From SaaS to BaaS; how blockchain-as-a-service can benefit the global scenario

The anticipated global digital rush seems to have laid out the platform for development of decentralised ledger technologies (DLTs) such as blockchain. In recent context, market analysts appear to explore the possibility of blockchain with software distribution models such as Software-as-a-Service (SaaS). It is believed that the two forms of technology have given birth to Blockchain-as-a-Service (BaaS), to benefit an extensive audience.

According to MarketsandMarkets, a market research company, the global BaaS market size is projected to grow from $632 million in 2020 to $11,519 million in 2026, at a compound annual growth rate (CAGR) of 62.2%. The report cited COVID-19 outbreak as an important reason to drive the BaaS market. “BaaS services will help spur mainstream enterprise adoption of blockchain. Providing enterprises with the ability to work with blockchain technologies without the upfront infrastructure investments means the BaaS market could further blockchain adoption in the same way SaaS companies spurred cloud adoption in the past decade,” Pratik Gauri, co-founder and CEO, 5ire, a blockchain-based platform, told FE Blockchain.

Insights from market-oriented research has shown that BaaS carries the benefits of a decentralised infrastructure and the reduction in transaction costs, which is expected to be an important prospect in the global financial and security ecosystem. As stated by Appinventiv, a global application development agency, BaaS can help shape startups and small and medium enterprises (SMEs) that are dependent on large data silos. The technology carries the potential to deal with problems such as removal of middlemen, absence of transparency, among others. 

“Blockchain is a technology that has potential to harbor ideas and technologies that could be implemented in the current financial systems. Businesses, in particular, can benefit from such technologies. In industries such as real estate, blockchain can enable stakeholders to conduct transactions without the need for intermediaries. The introduction of the digital rupee by RBI in India recently is a testament to that,” Punit Agarwal, founder and CEO, KoinX, a cryptocurrency taxation platform, stated. 

From an organisational perspective, companies such as NVIDIA, Bloq, Coinbase, among others, have started to make use of BaaS-backed solutions. Further, the technology’s usage can also benefit sectors such as healthcare, automotive, financial technology (fintech), transportation and logistics, document tracking, among others. Appinventiv highlighted that the global BaaS market is big around countries such as US, Mexico and Canada. Europe is considered to be leading the BaaS market scenario, on account of government support from different countries.

Moreover, BaaS’ association with financial models can help develop the concept of decentralisation. As reported by Datamatic Business Solutions Limited, a business-to-business (B2B) service, the integration of BaaS is expected to help develop technologies such as report keeping, smart contracts, securities, and digital currency. Experts have opionated that BaaS can solve issues around transparency, efficiency, cost, among others.

“In the global financial markets the use of BaaS is extremely prevelant with companies offering services such as tokenization custody and trading, all on the blockchain as a service model to large institutions for a fees. This reduces changes of infrastructural failure, capture or risk while being maintained and deployed by experts,” Arjun Khazanchi, co-founder and chief legal and strategy officer, Rooba.Finance, a blockchain and smart contract platform, stated.    

Also Read: Tim Draper still expects Bitcoin to reach a $250,000 valuation in 2023

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