# Blockchain-as-a-Service (BaaS) Meaning and Major Players

## What Is Blockchain-as-a-Service (BaaS)?

Blockchain-as-a-service (BaaS) is the third-party creation and management of cloud-based networks for companies that build blockchain applications. These third-party services are a relatively new development in the growing field of blockchain technology. The application of blockchain technology has moved well beyond its best-known use in cryptocurrency transactions and has broadened to address secure transactions of all kinds. As a result, there is a demand for hosting services.

### Key Takeaways

*   Blockchain-as-a-service (BaaS) refers to third-party cloud-based infrastructure and management for companies building and operating blockchain apps.
*   BaaS functions like a sort of web host, running the back-end operation for a blockchain-based app or platform.
*   BaaS may be the catalyst that leads to the widespread adoption of blockchain technology.

## Understanding Blockchain-as-a-Service (BaaS)

BaaS is based on the [software as a service (SaaS)](https://www.investopedia.com/terms/s/software-as-a-service-saas.asp) model and works similarly. It allows customers to leverage cloud-based solutions to [build, host, and operate](https://www.investopedia.com/10-biggest-blockchain-companies-5213784) their own [blockchain](https://www.investopedia.com/terms/b/blockchain.asp) apps and related functions on the blockchain. At the same time, the cloud-based service provider keeps the infrastructure agile and operational.

As a development in the greater blockchain ecosystem, BaaS is seen as boosting blockchain adoption across businesses.

Major players in the BaaS space include:

*   **Microsoft**: Partnered with ConsenSys to introduce Ethereum blockchain-as-a-service on Microsoft Azure in 2015.
*   **Amazon**: Introduced Amazon Managed Blockchain, a service that "makes it easy to create and manage scalable blockchain networks" using open-source frameworks, including Ethereum and Hyperledger Fabric.
*   **R3**: A consortium of global financial institutions that produced a distributed financial ledger called Corda.
*   **PayStand**: Specializes in sending and receiving payments between companies.
*   **Hyperledger Foundation**: A non-profit that created Hyperledger, an open-source distributed ledger that can be customized for enterprise uses.
*   **IBM**: Used Hyperledger Fabric to build the IBM Blockchain Platform, its blockchain as a service.

Consumers and businesses are increasingly willing to adopt blockchain technology. However, the technical complexities and operational overhead involved in creating, configuring, and operating a blockchain and maintaining its infrastructure often act as a barrier.

BaaS providers offer external services that allow a user to set up all the necessary blockchain technology and infrastructure for a fee. Once created, the provider continues to handle the complex back-end operations for the client.

The BaaS operator typically offers support activities, such as bandwidth management, suitable allocation of resources, hosting requirements, and data security features. The BaaS operator frees clients to focus on their core work: the tasks they need the blockchain for.

## Example of Blockchain-as-a-Service (BaaS)

Below is a graphic demonstrating the working model of Blockchain-as-a-Service [Hyperledger](https://www.investopedia.com/terms/h/hyperledger.asp) Cello, a BaaS-like blockchain module toolkit and utility system that provides an operational dashboard for deploying, managing, and operating a blockchain.

![Cello](https://www.investopedia.com/thmb/fCtZ-GieHFxWKYPit2iFMzgDUeg=/1500x0/filters:no_upscale():max_bytes(150000):strip_icc()/Blockchain-as-a-ServiceBaaS2-baedb4b071464c7cbaa71f7ef13c0c83.png)

**

In fact, a BaaS provider's role is similar to that of a web hosting provider. The website host creates and runs all the website content on their own servers. It may hire support staff or sign up with an external hosting provider like Amazon Web Services or HostGator. These third-party companies take care of the infrastructure and maintenance issues.

BaaS may be the catalyst that leads to wider and deeper adoption of [blockchain technology across various industry sectors](https://www.investopedia.com/tech/how-blockchain-can-help-failing-economies/) and businesses. Instead of creating and running their own blockchains, a business, large or small, can now simply outsource the technically complex work and focus on its core activities.

## Is Blockchain an SaaS?

Blockchain is similar to software as a service, programmed and maintained by an entity that rents out its software and services.

## What Is the Future of Blockchain as a Service?

Blockchain enterprise solutions continue to be developed, with many companies creating in-house solutions or turning to blockchain services. It's likely that many more will look for blockchain solutions and turn to BaaS to keep their development costs down.

## What Is an Example of a Blockchain Service?

The Hyperledger Foundation created an open-source blockchain that enterprises could build on to meet their specific needs. IBM used Hyperledger Fabric to create its Blockchain Platform, a blockchain service it offers to enterprises.

## The Bottom Line

Blockchain as a service is an enterprise solution to the costs of developing a blockchain for a specific business or use. Many large technology firms have created and marketed this service, and there are many more being created.

> **Article Sources**
>
> 1.  Microsoft Azure. "[Ethereum Blockchain As a Service Now On Azure](https://azure.microsoft.com/en-us/blog/ethereum-blockchain-as-a-service-now-on-azure/)."
>     
> 2.  Amazon Web Service. "[Announcing General Availability of Amazon Managed Blockchain](https://aws.amazon.com/about-aws/whats-new/2019/04/introducing-amazon-managed-blockchain/)."
>     
> 3.  R3. "[About R3](https://r3.com/company/)."
>     
> 4.  PayStand. "[B2B Payments Reimagined](https://www.paystand.com/)."
>     
> 5.  Hyperledger Foundation. "[About](https://www.hyperledger.org/about)."
>     
> 6.  IBM. "[IBM Support for Hyperledger Fabric](https://www.ibm.com/products/blockchain-platform-hyperledger-fabric)."
>     
> 7.  Hyperledger Foundation Projects. "[Hyperledger Cello](https://www.hyperledger.org/projects/cello)."