What Is BaaS?
Blockchain as a Service refers to when a third-party service provider sets up and controls the technology required to run a Blockchain network for a customer; usually for a monthly or yearly subscription fee and offering key benefits. BaaS provides efficient ways to handle the maintenance of Blockchain technology and is an attractive model because not a lot of companies in the same Blockchain network can set up and maintain their own Blockchain nodes, and having a Blockchain as a Service provider means gaining access to those with the required experience and tools to run the Blockchain technology smoothly.
Because Blockchain requires that every company in the same network run its own ultra-high availability peer node - meaning managing their own computing and data storage resources running Blockchain - the need for proper Blockchain network management is high, while available skillset is not widely available and can be quite expensive. Therefore, BaaS becomes key for businesses of all sizes is critical for widespread Blockchain adoption and implementation across several businesses and industries. There are three main types of BaaS:
Traditional BaaS – Traditional BaaS offers a limited list of cloud providers and acts as a specialized cloud broker, a middleman between the user and their data. Users must host their data in one of the clouds of choice, therefore losing any control over their data and security. It is best suited for prototyping, not production.
Cloud Provider BaaS – Cloud Service Providers use their own Enterprise Blockchain resources to host Blockchain solutions for customers. Because they most likely include their own proprietary tools it may mean a vendor lock-in, where all the peer nodes in the same network must use the same Cloud Provider infrastructure, a big limitation when it comes to a distributed database network such as Blockchain. It is best suited for prototyping, not production.
Vendor Agnostic BaaS – This approach is best suited to Enterprise Blockchain because every company in a Blockchain Network selects its infrastructure of choice, therefore having full control of their data and security. It is by far the approach that works best for Enterprise Blockchain Networks.
One of the best ways to leverage a Blockchain as a Service provider is to conduct all the research possible on the provider and what sort of benefits they offer their clients. The scalability of BaaS and Enterprise Blockchain projects go hand in hand. Naturally, when a business scales up in clients and operations the services they use to manage their operations will also have to be increased. With BaaS, these types of services feature scalability as part of their packages so this is usually an expected feature to help businesses small and large.
Enterprise Blockchain is a new and exciting principle, with real-world potential to completely revolutionize entire industries. Using a BaaS provider removes all the technical complexity away from the company so that they can focus on their business, their customers, and their future without having to dedicate internal resources towards maintaining the Blockchain.