As blockchain explodes in popularity, organizations have been looking for ways to implement it. Some firms have begun offering Blockchain-as-a-Service, or BaaS, to help organizations adopt the technology. Here’s what you need to know about BaaS.
What is it?
Essentially, BaaS is a service offering that helps customers use cloud-based solutions to develop, host, and adopt blockchain services. The cloud-based IT partner manages the infrastructure while the blockchain provider assists organizations with blockchain applications, smart contracts, and other functions.
How does it work?
Customers sign up for a BaaS contract in which they agree to pay a defined service fee in exchange for the set-up of blockchain technology and infrastructure. The provider handles maintaining and managing all critical blockchain technology. Customers can focus on their business while their provider takes care of the blockchain and its performance.
Utilizing blockchain infrastructure in the form of BaaS allows CTO’s to instantly acquire much of the skills required to leverage blockchain technology. In addition, the investment required to get started in blockchain is substantially lowered: a BaaS service agreement can be scaled or completely terminated at any given time. As a result, CTO’s have a way to test the benefits of blockchain without spending a lot of investment initially or committing to permanent hires. It provides a way forward for enterprises that want to stay at the bleeding edge of technology without taking on unnecessary risks.
The Advantages
Here are three advantages of BaaS.
Reducing Costs
By outsourcing the costs of blockchain adoption and management, organizations only have to pay for the services of the BaaS provider, rather than paying for the implementation and maintenance themselves.
Easy to Use
Organizations can use the platforms and templates provided by their BaaS partner for integration. They do not have to build their entire infrastructure from scratch.
Additionally, by utilizing ready-made platforms and templates, organizations can customize their services to ensure that their blockchain system meets their needs.
Resource Optimization
Because organizations do not have to maintain their networks themselves, their IT infrastructure costs are significantly reduced. They can focus on growing their business and their clients while receiving the benefits of blockchain.
Final Thoughts
Blockchain-as-a-Service can be beneficial to many organizations, but before committing to a BaaS contract, consider all of its advantages and disadvantages. Blockchain has a long way to go before it becomes commonplace because it is still developing. Therefore, you must take the time to choose the best platform and provider that can assist you in your blockchain journey.
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