BaaS, also known as Blockchain as a service is used by companies or enterprises that build blockchain applications to manage cloud-based networks. Blockchain application has evolved from being just to handle cryptocurrency transactions to securing transactions of different kinds. BaaS is a third-party service that is new to the rapidly growing field of blockchain. It runs the back-end operations for blockchain apps like a web host. With BaaS, the adoption of blockchain is most likely to skyrocket.
BaaS is adopted from the software as a service (SaaS) model and they both have the same similarity in their functions. It allows people to utilize cloud-based solutions to build, host, and operate their own blockchain apps, platforms and other related functions on the blockchain. At the same time, the cloud-based service provider keeps infrastructure agile and operational.
- Microsoft partnered with ConsenSys to introduce Ethereum blockchain-as-a-service on Microsoft Azure in 2015.
- R3 produced a distributed financial ledger called Corda.
- Amazon introduced Amazon Managed Blockchain, using open source frameworks including Ethereum and Hyperledger Fabric
Blockchain is fast evolving and businesses and consumers are willing to adapt to blockchain technology. However, there are technical complexities involved in creating, configuring, and operating, maintaining a blockchain and its infrastructure, this often acts as a barrier. This is where Baas comes in. BaaS offers an external service provider to set up all the necessary blockchain technology and infrastructure for a fee. Once created, the provider continues to handle the complex back-end operations for the client.
The BaaS operator offers technical support, such as managing bandwidth, allocating resources, hosting requirements, data security etc.
- Smart Contracts Integration: Smart contract is required to integrate business logic into your blockchain solution. Smart contracts include the rules and penalties just like typical contracts, It is important to remember that the BaaS provider provides smart contract integration as one of its services.
- Different Runtimes and Frameworks: Ensure to choose a BaaS provider that supports a diverse range of runtime and because some BaaS providers only support one kind of enterprise blockchain deployment.
- Identity Access Management: To manage identities, a single sign-in method or even multiple authentication ways can be used to give users access to the information. Ensure to select a BaaS platform that offers IAM framework integration.
As the blockchain field rapidly, Blockchain as a service(BaaS) has the ability to boost blockchain adoption across businesses.