Crypto exchange hacks news stories are a major impediment to the space. Qredo is a layer-2 solution that aims to make the average retail investors feel confident their investments are safe. Learn why you might never trade in fear again.  Covered: What is Qredo? What is MPC? Why Use Qredo? Partners & Team Tokenomics What […] The post What Is Qredo? appeared first on CryptosRus.

What Is Qredo?

Crypto exchange hacks news stories are a major impediment to the space. Qredo is a layer-2 solution that aims to make the average retail investors feel confident their investments are safe. Learn why you might never trade in fear again. 

Covered:

  • What is Qredo?
  • What is MPC?
  • Why Use Qredo?
  • Partners & Team
  • Tokenomics

What Is Qredo?

Security has always been an issue in the crypto space, with hackers plaguing centralized crypto marketplaces and scaring away top investors. However, layer-2 protocol Qredo aims to quell those fears. 

Qredo redesigns digital asset ownership and blockchain connectivity with its layer 2 protocol. It is a decentralized custodian with compliance and governance controls built-in to its consensus mechanism. Not only is it solving the “Blockchains Billion Dollar Problem” of private keys with decentralized multi-party computation (MPC), it allows cross-platform liquidity, interoperability, and faster cross-chain settlement.

Using a distributed ledger to record the ownership of a Layer 1 crypto asset in a synthetic token/wallet combination, Qredo can map out the precise value to the asset’s wallet. Furthermore, its Layer-2 protocol based on Tendermint also features a Layer-3 decentralized communications platform based on Matric, a decentralized messaging protocol. This Proof-of-Stake (PoS) chain aims to decentralize the governance of its network progressively.

Qredo Mainnet went live in November 2020. Since then, it has been developed as an enterprise-grade security network. Currently, the Qredo team is working with various global regulators to keep Qredo globally accessible as a decentralized network without crossing into the regulated territory.

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What Is MPC?

MPC, multi-party computation, is the most significant cryptographic breakthrough since the invention of public-key cryptography. Instead of signing with your private key during a transaction, multiple parties sign the transaction with part of your private key to generate a new signature. Layer 2 lets the whole network hold different parts of your private key, but nobody has the entire key, preventing a single point of failure.

Why Use Qredo?

Qredo’s Network is the perfect complement to DeFi protocols while creating the ideal trading conditions for institutions. By replacing centralized private keys with Consensus-Driven Multi-Party Computation (CD-MPC) protocol, it enables the transfer of portable ownership rights across chains on a Layer 2 network without counterparty risk.

Because funds are held in ledgers, there is no more fearing hackers on centralized exchanges and dealing with fragmented liquidity. Instead, institutional investors can now jump on board and delegate capital to multiple exchanges from a single pool of collateral held in their Qredo wallet without liquidity issues. In addition, all activities on-chain are recorded in immutable regulatory audit trails for easy compliance. 

Partners & Team

Qredo has some very prominent partnerships with big names in the crypto space, such as MetaMask, Coinbase, Nexo, Celsius, and Wintermute.

Anthony Foy, CEO and serial entrepreneur, Brain Spector, a cyber security expert, and Josh Goodbody, an experienced operational leader, lead the team at Qredo. The team consists of veteran cryptographers, cybersecurity leaders, blockchain technologists, high-performance app makers, and capital market entrepreneurs. Most members have over 15 to 20 years of experience in their respective fields. 

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Tokenomics

The Qredo token, QRDO, is an ERC-20 token. The token combines utility and governance that rewards network activity through a unique combination of fee-based and inflation-based compensation. Unlike Layer 1 tokens that only reward validators for securing the network, QRDO is a Layer 2 solution designed to ward all Network participants—currently listed on KuCoin, MEXC Global, Gate-io, Bitfinex, Uniswap, and more.

Qredo Network has six types of users. Each type of user receives a reward with a unique combination of fee-based and inflation-based compensation.

  • Market Makers that continuously provide quotes for a given digital asset
  • Validators that take turns validating, proposing, and voting on tractions to be included in the next block
  • Traders that atomically swap digital assets
  • Custody Users that safely custody digital assets
  • Liquidity Providers that add liquidity to Qredo’s Loan Pools
  • Borrowers that take out loans of varying duration

Fee-Based Compensation: Traders and Custody Users pay a fee deducted from the Layer 1 assets being transferred, traded, or stored. The Qredo protocol then distributes these fees as rewards.

Inflation-Based Compensation: The protocol sets a fixed number of tokens distributed per epoch to ecosystem participants. This per-epoch approach has a semi-variable inflation rate governed by income or distribution milestones.

A total supply of 2 billion QRDO tokens will be introduced into circulation via two methods: a vesting schedule and inflationary emissions over the lifespan of 50 years. The current circulating supply is 33 million. The first billion tokens were allocated to early stakeholders. The second billion tokens are set aside for when Version 2 of the protocol goes live.

Concerns

The potential of Qredo is quite attractive given that it is solving three significant issues in the crypto space; security, liquidity, and custody of assets. However, the project has been live for over a year, and the market cap is already relatively high.

Qredo also has competitors that solve similar problems, such as Codeflow, ComplyGlobal, and BIS Solutions. In addition, we don’t yet know how secure Qredo is compared to its competitors. Another issue is the high gas fee when moving QRDO since it is on the Ethereum blockchain. With that being said, Qredo is getting more institutional investors on board to invest in cryptocurrencies, which will help with the growth of the crypto marketspace.

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