Without a doubt, Blockchain as a Service is an ingenious invention. Interestingly, the advent of BaaS is leading to wider adoption of blockchain technology across different industry sectors. It has gained great traction in recent years due to its ability to resolve complex issues around security, transparency, cost, and efficiency.
84% of respondents to the PwC’s Global Blockchain Survey say their organizations are actively involved with blockchain. Some of the largest tech companies in the world – Microsoft, Amazon, IBM, SAP, and Oracle – have all taken to the integration and widespread acceptance of BaaS.
Highly regulated industries like financial services, healthcare, government, innovators, and many other industries are exploring ways to use blockchain to transform traditional business models. The adoption of BaaS has granted them the opportunity to harness the power of distributed ledger to their advantage so as to run their organizations effectively.
What is Blockchain-as-a-Service (BaaS)
Blockchain as a service (BaaS) is the third party creation and management for companies building and operating blockchain apps. It allows business customers to use cloud-based solutions to develop, host, and adopt their own blockchain applications, smart contracts, and other relevant functions on the blockchain. It also functions as a web host - it runs the backend operation for an app.
BaaS is helping different businesses and industry sectors in maintaining and keeping their infrastructure up and running. The blockchain as a service partner sets up the essential resources and required blockchain technology for the customer in order to allow them to focus on crucial businesses and competitive strategies to grow their companies.
Furthermore, blockchain as a service model is making Information Technology (IT) transformation easier and less risky for organizations that specialize in other field’s asides IT. Meanwhile, here are the ways blockchain as a service is creating positive impacts in industries around the world.
- Increased Data Security
Data security is paramount in every organization. The constant risk of sensitive data being subjected to cyberattacks has always posed as a hard nut to crack for most industries. However, the immutable and incorruptible nature of blockchain makes transactions or sensitive data very safe and not susceptible to hacks or information leaks.
Once a record is on the ledger, it is impossible to be altered or tampered with. Every new transaction or data in the blockchain is encrypted and linked to the previous transaction which makes it impossible to be altered, thereby, making it far more secure than any other data storage. For instance, IBM Watson Health and the U.S. Food and Drug Administration are exploring using blockchain technology for secure patient data exchange, medical research, and other purposes.
Interestingly, with the decentralized nature of blockchain, data can be securely transferred across the blockchain with fewer risks of data loss. Decentralized networks assist blockchain to be used for secure document transfer in multiple areas.
- Improved Traceability
The impact of BaaS on industries has seen much increase in the level of content traceability. Blockchain contents can be traced in real-time - It gathers data at every stage of the supply chain and makes it available at any time to all the members of the supply chain so as to effectively track products with less difficulty.
Aside from being able to provide data for conducting quick tracking and tracing in order to protect organizations and consumers. It is worth noting that BaaS also aids in the verification of the authenticity of products. In supply chains, IoT sensors are used to identify and verify the component material and their regulatory compliance. Consequently, consumers have the leverage of scanning the barcode of the product content to determine if it is the real deal.
- Greater Transparency
This is one of the ways BaaS is transforming industries which in recent years has been presented as one of the key factors of success in business around the world. The decentralized nature of blockchain has brought about an increase in transparency in the aspect of data transfer, thereby, fostering trust among business partners. With blockchain, everyone on the network has the ability to monitor data transfer so as to ensure that they are not altered without recording the changes made.
In addition, considering the immutable nature of blockchain, business partners cannot challenge the legitimacy of data transfer, therefore, data integrity is promoted.
- Increased Efficiency
BaaS helps in creating a perfect environment for industries to function maximally and gain a competitive advantage over other traditional organizations. The right BaaS partner assists in setting up the necessary infrastructure that guarantees efficiency in the different operations carried out by the organizations in order to achieve growth in business.
Moreso, BaaS help provide faster digital financial transactions between business partners without the aid of intermediaries. The decentralized nature of blockchain allows business partners to perform direct transactions without any middle man, thereby reducing cost.
Blockchain as a service has transformed industries in diverse ways. It serves as a blockchain solution to constant challenges faced by industries on security, transparency, traceability, and efficiency. Also, by adopting the right BaaS partner, industries will definitely promote growth in the long run.
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