Two to three decades ago, if companies had the option to adopt cloud-based ERP, traditional server-based ERP software might not have been as prevalent. Small organizations would have had access to the same tools as larger competitors. In 2024, as enterprises look to adopt blockchain technology, they now have the option to do so thanks to the maturation of cloud computing and the emergence of blockchain as a service (BaaS) providers.
BaaS is a third-party managed service that offers a managed blockchain along with its network and tools. This service allows organizations to build applications across a blockchain network without worrying about the underlying infrastructure. Various industries, including financial services and telecommunications, have already seen the benefits of using BaaS services.
Blockchain technology has the potential to transform data management across industries, ensuring that all data contributed by members of a supply chain or value chain is verified, secured, and accessible to all participants in the blockchain. However, the complexity and costs associated with developing and maintaining blockchain infrastructure have been significant barriers for companies looking to adopt this technology.
By utilizing BaaS providers, organizations can experiment with blockchain more easily and quickly, building and running blockchain applications to utilize data efficiently across the value chain. BaaS providers offer features like platform architecture management, data security, and support for smart contracts, providing enterprises with the tools necessary to work with blockchain technologies without upfront investments in infrastructure.
The adoption of BaaS services is expected to further increase blockchain adoption in the business world. Companies like IBM, Amazon Web Services, Oracle, and SAP are leading the way in offering BaaS solutions, with each provider offering unique features and benefits. Additionally, smaller vendors like Kaleido and Dragonchain are also making waves in the industry.
As the use of blockchain technology continues to grow, the role of BaaS providers is becoming increasingly important in advancing the market. While the full potential of BaaS remains to be seen, it is clear that these services are critical in helping enterprises experiment with and adopt blockchain to drive innovation and growth in the digital age.