DePINs Ignite Innovation as Blockchain as a Service Market Booms

Blockchain technology is rapidly reshaping industries, with the Blockchain as a Service (BaaS) market on track for exponential growth and decentralized infrastructure networks (DePINs) demanding specialized solutions. As the sector matures, calls for transparent performance metrics intensify, challenging inflated claims and pushing for greater accountability. This press review explores the explosive expansion of BaaS, the rise of industry-specific blockchains, and the urgent need for honest benchmarking in the blockchain ecosystem.

Blockchain as a Service Market Set for Explosive Growth

According to a recent report by Verified Market Research®, the global Blockchain as a Service (BaaS) market is projected to experience remarkable growth, with its value expected to surge from USD 47.93 billion in 2024 to USD 347.25 billion by 2031. This represents a compound annual growth rate (CAGR) of 71.20% over the forecast period. The report, highlighted by PR Newswire, emphasizes that this growth is being driven by increasing adoption in sectors such as banking, financial services, insurance (BFSI), healthcare, and supply chain management.

The BaaS market is evolving rapidly as enterprises seek improved traceability, security, and data integrity. North America is identified as the dominant region, benefiting from mature digital infrastructure and regulatory support. Major players in the market include IBM Corporation, Microsoft Corporation, SAP SE, Amazon Web Services, Oracle Corporation, and Accenture PLC, among others.

Year	Market Value (USD Billion)	CAGR
2024	47.93	71.20%
2031	347.25	71.20%

Key Market Drivers: Surge in demand for secure digital transactions, increased adoption in supply chain and logistics, and the growth of smart contracts and decentralized applications (dApps).
Challenges: Regulatory uncertainty, high implementation and integration costs, and a limited pool of blockchain expertise.
Geographical Focus: North America leads, with significant activity in the U.S., Canada, and Mexico.

The report also notes that BaaS is being leveraged for real-time asset monitoring, provenance verification, and immutable record-keeping, which are essential for modern supply chains. However, businesses face challenges such as compliance with regulations like GDPR and HIPAA, as well as the high costs associated with customization and integration.

"Organizations are transitioning to decentralized architectures to safeguard sensitive data and preserve transaction integrity. Blockchain as a Service (BaaS) provides strong cryptographic security and audit capabilities, minimizing fraud and illegal access." (PR Newswire)

Infobox: The BaaS market is forecasted to reach USD 347.25 billion by 2031, growing at a CAGR of 71.20%. Key sectors include BFSI, healthcare, and supply chain, with North America as the leading region. (Source: PR Newswire)

Why DePINs Require Industry-Specific Layer-1 Blockchains

Blockworks reports that Decentralized Physical Infrastructure Networks (DePINs) are transforming how physical infrastructure is owned and operated, shifting control from centralized corporations to communities. DePINs use blockchain technology to coordinate machines, verify activity, and distribute rewards among participants. However, general-purpose blockchains like Ethereum, Solana, or Polygon often fall short in meeting the unique requirements of DePINs, particularly in areas such as device identity, real-time coordination, and data validation.

The article highlights peaq, a Layer-1 blockchain designed specifically for DePINs. Peaq offers native features such as peaq ID for machine identity, Universal Machine Time for precise synchronization, and peaq verify for data integrity. These features enable DePINs to coordinate machines, verify real-world actions, and maintain trustless integrity without centralized intermediaries.

Challenges with General-Purpose Blockchains:
- Lack of standardization for device identity and access control
- Latency and scalability issues for real-time machine operations
- Poor integration with physical devices and data
- Limited customization for physical asset management
peaq’s Unique Features:
- Self-sovereign machine identities (peaq ID)
- On-chain Precision Time Protocol (Universal Machine Time)
- Three-tiered data verification (peaq verify)
- Interoperability with other Web3 ecosystems
- Machine composability for multi-purpose device participation

Real-world applications on peaq include SkyX, which decentralizes global weather data collection, and Farmsent, a Web3 marketplace connecting over 160,000 farmers in Indonesia and Colombia directly with retailers. These projects leverage peaq’s infrastructure for transparent rewards, logistics, and data traceability.

"On peaq, a new DePIN joins dozens of other similar-minded projects, which unlocks a wide array of synergies, such as the recent partnership between SkyX and Quakecore, which gives both projects more valuable data to work with." (Blockworks)

Infobox: DePINs require dedicated Layer-1 blockchains like peaq for real-world machine coordination, data validation, and decentralized ownership. Projects such as SkyX and Farmsent demonstrate tangible business value in sectors like weather data and agriculture. (Source: Blockworks)

Call for Transparent Blockchain Performance Metrics

BeInCrypto reports that Steven Pu, Co-Founder of Taraxa, is advocating for a new metric to assess blockchain performance more transparently. Pu criticizes the widespread use of transactions per second (TPS) as a misleading metric, noting that many projects inflate their performance claims using theoretical or private testing environments rather than real-world data. He proposes a new metric, TPS/$, which measures the number of transactions processed on a live mainnet per dollar of monthly validator node cost.

Pu’s analysis of 22 permissionless and single-shard networks revealed a significant discrepancy: on average, the theoretical TPS was 20 times higher than the maximum observed mainnet TPS. He argues that inflated metrics often result from expensive hardware requirements and centralized consensus mechanisms, which undermine decentralization and accessibility.

Problems with Current Metrics:
- TPS figures often based on unrealistic assumptions
- Overemphasis on single metrics ignores trade-offs in decentralization and security
- Expensive hardware requirements limit participation and centralize control
Proposed Solution:
- TPS/$: Realized mainnet TPS divided by monthly validator node cost
- Focus on permissionless, single-shard networks for fair comparison
- Advocacy for standardized, transparent benchmarks and attack vectors

"Metric overestimations (such as in the case of TPS) are a response to the highly speculative and narrative-driven crypto market. Everyone wants to position their project and technologies in the best possible light, so they come up with theoretical estimates, or conduct tests with wildly unrealistic assumptions, to arrive at inflated metrics. It’s dishonest advertising. Nothing more, nothing less." (BeInCrypto)

Pu emphasizes the importance of decentralization, warning that permissioned networks controlled by a single entity are at odds with the core philosophy of blockchain. He calls for the industry to develop standardized attack vectors and benchmarks to reveal architectural trade-offs and improve transparency.

Infobox: Steven Pu of Taraxa proposes TPS/$ as a new, transparent metric for blockchain performance, highlighting a 20-fold gap between theoretical and real-world TPS in current networks. He urges the industry to adopt standardized benchmarks and prioritize decentralization. (Source: BeInCrypto)

Einschätzung der Redaktion

The projected exponential growth of the Blockchain as a Service (BaaS) market signals a fundamental shift in how enterprises approach digital infrastructure and data integrity. The anticipated surge to USD 347.25 billion by 2031, with a CAGR of 71.20%, underscores the increasing institutional trust in blockchain solutions for mission-critical applications. This trend is likely to accelerate innovation in sectors such as finance, healthcare, and supply chain, where traceability and security are paramount. However, the rapid expansion also magnifies existing challenges, particularly regarding regulatory compliance and the scarcity of specialized blockchain expertise. The dominance of established technology providers suggests that market entry barriers remain high, potentially limiting the diversity of solutions and slowing the democratization of blockchain technology. Overall, the BaaS market’s trajectory highlights both the transformative potential and the complexity of integrating blockchain at scale.

Infobox: The BaaS market’s explosive growth will drive digital transformation across key industries, but regulatory and talent challenges could shape the pace and inclusivity of adoption.

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