What we do not know can be costly.
Blockchain technology’s coming of age can be marked by the need to facilitate its mass adoption by companies, businesses, and industries who have not the capacity to implement its IT infrastructure. Enter Microsoft, IBM, Amazon, and other big companies who discovered an all-important bridge being BaaS vendors supplying infrastructure and service tools for the management and maintenance of the buyers’ blockchain applications, digital services, and their other core functionalities. BaaS features include platform architecture management, modular, easy setup workflow, preconfigured networks and infrastructure, middleware for monitoring & development for app building, dashboard to view and analyze chain code, auditable transaction record, built-in connections to needed services, and consultatory or any other related professional services. Some or all these may sound foreign to prospectors; that is why BaaS providers can take full charge of the back-end technology while their clients continue functioning on,.
Factors to Consider.
When choosing the right BaaS platform for a certain kind of business, it is important to consider some of the following factors:
Integration into Smart Contracts.
If your blockchain solutions include smart contracts, a working mechanism is required since smart contracts go beyond any typical contract. There is also the enforcement of penalties to any party who does not honour contractual obligations. The immutability feature of smart contracts are complicated and, therefore, must already be included upon the blockchain’s test deployment.
Identity Access Management (IAM) Platforms.
The IAM platform is a facilitating framework for the management of digital identities wherein a single, double, or multiple ID authentication steps are implemented before users can access internal information, especially when it is considered sensitive or confidential. The IAM integration enables you to share only the information required to permissioned personnel, rendering your blockchain network highly secure. You may ask for this integration from your BaaS provider.
Not all BaaS providers are offering versatile features that enable you to transfer to another blockchain platform while running on a different blockchain framework. Mostly still operate on a single blockchain deployment enterprise. Make sure your choice of a BaaS provider can offer such flexibility for your kind of business, which requires interoperability between runtimes and frameworks.
Consensus mechanisms such as Proof of Stake and Proof of Work do not offer much when it comes to scalability due to its limitations to computation, which may not serve solutions needed for enterprise levels. Shop for BaaS providers who could offer you identity-based consensus model algorithms that allows you to scale up your network for faster technology integration. Authorized identities scale up operations better than computation.
Seriously consider these factors before making a move to integrate blockchain solutions into your ecosystem.
MyBlockchain or YourBlockchain?
Sure integrating blockchain solutions to your business comes with a high price. The relevance of your business to stay in the pack or well ahead into the digital future can really compel you not to be complacent but thoughtfully decide on game-changing matters. If it matters to you to keep everything private, analyze the cost of hosting a blockchain application. Owning a blockchain app can make you dig deep from your pockets as the deployment of a single contract alone has a tag price of up to a hundred thousand dollars. It is like creating a separate IT business to run your existing business. Overhead expenses can shoot up due to start-up costs such as personnel, infrastructure, software, hardware, licensing, training, consultation, maintenance, support, etc., operational costs such as bandwidth expenses, transaction costs, monitoring, salaries, etc., and retirement and decommissioning costs.
Blockchain-as-a-Service offering can include a cloud-hosted application that you can pay for more-or-less 0.29 US dollars per CPU per hour. You only pay for using the units of service. The financial advantages of a BaaS-based model are that costings depend on the number of live transactions, transaction rates, transaction payload, network membership, data written, data transfer, peer nodes, peer node storage, among others.
Blockchain-as-a-Service is a Backend-as-a-Service that third-party providers provide so that you can concentrate on your front-end business logic without losing focus. With this set-up, BaaS is set to accelerate the expansion of blockchain technology adoption across and beyond industries, companies, businesses, and other sectors of society. Outsourcing BaaS companies will have them responsible with all the technical complexities of infrastructure and maintenance while you keep a close watch on your core workflow, to your massive benefit.
Wallex is a FinTech company with no-nonsense fintech solutions to your digital asset management needs such as Trust, Custody, and Exchange. We employ AML and KYC procedures to keep our transactions safe and secure. Our friendly Wallex Team will be there for you for any clarification as you decide to make us your trusted partners in securing and increasing your funds on top of the digital landscape.