I will be honest, when I first heard of Qredo. It reminded me of Kadena because of the lettering and color scheme. After doing an intense 1 minute of due diligence to clarify my confusion. I was pleasantly introduced to Qredo’s gargantuan potential. In 2022. I expect to see major advancements in the simplification of interacting with the blockchain. Qredo’s technology could play a significant role in this process.
What is Qredo?
Qredo hopes to be a Layer 2 network for the entire digital asset ecosystem. Currently, the decentralized nature of crypto forces. Users to either rely on a centralized exchange or cold storage to custody their assets. There are risks to both solutions. Custody has scared away institutional investors. This is where Qredo’s multi-party computation (MPC) comes into play. Instead of worrying about private keys. MPC can replace centralized private keys by distributing. It between multiple computers. Each computer cooperates to sign transactions in a distributed manner.
A visualization of the signature process. MPC could theoretically become centralized. This is why Qredo is built on Layer 2. Qredo is creating a world where you can self-custody a wallet without having to worry about key security. The whole network owns your keys, there is no single point of failure.
Qredo Use Case:
Institutions often face liquidity issues when buying off of exchanges due to their high volume purchases. Qredo can help solve this by providing institutions access to multiple liquidity sources in one purchase. This could also help prevent something like a scam wick occurring on a centralized exchange (CEX).
CEXs could utilize Qredo to lower operational costs, avoid dealing with custody licensing, and prevent the theft of funds. This is the decentralization of private keys, an unprecedented step for digital assets if successfully implemented.
For a long-term vision, Qredo looks like a solid play. They are backed by massive names like Coinbase, Metamask Institutional, and Celsius. Additionally, El Salvador’s state own bank is looking to use Qredo’s custody for Bitcoin banking. Qredo’s leadership team has a wealth of crypto knowledge and background.
An area of weakness is the transparency regarding Qredo.
Qredo’s fully diluted market cap is over $10 billion. While it’s market cap currently sits at $177 million. There are several token unlocks in the coming years. But the devs should clarify this issue with a dedicated video or statement. If this has been done already it should be plastered everywhere.
I will be keeping my eye on Qredo. Development has been ongoing for the last 3 years and it looks primed for an introduction to the mainstream crypto community. Do not sleep on this project.
DISCLAIMER: This is not financial advice. Do your own research when it comes to investing in digital assets. This article is solely my opinion.