicated blockchain infrastructure.
Faster Deployment
Faster deployment is a notable advantage. This is because business enterprises want to save time and avoid managing complicated blockchain infrastructure. Therefore, businesses can indirectly save money by saving time and precious resources.
Functions of BaaS
In a BaaS model, the provider plays a leading role in arranging security protocols, maintaining necessary nodes, and ensuring integrity, and consensus mechanisms. These are some of its functions that help users worldwide.
Facilitates Integration
BaaS platforms facilitate seamless integration with existing systems and applications. Businesses can link their internal systems, enable secure data exchange, improve interoperability, and have standardized protocols. The integration empowers blockchain technology without major disruptions. Integration also indirectly saves costs. Hence, it increases the profitability of many business outlets.
Various Deployment Models
There are various deployment models. These models have a high degree of customization. Hybrid blockchain, public blockchain, and private blockchain are some of its common deployment models. Usually, public models have provisions for open unrestricted access. Therefore, they also have high transparency levels. Contrastingly, private blockchains are more restricted, require more authorization, and allow limited participation. Hybrid blockchains combine features of both private and public networks.
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Bottom Line
Blockchain as a service (BaaS) is gradually becoming a standard solution for many enterprises that want blockchain technology but want to reduce its costs. Therefore, the collaboration of multinational companies in promoting BaaS is a signal that it is emerging as an acceptable alternative to prevalent technologies. The high degree of customization, lower costs, faster deployment, and ease of use are leading to its widespread adoption.
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