Since the birth of cryptocurrency, thefts and other malicious behavior in this field have never stopped, investors and companies need to constantly deal with all kinds of risks in digital assets trading process. According to the media reports in recent years, nearly 99% of the large-scale cryptocurrency thefts happened because of unauthorized access to a private key, or the outright theft of the private key, which leads traders to centralized custodian from self-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 the multi-party computation (MPC) implementations, there is still counterparty
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Since the birth of cryptocurrency, thefts and other malicious behavior in this field have never stopped, investors and companies need to constantly deal with all kinds of risks in digital assets trading process. According to the media reports in recent years, nearly 99% of the large-scale cryptocurrency thefts happened because of unauthorized access to a private key, or the outright theft of the private key, which leads traders to centralized custodian from self-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 the multi-party computation (MPC) implementations, there is still counterparty risk crypto world needs to face.
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 will be recorded on a distributed ledger, and a Consensus-Driven Multi-Party Computation (CD-MPC) protocol will be 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 QRDO currency, Qredo can be seen as a Delegated Proof-of-Stake based blockchain system where holders of the QRDO token can add their balance to a Validator’s balance in exchange for some of the rewards the Validator receives for performing its role, such as achieving consensus during the generation, voting for and validation of new blocks. To further expand its global reach and help it achieve its vision, QRDO 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 token 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
The 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’s also perfect for decentralized trading with its RFQ system, ability to implement OTC dark pools, margin trading, qTokens minting, trader chatting and so on.
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.