In the bustling landscape of Singapore at the Token2049 event, a conversation between two pioneers elucidated the future of decentralized databases in the Web3 ecosystem. Ronak Shah, founder of DroomDroom, engaged in an insightful conversation with Siddharth Banerjee, founder and CEO of Kandola Network.
Kandola Network isn’t just another name in the blockchain universe; it seeks to redefine how we perceive data storage in the Web3 space.
Siddharth passionately elucidates, “In essence, we are to databases what IPFS is to file storage.” Drawing parallels with decentralized storage systems like MySQL, MongoDB, and Redis, Banerjee emphasizes Kandola’s commitment to addressing the challenge of data storage in Web3.
The Web3 Dilemma
With the rise of Web3, a decentralized internet vision, both obstacles and opportunities surface. As Banerjee explores the context of Web3, he pinpoints the essence of the decentralized internet – trust.
He elaborates, “While we’ve effectively addressed decentralized computation, the question of handling data generated during application operation remains unanswered.”
This is particularly notable when one considers the cost implications of storing data on-chain, with just one MB of data storage on Ethereum costing a staggering $17,000.
In the same vein, Banerjee raises a vital question for every decentralized application or dApp, “Where should I store this data? On-chain or off-chain?” With on-chain storage being so costly and off-chain storage threatening decentralization, the birth of decentralized database services, like Kandola, becomes inevitable.
Aligning with Web3 Ethos
Web3 revolves around decentralization, transparency, and user empowerment. But what happens when its inherent public ledger system poses privacy concerns for businesses?
As Banerjee rightly points out, “Using a blockchain doesn’t mean a company should reveal its transaction volume to competitors or the public.”
Enter Kandola’s innovation, SuperNAS—an application-specific blockchain, ensuring data privacy and security by isolating each application’s data.
Web3 and web3.0
Same or different?? @KandolaNetwork decrypts this basic level info in conversation with @AjeetK @InnerCircleWins and guest @sid_kandola @ragulgul at the now famous #24hrWEB3⭕️ pic.twitter.com/b4l93gKRxD
— Reflexical (@reflexical) June 16, 2023Striking the Scalability Balance
Scalability remains a dominant concern, especially with the Web3 industry’s market cap trailing behind the gargantuan volumes seen in Web2 and traditional finance. Kandola seeks to address scalability by promoting off-chain data storage while ensuring data integrity and authenticity.
On Security and Scalability
The often-touted “trilemma” of Web3 comprises security, scalability, and decentralization. Banerjee highlights Kandola’s unique approach to this: “Our focus for databases is ensuring the correct message order.
This creates what we call the ‘commit logs’.” This method of categorizing every transaction into one of the CRUD (create, read, update, or delete) operations and sequencing them correctly ensures heightened security.
IoT and Web3
The rise of the Internet of Things (IoT) makes security a pertinent concern. Banerjee believes in the promise of Web3 to ensure safety for IoT devices.
The approach? A chip-to-cloud solution where data is encrypted at its source.
A Glimpse into the Future
Shah delves into real-time data exchange, a vital component for numerous industries. Banerjee emphasizes a blend of real-time messaging and notifications, stating, “Real-time access to stored data, performing chain queries, and analyzing user data are crucial.”
Educating the Future
Kandola’s battle isn’t just with decentralized competitors; it’s also with centralized giants like AWS. Through cost savings, comprehensive support, and technical assistance, Kandola plans to attract developers to the decentralized fold.
Sid of @KandolaNetwork has brought unique solutions for data storage in Web3.. a pitch that has piqued the interest of all panelists in Asia Web3Go just a day before #TOKEN2049 where investors, startups and general Web3 enthusiasts have gathered to hear! pic.twitter.com/NbiBEwzGt0
— Token Spoken (@0xTokenSpoken) September 12, 2023On the Horizon: Kandola’s Beta Launch
Kandola’s public beta, set to launch in December 2023, aims to test the network’s capabilities and invite participants to shape its evolution.
As the conversation concluded, it was evident that the path to decentralization, although filled with challenges, holds immense promise.
Banerjee’s passion for Kandola’s vision and mission underscores the commitment innovators in the space have towards a decentralized future.
Kandola’s decentralized data exchange vision that was pitched during the recent Token2049 event was backed by several of the most influential figures in the web3 space.
Read this article for an in-depth understanding of Kandola Network and their presence at Token2049.
Ronak Shah’s probing questions provided a canvas for Banerjee to paint a vivid picture of what the future of Web3 might look like—a blend of innovation, trust, and security.
Interview Summary
Banerjee opened by providing a crisp analogy: “Kandola is to databases what IPFS is to file storage.” For the uninitiated, IPFS (InterPlanetary File System) is a decentralized system for storing and retrieving files.
Similarly, Kandola Network aims to solve a core problem in the Web3 space – the conundrum of data storage. While on-chain storage offers security, its high costs and slow speed pose significant drawbacks.
Kandola’s solution lies in creating a web3 data layer that combines the safety of a blockchain with the efficiency and adaptability of a database.
Delving into the nuances of decentralized computing, Banerjee highlighted the challenges applications face when it comes to storing “app-generated data.
With on-chain storage costs reaching up to $17,000 for a mere MB on platforms like Ethereum, the trade-off between security and efficiency is evident.
Kandola steps in here, offering decentralized database services, from document-based ones like MongoDB to SQL-based like MySQL, to ensure that the spirit and advantages of Web3 are retained while slashing costs by 80%.
But what about the broader implications of decentralization? For Banerjee, the emphasis is on privacy and security, two core tenets of Web3.
He astutely notes the challenges of utilizing a public ledger system for every use case. Imagine a company processing its payroll on such a system.
The salaries would be visible to all, which is not only unfeasible but also a breach of privacy. To counteract this, Kandola Network has developed the concept of SuperNAS – essentially providing each application with its own dedicated blockchain. This ensures that data remains both private and secure.
The conversation naturally drifted toward scalability. As the Web3 ecosystem is dwarfed by the vast market cap of traditional Web2 systems, one cannot ignore the massive potential for growth.
Banerjee articulated the importance of off-chain data storage in absorbing this potential influx without overloading current ecosystems.
Economics and viability took center stage as Shah quizzed Banerjee on the costs associated with on-chain data storage.
For Kandola, the key is in pricing predictability, ensuring businesses can forecast expenses. By setting their pricing in stablecoins, Kandola offers consistency, irrespective of token value fluctuations.
However, the crown jewel of the interview was Banerjee’s detailed exploration of Kandola’s innovative approach to the Web3 “trilemma” – the complex balance between decentralization, security, and scalability. Through a mix of parallel chains, subnets, and sharding, Kandola claims to offer near-infinite scalability, even on ordinary hardware.
On the topic of the Internet of Things (IoT), Banerjee emphasized the criticality of data security at the device level, echoing the ethos of decentralization. As modern encryption algorithms can function even on low-powered devices, ensuring data security from the point of origin is increasingly feasible.
And what of real-time data exchange? “We can’t compromise user experience for the sake of security,” Banerjee proclaimed.
The future, as envisioned by Kandola, lies in a blend of real-time messaging, notifications, and event systems that work harmoniously across multiple chains.
With centralized giants like AWS looming large, Shah wondered about Kandola’s strategy to attract developers.
Banerjee’s response showcased both business acumen and technical foresight. By offering cost-effective services coupled with comprehensive documentation and support, Kandola aims to make the transition to decentralized systems seamless for developers.
Closing on an exciting note, Banerjee spoke of Kandola’s upcoming closed beta, expressing confidence that it would “revolutionize how data is utilized in Web3.”
The future of Web3 is expansive, promising a harmonious blend of trust, security, and efficiency. As visionaries like Siddharth Banerjee pave the way with groundbreaking innovations like Kandola Network, the potential for a truly decentralized and empowering internet ecosystem has never been clearer.
For those interested in delving deeper into this riveting conversation, don’t miss out on the full experience. Check out the complete video of the interview:
