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BaaS, or Blockchain as a Service, is an exciting new technology that provides developers with access to tools that allow them to create blockchain applications. Essentially, it’s a cloud computing service for Bitcoin’s underlying technology. Bitcoin itself is a cryptocurrency where transactions are stored in blocks on the public ledger known as the Bitcoin Blockchain.
BaaS companies have made a significant difference to the availability of blockchain technology over the last few years. As a result, the number of applications based on it is also growing rapidly.
Examples of BlockChain as a Service
Some examples of applications that can be built using BaaS include:
- A BlockChain-based voting system designed to ensure votes are accurately counted and identities remain anonymous as part of a project funded by IBM as part of its Future-Proofing Cities initiative. – The ethereum suite, which provides a user interface for managing accounts, safe payments and smart contacts, among other features — codenamed “Substratum.com” — was first launched in November 2017. It provides a platform for decentralized internet Apps (DApps). An example of a DApp would be IPFS, which is an alternative web hosting system that uses peer-to-peer technology to improve the security of web data. – Factom is an Ethereum application that allows users to build applications on top of the decentralized network. It also provides companies with the ability to secure their data through its “Proof of Existence” protocol.
Blockchain isn’t only limited to use in the fintech sector; it is finding its way into other businesses as well. Companies like Walmart use blockchain technology to help track where food comes from and what ingredients are used in their products. Microsoft is using it as part of its Azure cloud system.
Now that we’ve covered the basics of what BaaS is and some examples, let’s look at how to create your own blockchain application using BaaS using the ethereum framework as an example.
Clearly, we cannot speak of BaaS without bringing Etherium into the picture.
What Is Ethereum?
Ethereum is a decentralized platform based on smart contracts that work with the Turing-complete Ethereum Virtual Machine (EVM) to execute code automatically without interference from third parties. The EVM can send transactions over ethereum’s blockchains, storing data digitally in a distributed ledger known as the “blockchain.” Blockchain technology enables these transactions to be transparent, irreversible, and secure by design.
In ethereum’s case, the platform is also able to run smart contracts, which are applications that work exactly as programmed without any possibility of downtime, censorship, fraud or third-party interference. The idea behind strong smart contracts is to make blockchain technology “practical,” To do this, you need a programming language that can be used in various contexts. On ethereum’s platform, there are two ways to write smart contracts:
Typed Assembly Language (TAL): There is a low-level programming language called Solidity that developers can use to write code within the EVM. It has been purposefully designed to give developers the flexibility they need while also preventing potential security issues. Functional Programming: Ethereum developers can write their smart contracts using a functional programming language like Solidity or LLL. Functional code is used to validate and encode data and only contains the code and calculations necessary for a specific task.
Smart contracts can be used to build anything from digital agreements between two parties to automated financial transactions. The possibilities are limited only by your imagination, which is what makes this technology revolutionary.
What Does Ethereum Stack Up Against?
Ethereum is the second-largest blockchain globally by market capitalization, and it is also the most mature platform in its category. This means that it has more developers and has built many of the underlying technologies that other blockchains are still trying to get right.
Ethereum’s blockchain is also the most secure of its kind. The platform has taken great care to prove that it can’t be interfered with, even though it is decentralized. This is because there are thousands of miners working on the platform at all times, not to mention the fact that several corporations are using its blockchain for testing purposes. As a result, ethereum’s blockchain can handle more transactions every day than any other public blockchain in existence.
While Ethereum has clearly demonstrated how powerful BaaS can be when properly implemented, there are still some difficulties using smart contracts in real-world scenarios today. The biggest issue in this space is smart contract bugs. The decentralized nature of smart contracts means that the code is all out in the open for anyone to see. This makes errors more likely.
Another problem is that smart contracts cannot be used by everyone. For example, there are limitations to who can write the code needed to deploy a smart contract. A job listing for an Ethereum smart contract developer recently appeared on LinkedIn, and it said you need extensive experience with Solidity (the programming language required to build these contracts).
Competition for Etherium’s smart contracts is also growing as more companies find ways of applying BaaS to their processes. In fact, some experts believe that Ethereum’s value proposition is being reduced as a result of new platforms entering the space that has been developed from the ground up with use cases in mind. These include Solana, Cardano NEO, Hyperledger and EOS.
What Does The Future Hold For Ethereum?
Ethereum’s large network of developers and blockchain experts make it a clear choice for building BaaS applications. That said, newer players are entering the market with alternative smart contract frameworks that can be used to build these applications on peer-to-peer networks.
The platform created by the blockchain company, Solana, is designed to be the fastest transaction-processing blockchain available. It uses a method called “Proof of History” to create its blocks instantly, rather than waiting for miners to finish processing transactions. This provides speed that runs faster than ethereum’s blockchain.
With the rise of Ethereum smart contracts, there is always the potential for security compromises. The rise of the smart contract bug has shown this clearly. What’s required to build a robust BaaS application is a team of experienced programmers who understand how to make your software secure at all times. This should be done by using these new blockchain solutions designed to fight against bugs or vulnerabilities that hackers or future unknown attackers can exploit.
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