BLOCKCHAIN-AS-A-SERVICE

Blockchain-as-a-Service (BaaS) is a service that enables customers to use cloud-based solutions to develop, build, host and use their own blockchain apps, smart contracts, and functions on the blockchain. To maintain the infrastructure agile, seamless and operational, the cloud-based service provider will manage and control all the required tasks and activities. It’s working is pretty similar and based on the concept of the Software-as-a-Service (SaaS) model. It is a development that is interesting in the blockchain ecosystem which is indirectly helping blockchain adoption in the businesses.

The BaaS model is widely used that enables the business personals in their respective business ventures to take the profit of Blockchain technology without any sort of investment in the development. It is simple for them to make blockchain-based applications and smart contracts using the BaaS model. If you pay for BaaS, you pay a company to set up blockchain connected nodes on your behalf. A BaaS provider would deal with the confusing back end for you or your business.

This makes blockchain a which offers a software just like Gmail, where instead of setting up your own infrastructure and e-mail servers, you logon and can access your emails. In the same way, BaaS lets you to consume blockchain as a service without the time to deployment and ongoing management like that in traditional deployment.

Blockchain-as-a-Service include the following features

• Platform architecture management
• modular, preconfigured networks and infrastructure
• Easy setup workflow
• Middleware for monitoring & development for app building
• Dashboard to view and analyze chaincode
• Auditable transaction record
• Built in connections to needed services
• Professional and consultatory

Pros & Cons of Blockchain-as-a-Service (BaaS)

Let’s see the advantages of BaaS Service Model:

• Cost: It has low-cost access to technology. Moreover, as BaaS is consumed as service, there is no big upfront cost as it has a self-owned kit. Also, the costs can be predicted as costs will basically depend upon the monthly billing model which can be projected.
• Easy set-up: BaaS takes away the burden of the initial setup and ongoing infrastructure maintenance.
• Scalability & Compatibility: It offers companies huge scalability along with good compatibility. It can be accessed from anywhere.
• Elastic: The cloud-based hosting and monthly OPEX costing model enables the projects to be quickly scaled up or down to meet the needs.
• Accuracy of deployments: Since most of the BaaS deployments are template-driven, it allows them to deploy precisely and accurately in a repeatable fashion.
• Risk: The OPEX model and speed of deployment enabled the companies to rapidly test whether a blockchain is suitable for them without making a big upfront investment.
• Resilient and secure infrastructure: It allows cloud providers to pool the resources and have data centers with huge capabilities than the standard company. Moreover, it offers more data security.

Now, let’s see the disadvantages of BaaS Service Model:

• Centralization: The main thing about blockchain is that it has a decentralized infrastructure. By hosting it in a single cloud provider, it generates a degree of centralization. So, BaaS involves adding some centralization to the blockchain, which is not ideal.
• Limited control: As the infrastructure is managed by the service provider, there is limited flexibility in the backend infrastructure. So, the customer can just control the blockchain.
• Lock-in: You are putting all the trust in the cloud provider without owning or controlling the infrastructure. Additionally, the organizations can find it complex to migrate their services from one vendor to the other.
• Restrictions and Policy: Some of the organizations can be managed and controlled by internal policy or legal requirements that need all data which is placed on the company property.

Blockchain-as-a-Service (BaaS) Providers

To democratize blockchain technology, several key cloud providers /companies have introduced their own platforms offering blockchain-as-a-Service (BaaS).

Amazon AWS BaaS

Amazon, the world’s largest & leading cloud provider of PaaS, IaaS and SaaS services that joined hands with Digital Currency Group (DCG) to make BaaS environment offers via AWS platform. The goal of the BaaS environment is to enable DCG affiliated blockchain providers to work in a blockchain environment that is secure with its clients to help in development. With this, it’s simpler to access, manage and control financial institutes, enterprise technology companies, and insurance firms which describes the basic need that makes it easy to enable BaaS. Insurance companies, enterprise technology, financial institutions will help developers on the project to learn what the real business requirements are for blockchain to allow them to push BaaS development.

Microsoft Azure BaaS

Microsoft follows an open source Ethereum Blockchain for the BaaS development. This is an interesting way to get access to blockchain technology which supports business innovation. Microsoft Azure’s BaaS service delivers reasonable and quick access to blockchain technology. For developers and businesses, it provides a better environment to ease the innovation of new processes.

By using Microsoft Azure’s networking compute and storage services present all over the globe and with a bunch of user inputs via the Azure portal, clients in less time can supply blockchain network topology which is fully configured. Microsoft has automated these time-consuming pieces to enable clients to concentrate to build application and scenarios.

IBM’s Hyperledger BaaS system

IBM has their BaaS service which is based on the Hyperledger BaaS system. This platform is fully designed particularly to fasten development and handle operations in the network. For creating blockchain solutions, it gives an environment for developers and businesses. With this platform, you can build an application, govern and manage the network. Its main goal is to digitize transaction workflow via shared ledger and to make a secure blockchain network.

The IBM Blockchain Platform is a completely integrated blockchain platform developed to quicken the governing, development multi-institution business network. IBM’s Enterprise Membership Plan consists of a highly available certificate authority, entry to the network’s transaction ordering service, network peer executed in a highly secure environment detached from another member’s environment.

Oracle Blockchain Cloud Service

This platform is based on Hyperledger Fabric which enables users to contribute to its development and provides a clear view of the roadmap. There is no cloud vendor lock-in as the blockchain network can be extended to on premise and other clouds based on Hyperledger. It is easy to expose the function through API which permits developers to make application integration. Oracle also offers out-of-the-box connectors and sample smart contracts for other Oracle SaaS applications.

With this BaaS service, customer can create new income streams, increase business pace, make cost reductions and reduce the risk rate by providing security. To make transactions simple and secure to the trusted network, security is extended to the ERP, SaaS and supply chain applications. They offer privacy, security and reduced transaction cost. It shares real-time information with a reliable and trusted network across Oracle SCM & ERP Cloud and Netsuite Suite Cloud Platform.

Huawei BaaS platform

The Huawei BaaS is a Hyperledger-powered BaaS which allows companies to generate smart contracts using distributed ledger network. This platform is based on Hyperledger 1.0 and Kubernetes. This platform can be used for a bunch of applications consisting of digital assets, supply chain, finance and traceability, crowdfunding notarization, etc. The platform enables clients to create smart contract applications which focus on tokenized securities, supply chain, assets and public services like ID verification & financial auditing.

Huawei’s blockchain service consists of three layers; cloud, pipe, and devices, with a combination of software and hardware protection, homomorphic encryption and zero-knowledge proofs to have one of the most reliable and secure systems. This service is delivered through the Huawei Cloud, ensuring lower costs and always accessible to clients.

Alibaba BaaS platform

Another great vendor on the market is the Alibaba Cloud. They offer one of the sophisticated enterprise Blockchain As A Service application in the market. You’ll be able to deploy any kind of enterprise-grade platform using their platform. Moreover, with the help of their BAAS, you’ll get closer to the most popular blockchains on the market. Alibaba Cloud allows enterprise-level blockchain applications on Hyperledger Fabric, a Hyperledger project hosted by The Linux Foundation, and Ant Blockchain — developed by Alibaba affiliate Ant Financial.

SAP BaaS platform

SAP is a relatively new addition to the Blockchain As A Service providers league. Moreover, they are perfect for you if you are looking for a low-risk gateway and easy deployment for your blockchain technology. At present, you will be able to develop blockchain solutions on their cloud platform.

Furthermore, they have equipped their cloud platform to fully back you up with every high-end technological need. In reality, SAP wants to eliminate the large upfront investment when enterprises start to integrate blockchain. Moreover, this large amount of investment does discourage companies to even consider blockchain.

The Bottom Line

As more businesses look for convenient and cost-effective ways to leverage blockchain technology, it is likely that BaaS offerings will continue to proliferate. Keeping an eye on the space can help you choose the right BaaS provider for your business needs