Blockchain technology has been around for more than a decade now. Since being declared as a public transactional ledger for Bitcoin in 2008, Blockchain has been a top technology in the industry. Several businesses and organizations are drooling over this technology and its growth curve is skyrocketing. The business value of blockchain is all set to exponentially grow to $3T over the next decade.
Considering the hype, big enterprises are fully driven to embrace blockchain as its use-cases are continuing to increase. But the paradox here is that there is still a huge skill set gap in the market for using and implementing blockchain applications. Also, the resources required for blockchain can cost you millions of dollars. Yet giant companies are fully driven to actively roll out blockchain-based projects to stay ahead of the competition.
Let’s find out what is blockchain as a service and how can organizations exploit it in their best interest:
Blockchain as a Service (BaaS)
Today, technical solutions are readily available for you in the form of third-party rental cloud-hosted services. For instance, you can outsource IT infrastructure from a technical partner which allows you to lend technical infrastructure based on remote cloud-based server platforms. This is known as Infrastructure as a Service (IaaS), a commonly used approach by all types and sizes of businesses. Infrastructure as a Service (IaaS) gives you significant control over technical operations and your vendor’s skills and resources without having an IT ownership cost attached. Most of the IaaS providers also help you with extensive support and maintenance services.
Similarly, if you talk about Blockchain as a Service it allows organizations to lend blockchain service infrastructure that is based on the cloud servers. This service helps you to use blockchain cloud platforms to develop, manage, and host your blockchain applications, workload, and systems to achieve infrastructure agility. With its constant evolution, almost every enterprise aims to reap the benefits of this technology without having to spend a lot on in-house blockchain infrastructure. Moreover, the technical complexities and lack of a fully developed skill set for operating and managing blockchain technology in-house make it difficult for you to own a blockchain infrastructure yourself.
How does BaaS operate for organizations?
Even though blockchain technology has been around for a quite long time still enterprises are struggling to equip themselves with the right set of resources and tools to effectively operate and leverage this emerging technology. Blockchain empowers organizations to cut down on operational inefficiencies and provides greater security due to its decentralized nature and transparent structure.
By outsourcing blockchain technology from BaaS providers, your technology management team can cost-effectively bridge the skill gap for managing blockchain infrastructure. The BaaS service can be scaled up or down depending on your requirements and market conditions at a short notice.
Thus, you do not have to heavily invest in its infrastructure to take advantage of this technology – letting you avoid any unnecessary risks attached to blockchain infrastructure operations. The Blockchain as a Service provider not only keeps the blockchain infrastructure operational for you but also watch out for different activities like:
- Allocating your resources fairly
- Managing your connectivity bandwidth
- Fulfilling your hosting requirements
- Managing blockchain’s performance and infrastructure problems
Blockchain as a Service applications
The potential of Blockchain still needs to be explored other than just in cryptocurrencies. As technology can offer several commercial advantages to the business community concerning cost and efficiency. Leveraging blockchain technology benefits financial sectors in terms of reducing their costs, enhancing transparency for their processes, and increasing their efficiency by saving time. Moreover, blockchain technology also makes the transactions more secure with improved traceability for each transaction increasing the trust factor for your customers. It is also promoting intercountry trading because it is easier and extremely cost-effective in digital transactions.
Blockchain as a service possesses innumerable advantages in terms of securing identities with which individuals and businesses alike can access healthcare, government services, and education facilities. It is a tool that empowers transparency, immutability, automation, and a decentralized workflow. Besides, BaaS also helps to streamline the supply chain process as it ensures transparency from producer to buyer.
Here are some of the real-world applications of Blockchain as a Service:
1. Tracking documents:
Blockchain offers you a well-established and distributed document tracking system. With the help of this immutable system, every member of your team gets easy access to the files and documents at any time. Thus, making sure that every member of the team gets similar and equal information to keep them on the same page.
2. Storing and securing data:
Blockchain technology’s decentralization narrative is redefining data storage and its security programs. Due to the increase in digitization of data and remote workflow, cyber threats have increased significantly. Hackers have found creative ways to manipulate data on home devices. Here, Blockchain helps by securing your identity and your devices. Blockchain helps with facilitating encryption of data that helps to secure an individual’s identity.
Through Blockchain, data transparency and discreteness are maintained that ensures the privacy of your data and devices which is one of the primary benefits of integrating Blockchain technology in cybersecurity solutions.
3. Contract execution:
For enabling exclusive transparency protocols, blockchain technology provides you a contract execution platform in addition to smart contracts. However, the decentralized and distributed narrative of blockchain technology makes sure that all the participants are treated and informed equally. This helps in efficient processing and payment procedures. Thus, Blockchain as a Service allows you to harness all the benefits of blockchain applications without having to invest in its infrastructure.
Clearly, the progression in blockchain applications cannot be ignored in the business world. However, BaaS has proved to be a blessing for enterprises. It has made it easier for organizations to adopt technology and make themselves ready for the future business environment. Since the blockchain infrastructure ownership and management cost resides with the service providers, enterprises can focus on adapting it in their core business operations for efficient and effective workflows.
Blockchain at Tkxel
To boost your performance, productivity, and security you need to build a robust software system with blockchain. Get in touch with our experts to help you throughout the process.