The evolution of blockchain technology has brought about a season of decentralized digital transactions. This has led to its impact on technological use in several industries. One of such recent developments is Blockchain as a Service (BaaS).

This article aims to explore blockchain as a Service (Baas), its providers, adaptations and the current challenges it faces in the technology industry.

Understanding Blockchain Technology

According to IBM, blockchain is a shared, immutable ledger that facilitates the process of recording transactions and tracking assets in a business network. These assets can be tangible -physical items or intangible -virtual or digital assets. Valuable items can be tracked and traded on the blockchain network.

A transaction is recorded as a ‘block’, which shows the movement of the asset. The blocks are connected (new and old ones). These blocks form an irreversible chain as an asset. These are linked together securely to prevent a block from being tampered with, or inserted in the wrong position. A data block records sensitive information concerning the transaction.

Blockchain networks can track orders, payments, accounts, production and other related devices. All the participants in this business transaction can see the transaction details. This ensures security and mutual confidence shared among all of them.

Introducing Blockchain-as-a-Service (Baas)

Blockchain as a Service is a cloud-based, third-party infrastructure owned and managed by companies that build blockchain applications. These are a new development in blockchain technology, as it is popularly known for cryptocurrency transactions.

This hosting service is based on a software as a service model and works similar to it. Customers pay the cloud-service providers for access to build, host and manage their blockchain apps and its related features on the blockchain network. The cloud provider maintains the infrastructure’s scalability, and ensures it is efficient and agile.

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Providers of BaaS

There are leading BaaS providers in the business of hosting blockchain-related businesses. Some of them include;

Microsoft Azure provides a set of Azure products and services that help to create web3 developer tools and other related features. It can be used to build decentralized networks, create web3 applications, and manage them with optimum support, which is supported by Microsoft’s exploration for new web3 technologies.

Amazon Web Services (AWS) provides a set of customized services for customers. These are the Amazon Quantum Ledger Database (QLBD), Amazon Managed Blockchain, and distributed ledger technology solutions from their partners.

Other blockchain platforms being incorporated by companies are IBM Blockchain, Appinventiv, BlockApps, Cryptowerk, Clovyr, Kaleido, Innominds, Skuchain, tZERO, Symbiont, Inveniam, Bloq, Dragonchain, Blockstream, Paystand and others.

Most BaaS enablers are B2B companies, which means they do not have direct contact with customers as they are not the end-users. This puts a strain on customer service and relationship. It also raises concerns over financial queries.

Conclusion

Blockchain as a service makes blockchain accessible to businesses and developer teams of varied sizes. It is cost-efficient, scalable and an attractive option for enthusiasts who want infrastructure management for their blockchain-related businesses. This is an indispensable tool organizations can use to leverage their applications and operations.