Qredo — Solving Billion Dollar Problem
Qredo got so much views in crypto right now. Let’s check why is that.
Multi-party computation (MPC) is the biggest cryptographic breakthrough since the invention of public-key cryptography nearly fifty years ago, made this possible by letting participating computers generate a digital signature without ever having to produce or recreate a whole key at any time.
This was a step in the right direction, but even MPC implementations can still have counterparty risk.
To reach the promised land, we needed to fully decentralize private key management.
So the idea is to leverage MPC across a blockchain network to create decentralized custody. A distributed ledger would be used to record the ownership of a crypto asset, and a consensus-driven implementation of MPC used to securely sign transactions.
Literally, the network becomes the vault.
In Qredo MPC nodes are backed by custom HSMs distributed in Tier 4 data centers around the world, which will eventually be governed through a DAO by liquidity providers on the network.
By replacing centralized private keys with a consensus-driven MPC protocol, Qredo enables the transfer of portable ownership rights across chains on a Layer 2 network, without counterparty risk.
This creates the ideal trading conditions for institutions, which can delegate capital to multiple exchanges from a single pool of collateral held in their Qredo wallet, map asset controls and custodianship to organizational requirements, and record all activity on-chain in immutable regulatory audit trails for easy compliance.
Why is this the future?
Decentralizing private keys helps knock down the hurdles that are preventing the biggest players of centralized finance from entering the digital asset market:
No private keys. In decentralized custody, signatures are securely mined through a consensus-driven MPC process, removing the critical attack vector of private keys.
Liquidity. As a Layer 2 network, ownership can be transferred instantly on Qredo instead of via slow and expensive underlying chains. This enables fast, low-fee settlement between venues on the Network, allowing traders to make multiple plays on different venues from one single pool of collateral in the Qredo Wallet.
Compliance. All transaction activity is recorded on-chain in immutable audit trails for easy reporting. Sender and recipient identities can be included for easy compliance with the Travel Rule .
Governance. This can scale to meet organizational needs through the appointment of unlimited transaction signers, with extended governance rights over assets wherever they are deployed; on trading platforms, DeFi protocols, or sitting in custody.
Visibility. All account balances and transaction data can be viewed in real-time from a single interface.
To decentralize private keys, Qredo uses the cryptographic breakthrough of multi-party computation (MPC), implemented using a Threshold Signature Scheme (TSS).
With Qredo, the MPC nodes are distributed between security-hardened tier 4 data centers distributed across global financial hubs, and controlled by the Qredochain.
The Qredochain is a Layer 2 network that provides an immutable registry of assets and activity. Each custodial operation — each transaction, each signature, and each change to wallet custodial policies — is mined into the blockchain. In this way, the network becomes the vault.
