What is the future of blockchain as a service | The Financial Express

What is the future of blockchain as a service

It is believed that companies can use the BaaS paradigm to access the blockchain provider’s service

What is the future of blockchain as a service

By Abhay Aggarwal

It should go without saying that there are many unknowns in the future. But the developments we are seeing in the current era are unquestionable. The reality that technology is developing quickly is now unavoidable. Businesses from a variety of sectors, including finance, games, education, and entertainment, have adapted the trends and strategies to stay ahead of the curve.

New-age technologies like artificial intelligence, machine learning, the internet of things, blockchain, and others are helping organizations, which are all always competing for the lead, grow. However, in the quick-paced world of today, businesses require more time to internalize new advances and provide IT support from scratch. Herein lies the necessity for cloud service providers.

Blockchain-As-A-Service (BaaS) – What Is It?

The technology has begun to be supplied in the cloud as a service business model in order to provide the advantages of blockchain development services to a wider audience. Operationally, it is roughly comparable to the SaaS, PaaS, and IaaS models, which allow the use of cloud-based storage and apps. It makes it possible for companies of various sizes and types to utilize Blockchain-based technology without having to spend money on internal development.

Companies can use the BaaS paradigm to access the Blockchain provider’s service and create apps for very little money.

The only drawback of the BaaS solution for businesses is that since the transactions must go through the host’s Blockchain services, it necessitates a certain amount of centralization. And because decentralization is the key to using Blockchain in business, adopting it is often viewed with skepticism by businesses.

Key Takeaways:

  • Blockchain-as-a-Service is a cloud infrastructure and management provided by a third party that businesses utilize to create and operate Blockchain applications.
  • It functions as a web host and manages an app’s backend.
  • Blockchain technology is widely adopted thanks to BaaS, which serves as a catalyst.

Education is just one of many businesses that blockchain-as-a-service (BaaS) is seriously disrupting. To be more precise, the technology not only eliminates obstacles to fee payments, documentation, and contact with the parties but also makes it possible for the system to be very transparent and flexible.

Customers can create, host, and administer their own blockchain applications using BaaS, a third-party cloud-based infrastructure and management solution. BaaS enables companies with primary capabilities in their industries but not in IT to concentrate more on their main business operations.

The most recent technology provides businesses across industries with an immutable and distributed tracking system where all participants have equal access to the same information and cannot edit it. It also gives a place for contracts to be executed. In this way, BaaS is bridging the gap between platforms and businesses by offering prospective applications that support business expansion.

Blockchain-as-a-Service Applications (BaaS)

Blockchain offers a secure environment for organizations, whether they want to keep their data in one location, save transaction costs, or connect with people around the world.

Let’s examine some of the fields in which BaaS could be used here:

Finance: BaaS is incredibly effective at tracking financial assets in the finance industry. It provides a clear ledger structure that makes it simple to track financial inflows and outflows.

Games: BaaS is used in the gaming industry to validate, authenticate, and secure many types of digital data, such as game assets, tokenized assets, and digital collectibles. The major objective of using blockchain in the gaming industry is to give users control over their gaming experience instead of game owners, administrators, and companies.

Entertainment: The entertainment industry constantly faces new challenges. The industry can now unwind and monitor the lifecycle of any asset. Thanks to the arrival of BaaS, it protects digital content, lessens intellectual property theft, and makes it easier to distribute real digital assets.

Social Welfare: As was already said, blockchain makes excellent use of decentralization and ledger technology to strengthen cybersecurity. Creating an integrating API architecture, helps the Social Welfare business secure private messaging and finally makes cross-messenger communication possible.

What Impact is Blockchain-As-A-Service Having on Business?

By 2026, MarketsandMarkets anticipates that the global BaaS market will be worth USD 11,519 million.

Startups and SMEs that are heavily reliant on big data silos are the only ones being shaped by blockchain-as-a-service. It offers a competitive advantage in addition to smart data protection. This serves as a cost-benefit analysis.

Blockchain technology is being adopted by businesses and consumers. Technical difficulties and operational overhead costs associated with infrastructure development, configuration, operation, and maintenance, however, present a hurdle.

Businesses can learn the necessary skills to operate the Blockchain infrastructure by renting a BaaS-based infrastructure. Since the service agreement may be readily expanded or even ended with little notice, the investment required to enter the technology sector is also reduced.

It provides a means for companies to stay on the cutting edge of technology without taking unneeded risks.

Additionally, BaaS chances are great for companies who outsource their technological needs and are not heavily involved in the inner workings of the Blockchain, especially small firms. It makes it possible for these businesses to learn about the technology without having to create their own custom Blockchain.

Several industries, including identity management, supply chain management, and payments, employ the integration of BaaS systems.

BaaS – Making Way For the Future

Although it is still in its infancy, blockchain technology has a lot of potentials. But as time goes on, other organizations are becoming more and more interested in technology. The global Blockchain-as-a-Service market is anticipated to grow at a CAGR of 62.2% in 2026, according to MarketandMarkets. The report also indicated that the principal driver of the development is the rise in demand for blockchain technology.

Although many industries have not yet adopted the technology, there is less competition for available jobs in the field. Additionally, at a time when it is exhibiting amazing potential, blockchain technology presents an employment opportunity for engineers, managers, designers, and others.

Overall, utilizing blockchain benefits and getting value from this technology without having to be an expert is now quite easy thanks to Blockchain as a Service. BaaS offers a number of advantages, such as affordable modern infrastructure, straightforward usage that can be adjusted based on the needs of the company, and paving the way for the future in the global environment.

The author is founder and CEO, Colexion

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First published on: 21-01-2023 at 12:00 IST