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Ever heard of blockchain? Maybe. Maybe not, but you must have heard of Bitcoin, only that you may not fully understand Bitcoin let alone get the hang of blockchain.
Blockchain technology has been around for about a decade, and while it is improving different sectors, many laymen still can’t see blockchain beyond cryptocurrency. Fortunately, the blockchain community is always pushing the agenda that blockchain technology has many uses that will improve retail, healthcare, agriculture, cyber security, politics etc. While it won’t be a bad idea to utilize blockchain for other purposes besides cryptocurrency, the major hindrance is the complexities surrounding blockchain. The programming language is new and complex, and as such there are not enough programmers who can write blockchain codes. Another challenge is the cost of setting up blockchain as it requires enormous facilities to run — the energy consumption of blockchain is scary. As matter of fact, Quebec, Canada recently turned down the requests of some cryptocurrency mining companiesto set up their mines in the city because of the enormous energy consumption.
All the complexities making blockchain for enterprise a challenge were taken into consideration by blockchain experts and this led to the creation of a viable solution, that is blockchain-as-a-Service.
What Is Blockchain-as-a-Service?
Blockchain-as-a-Service (BaaS) is the term given to the vendor-offering of blockchain backend as an infrastructure for developing blockchain-based products. It’s just like SaaS or PaaS. Business owners can choose to pay BaaS providers instead of setting up private blockchain infrastructure. Hence, business owners who need blockchain technology but lack the expertise and capital to set up private blockchain infrastructure will have the option of hiring BaaS providers. What a BaaS provider does is provide an ecosystem of connected nodes as a backend for blockchain-based enterprises which will enable the enterprises to build or access blockchain applications.
Big brands such as Microsoft, IBM and Amazon are providers of BaaS.
Why Use BaaS?
Test Run Blockchain Technology
There’s obviously a huge buzz surrounding blockchain right now. Last year, the value of bitcoin climbed up to being worth $17,000 per bitcoin, and this got even the skeptics/critics and novice to start asking questions. In 2017, Gartner declared that blockchain was the second most search word. Now, everyone is interested in learning more about blockchain and how it can benefit their business. However, as a business owner, you know you don’t need to dump all your old utilities and infrastructure that you’re already used to and have developed your business on, but you also want to see for yourself how blockchain can improve your business. This is where BaaS comes into play, you don’t have to dump your SQL completely nor do you have to build a blockchain infrastructure from scratch. You can use blockchain, more like a safe test run of the technology, by paying any trusted BaaS provider to provide blockchain infrastructure for you, while you ask your IT team to review the technology.
BaaS Is Cost-effective
If after test running blockchain technology via BaaS, and you think it will improve the process of doing business, you may find it too expensive to invest in on-site blockchain infrastructure. What do you do in this case? Well, you just continue to pay a BaaS provider while you keep expanding. It is safe to say that the energy consumption is enough reason to leave the provision of blockchain infrastructure in the hands of a big cloud computing company. Another advantage of BaaS is that you can decide to pay for blockchain-based supply chain if that’s the only thing you need or pay for blockchain smart contract. You have choices and this will no doubt reduce the cost for you.