Introduction
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With tech evolving at a rapid pace, every industry is equipping the latest means to get to the top of their game. While the trend to integrate the latest tech gives them the edge, it also decreases the time to comprehend them completely. Moreover, the quicker you change the tech, the lesser time you get to utilize it thoroughly.
The solution to all this lies somewhere in the tech realm as well. Technologies like Cloud and Blockchain can help companies install the latest tools within their firm while still comprehending their full potential. BaaS or Blockchain as a Service has emerged as a popular choice in the SME industry.
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However, there are many who have no idea what blockchain is. That is why the web is filled with questions like “What is Blockchain”, “Why choose Blockchain”, and most importantly “what is Blockchain as a Service”? Some even confuse blockchain with Bitcoin, which cannot be further from the truth.
Since there are so many misconceptions around the topic on the web, we have tried to clear some of them. The blog will help you know the basics of Blockchain as a Service (BaaS). Read through and know the benefits of using Blockchain as a Service,
What is Blockchain?
Blockchain can be defined as a block of chains that holds digital data and are connected through cryptography. The data-formed blocks are connected with a 32-bit whole number termed as a nonce. The said nonce owns a 256-bit number attached to it called a hash.
The said factors are the primary reason behind blockchain’s impenetrable nature. The distributive nature of the tech enhances its security prospects as every individual possesses a copy of the chain. Additionally, in order to make changes to the chain, you need the permission of the majority of the chains.
Transparency is a major benefit facilitated by blockchain while security is its USP. These are the primary reasons why blockchain became relevant in many industries.
What is Blockchain as a Service/BaaS & Its Role in the Tech Industry?
Blockchain as a whole is gaining prominence in numerous other sectors like banking, finance, and even tech. While cryptocurrency is supposed to be the primary playground of Blockchain, its reach is not restricted to it at all.
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The initial issue with blockchain integration is its cost and the need for technological prowess to understand it completely. That is why SMEs tend to either outsource blockchain integration or Blockchain as a Service since they are relatively cheaper alternatives.
The tech is based on the concept of SaaS where the organization outright invests in the creation, maintenance, and operations of blockchain. This way the enterprise can avail the benefits of blockchain and even supply it to other firms in need, generating some extra revenue.
Offering renowned distributed ledgers like R3 Corda, Ethereum, Blockchain, and Quorum become a viable option as well. The practice also generates budget solutions for companies that do not want to undergo the entire process of BaaS development from scratch.
With BaaS, firms can focus on their core functionalities while the security and transparency domain is ruled by BaaS. Hence showing how investing in Blockchain as a Service can benefit multiple ventures at the same time.
Top Benefits of Blockchain as a Service
Here are the top advantages of Blockchain as a Service.
- Enhanced Infrastructure: Accessing BaaS from a third-party vendor can help you save money on its execution. As vendors offer various subscription plans, you can choose how you wish to spend on the requirements. This way, you get an enhanced enterprise infrastructure at the best possible price.
- Simple-to-Use: Compared to the blockchain, BaaS is a relatively simpler tech to use. There is no need to comprehend the theatrics thoroughly as you get customized templates and platforms you can choose from. Furthermore, you can make additional edits to the BaaS solutions instead of implementing blockchain from scratch.
Disadvantages of BaaS/Blockchain as a Service
Here are the drawbacks of using BaaS.
- Increased Reliance on 3rd Party: Unlike blockchain, which you develop in-house, BaaS is a tech you hire from third-party vendors. Resultantly, it increases the firm’s reliance on third-party vendors. While the same does not affect instantly, it facilitates issues of time lag and collaboration in the long term.
- Limited Specialization: When a firm invests in developing and integrating blockchain from scratch, it gains the utmost knowledge on the subject. However, in the case of BaaS, all that the firms are getting is a service to use. There is no mastery on the subject nor do they receive any control over it. Once the contract is over, the hiree remains as knowledgeable on the topic as he initially was.
Wrapping Up
Blockchain is one of the most useful technologies to have emerged in the previous decade, but it also has some limitations. While the tech proposes numerous benefits, it is complicated and expensive for many firms.
That is exactly why alternatives like BaaS emerge as the ideal choice for many businesses. The tech facilitates the benefits of blockchain while also remaining pocket-friendly. The blog has touched on the topic of BaaS to help beginners know about it. Read through the blog to understand what BaaS is, and how it affects the tech industry.