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Why Blockchain as a Service (BaaS) Will Take Off in 2022

Why Blockchain as a Service (BaaS) Will Take Off in 2022

If you’ve been paying attention to the tech world at all over the past few years, you’ve probably heard of Blockchain as a Service (BaaS). BaaS is becoming bigger than ever, and you might be hearing more about it shortly as more companies hop on the blockchain adoption train.

It’s no wonder, though.

Blockchain as a Service offers a slew of flexible options through cloud integrations and platforms that your company can stand to benefit from.

The article below reviews all those options and platforms. But first:

What is Blockchain as a Service?

Blockchain as a Service (BaaS) is a cloud-based platform that allows users to build and host their blockchain service. BaaS providers handle all of the infrastructure and security for their customers, making it an attractive option for businesses that want to use blockchain without investing in their own infrastructure.

Here’s how this blockchain solution works:

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Source: Investopedia

Benefits of BaaS

For businesses, the benefits of Blockchain as a Service (BaaS) are numerous. From increased security to supply chain traceability and enhanced efficiency, blockchain adoption can help organizations of all sizes realize their full potential. And with the advent of cloud-based services, BaaS is more accessible and affordable than ever.

Perhaps the most significant benefit of BaaS is that it can help businesses improve security.

By distributed ledger technology, blockchain creates a tamper-proof record of transactions. Therefore, businesses can have greater confidence in the data they collect and store.

In addition, BaaS can streamline processes and reduce costs. Blockchain as a Service can help businesses operate more efficiently by automating tasks and eliminating the need for third-party intermediaries.

Customization is another essential benefit.

The right BaaS provider will help you get the correct tools and services according to your needs, just like other SaaS providers are scalable.

BaaS Trends

As the popularity of blockchain technologies grows, so too do the number of companies and individuals seeking to use it.

When it comes to blockchain, BaaS companies are usually divided into two camps: those who want to use it for everything and those who think it’s overhyped and best used sparingly.

We at Rapid Innovation like to think of ourselves as blockchain consultants, carefully assessing each client’s needs before making a recommendation. That said, there are some requests that we see more often than others:

First, more companies want to use blockchain for data storage and management. This makes sense given the distributed nature of blockchain and the fact that it can provide a secure and tamper-proof data record.

Second, we’re seeing more interest in using blockchain for smart contracts. Again, this is understandable given the fact that blockchain can provide a way to automate contract execution and enforce the terms of the agreement.

Finally, we’re seeing more interest in using blockchain for identity verification. With the advent of GDPR and other data privacy regulations, there is a growing need for firms to verify the identity of their customers securely and efficiently – and blockchain offers a practical solution.

BaaS platforms can help with most of that.

BaaS Platforms

Think of the BaaS platforms below as the specific tools through which Blockchain as a Service can help you:

Rapid Provisioning

Rapid provisioning means the cloud provider creates and offers users a deployment repository for storing system components. BaaS providers often boast many features and functions that can be easily integrated into existing applications.

Therefore, you can:

  • Get your products to market faster by delivering backend services quickly and efficiently.
  • Reduce costs by avoiding the need for long-term contracts or costly infrastructure investments.

Backend Services

Instead of building and managing their blockchain network servers, users can focus on the front end and leave the back end to someone else. The benefits of this approach include:

  • Decreased development time and cost
  • Increased scalability
  • Improved security
  • Customizable applications

IAM Platforms

IAM Platforms in Blockchain as a Service is a term that refers to the software or platforms that allow users to create and manage their digital identities. These platforms use blockchain technology to store and secure identity information, making it more difficult for cybercriminals to steal this data.

Your company can use IAM Platforms to:

  • Verify the identity of employees, customers, or partners.
  • Create and manage digital signatures.
  • Track the history of an individual’s identity, providing a valuable tool for fraud detection and prevention.

Smart Contracts

A smart contract is a digital contract that self-executes and self-enforces the terms of the agreement between two parties. The contract terms are written in code and stored on a blockchain, making them tamper-proof and transparent.

Your company needs smart contracts to facilitate blockchain transactions, such as currency, data, or property exchanges.

Permissioned Blockchains

A permissioned blockchain is a distributed ledger that allows only specific individuals to access the blockchain network. Businesses that need to maintain control over their data and transactions often use this type of blockchain.

With the help of Blockchain as a Service, companies can take advantage of the security and efficiency of permissioned blockchain platforms without having to create/maintain this infrastructure on their own.

Identity-Based Consensus Mechanisms

Decentralized consensus mechanisms are at the heart of what makes blockchains so unique. Without them, there would be no way to verify transactions or prevent fraud. However, traditional consensus mechanisms tend to be slow and resource-intensive.

Enter identity-based consensus.

By tying each node to a unique identifier, identity-based consensus allows for faster and more efficient verification of transactions. Not only does this make the verification process more efficient, but it also helps to improve security and reduce the chances of fraud.

Blockchain as a Service gives you access to that technology.

Block Monitoring

Block monitoring helps businesses:

  • Track their blockchain transactions.
  • Ensure that they are compliant with the relevant regulations.
  • Detect and prevent fraud by identifying suspicious activity.
  • Diagnose problems with blockchain applications.
  • Improve these apps’ performances.

Overall, block monitoring is a vital part of BaaS that helps businesses get the most out of their blockchain applications.

Blockchain-First Services

In simple terms, blockchain-first refers to the new breed of companies that are building their business model around the use of blockchain. These companies are referred to as ‘blockchain-first’ because they put the blockchain at the center of everything they do, from development platforms and digital wallets to marketing and PR services.

While many traditional businesses have yet to fully embrace the potential of blockchain, there is no doubt that this technology is here to stay. As such, it makes sense for companies to start planning for a future in which the blockchain plays a significant role.

Private Transactions

When it comes to digital transactions, there’s no such thing as too much security. Therefore, many businesses are turning to Blockchain as a Service to manage their private transactional data.

Blockchain uses a distributed ledger system to record and store transaction data, providing an extra layer of security and peace of mind. Multiple parties verify each transaction before it is added to the ledger, making it virtually impossible for anyone to tamper with the data.

And because the ledger is distributed across a network of computers, there is no single point of failure that could jeopardize the system.

Blockchain Innovations

BaaS providers offer various services, including storage, compute power, networking, and development tools. By leveraging BaaS platforms, businesses can accelerate their adoption of blockchain without incurring the costs and risks associated with developing their own infrastructure.

Types of Cloud Blockchain Integrations

There are different types of blockchain integrations available, depending on the platform you’re using:

Google Cloud

Google Cloud offers a fully managed service, which facilitates building and deploying blockchain applications on Google Cloud.

Microsoft Azure

Microsoft Azure has a similar service called Azure Blockchain Workbench, which provides a set of tools and templates for quickly building blockchain-based applications.

AWS

AWS has a managed service called AWS Managed Blockchain, which is best for creating and managing scalable blockchain networks.

IBM Cloud

IBM Cloud offers a service called IBM Blockchain Platform, which includes everything you need to develop, test, and deploy blockchain applications on IBM Cloud.

Oracle Cloud

Oracle Cloud boasts an on-premises edition, supply chain SaaS application, and blockchain integration. Users can also access intelligent contract automation, private transactions, and thorough monitoring solutions.

The Future of BaaS

There’s no doubt that Blockchain as a Service (BaaS) is one of the hottest trends in the tech world right now. And it’s not hard to see why.

BaaS provides a unique way to streamline processes and reduce costs by allowing businesses to leverage blockchain solutions. Not to mention, it also helps simplify the often complex world of blockchain.

But what does the future hold for BaaS?

While it’s hard to say for sure, one thing is certain: the potential for this technology is enormous.

With more and more companies looking for ways to integrate blockchain into their operations, the demand for BaaS will only grow. And as the technology matures, we can expect to see even more innovative BaaS applications emerge.

So whatever the future holds, one thing is clear: BaaS is here to change the world.

 

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