What is Blockchain-as-a-Service (BaaS) – A Brief Overview

Companies with minimal tech muscle and finances also deserve to tap into the potential of blockchain technology. But how can they integrate blockchain into their solutions and offerings without building a dedicated infrastructure that would cost an arm and a leg?

SaaS models have enabled businesses to realize breakthrough innovation at a much lower cost. From AI to FinTech, SaaS has made it much easier for business owners to add unique, cutting-edge capabilities to their products.

With blockchain being one of the next big technologies that’ll shape the next decade, business owners wonder how they can integrate blockchain into their products and solutions with dedicated teams and resources.

Introducing Blockchain-as-a-Service (BaaS), a revolutionary SaaS model that helps businesses drive blockchain innovation on a budget.

In this blog, we’ll cover this model in detail and discuss how it can benefit your business.

Defining Blockchain as a Service (BaaS)

Blockchain-as-a-Service (BaaS) handles all the complex technical aspects of your blockchain initiatives, allowing you to focus on making better business decisions and innovation strategies. 

BaaS is basically a cloud-based service, like any other SaaS, that helps companies make blockchain technology a part of their tech stack without investing in a dedicated technical setup and team.

With BaaS, companies can:

• Build their own blockchain applications
• Store and manage data securely
• Track transactions and information
• Connect with other businesses safely
• All without managing complex infrastructure

Why Companies Choose BaaS?

Let’s say you want to integrate blockchain technology into your enterprise resource planning (ERP) software product. Now, you have two choices:

• Build everything yourself
• Use Blockchain-as-a-Service (BaaS)

Here’s why most companies would go for the second option:

• Saves money
• Saves time 
• Reduces technical headaches
• Scales easily
• Provides better security 

Now that we know what blockchain is and how it benefits businesses let’s explore how it really works.

How Does BaaS Work?

A BaaS provider sets up and maintains their clients’ back-end blockchain network infrastructure. This includes activities like:

• Hosting blockchain nodes
• Bandwidth management
• Allocating storage and computing resources
• Tools for application development, testing, and deployment
• Technical support and maintenance
• Security measures and access controls

Meanwhile, the client organization focuses on building front-end applications tailored to their specific use cases, whether that’s supply chain tracking, digital identity, document verification, or others.

How Can BaaS Benefit Your Business?

This is how BaaS can help businesses drive blockchain adoption and innovation at scale:

Accelerated Innovation

You need to test new ideas fast to stay ahead of the competition. Building a dedicated team and obtaining resources for every single one of your ideas can be both time-consuming and expensive. 

BaaS removes all technical barriers, enabling you to start using blockchain technology right away. Providers constantly update their platforms with new features and improvements. Your business automatically benefits from these updates, keeping you at the forefront of blockchain technology without any extra effort.

Read More: A Beginner’s Guide to Blockchain Technology

Reduced Costs

Building and maintaining a blockchain-based IT infrastructure requires significant investment in hardware, software, and skilled teams. With BaaS, you only pay for what you use. 

You don’t need to buy expensive equipment or hire specialized blockchain experts. Instead, you can use those resources to grow other parts of your business.

The cost benefits extend beyond just money. Your team saves valuable time by not having to manage complex technical systems. This time can be better spent developing your business strategies and serving customers. Additionally, BaaS providers handle system maintenance and updates, further reducing your operational overhead.

Read More: Cost of Outsourcing Software Development

Enhanced Security

Maintaining rigorous security standards for blockchain networks represents a huge technical challenge. BaaS providers implement enterprise-grade security protocols covering data encryption, access controls, cyber threat monitoring, and fraud detection.

With these hardened cloud-based environments, your blockchain applications and transactions remain shielded from external and insider threats. Auditing capabilities also help reinforce compliance for sensitive use cases.

Read More: 5 Key Blockchain Protocols You Need to Know

Seamless Scalability

Blockchain applications can demonstrate sudden spikes in traffic and transaction volumes that prove difficult to handle in-house. The on-demand scalability of BaaS platforms allows your blockchain solutions to scale up or down smoothly based on real-time usage trends.

BaaS providers utilize autoscaling capabilities to allocate computing power, network bandwidth, and storage dynamically to prevent performance bottlenecks. This keeps your blockchain solutions up and running as adoption grows.

Read More: What’s Next for AI, IoT, and Blockchain

Faster Time-to-Value

Blockchain applications have lengthy development cycles between conception and rollout, and there are many technical unknowns. BaaS simplifies deployments with ready infrastructure, battle-tested templates, and abundant supporting services.

This combined impact leads to faster time-to-market, enabling you to deliver truly decentralized, feature-rich, and blockchain-based digital solutions on pace and scale.

Read More: Reducing Time to Market – Cubix’s Proven Strategies

How to Build a BaaS?

As enterprises continue exploring blockchain adoption, many seek to build in-house Blockchain-as-a-Service (BaaS) platforms. 

Creating your own BaaS environment brings greater control, customization potential, and data privacy. However, undertaking the endeavor still requires thorough planning.

Read More: Rising AI-Driven Cyberattacks – SaaS Data Protection

Define Your Blockchain Strategy

Before diving into infrastructure, clearly outline the objectives, use cases, and business outcomes you want your blockchain solutions to achieve.

• Will they enhance supply chain transparency? 
• Streamline financial settlements? 
• Secure health records?

Mapping clear goals and user needs first allows you to tailor the BaaS stack accordingly.

Read More: Blockchain Development Roadmap – A Beginner-friendly Guide

Choose Your Protocols

The blockchain landscape has numerous protocols, each with its own technological architectures, performance trade-offs, and functionalities.

• Permissionless networks like Ethereum allow open participation, while permissioned blockchains like Hyperledger Fabric offer more central control.
• Consensus models like proof-of-work, proof-of-stake, and Practical Byzantine Fault Tolerance impact scalability, security, and computing needs differently.

Determine which protocol combinations best align with your blockchain objectives from both a product and business perspective. This will guide your BaaS architecture decisions later.

Read More: Top 10 Blockchain Trends for Businesses in 2025

Assess Must-Have Capabilities

The foundation of any BaaS platform rests on core infrastructure blocks:

• Compute power ensures your network can handle transaction loads and run chain code for smart contracts. Look to leverage cloud hosting and containers.
• Storage accommodates the ever-growing volumes of ledger data and digital assets on your blockchain.
• Networking transports data between network nodes and users. Aim for flexible bandwidth and low latency connectivity.
• Identity management controls user access and permissions, while blockchain key management handles encryption.
• Monitoring tools track resource utilization, transaction metrics, and system health.

Based on projected workloads, consider each building block’s current and future capacity demands.

Read More: Best Practices for Developing Secure Ethereum Smart Contracts

Finalize Technology Stack

Once all requirements are established, the technology stack powering your BaaS environment starts taking shape:

• OS layer consisting of host operating systems
• Virtualization layer for computing containers and resource allocation
• Orchestration tools for deploying and managing containers
• Blockchain protocol layers
• Monitoring, analytics, and reporting tools
• Developer environment with SDKs and APIs
• Portal for monitoring blockchain apps and infrastructure

Open-source technologies like Linux and Kubernetes provide cost efficiency. Plus, third-party software delivers additional out-of-box capabilities.

Read More: Is Blockchain the Key to Achieving Transparency in Energy?

Prioritize Modularity

Create modular architecture divided into discrete layers and components right from the start. This allows you to modify or replace specific sections of the stack as needs evolve without overhauling the entire platform.

Moreover, modular designs promote interoperability between different blockchain protocols. Use orchestration middleware to avoid vendor lock-in scenarios.

Read More: Blockchain In Business – Exploring Applications Beyond Cryptocurrency

Implement Security Controls

Apply security measures across the complete BaaS stack, not just at the blockchain layer. Potential measures include:

• Encrypting data flows between components
• Hardening infrastructure against attacks
• Access controls and identity management
• Monitoring systems and endpoints
• Key management procedures
• Data auditing and backup

Scale-Out Over Scale-Up

When architecting BaaS infrastructure, horizontal scalability allows more flexible growth. A scale-out approach distributes workloads across multiple smaller servers. As demands increase, extra resourcing gets added in parallel.

In contrast, vertical scale-up models concentrate workloads on ever larger, pricier servers to meet higher capacity needs. Scaling out avoids big capital outlays upfront while offering greater adaptability.

Prioritize Developer Experience

The success of your BaaS platform heavily relies on its acceptance amongst developers who will build blockchain apps on it. Here are some tools that can help streamline their experience:

• APIs and SDKs tailored to popular programming languages
• App templates and code samples to accelerate projects
• Management console and dashboards for transparency
• Documentation and technical assistance access
• CI/CD integration lowers deployment barriers

Empowering developers helps drive faster innovation on top of your BaaS infrastructure.

Read More: Key Blockchain Gaming Trends for 2025

Final Thoughts

BaaS is quite a convenient way to get started with blockchain. You can experiment and play around with the technology without having to invest much in a dedicated infrastructure and team. 

This model also enables businesses to outsource workflows like managing their blockchain applications (dApps). It also allows them to focus on core capabilities and decision-making while reaping the benefits of blockchain technology.

If you plan on building a BaaS platform but don’t have the technical expertise, resources, and teams to make it happen, partner with Cubix.

We offer end-to-end blockchain development services, helping businesses build and launch various decentralized solutions, from blockchain games to BaaS platforms.

Contact our representatives to discuss your initiatives, and we’ll see what we can do to bring your product vision to life.