A relatively new off-spring of the Blockchain technology, one that has begun manifesting in multiple industries is Blockchain as a service, better known as BaaS. Similar to cloud computing in concept, here vendors act as blockchain-as-a-service providers and offer end-to-end management solutions. If this is the first time you’ve heard of this phrase, then our beginners’ guide on the subject would do you a favor.
The science behind this ledger technology has matured to such an impressive extent that if you have a blockchain inspired business idea today, it can take off tomorrow with Blockchain as a service.
A more pressing question, however, for businesses is the criteria they adhere to for choosing a blockchain-as-a-service provider. That, friends and folks, is the topic we’ll cover today, illustrating the parameters to partner with a reputed BaaS solution provider.
*Note*: This article has been written for entrepreneurs who are planning to go solo and not partner with a blockchain development solutions agency. The ones who have partnered with a skilled agency wouldn’t have to worry about the choice since the agency would make a sound decision on the basis of best idea fit.
Why You Should Care About Blockchain-as-a-Service?
As things currently stand, Blockchain as a Service model is dominated by legacy IT corporations that boast an appreciable market share of cloud computing. As a result, their entry in the race to become the de facto Blockchain as a service provider of the market has been fast and furious. Their clientele majorly includes big businesses. But this status quo is expected to change. Technology is always adopted first by those closest to realizing or envisioning a future outcome.
Later, with increased consumerization, it penetrates the upper layers and becomes inclusive for everybody. In the foreseeable future, Small and Medium Enterprises (SMEs) will realize Blockchain as a Service benefits for their bottom lines and will see blockchain creating systematic value chain for better digital economy. If you are an SME or a startup dealing in Blockchain solutions, then based on the pointers mentioned above the cost of BaaS offering would only add to your profit margins.
How to Choose a Blockchain-as-a-Service Provider
Amongst all the ways to select blockchain as a service partner the following have been proven ironclad. The centrality of choosing a BaaS provider must revolve around them for better results:
Top end Blockchain as a Service frameworks offer ample room for adapting to the latest technologies. For instance, Solidity is the go-to choice of Ethereum developers for creating smart contracts. But it wasn’t until Ethereum came with its proof of concept for smart contracts and adopted it, that it was recognized by the developer community. Yes, it’s hard to predict the to be or not to be of the technological future. Serving food for thought is the culmination of Blockchains with IoT, making it the Blockchain of Things. Considering such an unpredictable pace of exponential evolution, BaaS platforms offered by blockchain-as-a-service providers should have the buffer for adopting something suited to typical Blockchain environments.
Smart contracts integration is what makes blockchain so unique and transformative in nature. It is their ability to enforce the terms and conditions of an agreement between two parties that is so widely appreciated. The fact that they are automated and non-terminable further solidifies their application due to which BaaS platforms should readily include them in their catalogue.
A major aspect of IT security is managing identities. The industry, therefore, perpetuates best practices for deploying Identity Access Management platforms (IAM). Our personality identifiers may be limited to data such as name, address, blood group etc. But this doesn’t hinder us from creating multiple digital identities. Think email addresses. IAM platforms give you the power to define access controls for digital identities. Blockchain Technology, in and of itself, has a strong case to hold for security. Nevertheless, BaaS platforms must install robust IAMs to provision information deemed fit for user consumption as per the access rights. Is the run of the mill employee privy to confidential business information. Certainly not. This is what an IAM platform prevents and must be one of the USPs of the Blockchain as a Service provider.
BaaS platforms must be scalable in that they should be able to meet the demanding increase in the number of nodes as and when the business expands. But how can such a scalability issue be resolved when the blockchain is running a Proof of Stake or a Proof of Work protocol? Such a consensus feeds on heavy computational power and no matter the record of the vendors, the number of nodes in their network at any time would be finite. As a result of which it is highly recommended for you to shortlist BaaS platforms that run on Identity-based consensus mechanisms.
If the tagline of your prospective BaaS vendor is “till death do us part”, then you’re better off keeping from them with a 10-foot pole. In other words, what will happen if at a future date you’ve had a change of mind or a venture pivot that forced you to switch between BaaS providers? One of the wisest ways to select Blockchain as a Service partner is to ink such contingency plans as part of the T&Cs.
The BaaS Platform Marketplace
The top blockchain-as-a-service providers in the market were bound to be the ones that had their foothold in cloud services for years. With little surprises, these are the largest ICT conglomerates that are going toe to toe in order to capture the largest B2B consumer share. We’ll propound our logic while faring their services against one another, and let readers decide for themselves who is the best. Make the most of this mini-feasibility study on blockchain service providers.
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