The expected global digital fever seems to have set the stage for the development of decentralized ledger (DLT) technologies such as blockchain. Recently, market analysts seem to be exploring the possibilities of blockchain with software distribution models such as software as a service (SaaS). It is believed that these two forms of technology have given birth to blockchain as a service (BaaS) for a wide audience.
According to market research firm MarketsandMarkets, the global BaaS market size is projected to grow from $632M in 2020 to $11,519M in 2026 at a compound annual growth rate (CAGR) of 62.2%. The report cites the COVID-19 outbreak as an important reason for the development of the BaaS market. “BaaS services will help drive the widespread adoption of blockchain by enterprises. Enabling businesses to work with blockchain technologies without upfront investment in infrastructure means that the BaaS marketplace can drive further blockchain adoption in the same way that SaaS companies have driven cloud adoption over the past decade.” – Pratik Gauri, Co-Founder and CEO of 5ire, Platform on based on the blockchain, reported FE Blockchain.
Market research results have shown that BaaS has the advantages of decentralized infrastructure and lower transaction costs, which is expected to be an important prospect in the global financial and security ecosystem. According to Appinventiv, a global app development agency, BaaS can help shape startups and small and medium-sized enterprises (SMEs) that depend on big data stores. This technology can solve problems such as the elimination of intermediaries, lack of transparency and others.
“Blockchain is a technology that can contain ideas and technologies that can be implemented in existing financial systems. In particular, such technologies can benefit businesses. In industries such as real estate, blockchain could enable stakeholders to conduct transactions without the need for intermediaries. The recent introduction of RBI of the digital rupee in India is a testament to this,” said Punit Agarwal, Founder and CEO of KoinX, a cryptocurrency taxation platform.
From an organizational point of view, companies such as NVIDIA, Bloq, Coinbase, and others have started using BaaS-enabled solutions. In addition, the use of technology can also benefit sectors such as healthcare, automotive, financial technology (fintech), transport and logistics, document tracking, and others. Appinventiv emphasized that the global BaaS market covers countries such as the US, Mexico, and Canada. It is believed that Europe is leading the BaaS market scenario due to government support from various countries.
In addition, the connection of BaaS with financial models can help develop the concept of decentralization. As reported by Datamatic Business Solutions Limited, a business-to-business (B2B) service, BaaS integration is expected to help develop technologies such as reporting, smart contracts, securities, and digital currency. Experts believe that BaaS can solve problems related to transparency, efficiency, cost and others.
“In global financial markets, the use of BaaS is extremely common as companies offer services such as token storage and trading, all on blockchain as a service model for large institutions for a fee. This reduces the changes associated with infrastructure failure, takeover or risk, supported and deployed by experts,” said Arjun Khazanchi, co-founder and chief legal officer and strategic director of Rooba.Finance, a blockchain and smart contract platform.
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