In India, the adoption of blockchain technology is steadily growing across various sectors, including finance, supply chain management, healthcare, and government services. As the Indian blockchain ecosystem continues to evolve, Blockchain as a Service (BaaS) is expected to play a significant role in driving innovation and digital transformation across various sectors.
Qila, founded by Sid Ugrankar and Vishal Malhotra, aims to provide secure identity storage to enterprises using blockchain technology. They believe that their solutions could be a game-changer for enterprises.
In a chat with CEO Ugrankar with Entrackr, he talks about the growth of BaaS in India, the challenges in implementation of the technology and the outlook of the industry. Here are some edited excerpts from the conversation.
- Please simplify what blockchain-as-a-service means. Please help us understand with an example of its application.
A blockchain network is a group of machines that are able to communicate with each other using cryptography while storing the data in the form of a chain or ledger. The information is then distributed on different nodes within this network. It is very complicated to set up and manage a dedicated blockchain network as it takes a lot of effort to ensure that all the data is preserved.
Blockchain as a service is where the platform is set up and managed by 1 single entity and being accessed by multiple users without the users having to set up their own blockchain network. This is similar to Email As A Service like Gmail or Infrastructure as a service like Amazon Web Services or Software as a service like Salesforce.
What are the key services you provide?
Our platform allows enterprises to integrate features of blockchain such as Smart Contracts and NFTs by buying a monthly subscription. The customer can buy a subscription for a shared service which is called Ark. With this subscription, the customer is provided with a dedicated channel but on a shared network setup. We also offer a dedicated network setup called Ark+. Here the customer is able to store their data on a dedicated network setup and is not sharing any resources with any other customer.vData is Smart Contracts, NFT tokens and their associated digital asset.
- Blockchain has been around for a while. Why has the technology not become mainstream yet? What do you think are the challenges in terms of its implementation?
Blockchain came into prominence because of the explosive rise of Crypto and namely Bitcoin. But after the volatility of Crypto and NFTs, enterprises started to shy away from Cryptocurrency and blockchain was an unintended casualty. In addition to this, the recent scam of FTX and the Sam Bankman Fried controversy has worsened the sentiment towards blockchain. Blockchain association with Crypto has been the single most reason for not becoming mainstream.
Blockchain is not an easy technology to set up and manage as well. Especially for the enterprise which is why they have to use a lot of Public networks such as Binance and Ethereum to implement their use cases. Using public networks is expensive as the cost of storing data on them, also known as gas fees, is very high.
Private blockchain services, where a company sets up their own network, requires a lot of planning and is a software development approach where the effort outweighs the benefit.
- What is your outlook for the blockchain industry, especially in markets like India?
My outlook for blockchain in India is not very good. This has a lot to do with the government’s stance on blockchain as a whole and its relationship with crypto currency. After applying a 30% blanket tax on crypto along with making crypto trading illegal, the government has been regressive by introducing regulations for new market opportunities such as real estate fractionalisation. This is the reason that many companies related to this field have moved to crypto friendly countries such as the UAE.
- What are your long-term and short-term plans in terms of business growth and product diversification?
We want to make Qila.io the ubiquitous cloud offering for enterprise blockchain. To put this into perspective, we want to become the AWS for layer 3 blockchain. We are focusing on markets such as Europe middle and Africa and soon will venture into the east markets namely Singapore Thailand and Indonesia.
By offering our out-of-the box tokenization solution PrivaSea, we want to drive blockchain adoption for real world use cases. We believe that blockchain will anchor the data world by providing privacy and provenance of data and will be the funnel for technologies such as AI. User consent will be the key driver for the internet of tomorrow. Qila Blockchain runs on the Qila Private Cloud and not AWS, Azure or GCP. We are busy extending this cloud in other markets as well so that data and information can be localized as per local laws.