Blockchain’s real-world applications are growing by the minute. Although it has numerous real-world applications and benefits, digital businesses are still struggling to realize the full potential of Blockchain solutions. Business owners are now confronted with two possible questions.

Is Blockchain-as-a-Service a viable alternative?

Is Blockchain-as-a-Service for Business the solution to making Blockchain technology more accessible to a wider audience?

In this article, we will investigate the BaaS solution for business operations, the benefits of blockchain as a service, and how to select the best BaaS providers available on the market today.

What Exactly Is Blockchain-as-a-Service (BaaS)?

To make the benefits of Blockchain-based services more accessible to a wider audience, the technology has begun to be offered in the cloud as a service business model. On the operational front, it is similar to the SaaS, PaaS, and IaaS models in that it allows the use of cloud-based apps and storage.

It enables businesses of all sizes to gain access to Blockchain-based technologies without investing in in-house development. The BaaS model allows businesses to gain access to the Blockchain provider’s service, allowing them to develop Blockchain applications at a low cost. This advantage is what has propelled it to the forefront of Blockchain technology trends.

The only limitation of the business BaaS solution is that it requires a certain level of centralization because transactions must be routed through the host’s Blockchain services. And because the answer to how Blockchain is used in business is at the heart of decentralization, businesses are hesitant to adopt it.

Important takeaways:

Blockchain-as-a-Service refers to the use of third-party cloud infrastructure and management by businesses to develop and manage Blockchain applications.

It functions as a web host, hosting the backend of an app.

BaaS serves as a catalyst for the widespread adoption of Blockchain technology.

What Is the Blockchain-as-a-Service Business Model?

The Blockchain-as-a-Service business model describes the process by which third-party organizations install, host, and maintain a Blockchain network on their behalf. In exchange for a fee, the service provider offers to set up Blockchain infrastructure and technology.

In many ways, Blockchain-as-a-Service for Business functions similarly to a web hosting provider. It enables customers to use cloud-based solutions for developing and hosting Blockchain applications and smart contracts in the provider’s ecosystem. Traditional business integration of BaaS provides support for resource allocation, bandwidth management, data security features, and hosting requirements.

The most significant impact of BaaS on business is that enterprises can focus on their core competencies without having to worry about the complexities of Blockchain operation.

The Impact of Blockchain-as-a-Service on Businesses

According to MarketsandMarkets, the global BaaS market will be worth USD 11,519 million by 2026, which is a fortune for modern businesses. Blockchain-as-a-service is primarily influencing startups and SMEs that rely heavily on large data silos. BaaS includes smart data protection and a competitive advantage, not to mention the removal of third-party delegates.

Blockchain technology is being adopted by both businesses and consumers. However, the operational overhead costs associated with infrastructure development, configuration, operation, and maintenance, as well as technical issues, act as a barrier. The benefits of Blockchain for SMEs, no matter how large, are very resource intensive and energy consuming, preventing widespread adoption of the technology.

Renting a Blockchain infrastructure through BaaS enables businesses to learn the skills required to operate the Blockchain infrastructure. Furthermore, the investment required to enter the technology segment is reduced because the service agreement can be easily scaled up or even terminated on short notice.It allows businesses to stay on the cutting edge of technology without taking unnecessary risks.

Startups Can Benefit From BaaS

The benefits of BaaS for businesses, particularly small businesses, are deemed ideal for organizations that outsource technological aspects and are not heavily involved in the Blockchain’s working mechanism. It allows these companies to gain an understanding of the technology without having to develop their own Blockchain.

A variety of industries are integrating BaaS solutions for things like identity management, supply chain management, and payments. Blockchain development services are emerging as the ideal solution to a variety of SME challenges such as the elimination of middlemen, a lack of transparency, and so on.

Industry-Specific Blockchain-as-a-Service Use Cases

As previously stated, Blockchain is a data management platform, which means that all solutions offered in the Blockchain domain will have data at their core. The use cases explained below demonstrate how Blockchain is used by various businesses for immunity and transparency.

Medical Care

By maintaining a universal and transparent version of patients’ medical data, blockchain has revolutionized healthcare to a large extent. Because of organized and up-to-date records, blockchain technology has enabled several medical professionals to provide immediate care to individual patients.

Furthermore, Blockchain aids in determining the authenticity of medicines. This means that any drug or chemical can be traced back to its origin. This has been a huge help to manufacturers recalling specific chemicals for aid drugs.

Automotive

The most difficult challenge for the automotive industry is combating counterfeit parts and managing supply chains. The blockchain platform as a service comes to the rescue here by providing end-to-end accessible records for the transportation of automotive parts. This assists automobile companies in tracking and distinguishing genuine spares from counterfeits.

Furthermore, Blockchain services in supply chain and manufacturing have disrupted the industry’s efficient flow. There is no shortage of critical components, and businesses enjoy optimal production with minimal downtime.

Financial Technology

Blockchain in FinTech has brought peace to the average banking customer by automating the majority of the financial process. In addition to adding immutability and transparency to avoid disputes. Customers can now use smart cards thanks to blockchain services. These smartcards allow for faster fund settlements without the need for central authority verification.

Logistics and Transportation

Identity verification is critical in the logistics and transportation industries for both goods and passengers. Passengers can complete the entire process quickly and easily with a single identification token. Likewise, for cargo movement, verification efficiency, and fault proofing. Blockchain as-a-service provides a fail-safe mechanism for industries and other data silos.

Tracking of Documents

Blockchain technology allows for the creation of a distributed, immutable document tracking system. By storing the documents on Blockchain, all participants have equal access to the data. Furthermore, because Blockchain technology is immutable, the documents are secure.

Storage of Data

The risk of data loss is greatly reduced when data is stored in a decentralized Blockchain. Regulated industries such as healthcare, real estate, and so on benefit greatly from Blockchain’s immutable, secure data storage facility.