Banking Industry Witnesses Better Adoption of The Blockchain Technology

Blockchain as a service (BaaS) allows enterprises to use cloud services for building, hosting, and deploying their own blockchain apps, agreements, and utilities. The cloud service provider supports all operations to keep the infrastructure responsive and functional. Cloud-based blockchain services increase adoption of the blockchain technology across businesses. The concept of blockchain as a service (BaaS) is similar to software-as-a-service (SaaS). Small and medium businesses are keen for adopting the blockchain technology. 

However, its complexities and operation-level issues such as configuration and infrastructure aligning are difficult to manage, which is discouraging overall adoption of the blockchain technology. In order to overcome these issues, leading technology organizations and small startups have introduced a solution called ‘Blockchain-as-a-Service (BaaS) model’ for all blockchain technology users. The BaaS model sets up all external services required in setting up the blockchain technology and infrastructure for customers. BaaS supports handling of complex operations of the blockchain technology for customers and their businesses. Moreover, BaaS keeps the infrastructure ready and operational. It also supports activities such as bandwidth controlling, appropriate allocation of resources, hosting, and security from hacking attempts.

Major factors increasing the adoption of blockchain-as-a-service (BaaS) market is that it allows organizations to focus on their core jobs instead of wasting time in setting up of infrastructure facilities. Vendors in regions such as North America and Asia Pacific have started providing BaaS. For instance, in North America, organizations such as Oracle, Microsoft, Amazon, and IBM have launched BaaS offerings. Microsoft Azure has introduced platforms where users can develop, test, and deploy secure blockchain apps. Microsoft charges its users only when the service is used. Microsoft’s blockchain platform is also known for its instant applications development tool. In China; Alibaba, Baidu, and Huawei are major players providing the service. Huawei has built its blockchain-as-a-service (BaaS) solutions on the top of open-source Hypeledger Fabric 1.0 software, this solutions of Huawei helps its customers to develop and manage smart contracts on the blockchain technology.

The Blockchain-as-a-Service (BaaS) market can be segmented based on component, industry, enterprise size, application, and geography. Based on component, the blockchain-as-a-service (BaaS) market can be classified into tools and services. In terms of application, the market can be divided into supply chain management, payments, identity management, smart contracts, and governance, risk and compliance (GRC) Management. 

Based on enterprise size, the blockchain-as-a-service (BaaS) market can be segmented into large enterprises and small & medium enterprises. In terms of industry, the blockchain-as-a-service (BaaS) market can be segregated into banking, financial services and insurance (BFSI), health care & life sciences, telecom & IT, transportation & logistics, retail & ecommerce, government & public sector, manufacturing, energy & utilities, and media & entertainment. In terms of geography, the global Blockchain-as-a-Service market can be segmented into North America, Europe, Asia Pacific, South America, and Middle East & Africa.