Open Custody Protocol

What is Qredo?

Qredo's Version 2.0 protocol signifies a significant step forward in its decentralized approach to crypto asset custody, delivery, and settlement. The core concept revolves around a distributed ledger recording ownership of Layer 1 crypto assets through synthetic tokens on the Qredo blockchain. This approach allows for secured transfers, lending, and atomically swapping crypto assets, forming the basis of Qredo's decentralized settlement network.

The Qredo network serves as a vault, ensuring the provable solvency of assets through a process called 'crystallization.' This mapping of synthetic values to Layer 1 blockchain values is crucial, emphasizing the network's commitment to maintaining a one-to-one relationship between Qredo tokens and real assets.

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Recent Video Interview

Main points of the interview:

• Qredo’s vision focuses on democratizing and decentralizing digital asset security.
• New platform leverages advanced tech like MPC, ZK proofs, and trusted execution environments.
• Key improvements include enhanced user experience, accessibility, and security.
• Aims to reduce entry barriers and ensure user confidence in self-custody.

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Three-Tiered Architecture

Qredo's Version 2.0 introduces a three-tiered architecture. It combines a fast-finality blockchain (Layer 2) for asset tracking, a Consensus-Driven Multi-Party Computation (CD-MPC) network, and a secure, end-to-end encrypted decentralized conversation replication network (Layer 3). This structure facilitates machine-to-machine communications, audit trails for pre-trade communications, and scalability without compromising security or consensus models.

Capital Efficiency

Qredo breaks away from passive custody platforms by transforming custody into a profit center for users. The platform's design incorporates decentralization, multi-party computation, advanced crypto protocols, economic security, and incentives. By eliminating wallet pre-funding and allowing users to act as prime brokers, Qredo enhances transaction velocity and capital efficiency.

Key Benefits

Risk-Free Settlement Qredo ensures transactions between users occur within seconds, with no counterparty, settlement, or payment risk. Its innovative 'Proof of Coin' process cryptographically verifies ownership before any transaction, eliminating exposure to unverified funds. This guarantees increased settlement throughput, reduced counterparty risk, and cost savings from the elimination of Proof of Coin fees.

No Pre-Funding The platform eliminates the need for pre-funding wallets on centralized crypto exchanges. Qredo enables centralized exchanges to synchronize their order books and trigger atomic swaps without the need for pre-funded wallets. This setup ensures that the exchange orchestrates settlement without ever handling customers' digital assets directly.

Trade Credit Qredo Version 2.0 introduces Loan Pools, allowing users to access highly leveraged trade credit for activities like flash loans or yield farming. Liquidity providers can earn high yields by loaning digital assets to borrowers on the Qredo Network. The platform's unique approach to loan pools and interest rate setting is outlined, incorporating advanced models based on control theory.

Staking QRDO Tokens

Qredo's blockchain uses the Tendermint state machine software, providing a secure and consistent replication of applications on multiple machines. The platform introduces mechanisms for staking QRDO tokens, allowing users to participate in securing and supporting the network.

Transaction Secrecy & Security

Addressing challenges in trading secrecy and security, Qredo focuses on Layer 2 transaction secrecy and Layer 1 transaction security. The platform aims to keep transaction details secret before submission into the Layer 2 mempool and execute complex automated trading strategies on Layer 2 networks without revealing critical information to other participants.

Qredo Team Background and Partners

Qredo, established in Q4 2018, boasts a team of over 200 members from diverse countries, all driven by a unified mission. Co-founders Anthony Foy and Brian Spector acquired the Qredo shell, laying the foundation for the company. Duncan Payne-Shelley serves as the energetic CEO, leading strategy and performance. Jason Losh, the CTO, brings pivotal expertise in blockchain and cryptocurrency technologies, honed through experience at Bitso. At Qredo, he spearheads innovation in digital asset management and security.

List of Qredo's partners: Atlendis, Bequant, Bitbond, Blockfills, Cryptio, Dexible, Lyra Finance, Onramper, Repool, and Sardine.

Project Development

Qredo's recent unveiling of its next-generation API v2 network signals a transformative leap in crypto custody, particularly in the realm of automated use cases within the web3 landscape. This advancement empowers users with unparalleled control, customization, and extensibility. The core of Qredo's API v2 lies in its revolutionary customization of approval logic, allowing for precise digital asset management and enhanced transaction control.

Anchored in distributed Multi-Party Computation (dMPC) technology, Qredo's approach integrates on-chain transaction policies, offering a flexible governance structure that includes both human and programmatic approvers. Introducing the Signing Agent, an open-source tool, Qredo responds to user demands for automated governance decisions based on specific conditions. This tool operates across various environments, utilizing API keys to participate in policies and automating transaction approvals or rejections based on predefined criteria.

Open Custody Protocol Price Analysis

As of November 24 2024 Open Custody Protocol has a marketcap of $8.6M. This is {{percentagefromath}} from its all time high of $9.81. In terms of its tokenomics, there's a total supply of 1.3B with 54% currently outstanding. Keep in mind Open Custody Protocol has a fully diluted value of $16M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.