This is Part One in our four-part series of Blockchain guides
With the constantly and rapidly changing internet, different technologies are available to help make transactions safer for businesses and individuals. One example is blockchain technology. Blockchain allows digital information to be distributed but not manipulated, which makes it unique, highly secure, and virtually unhackable.
What is blockchain technology?
A blockchain is a means of passing or transferring information from one point to another automatically and safely. In a literal sense it is a digital chain of blocks, with each block containing information about a single transaction. Each block has its own unique identifier code known as a hash.
Every new transaction by a participating user is added to the end of the chain, and all users can request a copy. Although they can’t see personal or sensitive details of other users, they can see enough information about transactions to be able to verify them. That makes the technology self-regulating because huge numbers of users have a copy of the chain, and a hacker would have to try to alter all copies. The blockchain network therefore has no central authority.
While it was built for digital currencies and cryptocurrencies, we now have many other potential uses for the technology. When it comes to electronic transactions, it can provide faster results and improved efficiency compared to traditional networks. This inspired several companies to work on blockchain technology, and from this we saw the rise of Blockchain as a service (BaaS).
What is Blockchain as a Service (BaaS)?
BaaS helps users and companies to make use of blockchain technology. Based on the “as a service” scheme we have often seen in business and technology in recent years, BaaS allows users to take advantage of cloud-based solutions to build, host or use blockchain apps. The cloud-based service provider handles everything that keeps the infrastructure secure and fully operational.
Various companies provide Baas. These companies act as a medium between the client company and enterprise blockchain platforms. Implementing blockchain technology needs a lot of things to be taken into consideration depending on the privacy and the implementation needs of the user. To use blockchain technology, a user must have knowledge of it or they will end up with many security issues. So if you think you or your organization would benefit from using blockchain, it’s best to acquire the services of an expert company before implementing it on your own.
Many companies these days are interested in applying blockchain technology to their businesses. These companies include Microsoft, HP, IBM, Oracle, Amazon, SAP, R3, Deloitte, and many more have also started providing Blockchain as a Service.
What do BaaS provider companies do?
BaaS providers manage all the back-end services for different users and businesses that want to use blockchain technology. They make sure that the technology keeps running without any downtime. These services also include hosting, security protocols and anti-hack structures, distribution of resources, bandwidth management, resource management and much more.
There are various blockchain platforms like Ethereum, Hyperledger Fabric, Corda, Bitcoin, Chain Core, BlockApps, MultiChain, Digital Asset, and many others in which the BaaS provider will configure the blockchain network per the client’s requirement.
Why should you choose BaaS and what are its benefits?
If you are doubtful about choosing or not choosing BaaS for your organization, it’s worth bearing in mind the benefits. Because the service provides management of the blockchain infrastructure, you don’t have to worry about managing it yourself. This improves efficiency and allows you to focus on other things. It is also reduces the possibility of making serious errors in the process.
BaaS offers various consensus algorithms for speed, and provides powerful tools like flexible switching protocols, dynamic joining, and resource management. BaaS provider companies cost less than having your own team for development and troubleshooting solutions.
Moreover, these companies will only charge you for the services and features you are using and nothing more. As the blockchain uses a decentralized structure, everything is open but immutable which means higher levels of security and privacy.
Outside of cryptocurrency
Beyond cryptocurrency, many types of transactions can be more cost-efficient and faster when implemented with BaaS. This includes financial transactions, supply chains, and even political voting. Other platforms where BaaS can be useful are:
- Food Safety
- Oil and Gas
- Real Estate
- Media and Entertainment
- Governmental Services
Although there are more sectors where BaaS can be advantageous, these are a few instances where BaaS is currently being used and has more scope.
Once you have decided to go with the integration of BaaS, you will need to research various providers and choose the one that can give you the exact service you’re looking for. The type of service you need involves many variables, and you’ll need one that’s tailored to your requirements. Our experts at Sanvada are on hand to offer more information on finding the right service for your organization.
SANVADA™ LLC is a BBB and VOSB Certified high-tech cloud consulting business that delivers products and services to consumers and businesses alike. Our products and services include: proprietary software solutions such as VPN and VPS capabilities, cyber security, and AWS Workspaces for developers. We offer data migration and automation as well as proof-of-concepts (PoC), and prototyping software development. We are the first and last when it comes to monitoring your data for any vulnerabilities or viruses. To learn more, visit us here!