Blockchain-As-A-Service (BaaS), just another buzz phrase?
The state of cryptocurrency markets is something we are all well aware of. HODLers are looking for anything that will bring an increase in token value and be the “future” and “promised-land” we all hear about. We all read the sentiment on Reddit, “if you would have bought and held Apple in the early 2000s until now, you would be a lot wealthier.” Economics aside, a share in Apple represents much different than what most tokens represent that people are buying as “investments.” If we pull back the covers of most tokens and their economics; we will find a lot of engineers that have not yet figured out their business model. How will they make money after the Initial Coin Offering (ICO) funds are gone?
The hidden treasures will be the tokens that create demand based on necessity and usefulness, not just a carefully crafted marketing campaign of future promises. Those days are done. Queue in, Blockchain-as-a-Service (Baas).
Let’s start with what we know and have all definitely used; Software-As-A-Service (Saas). The definition of SaaS can be a method of software delivery that allows data to be accessed from any device with an Internet connection and web browser. In this web-based ‘cloud’ model, software vendors host and maintain the servers, databases and code that constitute an application. This is a significant departure from the on-premise software delivery model. First, companies don’t have to invest in extensive hardware to run the systems, and this in turn, allows buyers to outsource most of the IT responsibility required to troubleshoot and maintain those systems.
The SaaS vendor takes care of it all.
Think of Microsoft Office 365, Salesforce, Google G suite, etc….
Just about every one of us reading this have used these cloud based and/or internet solutions in our lives. All it means is that the software provider hosts a lot of the data, handles updates and customers run the software on their local machine(s). The goal is for ease of use for customers and less technical maintenance. But, we all know how expensive and slow the currently available public blockchains are, so can this business model work here? I think so.
Add Blockchain to existing service models
Technologists constantly preach that blockchain, the technology behind cryptocurrency like Bitcoin (BTC), is the real benefit to business and our society. Some aspects of a transaction are great when made viewable and traceable, while some others should be kept private. Tailoring uses (service) based on business need is where the valuable tokens and blockchain startups will be revealed. A mentor of mine once said that, “if you came to me with a new concept and nobody else was doing it, then you should be worried about profitability.”
Blockchain as a Service (BaaS) models can be applied to all sorts of redundant business models that range from AI, real estate, financial services and of course, digital identity processes.
Real estate transaction costs can be reduced on a blockchain service by eliminating the amount of manual oversight of bank accounts, documents and attorneys through smart contracts. Physical assets, hopefully one day through Non-Fungible Tokens (NFT) can be verified on a blockchain as well.
When analyzing a crypto project, pay close attention to where that specific service can be applied and whether it will be profitable. If you can reduce costs and protect customers, why wouldn’t a business sign up with that service immediately!
We are proud of our partnership with an existing Know-Your-Customer provider, Onfido. This partnership and our technology will allow us to bring costs down for document checks about 30–40% from the competitors. We won’t name any competitors here, but our suite of KYC/AML checks can be done for under $2 with the easiest system for customers we have seen on the market.
This cost goes down considerably as the user base increases with a Bridge ID.
Eventually, users will be able to use exchanges, ICOs and more without the business passing the cost onto customers while getting a better ID.
Blockchain as a Service (BaaS) will stick when founders realize they should be inventing for sales, not for blockchains on the moon. This may help aid an end to the bear market.