What is Qredo – Is this Cryptocurrency Project Worth the Investment?

By

Qredo is another project worth keeping your eyes on. The project is said to help solve the blockchain billion-dollar problem which is a very big deal. Are these just people hyping up a project or do they have a solution? Let’s answer your question by first explaining what Qredo is and what it brings to the table. 

What is Qredo?

Qredo is an open protocol that allows institutional traders to move digital assets safely and quickly in real-time. It allows them to do this safely and quickly.

The Qredo protocol makes use of multi-party computing (MPC) to construct different deposit addresses which solves the problem that private keys have. Multi-party computing sign transactions using a consensus-driven procedure, eliminating the need for private keys in the first place.

Qredo’s Features

Qredo has a lot of features for its users but we’ll be mentioning the most notable ones starting with the billion-dollar problem that it solved.

Solves the Private Keys Problem

Qredo’s multi-party computation (MPC) implementation eliminates the risk to private keys. This is because it eliminates the need to generate a private key in the first place. 

This is the billion-dollar problem that Qredo was able to solve. We’ll tackle more about multi-party computation and how it solves this problem later in this article.

Multiple Points Of Failure

The Qredo Network is being developed and designed to allow participants to eliminate any single point of failure in their systems. Decentralization is crucial to the Qredo concept for the organization to reach complete autonomy.

Layer 2 Network

Layer 2 networks enable you to transport assets at a tenth of the cost of a Layer 1 network. Qredo’s Layer 2 network, in addition to providing interoperability with other Layer 1 networks, also provides increased transactional flexibility and speed.

Transparent and Auditable

A long-standing problem in the blockchain community has been the lack of a mechanism that can be used to reliably determine the asset base of any centrally managed organization. This includes centralized exchanges (such as Bitcoin), centralized custodians (such as banks), and other financial institutions.

Individuals lose a significant amount of money when cryptocurrency exchanges or projects go dark as a result of frauds or because their custodians misplace their private keys, among other reasons. 

Despite this, large financial institutions continue to have a difficult time placing their trust in businesses with which they have digital assets because of the very real risk that these entities will fail to meet their obligations to their customers.

The Qredo Network is meant to be financially viable at all times. Examples of this include the ability of a Qredo Client to display the balance of every wallet in the Qredo network and to link it to the layer 1 blockchain wallet, which is a crucial component of Qredo’s mapping functionality. These links are available to all Qredo Wallet users. 

Because of the way Qredo wallets work, the totals of their Layer 1 linkages are always the sum of the totals of their Qredo wallets. The dynamic construction of these interconnections and connections by Qredo is done to achieve the lowest feasible Layer 1 costs for exit transactions.

Quick Transactions

The Qredo platform makes use of Tendermint, a consensus engine that is optimized for high throughput designed to manage thousands of transactions per second. The Qredo Network also includes a layer 2 statechain, which transfers and records asset ownership between layer 1 blockchains and the Qredo Network, among other things.

Encrypted Messages

Through the Matrix network, which is decentralized messaging architecture, encrypted private talks can be linked to Qredo Network transactions and vice versa. 

Custom applications, such as Trader Chat, which allows traders to trade directly from their favorite chat software, can be developed on the Qredo platform thanks to the communications layer provided by the platform.

The Potential of Qredo

Qredo’s $80 Million Series A Raise

Aside from its amazing features, Qredo is backed by multiple investors and companies. In an article published on Bussinesswire, Qredo’s $80 million Series A raise resulted in the project having a $460 million valuation. 

Notable investors of Qredo include 10T Holdings, GoldenTree Asset Management, HOF Capital, Coinbase Ventures, Alumni Ventures Blockchain Fund, Tokentus Investment AG, and many more!

Needless to say, Qredo has the funds it needs to develop and improve over time. It’s a project worth keeping an eye on.

How Qredo Solves Blockchain’s Billion Dollar Problem

Cold and hot wallets used in decentralized systems ironically have a centralized weakness. This weakness can be a big problem if the right people exploit it. This weakness usually leads to the loss of billions of dollars. 

Attempts to secure private keys on this wallet as well as segregating its liquidity also cause problems for the users.  People trying to make their keys more secure often lose them as a result because they can’t use them. This often leads to a more fragmented market.

In this fragmented market, a lot of cryptocurrencies are channeled through a lot of exchanges. They act both as brokers and custodians, they do this to help mitigate the low liquidity of pools that are often the target of hackers.

Sadly it is this liquidity that makes the crypto market so volatile which hinders its growth. This is a big problem since this is the exact opposite of what a stable blockchain-based economy should be.

This dilemma can be traced back to one source which is private keys that create a centralized problem in our wallets. 

How Multi-party Computation Solves This Problem

Brian Spector, the CTO of Qredo states that the heart of this billion-dollar problem was centralization. To be precise, it was the application of centralized concepts into decentralized assets.

A solution they came up with was introducing decentralization to private key management. And this is where multi-party computation comes in. 

The idea for his plan is simple, use multi-party computation across the blockchain network. The ownership of a crypto asset would be tracked using a distributed ledger, and transactions would be securely signed using a consensus-driven version of the multi-party computation protocol.

The multi-party computation process is invoked instead of a single private key when a transaction needs to be signed, and each independent node collaborates to sign the transaction in a distributed manner.

Through the use of a consensus-driven MPC protocol instead of centralized private keys, they can transfer portable ownership rights between chains on a Layer 2 network without introducing counterparty risk.

A single pool of collateral kept in a Qredo wallet will allow institutions to delegate capital to numerous exchanges and record all transactions on-chain in immutable regulatory audit trails for easy compliance.

Is Qredo Worth Investing?

Is it worth investing?

Qredo certainly has a lot going for it both in its potential growth and with the problems it can potentially solve. It has a lot of potential to grow but one thing you have to ask yourself is, “Will it be able to maximize this potential?”

Qredo Data

As of today, March 14, 2022, Qredo is trading at $2.22, with the price changing by -$0.01286 in the last 24 hours. Qredo had a trading volume of $9,701,308.55 and a market capitalization of $111,030,989.31 in the last 24 hours. Qredo’s price has fluctuated between an all-time low of $1.92 and an all-time high of $3.58 in the last month.

We hope this information will help you in your investment process, but this is not investment advice. Every investment carries risk, especially in this industry, so DYOR before making a decision.

ABOUT THE AUTHOR

Be the first to know about crypto news every day

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.