Blockchain as a Service (BaaS) refers to third-party service providers who serve those companies that are in the business of building blockchain applications. These cloud-based networks are new to the field of blockchain technology and they help companies build, host, and operate their blockchains. The infrastructure facilities provided by BaaS service providers make the infrastructure agile and active.
Some of the major service providers in the field of BaaS are Microsoft, Amazon, R3, PayStand, HyperLedger Foundation, and IBM.
Relevance Of Blockchain As A Service (BaaS)
Blockchain technology is a novel field in the industry and is inherently complex. It would be difficult for companies to arrange all the infrastructure required and find operators who can navigate the complexities of the technology. That is where Blockchain as a Service (BaaS) companies come into play. The services that they provide help blockchain companies deal with the inherent complexities of the technology and do away with heavy overhead expenses for appointing experts to operate the system.
BaaS gives businesses a chance to use the expertise of the most skilled and talented users. These service providers will help companies with their expertise in various areas such as development, process, deployment, and governance.
How Does Blockchain As A Service (BaaS) Work?
Blockchain companies usually agree with the Blockchain as a Service (BaaS) service providers. The agreement would be comprehensive and would include details about the terms and conditions required to provide adequate services and infrastructure for the blockchain company.
The Blockchain as a Service (BaaS) service provider will then give the company access to all the infrastructure and resources required to get involved in the blockchain business. The services provided will be serving the companies as per the agreement made available. In most cases, the BaaS companies will help the blockchain companies onboard any distributed ledgers such as Ethereum (ETH), Bitcoin, Hyperledger Fabric, R3 Corda, Quorum, Chain Core, or BlockApps.
It is the responsibility of the BaaS company to ensure the facilities for the smooth functioning of the blockchain company such as bandwidth management, optimization of resources, incident management, system health monitoring, and proactive security surveillance, such as preventing hacking attempts. Thus, the companies can focus on other strategies to rise above their competitors while the technical aspects, including the management of digital assets, will be taken care of by BaaS.
Security Concerns Related To Blockchain As A Service (BaaS)
Blockchain as a Service (BaaS) service providers rely on public, distributed ledgers such as Ethereum, Bitcoin, Hyperledger Fabric, R3 Corda, Quorum, Chain Core, or BlockApps to provide services to the blockchain companies. Security is a concern related to such public blockchains as they use public key encryption, hashing, digital signatures, and several other mechanisms to secure data and transactions, which are considered highly vulnerable methods. There is a high risk of data being manipulated in such methods.
You should make informed decisions about the services provided by the BaaS service provider by selecting a provider who is aware of such security risks and who is capable of devising ways to overcome such crises.
Important Points To Keep In Mind Before Selecting A Blockchain As A Service (BaaS)
You should select a BaaS provider only after considering the various criteria that ensure its smooth functioning. Even though a strict guideline is unavailable, there are certain criteria that you can consider before selecting a Blockchain as a Service (BaaS) service provider.
- You should check the BaaS provider’s previous experience in serving the industry.
- You should be aware of the quality of services provided usually provided by the BaaS company.
- Research the security assurances guaranteed by the BaaS service provider and ensure that they meet your needs.
- Check and ensure that the operating system used by the BaaS provider is similar to what you have been using.
- Select the services based on ease of use, and affordability and also ensure that adequate after-sale support is provided by the BaaS provider.
The Bottom Line
Blockchain as a Service (BaaS) is a useful service provider in the blockchain industry. If you are a newbie stepping into the field of blockchain technology, it is good to avail the services of a BaaS to enter into the field and thrive in it. BaaS will help you earn a competitive edge among others in the field. If you are capable of risk identification and management, you can use BaaS to make it big in the industry.
