Blockchain is being implemented across many industries in the U.S., with G2 Research finding that the average traffic to four blockchain categories (Blockchain Platforms, Security, Payments and Blockchain as a Service) had increased by 120% over a three-month period. Blockchain as a service (BaaS) is taking the lead from its older sister, Software as a Service (SaaS), offering businesses third-party, cloud-based infrastructure and management for companies relying on blockchain apps or platforms for greater security and efficiency. Investopedia predicts that BaaS may be “the catalyst that leads to the widespread adoption of blockchain technology." What benefits can BaaS bring to businesses, and what applications can it have?

BaaS Is Based On The SaaS Model
BaaS seeks to harness the ease and accessibility of SaaS. Through SaaS, cloud providers host applications and make them available online to end users. Software providers either host applications and data via its own servers, databases, and other resources, or they hire the services of a cloud provider to host the application. The benefits of SaaS (and BaaS) include the fact that businesses contracting these services do not have to set up and maintain software. They simply pay a (usually) monthly fee that enables them to access software that is catered to their needs. Businesses have the freedom to choose that their data be stored on the cloud and/or locally, and they can also integrate other software tools with SaaS/BaaS apps.

How Can BaaS Improve Business?
Fortune Business Insights research has shown that the BaaS industry is expected to reach a value of almost $25 billion in 2027, compared to $1.9 billion in 2019. It is expected to be particularly popular in the e-commerce and retails sectors, since these industries require top-of-the-range security, owing to the number of transactions they carry out every year. Just a few applications of BaaS include suitable allocation of resources, data security, hosting, and managing a company’s bandwidth. Companies relying on this service can concentrate on the day-to-day needs of their clients, without worrying about coding and other complexities that blockchain can bring. Because blockchain requires such a big investment and extensive maintenance, businesses can reap its benefits by relying on third party providers, forgetting about issues such as the amount of energy and bandwidth required to operate blockchain infrastructure.

Current Uses Of Blockchain In Business
Blockchain has a wide potential that makes it ideal for businesses from a variety of industries. Companies using this technology successfully include De Beers jewelers (whose blockchain platform tracks diamonds across the full supply chain - from the mine right through the cutter, polisher and designer). The Siemens Digital Grid, meanwhile, relies on blockchain technology to enable local communities to produce, use and buy power. Blockchain can be relied upon for everything from land registry record-keeping to healthcare (to ensure confidentiality of patients) and banking (to record and store all financial transactions).

BaaS, like SaaS, is predicted to grow exponentially over the next few years. It enables companies to access the reliability and security of blockchain, entrusting coding, hosting and maintenance to third parties. BaaS enables companies to invest their energy into their business while potentially relying on blockchain for a wide array of processes and transactions.