The global Blockchain-as-a-Service market size is expected to grow at an impressive CAGR of 62.73% to $52.5 billion by 2026, according to this report.
What is Blockchain-as-a-Service?
Blockchain as a Service (BaaS) is a type of blockchain service offering that allows business customers to use cloud-based solutions to develop, host and adopt their own blockchain applications, smart contracts and other relevant functions on the blockchain.
What are the main global Blockchain-as-a-Service market drivers?
The main drivers of the global Blockchain-as-a-Service market are:
- The increasing awareness of the benefits provided by blockchain technology;
- The need for security in transactions.
The business community is beginning to discover the many benefits that blockchain technology brings to the table. Born into the finance industry, blockchain technology is rapidly expanding outside it.
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What is an NFT?
NFT stands for non-fungible tokens. A non-fungible token is a special type of cryptographic token which represents something unique.
NBA games are watched by millions of fans worldwide. In an attempt to provide fans with a new experience, the NBA has taken the idea of physical memorabilia (the standard basketball cards) and upgraded it with the help of blockchain technology. And thus a new kind of collectables emerged: the NBA Top Shot Moments.
The Top Shot Moments are video clips of basketball plays with animations that fans can collect and own.
Is it possible to own a moment in time?
Now it is!
These clips are licensed by the NBA and minted on the blockchain in limited supply. Each Moment has a nonfungible token (NFT), which is unique to that specific Moment. The NFT proves the authenticity of the traded Moment, and without the need to send physical memorabilia, the transfer is very quick.
Fans love the Top Shot Moments: in just a week, sales increased by 100%, jumping to over $200 million.
Gaming is another industry that benefits from blockchain technology.
Alien Worlds is one of the leading blockchain games on the market. Trilium, Alien Worlds’ native currency, has driven users to the game and catapulted it to the number one ranked decentralized game by user base.
The game is currently hosting over 13,000 players and close to 20 million in-game transactions. Blockchain has allowed gamers to capitalize on their hobbies, ushering in a world where people of all skill levels can monetize their hobbies.
On average, Alien Worlds players are making anywhere between $60 to $300 per month. Top Alien Worlds players are pulling in about $35,000 per month.
In finance and banking, blockchain technology provides solutions to a wide range of problems.
For example, blockchain fixes the problem of paper in the bank guarantee process. Paper is slow and expensive and can be easily subject to fraud. Recently, the industry has announced its first standardised digital bank guarantee developed on a blockchain-based platform.
The banking industry had initially rejected blockchain and cryptocurrencies. Today many global banks like JPMorgan and Citi use blockchain technology.
JPMorgan has established a business unit solely focused on blockchain development and developed a peer-to-peer blockchain-based data network called Liink. Liink helps lower transaction costs and reduce the required time needed to resolve banking inquiries from up to a fortnight to a few hours.
What are the key global Blockchain-as-a-Service market challenges?
The challenges faced by the global Blockchain-as-a-Service market are closely related to the challenges faced by blockchain technology irrespective of industry.
Here are blockchain’s main challenges according to this report developed by Deloitte:
1. Lack of understanding of how blockchain works
Businesses need to increase their level of understanding and decide if blockchain is right for them.
Businesses need to identify the problems or opportunities their organisations share with others in the sector and collaborate to harness network effects.
Blockchain technology requires a dramatic change in how we view the world. In order to embrace blockchain, the business environment needs to shift away from the traditional ways of doing things. From centralised to decentralized – that’s a big step which some organisations are not prepared to take.
4. Regulation and governance
Blockchain applications are usually working outside existing regulatory structures. Regulators must understand the technology and its impact on the businesses and consumers in their sector.
5. Security and privacy
Because many blockchain applications are linked to known identities, questions are raised about privacy and the security of the data stored and accessible on the shared ledger.
Who are the top leaders in the global Blockchain-as-a-Service market?
List of the top leaders operating in the Blockchain-as-a-Service (BaaS) market are:
Oracle Blockchain Platform Cloud Service is a solution that offers ready-to-use code for running smart contracts and maintaining a tamper-evident blockchain.
Azure Blockchain Service provides Microsoft customers with a foundation for blockchain apps in the cloud.
Accenture offers blockchain solutions for frictionless business by bringing the right combination of capabilities to their customer’s unique infrastructure, challenges and strategic vision.
Alibaba Cloud BaaS (Blockchain as a Service) is an enterprise-level PaaS (Platform as a Service) based on leading blockchain technologies. This service helps customers build a stable, secure blockchain environment.
IBM’s blockchain platform has already proven its reliability and has been recognized as an industry leader.
Huawei Blockchain Service is a highly-secure and efficient BaaS platform built for enterprise usage and blockchain app development. The platform allows companies and developers to build and deploy blockchain applications much faster and cost-effectively on Huawei Cloud.
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