Facilitating Blockchain Development: Workbenches and Cloud Services

A number of interesting blockchain announcements have surfaced recently and they are priming the market for blockchain application development. The first is the release by Microsoft of its Azure Blockchain Workbench, which is targeted at developers to help them build blockchain applications on Azure. The second is Amazon’s introduction of managed and certified Amazon Web Services (AWS) CloudFormation Blockchain Templates for developers to deploy applications on Ethereum and Hyperledger Fabric. Both frameworks are looking to enable developers to focus on creating applications by automating some of the network and infrastructure setup. The underlying idea is to get them to develop applications faster and therefore shorten time to market (and preferably on their cloud service). The race is on to become the cloud platform of choice for blockchain applications beyond cryptocurrencies.

The emergence of Blockchain-as-a-Service (BaaS) has been dynamic in the last 12 months. IBM was the first tech behemoth to launch its blockchain service early last year. IBM is leveraging Hyperledger and looking to integrate blockchain with its Watson Internet of Things (IoT) platform. It has been running two high-profile pilots with Maersk (shipping container tracking) and Walmart (food safety and traceability).

Since, Microsoft, Amazon, SAP, Oracle, HPE, Baidu, Tencent, and Alibaba have followed suite with their own BaaS offerings. Microsoft, for example, is enabling application development in financial services and supply chain management. Similarly, SAP is using its Leonardo platforms to bring together machine learning, IoT, big data, cloud, and blockchain all in one. Oracle has a Blockchain cloud platform beta program in place and will be focusing on the retail supply chain, discrete manufacturing, and logistics. HPE, on the other hand, is focusing almost exclusively on financial services, which should be going live this year.

The Chinese trio is focusing on applications and has the infrastructure to support them, but they are varied and less cohesive in their strategy than their western counterparts. In large part, they are focusing on Chinese markets (where cryptocurrency is out), and what will work locally, rather than vying for global applicability. Tencent’s TrustSQL and Baidu’s Trust platform are both BaaS targeted at financial services. On a slightly different path, Alibaba runs the Ant Blockchain platform and focuses on logistics and tracking applications.

Salesforce and Google are also on the cusp of announcing new blockchain projects this year, although they have not disclosed any details regarding application focus. With the infrastructure in place, most of the efforts now are around streamlining application development on their platforms.

Oracle and IBM have both announced their intent to push out tools and software to aid developers. Beyond the tech industry, companies like Deloitte (with its Rubix Core) are also offering blockchain architecture and Graphical User Interfaces (GUIs) for faster smart contract development. Facebook is the latest to announce the creation of an exploratory blockchain group, the head of which, David Marcus, is on the board of Coinbase. While the company has not provided any details regarding what it plans to look at, it is likely that it will offer consumer-based services leveraging the enormous amount of personal data it has at its disposal.

Regardless of application, it is clear that in order for the market to mature, and for a platform to become the BaaS of choice for aspiring blockchain developers, the ecosystem players need to facilitate access to their infrastructure, streamlining development through the provision of tools that will enable developers to build and support applications quickly and efficiently.  

Blockchain interest is intensifying in markets beyond financial services. The perceived benefits revolve around transparency, immutability, and security, which address a number of issues in industries where visibility and centralization are impeding growth and innovation (i.e., contract manufacturing, supply chain logistics, etc.). Top use cases include data ownership and identity management; monitoring, tracking and asset management; access control; authentication, integrity and confidentiality; and governance.

Supported by a mature cloud market, many companies keen to implement blockchain will look to their current provider to offer them a platform to build the applications they want. Hesitancy around blockchain development is normal due to the nascent nature of the technology, the increased number of Initial Coin Offering (ICO) frauds, and the infamy that has followed cryptocurrencies around since inception. Having an entrenched cloud or tech provider building not just the infrastructure to support blockchain applications but also development tools to more easily create them, provides both legitimacy and trust in the underlying technology.

BaaS providers already believe in the potential that blockchain can unlock, and the pressure now is to provide minimal risk and hassle for those wanting to build applications. Massive infrastructure investments by providers and endorsement through Proof of Concepts (PoCs) by multinationals, such as Maersk, Nestle, Unilever and Walmart with IBM, Microsoft with 3M, and Amazon with T-Mobile, help to drive confidence that the technology is not just a fluke or passing hype. Furthermore, those BaaS providers are working hard on growing a suitable partner ecosystem. Microsoft has enlisted Ernst & Young, Accenture, and ConsenSys, and Amazon PWC to help potential customers build out their applications. The big accounting firms are pushing hard to market their advisory and consulting services. They sit in between the BaaS providers and potential clients, helping them navigate the technological, legal, and policy waters of blockchain deployment. The market is gearing up to provide all the pieces for pundits to smoothly engage with blockchain development, and the availability of a comprehensive blockchain platform and service offering will be the key to unlocking adoption.