Qredo, Reclaiming True Digital Asset Ownership

The idea of cryptocurrencies was born after the great financial crisis in 2008 as citizens within the economy realized they never had any true ownership of their funds within their bank accounts, as central banks were handing out loans pulled from clients bank accounts left and right.

Summary

Qredo is a Layer 2 network created on Ethereum and was built with the ethos of true decentralization and display of ownership. Unlike traditional legacy wallets and bank accounts that are fully tangible, cryptocurrency wallets are either in the form of an online software interface or a small physical device. The biggest difference between legacy and crypto wallets are that while legacy wallets contain the actual underlying asset, a cryptocurrency wallet holds the private keys that allow the crypto assets to be interacted on the blockchain.

As cryptocurrency wallets come in two forms custodial and non-custodial, with the latter being the ideal option in regards to privacy and sole ownership of funds. Through the usage of a public and decentralized ledger, Qredo has built their network to keep record of ownership across other blockchains.With security and ownership being the focal points of Qredo, the team has built the first decentralized custody network which supports all other blockchain. Additionally, the Qredo platform will allow trades, swaps and liquidity mining all while ensuring users have access to their private keys at all times.

As the Qredo team will be focusing within cybersecurity, along with decentralized custodies and identities, they have built out a network for retail and institutions to comfortably utilize their crypto assets across multiple blockchains without the worry of giving up their private keys through utilizing protocols.

Utility

Qredo has built their ecosystem to allow for users to actively utilize their assets without having to compromise security through generating segregated addresses to avoid the risk of private key theft. The team is working to create an interoperable multi chain network through their platform without the complications of wrapping tokens or smart contracts. Through utilizing a consensus based Multi Party Computations system (MPC), a cryptographic technology that allows for multiple parties to solve computations using their combined data, without ever revealing the private data held by each party.

Perhaps the most innovative function of Qredo is their ability to sync centralized exchange order books with users Qredo accounts to allow for orders to execute without having to leave coins on exchanges and compromise the underlying assets ownership. Once synced, the exchange will execute an atomic swap between users and is then submitted into the Qredo network where settlements for these swaps occur once consensus is reached. This alternative method to interacting with exchanges not only greatly increases the security of crypto assets, but will likely see the interests of enterprises utilizing the network to safely manage the funds of high net worth clients as opposed to leaving coins onto an exchange with a centralized custody. The ability for users to take full control of their funds would be similar to that of many decentralized exchanges, meaning theres the possibility for Qredo to limit the amount of regulatory custodian rules and licensing that are required for exchanges.

The Qredo protocol will be utilizing a Proof of Coin consensus mechanism to ensure there is validated ownership on both sides of all transactions. Creating not only a risk free but instant settlement whether the transactions consists of crypto to crypto, or fiat to crypto. While Qredo can currently be seen similar to a business in terms of its features, the team plans to have the Qredo network operate as a decentralized autonomous organization (DAO), once the proper steps to ensure Qredo is able to be utilized to its full extent.

Qredo’s primary products and services consist of multiple features with their primary being the first platform to offer decentralized self managed and third party custody, additionally within the Qredo platform users can utilize the instant cross chain atomic swaps and access to cross chain liquidity while avoiding Layer 1 fees. While giving participants the options to apply custody polices to the fundamental functions of the assets such as swaps and withdrawals across multiple wallets addresses such as creating joint accounts for couples, or a fund where clients to an institution have restricted access to the funds determined by the administrators. There is also a signing application within Qredo’s list of products, signing will allow users a secure method of authorization to make changes to their digital identity within the network, such as whitelisted addresses, method of custody, and the invitation from other Qredo users to join their network.

By creating a platform that allows for not only a decentralized method of custody, but also a solution for future enterprises to offer optimized products and services within this asset class through enabling users access to the firms assets while setting the rules for how they can be utilized. Through creating a Qredo account, users can connect with the rest of the community to allow for peer to peer swaps or for creating a joint fund where users can either share and contribute to a pool of assets with limits and rules set to ensure equality and fairness of distribution within the fund.

While being a solution for decentralized custody across multiple blockchains, Qredo doesn’t require the private keys of each users assets, as the underlying asset stays on their native blockchains. The ownership rights and access are utilized through a synthetic replica token minted on the next block of Qredo’s blockchain after the deposit is received. For example a user sends 2 BTC to their Qredo synthetic wallet, 2 synthetic qBTC will be minted and deposited into their qBTC wallet. Users now have the ability to utilize their assets through activities such as yielding protocols, or featured services within centralized exchanges, without having to sacrifice the security of their assets for utilization.

As many institutions may begin to take interest in Qredo’s decentralized custody concept either for their clients or themselves as the adoption of crypto assets continue to grow, the team has ensured they are fully audited and fully insured for extra security measures in the improbable case of a network attack.

Team

Qredo was founded in 2019 by CEO and CTO Anthony Foy and Brian Spector respectively. The team has been built with the heavy focus of personnel around fin-tech and security within the composition of their team, which perfectly fits what Qredo is working to accomplish in the crypto space of bringing a true decentralized and trustless platform of retaining ownership.

Anthony Foy, the CEO of Qredo is a serial entrepreneur with over twenty years of experience within the world of investing and leadership with multiple previous high level positions such as, President of Interxion from 2000–2011, CEO and board member of SkyDox where he built enough recognition and exposure to Workshares where he continued to work for another six years. Aside from Qredo, Anthony still holds a position as an investor and board member of CloudSigma which he initially joined in April of 2011.

Brian Spector will serve as Qredo’s CTO and similar to Anthony has also previously held some high level roles, most notably as director and manager of multiple tech and cybersecurity firms along with vice president and general manager of Workshares, the firm Anthony had previously acquired during his time at SkyDox. After leaving Workshares, Brian spent seven years building up his own startup firm MIRACL which focuses on cryptographic authentication protocols and has since become one of the fastest growing cybersecurity firms in all of Europe.

As Qredo has drawn some heavy interest from institutions, they know compliance is at the top of many firms lists for priorities, thus they have hired Benjamin Whitby as their regulatory affairs advisor. Benjamin has a long list of previous experience within legal work, specifically financial regulations with over ten years serving as a regulator for PWC and HSBC along with multiple other firms such as Terella and Monolith.

Josh Goodbody perhaps has one of the most prolific resumes within the crypto space in terms of exposure and experience and will be serving as Qredo’s COO, with previous positions within the crypto space at Huobi Global and Binance for nearly four years, along with 15 years of experience as a financial markets lawyer.

Tokenomics

The Qredo network will be utilizing $QRDO as the utility and governance token on their platform. There is a total supply of 1 billion with a current circulating supply of 30 million. There will be an additional 1 billion $QRDO within the total supply gradually flowing into circulation over the next fifty years through an inflation based system into community members wallets as rebates on fees.

As Qredo is working to be an interoperable Layer 2 solution and incentivize Qredo users across all other Layer 1 platforms for participating within the network. The decentralized custody service and trading platform offered by Qredo will have a fee paid in a portion of the underlying Layer 1 asset or in $QRDO, if paid in $QRDO users can have up to a 99% discount on trading fees. Market makers across the network will also be incentivized to provide liquidity throughout the ecosystem through earning $QRDO tokens and other Layer 1 assets from distributed fees.

With a total supply cap of 2 billion $QRDO that will ever be in circulation, the team plans to gradually distribute the remaining tokens after Qredo V2 through a vesting schedule along with inflationary emissions. With 1 billion tokens being allocated to early $QRDO stakeholders including the team, $QRDO holders, validators and the treasury. Within the 50% that has been allocated to the team and early adopters, 10% of the 1 billion tokens were used to be sold between private investors and public sales across multiple cryptocurrency exchanges.

The Qredo network will consists of participants in four categories, traders, validators, market makers and custody users. The inflationary schedule of $QRDO will be distributed between these users based varying in amount based on fees paid and network activity of each party. Eventually, the rewards will be determined through network optimization and what the Qredo DAO agrees upon.

Partners

As Qredo only officially launched with their mainnet around Q3 of 2021, they have been prioritizing development and building their network to optimally utility before they attempt to find potential clients and partners. Though still early, the future potential for Qredo to be partnered with some of the largest centralized custodians and exchanges due to their vault like security and ability to keep private keys unexposed.

While not exactly partners, some of Qredo’s strategic investors consists of the some giants in the industry such as; Coinbase, Nexo, Celsius Derebit and many others. Qredo claims some of these firms may be there clients and would seem like a reasonable assumption, given these are major custodial platforms holding significant amounts of capital.

Qredo has formed a strategic partnership with Metamask Institutional as a method to safely deploy institutional capital into decentralized finance. Some of these features consist of bringing institutional users the low costing platform, trustless MPC and multi chain brought by the Qredo network. This partnership will potentially bring institutions to comfortably interact and explore the aspects of decentralized finance, without the worry of compromising the safety of significant amounts of funds from institutional clients.

Over the course of two years, the Qredo team had raised approximately $11.2 million from seed investors and venture capitalists with fifteen investing firms such as Quantstamp, Signum Capital, Borderless Capital and many others. While many crypto startups like to highlight their investment partners to bring an extra sense of legitimacy, its not often such large firms in the industry like Coinbase and Celsius choose to invest and collaborate with projects, as they likely see future potential adoption and use-cases within Qredo’s uniquely thought out products and services.

Potential

The future potential of Qredo to play a large role within the security and custodian aspects of the crypto space is very prominent from regular retail investors to institutions managing thousands of clients funds. From a basic decentralized custodian to allow participants of this ecosystem to comfortably sleep at night knowing their private keys are never exposed, to traders and enterprises accessing large amounts of funds without needing to worry about security issues.

As many of the largest firms within this space such as Coinbase, Metamask and Celsius have already taken recognition and collaborated with Qredo, its possible Qredo’s security and MPC mechanisms could one day become a new standard throughout custody platforms. Financial institutions and trust funds also have potential to choose Qredo as their custodian partner in the future, as regulatory clarity and mainstream adoption continues to grow within crypto assets. Qredo has gained the first mover advantage in terms of a decentralized custodian ecosystem with many other attractive features within their network like their near instant atomic swap or cross chain liquidity which can help traders in terms of time and cost efficiency.

With the future of cryptocurrencies currently in a mixed spot with the majority of projects either building more decentralized finance applications or NFT related projects. Qredo has found a very unique solution within this space, rather than build another DeFi protocol or an NFT gaming and metaverse project. They have found a very niche and untouched area of focus within creating a more secure way to store assets and funds, yet its something just about every crypto enthusiast would likely agree is beneficial to the entire community in the long run.

*None of the information listed is financial or investment advice and should only be taken as entertainment or educational as I’m not a financial advisor*

About Me

Hey, thanks for taking the time to read my work. I’m your average 20 year old, currently in school for Economics and Finance. Some of my hobbies consist of sports, working out and staring at price charts.

I initially began interested in the crypto space after frustrations with legacy markets. From the second I read about the Ethereum ecosystem, I fell in love. An entire ecosystem built on one platform that anybody can access? Unheard of, until now.

With how fast this space is developing, I try and find projects within this industry that show promise and potential to disrupt our modern world. All this fundamental analysis not only helps me better understand these projects better, but hopefully gives you guys some newfound information!

If there are any projects you’d wish to suggest me take a look into, I’m always available on Twitter

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