Since the birth of cryptocurrency, investors and companies have had to deal with the threat of theft and malicious behaviour — as well as all kinds of other risks in the digital assets trading process.
According to the media reports in recent years, nearly 99% of large-scale cryptocurrency thefts occurred due to unauthorized access to, or outright theft, of a private key. This has led many traders from self-custody to centralized custody.
But the main issue of centralized custodian is that it deprives the traders of control of their digital assets, as they have no access to the private key of the wallet which is under the control of the custodian. Even with most multi-party computation (MPC) implementations, there is still counterparty risk.
To fully decentralize private key management, Qredo team came up with an idea of leveraging MPC across a blockchain network to create decentralized custody.
The ownership of a crypto asset is recorded on a distributed ledger, and a Consensus-Driven Multi-Party Computation (CD-MPC) protocol is used to securely sign transactions, which enables the transfer of portable ownership rights across chains on a Layer 2 network without counterparty risk.
Qredo is a new approach to digital asset custody which provides an opportunity for centralized custodians to grow their businesses and maintain relevancy as the world moves to decentralized infrastructure. These centralized custodians can use their existing infrastructure to run Qredo Clients which generate custodian approval transactions, and in turn offer customized programmable compliance and governance flows to their customers.
Denominating the voting power in Qredo Tokens (QRDO), Qredo can be seen as a Delegated Proof-of-Stake based blockchain system where holders of QRDO will be able to add their balance to a Validator’s balance in exchange for some of the rewards the Validator receives for validating new blocks.
To further expand its global reach and help it achieve its vision, Qredo Token will be listed on LBank Exchange, where the QRDO/USDT trading pair will be available for trading at 23:00 (UTC+8) on November 18, 2021, investors who are interested in Qredo investment can easily buy and sell QRDO on LBank Exchange by then.
The Network Is the Vault
Secured transfer, lending or atomically swapping crypto assets between parties is realizable via Qredo’s decentralized settlement network, which accrues numerous benefits for its users over other systems in use today.
Turning the network into the vault, Qredo uses a distributed ledger to record the ownership of a Layer 1 crypto asset, which is represented by a synthetic token/wallet combination on the Qredo blockchain that maps exactly one to one in value to the asset’s wallet on the Layer 1 blockchain. In other words, if a Qredo synthetic BTC wallet has 10 BTC deposited to it, 10 qBTC (the synthetic counterpart to the real asset) are minted on the next block and will show as the deposit in the Trader’s qBTC wallet. The Qredo network stays provably solvent at all times.
Qredo combines a fast-finality blockchain (Layer 2) for digital asset tracking and settlement with a CD-MPC network, and a secure, end-to-end encrypted decentralized conversation replication network (Layer 3) to handle everything from machine to machine communications to storing and providing an audit trail for regulated pre-trade communications.
The combination of Layer 2 + Layer 3, and enterprise grade Integration Libraries, enables enterprises to rapidly integrate Qredo into their front, middle and back office applications.
What Qredo Offers
Qredo Network is the perfect complement to DeFi protocols and applications enabling rapid adoption in financial firms that have to comply with compliance and governance workflows as part of their trading and order execution strategy. It will also offer the ability to implement OTC dark pools, trade on margin via exchange integrations, mint derivatives (qTokens), and more.
Designed and developed by veteran cryptographers, cybersecurity leaders, blockchain technologists, high-performance app makers and capital market entrepreneurs, with key features such as compliance automation, CD-MPC, easy app development, transaction secrecy, always auditable, and secure enclave, Qredo’s design provides the best digital asset security through decentralization, multi-party computation and advanced crypto protocols, economic security and incentives, and thoughtful use of best-in-class infosec technologies.