A Breakdown on How AWS Managed Blockchain Can be the Best BaaS Choice for Your Business

If your recent Google search history shows ‘AWS managed blockchain,’ this blog is for you. For businesses, blockchain continues to be a go-to solution for improved security, better data transparency, and streamlined processes. However, when it comes to translating those benefits to a fully functional application through deployment, things take a complicated turn.

Deploying a blockchain application on the web or even mobile comes laced with multiple complications ranging from high costs, continued maintenance, and expensive, technically-intensive scaling. To solve these challenges, the blockchain sector expanded itself to a phenomenon called BaaS – Blockchain as a Service.

Like other offerings of the everything-as-a-service sector, BaaS provides an external service platform for businesses to set up the necessary blockchain infrastructure and technology in exchange for a fee. Once set up, the provider takes charge of handling complex back-end operations for the client.

Typically, the BaaS operator provides support activities, like bandwidth management, allocation of resources, hosting needs, and data security. This frees businesses to focus on the primary job: strengthening the blockchain functionality.

Now, when we talk about BaaS platforms, AWS-managed blockchain usually tops the list, and as we delve into the article further, you will know how it’s for the right reasons.

What is AWS Managed Blockchain (AMB)?

Amazon blockchain, or AWS managed blockchain, is an end-to-end managed service offered by Amazon Web Services. The platform enables developers to create and deploy scalable blockchain networks – on Hyperledger Fabric and Ethereum – easily and quickly while eliminating the need for manual configuration, setup, and even the management of blockchain infrastructure.

In order to truly understand what AMB is, it is important to know the Amazon-managed components it is built upon.

1. Ordering Service

The default ordering service that Hyperledger Fabric uses is Apache Kafka. While it meets the requirements of a messaging platform that delivers transactions sequentially, it is not optimized for storing a complete transaction data history. Amazon-managed blockchain comes with its own ordering service known as QLDB technology which comes with an immutable change log and manages the entire record of the uncommitted transactions in the network.

2. Fabric CA and AWS Key Management Service (AWS KMS)

Hyperledger Fabric CA is a Certificate Authority (CA) used by Hyperledger Fabric.

Based on the AWS key management service, it comes loaded with features like:

• Registration of identities
• Issuance of Enrollment Certificates (ECerts)
• Revocation or renewal of certificates.

AWS Key Management Service enables developers to create, manage, and even control cryptographic keys all across their AWS services and applications.

3. Analytics

In order to divert the pressure from blockchain resources, AMB has planned on allowing network activity data from the Managed Blockchain network to get sent to the QLDB, which the developers own. Through the platform, a deep-level analysis can be performed through QLDB and other specialized analytics tools.

Now that we have looked into the basics of Amazon-managed blockchain in a way that explains its core elements, let us get down to the core benefits of AWS-managed blockchain by dissecting their feature sets.

The Benefits of AWS Managed Blockchain

The reasons why businesses choose AWS managed blockchain is partially because of the fact that the platform is being used by a range of companies across enterprise and consumer ends, such as AT&T, Depository Trust & Clearing Corporation, Guardian, Nestle, etc., and partially because of the useful AWS managed components.

Mentioned below are some remarkable benefits of AWS Managed Blockchain:

Fully Managed

• Few-clicks network setup – Starting with Amazon Managed Blockchain is extremely easy for any business – one can launch a blockchain network within minutes without the need of any additional configuration. Following this, you can easily configure the network membership and launch blockchain peer nodes through the AWS Management Console.
• New members addition – Amazon blockchain comes with a voting API that enables a blockchain network’s members to quickly vote on proposals around removing or adding new members.
• Public network joining –  You can select the public network you wish to join and provision a peer node with AWS Management Console. Blockchain on AWS offers secure networking, fast and reliable linking with the blockchain network, elastic storage for the ledger data, complete data encryption at rest and transport, and safe access to open-source APIs.

Choice of Frameworks

• Ethereum  – AWS Managed Blockchain supports Ethereum, providing a decentralized platform for smart contracts and decentralized applications (DApps). With scalable and secure infrastructure, it ensures efficient deployment and management of Ethereum-based networks.
• Hyperledger Fabric – For enterprise-level applications, AWS Managed Blockchain offers support for Hyperledger Fabric, delivering a permissioned blockchain network. This choice empowers businesses with a flexible and modular framework, ideal for building tailored, scalable solutions with enhanced privacy and control.

Scalability and Security

• Easy scalability – If you have to scale up a blockchain application, implementing AWS-managed blockchain can help add peer nodes for processing transactions at a much faster rate. AWS blockchain architecture offers APIs that enable the quick creation of new nodes that meet the fluctuating demands of the application.
• Safe interactions with VPC endpoints – You can also securely interact with the Hyperledger Fabric components managed by Amazon Managed Blockchain via Amazon VPC (Virtual Private Cloud) endpoints. Moreover, one can securely interact with the blockchain peer nodes from other network members through the endpoint for endorsing transactions.

Reliability

• Amazon QLDB technology comes with an immutable change log and maintains the entire history of the uncommitted transactions of the blockchain network.

What Are the Uses of Amazon-Managed Blockchain?

Across industries, blockchain enthusiast startups and established businesses use AWS-managed components to find applications specific to their sector. Let us look into the industries that are enjoying the benefits of Amazon-managed blockchain.

Supply Chain Management

AWS-managed blockchain implementation can lead to a decentralized supply chain management system. One that would offer transparency and end-to-end visibility across the supply chain while enabling secure goods tracking, verification of items’ authenticity, and an efficient inventory management process. It offers complete trust and lowers the chances of counterfeit or fraudulent products.

Related Article: How is Blockchain Disrupting Supply Chain Management

Financial Services

The financial industry can also benefit greatly by implementing AWS-managed blockchain. The platform can help them create decentralized applications that promise safe, effective transaction settlement, authenticated trade finance, and identity management. All of this helps streamline processes, lower costs, and enhance trust and transparency in financial transactions.

Also Read: Blockchain in Fintech: A Catalyst for Disruption in Finance World

Healthcare

AWS-managed blockchain implementation can be applied in healthcare to maintain immutable and secure patient data records. The process is valuable in powering data privacy and integrity while enabling interoperability between multiple healthcare providers. The service can also improve data sharing efficiency and enhance patient care coordination, ultimately leading to improved healthcare outcomes.

You may like to know: Will Blockchain Revolutionize Healthcare? The Truth or A Hype

Voting Systems

By using the AWS service offerings, voting architectures can be built to provide transparent and change-resistant vote records. The functionality elevates the integrity and security of the voting process, prevents fraud, and ensures trust in a democratic system. It also simplifies the process where voter eligibility is verified, and accurate voter records are maintained.

Digital Identity Management

Implementing AWS-managed blockchain can secure and decentralize Digital Identity Management systems. This software would provide a reliable platform for individuals to control and take care of their digital identities, lowering the probability of identity theft and unauthorized access. This functionality ensures that the identities’ security and privacy remain intact through blockchain-focused immutability and integrity.

Supply Chain Traceability

With Blockchain in AWS, businesses can establish end-to-end traceability in complex supply chains. This enables tracking and verification of product origins, certifications, and compliance with regulatory standards. The service enhances transparency, reduces counterfeiting risks, and builds consumer trust.

Intellectual Property (IP) Protection

Blockchain in AWS can be utilized to protect Intellectual Property (IP) rights. It enables the creation of a decentralized registry for patents, copyrights, and trademarks, ensuring immutability and provenance of ownership. The service facilitates the secure sharing of Intellectual Property information and simplifies the process of ownership verification.

Energy Trading and Grid Management

When you build a blockchain on AWS, it can enable the onset of decentralized energy trading platforms. One that allows the participants to safely trade energy, measure the generation and consumption of renewable energy, and power transparency in energy transactions. The functionality can also power Grid Management through an optimization of energy distribution and enhanced energy efficiency.

Gaming

AWS-managed blockchain implementation also comes in handy for gaming companies that can use the platform to build a decentralized network for gaming products where the players can safely trade in-game assets and currencies. Moreover, the game can also be built to add other functionalities like secure in-game messaging, a smart contract enabling guaranteed transfer of monetary or assets transfer, etc.

The different uses of Amazon-managed blockchain mentioned here are in a high growth mode and constantly expanding into more industries. However, a successful AWS blockchain service offering is highly dependent on how well it is implemented.

What is the Process for AWS-Managed Blockchain Implementation?

While Amazon has launched an extremely detailed guide, presentation, and video pointing out how to use Amazon-managed blockchain by connecting multiple platforms like AWS, GitHub, Amazon QLDB technology, etc., here is a quick high-level walkthrough of what to expect.

a) Sign up for AWS: If you don’t have an account on AWS, sign up on the AWS website. You will need a valid payment mechanism and email address to create the account.

b) Access the AWS Management Console: Once you have the AWS account, open the AWS Management Console. This console is the central platform for managing all AWS services and resources.

c) Navigate: In the AWS Management Console, look for the AWS Blockchain service section. You can either search for “AWS Blockchain” in the search bar or find it under the “Blockchain” category on the page.

d) Create a blockchain network: Click “Create network” to start building the blockchain network. Follow the prompts on the interface and configure the network settings, like the name, type, and membership category.

e) Deploy smart contracts: After building the network, you can deploy your smart or intelligent contracts. These elements are self-executing contracts with the terms directly written in the code.

f) Monitor and secure the network: It is critical to ensure that AWS blockchain architecture is performing and safe – something that can be achieved when you use the monitoring and security features provided by the platform. Implementing AWS-managed blockchain also sets up alerts and notifications that inform businesses about potential security threats and network activities.

g) Integrate with other AWS services: Blockchain in AWS can be seamlessly integrated with other AWS services, leading to the development of applications that come with next-gen capabilities. Businesses can also use services like AWS Identity, Amazon EC2, Access Management (IAM), and AWS CloudFormation to optimize their application’s functionality.

Leverage AWS Blockchain with Appinventiv

As we navigate through the benefits and features of AWS Managed Blockchain, it becomes clear why it stands out as the first choice for businesses venturing into Blockchain as a Service (BaaS). Its seamless integration with popular frameworks like Ethereum and Hyperledger Fabric, coupled with robust security measures and simplified management, positions it as a reliable and scalable solution.

However, the journey to leverage the full potential of AWS Managed Blockchain starts with partnering with a reliable development partner like Appinventiv.

We, as a leading blockchain software development company, have proven expertise working with Amazon blockchain, assisting businesses on this transformative path.

Together with AWS Managed Blockchain and Appinventiv as your app development partner, businesses can unlock a future where blockchain will take them to new heights of efficiency, security, and success.

Get in touch with our team today to get on the path of quick, effective AWS-managed blockchain implementation.

FAQs

Q. How to use Amazon-managed blockchain?

A. Using Amazon-managed blockchain is a streamlined process designed for ease and efficiency. To get started, users can follow the below steps:

• Sign up for AWS
• Access the AWS management console
• Navigate
• Create a blockchain network
• Deploy smart contracts
• Monitor and secure the network
• Integrate with other AWS services

Q. What are the benefits of using blockchain solutions using Amazon Managed Blockchain?

A. Blockchain solutions using Amazon-managed blockchain offer many benefits, including enhanced security through decentralized and tamper-resistant ledgers, increased efficiency in data management and transactions, improved transparency, and streamlined collaboration among network participants. It is a robust choice for businesses seeking scalable, secure, and innovative blockchain solutions.

Q. How does AWS-managed blockchain ensure data integrity and security in blockchain applications?

A. AWS-managed blockchain ensures data integrity and security by leveraging the decentralized and tamper-resistant nature of blockchain. Through features like consensus mechanisms and cryptographic techniques, it protects the immutability of transaction records, providing a secure foundation for building transparent and secure blockchain applications.

THE AUTHOR

chirag

Blockchain Evangelist