The landscape of blockchain infrastructure has evolved rapidly, with numerous companies, organisations, and communities pushing the boundaries of blockchain development. This progress brings Web3 closer to mainstream adoption.
The blockchain industry is booming, with rapid growth and new applications emerging constantly. The global blockchain market is expanding at an unprecedented rate, highlighting the increasing demand for robust and scalable infrastructure.
Blockchain infrastructure as a service is a pivotal element in the blockchain ecosystem, enabling businesses and developers to harness the power of blockchain technology with minimal effort. With comprehensive tools and platforms like Liquify, the transition to Web3 becomes seamless, paving the way for innovative and scalable blockchain applications.
Moreover, this technology transforms traditional processes and creates new opportunities across various industries, including healthcare, finance, logistics, gaming, and more.
What you need to know
• The global blockchain market is expanding quickly, reflecting the increasing demand for scalable and robust infrastructure solutions that push Web3 closer to mainstream adoption.
• Blockchain Infrastructure as a Service (BaaS) offers managed platforms and tools, like Liquify, that allow businesses to build on existing blockchain networks with minimal effort, enhancing agility and accelerating adoption.
• Blockchains, decentralised applications (dApps), smart contract platforms, node providers, API providers, and hardware components are key elements of blockchain infrastructure, which form the foundation of blockchain applications.
• When selecting a blockchain infrastructure provider, consider factors such as security, ease of integration, reliability, support, scalability, and cost to ensure optimal alignment with business needs and the principles of decentralisation.
Understanding Blockchain Infrastructure
Blockchain infrastructure includes blockchains, decentralised applications (dApps), smart contract platforms, node providers, API providers, and hardware elements.
Bitcoin, launched in 2009, was the first blockchain, but its programmability limitations led to the creation of Ethereum, the first fully programmable blockchain. Today, numerous blockchain networks form the foundation of all blockchain applications.
Critical Components of Blockchain Infrastructure
Blockchain: The foundational layer for dApps and other blockchain-based solutions.
dApps: Decentralised applications that operate on blockchain networks.
Smart Contract Platforms: Platforms like Ethereum that enable the creation and execution of smart contracts.
Node Providers: These services manage nodes and facilitate communication with blockchain networks.
API Providers: These services offer APIs for developers to interact with blockchain data.
Hardware: Physical devices that support blockchain networks and applications.
Sectors and Industry Groups in Blockchain Infrastructure
To better understand blockchain infrastructure services, it’s helpful to refer to CoinDesk’s Digital Asset Classification Standard (DACS), which categorises digital assets into six primary sectors:
Computing
2. Currency
3. DeFi (Decentralised Finance)
4. Culture and Entertainment
5. Smart Contract Platforms
6. Digitalization
The computing and smart contract platforms sectors are pivotal in blockchain infrastructure.
What is Blockchain Infrastructure as a Service (BaaS)?
Blockchain infrastructure as a service refers to managed platforms or tools, like Liquify, that enable users to build on top of existing blockchain networks. These services cover a wide range, from helping developers build layer-2 blockchains to deploying dApps that reach end-users. BaaS also includes backend tools like data storage, which are essential for dApp development.
How BaaS Works
BaaS simplifies blockchain development by offering pre-built infrastructure, allowing businesses to launch blockchain applications with minimal effort. This approach enhances agility and accelerates blockchain adoption by eliminating the need to develop backend infrastructure from scratch.
Key Technologies and Tools in Blockchain Infrastructure
Node Providers
Node providers manage the nodes that facilitate communication with blockchain networks. As running a node can be complex and resource-intensive, developers often rely on these providers to handle this aspect of blockchain infrastructure.
Web3 API Providers
Web3 APIs are crucial for consistent and stable coding environments. These APIs connect to nodes and offer a robust backend infrastructure, enabling developers to access on-chain data through simple code snippets.
Smart Contract Development Tools
Tools and frameworks for smart contract development include programming languages, development environments, and integrated development environments (IDEs) that support coding, compiling, deploying, verifying, and testing smart contracts.
Web3 Wallets
Web3 wallets manage, send, receive, and store cryptocurrencies. They also play a vital role in Web3 authentication, executing on-chain transactions, and testing dApps.
Blockchain Explorers
These specialised dApps allow users and developers to explore on-chain data and interact with smart contracts.
Beyond the Basics: Advanced Blockchain Infrastructure
Delving deeper into blockchain technology reveals specialised components that enhance core infrastructure for specific needs:
• Blockchain Development Platforms: These platforms provide developers with tools and resources to build and deploy decentralised applications (dApps) on blockchains like Bitcoin, Ethereum, and Solana.
• Interplanetary File System (IPFS): IPFS revolutionises data storage with a decentralised network, offering efficient and tamper-proof data storage that surpasses conventional blockchain methods.
• Blockchain Security Solutions: As the stakes rise, so does the need for robust security. Advanced techniques are employed to identify and mitigate potential vulnerabilities within blockchain networks, ensuring higher security standards.
How Liquify Enhances Blockchain Infrastructure
Liquify offers a comprehensive suite of services to simplify blockchain development and enhance infrastructure reliability.
Using Liquify can significantly reduce time-to-market and engineering costs. Its reliable tools and resources make it the preferred choice for leading Web3 projects. Here are specific examples of how Liquify helps developers:
Node Management
Liquify manages all aspects of node operation, from setup and configuration to maintenance and scaling. This allows developers to focus on building their applications without worrying about the complexities of node management.
Example
A blockchain game developer can rely on Liquify to manage their Klaytn nodes, ensuring stable and secure connections for seamless gameplay experiences.
API Integration
Liquify provides robust APIs that facilitate interaction with blockchain networks. These APIs are crucial for developers needing reliable data access and integration capabilities.
Example
A financial dApp developer can use Liquify’s APIs to fetch real-time transaction data from multiple blockchain networks, enabling efficient and accurate financial services within their application.
Secure Data Storage
Liquify offers secure and scalable storage solutions, essential for handling the vast amounts of data generated by blockchain applications.
Example
A supply chain management system built on blockchain can utilise Liquify’s storage solutions to securely store and retrieve transaction and product data, ensuring transparency and traceability.
Scalability Solutions
Liquify’s infrastructure is designed to scale with the needs of growing applications, providing the necessary resources to handle increased traffic and data loads.
Example
A popular decentralised finance (DeFi) platform can scale its operations effortlessly using Liquify’s infrastructure, maintaining performance and reliability even during peak usage.
Comprehensive Support
Liquify offers round-the-clock support, ensuring developers have the assistance they need to resolve issues quickly and keep their projects running smoothly.
Example
An e-commerce dApp experiencing high transaction volumes can rely on Liquify’s support team to promptly address performance issues and ensure a seamless user experience.
Liquify Gateway
Liquify Gateway is your pivotal RPC access point to the POKT Network, boasting extensive multi-chain capabilities. Leveraging Liquify Gateway guarantees robust and decentralised connectivity across various blockchains powered by our globally distributed bare metal servers.
How to Choose the Right Blockchain Infrastructure Provider
Blockchain infrastructure providers such as Liquify offer a range of services that can help companies harness the power of blockchain technology without the need for extensive in-house expertise or resources. But with so many options available, how do you choose the right one?
In this section, we’ll explore the key factors to consider when selecting a blockchain infrastructure provider. First, let’s explore why you need one at all.
Why You Need a Blockchain Infrastructure Provider
You might be tempted to venture into the blockchain alone, but here’s why you shouldn’t. According to Statista, there are over 10,000 cryptocurrencies across multiple blockchains, each with its protocols, network of nodes, layers, and token standards.
The top three cryptocurrency networks alone handle about 1.5 million transactions daily. This immense data load requires constant updates and extensive disk space, which can be challenging for small to medium-sized organisations and startups to manage.
The Complexity of Blockchain
Blockchain is still a nascent technology, evolving rapidly with new features and integrations. Keeping up with these developments can be overwhelming. Additionally, the open-source nature of blockchain, while beneficial, also attracts hackers looking to exploit vulnerabilities. Implementing the necessary security measures can be costly and resource-intensive for small and medium-sized businesses.
The Outsourcing Solution
Just as companies once outsourced email and SMS services, the same principle applies to blockchain. By trusting a specialised third-party provider, you can focus on your core product while leveraging their expertise and technology.
What Does a Blockchain Infrastructure Provider Do?
Blockchain infrastructure providers like Liquify enable businesses to access blockchain technology and data to develop, launch, and maintain their applications without worrying about backend operations or infrastructure.
Key Responsibilities
Setting Up and Managing Infrastructure: Providers like Liquify set up and maintain nodes and other hardware components.
Ensuring Security: They implement robust security measures to protect against cyber threats.
Keeping Systems Up to Date: Providers ensure the infrastructure remains agile, operational, and secure.
Benefits of Using a Blockchain IaaS Provider
Improved Productivity: By removing complex tasks from your workflow, your developers can focus on creating the best user experiences.
Cost-Effectiveness: The pay-as-you-go model allows you to scale resources up or down as needed, optimising budget use.
Faster Development: Ready-to-use resources enhance efficiency, speed development, and go-to-market times.
How to Choose a Blockchain Infrastructure Provider
Numerous providers are available, some offering different quality or scope of services. At Liquify, our mission is to drive true decentralisation within the Web3 space by minimising reliance on cloud infrastructure.
Liquify CEO, Andy Pohl, aptly states, “We truly believe that the Web3 industry can only reach decentralisation by limiting cloud infrastructure reliance and adding certified bare-metal providers with global coverage to secure networks.”
This philosophy underscores our commitment to decentralised, cost-efficient services that enhance network security and reliability. By leveraging certified bare-metal providers, we aim to ensure robust, globally distributed infrastructure that aligns with the core principles of decentralisation.
Here are six key considerations to help you make an informed choice:
1. Robust Security
Security should be your top concern. Handing over data management control and resource utilisation necessitates thoroughly reviewing a provider’s security measures. Look for ISO 27001:2013 and SOC 2 certifications, which indicate rigorous independent audits and robust security controls.
2. Ease of Integration
Consider how easily the provider’s services can be incorporated into your existing workflows. Look for comprehensive SDK libraries and a single integration point to streamline the process.
3. Reliability
Your applications need uninterrupted access to multiple blockchains. To minimise service disruptions, ensure the provider guarantees high uptime and performance.
4. Support
A provider should offer extensive resources and technical documents, including “how to” guides. Opt for providers with 24/7 support to ensure assistance is available whenever needed.
5. Scalability
Your business needs will change over time. Choose a provider that allows you to scale services up or down without affecting performance, ideally without locking you into a fixed contract.
6. Cost
While pricing is crucial, don’t just go for the cheapest option. Consider the value and quality of services offered. Ensure the provider can meet your current and future needs as the blockchain ecosystem evolves.
Summary
The rapid evolution of blockchain infrastructure has significantly propelled Web3 towards mainstream adoption, driven by the expanding global blockchain market and the increasing demand for scalable solutions.
Blockchain Infrastructure as a Service (BaaS) is essential in this ecosystem, enabling businesses and developers to leverage blockchain technology efficiently. BaaS simplifies blockchain development by providing pre-built infrastructure, eliminating the need for complex backend development, and accelerating the deployment of decentralised applications (dApps).
When selecting a blockchain infrastructure provider, consider factors such as security, ease of integration, reliability, support, scalability, and cost. Providers like Liquify, with its commitment to minimising cloud infrastructure reliance and leveraging certified bare-metal providers, offer decentralised, cost-efficient services that align with the principles of Web3.
Ultimately, BaaS providers enable businesses to access blockchain technology without extensive in-house expertise, improving productivity, cost-effectiveness, and development speed. Liquify Gateway, for example, offers robust and decentralised RPC access across multiple blockchains, ensuring reliable connectivity powered by globally distributed servers.
Blockchain Infrastructure as a Service (BaaS) FAQ’s
Q1: What is blockchain infrastructure?
Blockchain infrastructure comprises blockchains, decentralised applications (dApps), smart contract platforms, node providers, API providers, and hardware elements. It forms the foundation of all blockchain applications and enables their creation, deployment, and management.
Q2: What are the critical components of blockchain infrastructure?
The critical components include:
• Blockchains: The foundational layer for dApps and other solutions.
• dApps: Decentralised applications that run on blockchain networks.
• Smart Contract Platforms: Platforms like Ethereum create and execute smart contracts.
• Node Providers: Services managing nodes and facilitating communication with blockchain networks.
• API Providers: These services offer APIs for developers to interact with blockchain data.
• Hardware: Physical devices supporting blockchain networks and applications.
Q3: What is Blockchain Infrastructure as a Service (BaaS)?
BaaS refers to managed platforms or tools that enable users to build on existing blockchain networks. BaaS simplifies blockchain development by providing pre-built infrastructure, allowing businesses to launch blockchain applications with minimal effort.
Q4: How does BaaS work?
BaaS offers pre-built infrastructure, enhancing agility and accelerating blockchain adoption. It allows developers to build and deploy dApps without developing the backend infrastructure from scratch.
Q5: What are the key technologies and tools in blockchain infrastructure?
Key technologies and tools include:
• Node Providers: Managing nodes for communication with blockchain networks.
• Web3 API Providers: Offering APIs for stable coding environments and backend infrastructure.
• Smart Contract Development Tools: Programming languages, development environments, and IDEs.
• Web3 Wallets: Managing cryptocurrencies and facilitating Web3 authentication.
• Blockchain Explorers: Exploring on-chain data and interacting with smart contracts.
Q6: How does Liquify enhance blockchain infrastructure?
Liquify offers a suite of services, including:
• Node Management: Handling setup, configuration, maintenance, and scaling.
• API Integration: Providing robust APIs for interaction with blockchain networks.
• Secure Data Storage: Offering secure and scalable storage solutions.
• Scalability Solutions: Ensuring infrastructure scales with growing applications.
• Comprehensive Support: Providing round-the-clock support for developers.
Q7: What benefits does Liquify provide for businesses?
Liquify reduces time-to-market and engineering costs, offers reliable tools and resources, and ensures seamless integration and scalability for blockchain applications.
Q8: What is the Liquify Gateway?
A9: The Liquify Gateway is an RPC access point to the POKT Network with multi-chain capabilities. It provides robust and decentralised connectivity across various blockchains powered by globally distributed bare metal servers.
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