We know that the use of Blockchain goes far beyond cryptocurrencies, but where exactly can it be applied? One of the most promising ways to use this technology is Blockchain as a Service (BaaS). In this article, we will explore the concept of Baas and when is the best time for companies to use this model. 

What is Blockchain?

Blockchain is a digital database that allows storing records of certain operations simultaneously on many computers. This technology contains digital information – data on transactions, contracts, and contact databases – held in the form of consecutive interconnected blocks.

The database allows access to the information to any member. Still, no one can change or delete it as the system is updated automatically in response to any changes. It sends the relevant data to everyone who has access to the information. It avoids both deliberate manipulations and calculation errors. 

The cloud business models of IaaS, PaaS, and SaaS have been around for a long time and are actively mastered by many companies worldwide.

  • IaaS – Infrastructure as a Service, these are computing capabilities, such as servers, OS, and networks, that are offered to users by subscription without control from the infrastructure provider.
  • PaaS – Platform as a Service is a cloud service that provides a user with an opportunity to develop, test, and run applications.
  • SaaS – Software as a Service, application software by the cloud provider, by subscription.

Along with this, the BaaS cloud business model, Blockchain-as-a-Service, has been rapidly developing recently, allowing users not to build their own blockchain solutions but to use the provider’s Blockchain.

What is BaaS?

Blockchain as a Service (BaaS) is a technology that allows customers to use the cloud infrastructure to create, host, and use their Blockchain applications, code contracts, and functions on the Blockchain. At the same time, cloud service providers carry out the assignments and processes that help the ecosystem function. This exciting advance is driving the widespread adoption of blockchains across organizations.

People and organizations are eager to embrace innovation. Still, there are many obstacles to its mass implementation: technical problems and operational limitations associated with creating, organizing, and maintaining a decentralized system and its foundation. Numerous companies are now offering cutting-edge products to solve this problem through Blockchain-as-a-Service.

BaaS has the advantages of cloud services, including:

  • Inexpensive access to advanced technologies;
  • Ability to scale the business;
  • Data security;
  • Quality software and many others.

The BaaS solution can be used to implement projects of any level – from start-ups to transnational corporations. And all of this is possible without investing in the development of your blockchain networks.

The potential disadvantages of the BaaS model include that the cloud blockchain implies a certain degree of centralization because transactions within the Blockchain are sent through the host.

Blockchain-as-a-Service effectively solves many problems, such as accounting and statistics, ensuring the confidentiality of customer records, registering property ownership, and launching your own ICO.

BaaS provides companies with a much faster, less complex, and cheaper way to implement blockchain and an easy way to build decentralized applications that run on top of a distributed architecture. By enabling companies to operate on the blockchain without significant upfront investment, the BaaS market has the potential to accelerate blockchain adoption, similar to how the software-as-a-service market helped accelerate cloud adoption in the previous years.

Major companies that use BaaS

Among the leading companies in the world that use BaaS technologies are:

  • In partnership with ConsenSys, Microsoft introduced the Ethereum blockchain as a service on Microsoft Azure in 2015.
  • Amazon introduced Amazon Managed Blockchain – a service that “makes it easier to build and manage scalable blockchain networks” using open source frameworks including Ethereum and Hyperledger Fabric.
  • R3, a consortium of global financial institutions, created a distributed financial ledger called Corda.
  • PayStand specializes in sending and receiving payments between companies.

Consumers and businesses are increasingly adapting to blockchain technology. However, the technical complexities and operational costs associated with building, configuring, and operating a blockchain and maintaining its infrastructure are often barriers.

BaaS offers an external service provider to install all the necessary blockchain technology and infrastructure for a fee. Once established, the provider continues to handle complex internal operations for the client.

A BaaS operator usually offers supporting measures such as bandwidth management, appropriate resource allocation, hosting requirements, and data protection features. The BaaS operator frees the client to focus on the core work – the blockchain functionality.

A BaaS provider is similar to a web hosting provider. Website creators perform and run content on their personal computers. They can hire support and sign up with an external hosting provider like Amazon Web Services or HostGator. These third-party companies take care of infrastructure and maintenance.

BaaS can be a catalyst that leads to wider and deeper penetration of Blockchain technology into various industries and enterprises. Instead of building and running their blockchains, businesses can now simply outsource technically complex work and focus on their core business.


With the appearance of BaaS providers, companies can take advantage of blockchain to gain a competitive edge and protect their business in the future. The critical advantage of BaaS is that it allows companies to adopt blockchain without significant investment in research, planning, infrastructure, and expertise. In exchange for a regular monthly or annual fee, blockchain infrastructure companies are ready to go, and what’s more, they will have expert help on hand if needed.

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