About Qredo (QRDO)

Geared toward trading firms, Qredo is a decentralized layer-2 custodial protocol which features built-in controls for compliance.

The project has a native asset, QRDO, used to facilitate governance and reward various stakeholders for operating on the network.

Qredo leverages distributed ledger technology to record the ownership of layer-1 assets like Bitcoin and Ethereum. However, the means by which these assets are secured and/or transferred relies on far more complex cryptographic techniques.

Billed as a custodial service for digital assets, the platform leverages multi-party computation (MPC) to “decentralize” private keys and securely store assets within an immutable framework. 

A new paradigm within the cryptography space, Qredo’s MPC mechanism works to create not a private key, but rather unique key shares stored individually by a decentralized network of nodes. Each share represents a piece of a corresponding private key and pre-set number of these key shares must be combined in order to successfully transfer the underlying assets. In a bid to enhance security, Qredo’s network of MPC nodes are distributed around the globe, documentation explained.

This places Qredo directly at odds with centralized custody providers (that is, exchanges) who often store users’ private keys via a singular point of failure.

By leveraging a layer-2 framework, Qredo is able to confirm transactions –including interoperable atomic swaps between layer-1 assets and crypto to fiat trades – instantaneously, and without counterparty risk. On top of this layer-2 Qredo has managed to build an aptly named “layer-3 protocol” used to enable network-wide communication and provide enterprise-grade audit trails.

How it works in more detail: users first deposit funds to a Qredo backed wallet address; the value contained in this wallet is then mapped 1:1 on the platform’s layer-2 solution; thus, the speed at which those assets can be traded speeds up.

Moreover, Qredo features several built-in compliance and governance processes designed to attract institutional users. By combining robust multi-party security with strong compliance/regulatory standards, Qredo could be poised to take on major market players put off by the unsecure nature of “hot wallets” and exchange-based storage solutions. Currently, the platform’s APIs allow trading firm cohorts to integrate Qredo within their middle/front office applications. 

Per documentation, Qredo allows partners to create custom applications that can be integrated with the network. Likewise, the platform supports a suite of interoperable, cross-chain credit facilities that allows traders to gain access to considerable amounts leverage (as in, up to 10x).

Looking to the future, Qredo recently announced integration with MetaMask Institutional, a move set to expand the platform’s footprint amongst professional investors.

When was QRDO created and how much was it worth?

Qredo was created by co-founders Antony Foy and Brian Spector in late 2018. CEO Foy, a tech sector veteran joined Qredo following a 20-year career working for Workshare and SkyDox.

Spector, said to be a cryptography savant, had previously worked with Foy at Workshare.

Shortly after launch, Qredo got $2.8 million in pre-seed funding. It followed that up with another $11 million funding round in early 2021. In 2022, Qredo made headlines with a third $80 million “Series A” funding round – the largest in crypto history – this time relieving funds from a number of industry backers including 10T, Coinbase, Nexo and Derbit.

The platform’s native asset, QRDO, was first released via a private token sale in June of 2021. This was followed one month later by two individual public sales worth about $17.5 million.

Pricing data from Messari shows that QRDO was first distributed to the public at a price of $0.50 per token. Following a brief period of downside pressure following distribution, QRDO soared during the last part of 2021, hitting a record high of $9.81. It has since been subjected to downside volatility.

How is the price of QRDO determined?

QRDO is a deflationary asset with a hard cap of 2 billion tokens. Per Messari, 50% of QRDO’s total supply was initially reserved via a preset vesting schedule for various stakeholders, including the project’s core team, private investors and transaction validators. The remaining 50% is set to be distributed in the form of tokenized rewards.

 Why does QRDO have value?

QRDO value owes largely to its ability to provide decentralized, MPC-backed custody over digital assets on behalf of both retail and institutional traders. Given QRDO’s role within the Qredo ecosystem, events/developments that positively impact the protocol could help spur a rise in price in a crypto market at large that turns more upward in overall trajectory. 

Is QRDO secure?

Qredo’s decentralized custody mechanisms are backed by a series multi-party computation nodes spread out across the globe. As compared to traditional hot wallets and exchange-based solutions, Qredo’s current framework is said to offer a higher grade of security.

For a more detailed explanation of MPC, check out this blog post.

What are the main benefits of QRDO?

• Qredo provides a decentralized asset custody solution for both retail and institutional traders.
• Qredo has several built-in compliance and governance processes to help ease the regulatory burdens faced by firms looking to enter the digital asset space.
• Qredo’s layer-2 solution enables cross-chain atomic swaps with near instant finality.

What do the critics say about QRDO?

It’s still largely a work in progress, yet to be fully implemented.