This post assumes that you have intermediate level of understanding of blockchain technology. It;s a chain of 5 blogs on Blockchain Technology and Oracle’s offering into this disruptive technology.
Blockchain created a lot of buzzword; however, its adoption was slow due to technical complexities, operational overhead, challenges in maintenance of the infrastructure and lack of skilled resources. These challenges acted as deterrents to adoption of blockchain for a while, until many small and large cloud providers jumped into offering BaaS solutions.
Customers can build, deploy and use their own blockchain applications and codechain on blockchain using Blockchain as a Service (BaaS) offerings. All the necessary activities and tasks like scalability, infrastructure agility and infrastructure operationally are taken care by the cloud service provider. Indirectly it is boosting a lot in terms of blockchain adoption. Many cloud vendors have included blockchain service as there PaaS offering.
The cloud service provider take care of the blockchain infrastructure for you, in return to subscription and usage fee. Cloud service provider will take care of the setup and maintenance of your blockchain network, connected nodes and all the complexity of blockchain infrastructure for you and your customers. With all the complexity of blockchain network setup and maintenance, security, performance and scalability being shift to cloud service provider, you can concentrate on building distributed applications using chaincode (smart contacts)
Challenges and BaaS as a Solution
Let us walk though few quick challenges and the BaaS as a solution to address those challenges.
Challenge # 1 –
Challenge is for those customers who run ERP, SCM and other legacy processes to explore and reap the benefits of Blockchain technology. BaaS sounds like a solution for this challenge too.
Solution – Blockchain as a Service (as PaaS offering), at one hand allows deployment and management of blockchain solution easy, on the other hand, it also ease the integration with business process and legacy systems like ERP, SCM etc, thus allows enterprise to scale there ERP/SCM and legacy processes to utilize the benefits of blockchain technology.
Challenge # 2 –
Another challenge for enterprises is the lack of skills on blockchain. Both in terms of infrastructure skills and development skills. Here too, BaaS sounds like a solution.
Solution – With BaaS, customers don’t have to adhere to try-it-yourself philosophy and can leverage the innovations adopted by the cloud service providers while constantly focusing on the core “the art and science of developing dApps”. BaaS allows enterprise (small, medium, big), to take full advantage of the nascent technology without the risk of tying-it-yourself and getting burnt.
Challenge # 3 –
Security and blockchain – while its evident that BaaS offers answers to skills shortage, ease of development, what does it has to offer for the concerns around security.
Solution – Well, the answers to this challenge, lies in the blockchain technology itself. Blockchain inherits and is based on encryption, hashing, digital signature and various other security mechanism. If BaaS is monitored and, administered by the cloud service provider and your chaincode is secure too, you have potential answers to security challenges in the adoption of Blockchain via BaaS.
Challenge # 4 –
Initial implementation of blockchain had scalability issues like number of transactions per second and the amount of data that can be processed through the system. In addition, the cost to compute to validate the transaction is increasing, while others adopted different consensus method to solve the scalability challenge, yet it remained there.
Solution – Solution to this challenge lies in BaaS. Various cloud service providers offers scalable private blockchain solution to address this.
Key Advantage of BaaS
Few of the key advantages of BaaS –
- Blockchain as a Service results into the invisibility of the technology part of the blockchain. While the whole science of maintaining blockchain technology remains with the cloud service provider, you can concentrate on the art of developing applications.
- Enterprises are using SaaS, IaaS and PaaS rapidly. Similarly, BaaS – Blockchain as a Service offers business the invisibility of complexity part of the blockchain technology, yet allowing them to reap the benefits of blockchain technology. While the whole science of maintaining blockchain technology remains with the cloud service provider, you can concentrate on the art of developing applications.
- Baas offers cost effective, low-risk cloud service for enterprises to explore the possibilities with their business processes, legacy system and new applications.
- BaaS has all the advantage of a service model like – scalability, low-cost technology, fail-fast strategy, enhanced data security, compatibility and access anywhere along with various other benefits.
Oracle’s BaaS – Oracle Blockchain Cloud Service
At a glance, Oracle Blockchain offers blockchain infrastructure, REST proxy, admin console and all the bells and whistles required to setup and maintain a blockchain network. Build on Hyperledger Fabric, Oracle’s Blockchain Cloud Service, allows ease of operations, high accessibility, offers secure transactions to trading parties both inside and outside the boundary and allows the ease of sharing real-time information with the trusted parties in a trusted network.
BaaS offers many opportunities for SMBs and many use case can be addressed to create a chained world. Stay tunes for the next post, Oracle’s Blockchain Cloud service (ABCS) and various use cases.