Kreatorverse ensuring success of new Internet ventures: Yuvaraj Thanikachalam

Based in Bengaluru, Kreatorverse is an award-winning Web3 Product Studio dedicated to empowering Web3 -- new Internet product owners and entrepreneurs within the Web3 ecosystem. 

Since establishment in September 2014, it has been committed to aiding fintech startups, neobanks, digital banks, private wealth management firms, alternate investment companies, and startups in adopting the right Web3 strategy. 

Kreatorverse emphasizes its commitment to innovation beyond traditional design engineering, thus offering comprehensive support for businesses navigating the complexities of the Web3 ecosystem. 

Yuvaraj Thanikachalam, CEO and founder, Kreatorverse, tells us more. Excerpts from an interview: 

DQ: Elaborate on the need for starting Kreatorverse.  What is the company's mission?

Yuvaraj Thanikachalam: We established the Kreatorverse venture studio brand in early 2020 to assist startup founders in resolving their challenges, while venturing into the $5 trillion Internet economy. The main challenge for these founders lies in finding reliable technology partners with emerging deep-tech capabilities to research, design, and develop their product from inception. 

The success of a startup venture depends heavily on the acceptance of its first product version by its ideal customers. Hence, having the top-notch venture strategists, design, and innovation team is imperative to attain the desired outcomes from seed capital investment.

Today, Kreatorverse is not just ensuring the success of new Internet ventures, but also assisting previous-generation midsize product companies to stay relevant. It is modernizing their product stack using emerging technologies that align with rapidly evolving and changing customer preferences.

The company aims to generate over a million dollars in revenue by the end of fiscal year 2025, while simultaneously creating a value of more than $10 million for its clients. By 2030, the company plans to achieve a revenue target of $10 million by facilitating the launch and scale of 100 new Internet ventures through its digital tools and infrastructure products.

DQ: What innovations are being provided beyond traditional design engineering?

Yuvaraj Thanikachalam: The Kreatorverse innovation framework entails utilizing innovative technologies to create a superior product that delivers exceptional value to users, setting it apart from the competitors. We develop infrastructure, design, and engineering tools to minimize development costs and mitigate the risk of failure.

DQ: Who all in India has a Web3 ecosystem so far?

Yuvaraj Thanikachalam: India has more than 450 Web3 startups, which have received $1.3 billion in investments until April 2022. The Web3 industry has received over $100 billion in investments worldwide. Some of the noteworthy Web3 startups around the globe include BitPay, Brave, Biconomy, Consensys, and Polygon.

DQ: Can you elaborate on the blockchain/DLT design? How is it different from the others?

Yuvaraj Thanikachalam: Distributed ledger technology (DLT) is a decentralized digital system that records and verifies transactions across multiple participants/nodes in a network. It enables secure, transparent, and tamper-resistant record-keeping and serves as the foundation for various applications beyond cryptocurrencies.

DLT operates without a central authority, allowing multiple entities or locations to participate. Participants can access, validate, and update records simultaneously. Once data is added to the ledger, it cannot be altered.

Since data is stored across multiple nodes, it becomes challenging for malicious entities to tamper with information or engage in fraudulent activities. Participants can verify transactions independently. DLT extends beyond cryptocurrencies and finds its utility in various sectors such as supply chain management, voting systems, etc.

Blockchain is a specific type of DLT initially designed as a public ledger for Bitcoin transactions. However, its potential uses have expanded far beyond cryptocurrencies. Blockchains organize data into blocks linked together in a chronological chain. 

Transactions are validated through consensus algorithms (e.g., Proof of Work or Proof of Stake). Blockchain’s decentralized, transparent design prevents alteration or manipulation by any single entity. No central authority controls the system. There are two types of blockchains: public and private. Public blockchains are open to anyone, whereas private blockchains are restricted to authorized users and typically deployed for enterprise applications.

However, blockchains face challenges in handling large transaction volumes, consume significant energy, and can be intricate to develop and maintain. Every blockchain is a type of DLT, but not all DLTs are blockchains.

DLTs vary in data structure (e.g., directed acyclic graph, hashgraph, holochain), while blockchains have a unique structure with data organized into blocks.

DQ: How can companies further develop fintech using decentralized apps (dApps) and decentralized finance (DeFi) solutions?

Yuvaraj Thanikachalam: dApps are software programs that operate on blockchains or peer-to-peer networks, where users collectively control them instead of a central authority. This set up ensures transparency, security, and immutability.

DeFi is a subset of dApps that focuses on financial services. It provides alternatives to traditional banking, enabling lending, borrowing, trading, and more.

Benefits of dApps and DeFi for fintech:

* Decentralization is a crucial benefit of dApps. Unlike centralized systems, they operate on public platforms without a single controlling entity, which disperses power and risk.

* Privacy is another advantage of dApps, as users interact with them using crypto wallets, preserving privacy and control over personal information.

* Censorship Resistance is a third advantage of dApps since they are permissionless and cannot be easily blocked by any authority.

* Smart Contracts are often used by dApps, which execute automatically based on predefined conditions.

Use cases for companies:

* Lending and borrowing: DeFi dApps allow efficient lending and borrowing without intermediaries. Companies can explore DeFi lending protocols to offer competitive rates.

* Automated trading: Companies can integrate DeFi DEXs (decentralized exchanges) for seamless trading experiences.

* Market making: DeFi liquidity pools enable market making services, interest-bearing accounts, loans, and more.

Companies can create decentralized applications (dApps) for lending and borrowing to facilitate peer-to-peer transactions. This eliminates the need for traditional financial institutions, offering greater access to credit for underserved communities and potentially lower interest rates. 

* Developing dApps for frictionless payments can make international transactions faster and cheaper, which can benefit across borders.

* Tokenization of assets can help represent real-world assets like stocks, bonds, or even invoices on a blockchain. This can improve fractional ownership, trading efficiency, and access to capital.

* Blockchain technology offers a tamper-proof record of transactions, improving security and auditability for companies. By removing intermediaries, DeFi eliminates the risk of default by a central party in a transaction, reducing counterparty risk.

DQ: How is fintech addressing challenges in traditional finance (TradFi) and centralized finance (CeFi) using your solutions?

Yuvaraj Thanikachalam: The traditional finance (TradFi) and centralized finance (CeFi) sectors face numerous challenges such as ensuring data security, complying with regulations, competing with digital and neo banks, meeting customer experience expectations, and personalization demands. To overcome these challenges, innovative solutions are necessary.

Kreatorverse, a Web3 innovation studio, is pioneering solutions that address the above challenges. They use blockchain and decentralized technologies to enhance data security, ensuring data integrity, transparency, and privacy. Their tokenization process and use of meta transactions provide advanced security while maintaining a seamless user experience.

Fintechs often struggle to keep up with evolving regulations. Kreatorverse helps fintechs stay compliant while embracing innovation through DeFi and blockchain integration. Their solutions align with the principle of "same activity, same risk, same regulation."

Digital and neo-banks are adopting emerging technologies, creating a competitive gap for traditional banks. Kreatorverse empowers traditional banks by providing tools enabling DeFi integration and performing transaction analytics.

Superior customer experience is critical for fintech success. Our user-friendly tools streamline interactions, enhance trust, and improve customer satisfaction. They leverage integrated customer data to help fintechs provide tailored, holistic services, setting them apart from traditional banks.

Kreatorverse uses AI and ML to automate tasks, enhance customer service, and personalize product offerings. We bridge the gap between traditional finance and Web3 solutions. By embracing DeFi, tokenization, and cutting-edge technologies, TradFi and CeFi companies can thrive in an ever-evolving landscape.

DQ: How do you see the growth ahead for your offerings?

Yuvaraj Thanikachalam: The demand for our offerings is steadily growing as financial companies receive regulatory clarity from global regulators, who take a balanced approach to integrating digital assets and currencies into the mainstream financial markets.

Kreatorverse is seizing opportunities in digital transformation and digital infrastructure market, which accounts for 40% of global IT spending.  Our projected growth stands at 40% CAGR. 

DQ: You seem to be targeting finance. Why? What about the other sectors?

Yuvaraj Thanikachalam: I have worked extensively with global multinational banks such as Citigroup, Deutsche Bank, and Royal Bank of Canada. As a result, I possess a deep understanding of the financial domain compared to other sectors. 

While our main focus is on serving clients in the financial industry, we also cater to the B2C consumer tech sector. Additionally, we are actively seeking opportunities in social media, traveltech, retailtech, and regtech.