Blockchain as a Service (BaaS)

Blockchain as a Service (BaaS) is a service model that enables businesses to leverage blockchain infrastructure without the need to build and manage it themselves.

In this model, service providers offer the necessary tools and resources for deploying, managing, and operating blockchain systems online through their platforms.

Benefits of Blockchain as a Service:

• Cost Reduction: Companies avoid large capital investments to build blockchain infrastructure.

• Ease of Use: BaaS allows users to launch blockchain projects using pre-provided tools without requiring deep technical expertise.

• Scalability: BaaS services are designed to scale based on business needs.

• Security Management: BaaS providers typically focus on securing the infrastructure, allowing businesses to operate with peace of mind.

• Access to Innovation: With BaaS, companies can quickly adopt the latest blockchain technologies and updates.

Common Use Cases:

• Supply Chain Management: Implementing blockchain to track and manage products across the supply chain.

• Electronic Voting: Using blockchain for secure and transparent voting systems.

• Smart Contracts: Automatically executing agreements without intermediaries.

Popular BaaS Providers:

• IBM Blockchain

• Microsoft Azure Blockchain

• Amazon Managed Blockchain

• Oracle Blockchain Cloud Service

What Does BaaS Mean?

The acronym BaaS can refer to various IT service models depending on the context—for example, Banking as a Service, Browser as a Service, and Backend as a Service. This article focuses on Backend as a Service.

Backend as a Service (also BaaS)

Backend as a Service allows web developers to focus on the front-end development of websites or applications by outsourcing all backend aspects. Service providers offer cloud storage, web hosting, and pre-written software for backend activities such as user authentication, database management, remote updates, and customer notifications.

Let’s illustrate with a cinema analogy: A director not only directs and films scenes but must also manage lighting, costumes, casting, and scheduling. Imagine if all of that backend work were outsourced—allowing the director to fully focus on filming. That’s what BaaS does for developers: it frees them to focus on frontend development. Through provided APIs, developers can integrate backend functionalities like databases without writing backend code.

What Is Blockchain as a Service (BaaS)?

Blockchain-as-a-Service (BaaS) involves a third party providing blockchain-based solutions that allow organizations to develop and run blockchain applications and smart contracts without needing internal blockchain infrastructure. BaaS providers offer the flexibility and capabilities of blockchain technology, making it accessible to a broader audience.

One of BaaS’s core goals is the democratization of blockchain, enabling companies to build blockchain applications affordably using the provider’s services.

Industries are already using BaaS to handle payments, identity management, and supply chain tracking. Blockchain development services can enhance visibility and traceability in complex supply chains, increasing business accountability.

How BaaS Works

BaaS provides third-party infrastructure and backend management for companies developing blockchain applications. It functions similarly to a web host but for blockchain-based platforms. BaaS might be the catalyst for widespread blockchain adoption.

Based on the Software as a Service (SaaS) model, BaaS enables customers to build, host, and run blockchain applications and their associated functions on the blockchain while the provider keeps the infrastructure agile and operational.

Key BaaS Players Include:

• Microsoft, which partnered with ConsenSys to introduce Ethereum-based blockchain services on Microsoft Azure in 2015.

• Amazon, with Amazon Managed Blockchain, simplifying the creation and management of scalable blockchain networks using open-source frameworks like Ethereum and Hyperledger Fabric.

• R3, a global financial consortium that developed the distributed ledger platform Corda.

• PayStand, specializing in B2B payments using blockchain.

The BaaS Experience

Although businesses increasingly wish to adopt blockchain, the technical complexity and operational burden of creating, configuring, and maintaining blockchain infrastructure are often prohibitive.

BaaS mitigates this by offering end-to-end technology and infrastructure as a fully managed service, typically for a fee. After setup, the provider continues to manage the complex backend operations on behalf of the customer.

A BaaS operator typically handles bandwidth management, resource allocation, hosting needs, and data security features. This frees clients to focus on their core business logic.

Simplified Blockchain Deployment via the Cloud

Cloud-based blockchain solutions simplify the deployment and management of distributed ledger technology (DLT) through BaaS. Businesses can seamlessly integrate decentralized applications (DApps) while the backend complexities remain under the provider’s control.