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Qredo protocol

Qredo is a cross-chain liquidity protocol that supports the efficient peer-to-peer trading of Bitcoin and Ether assets. Ownerships rights of cryptoassets are portable and decentralized through the Qredo blockchain that is powered by Tendermint. Reinforcing decentralization is the MPC protocol that consists of a network of computers that sign transactions in a uniquely trustless manner.

As a Layer 2 network, the protocol enables:

  • exchanges, institutional investors, and traders to transact, swap, and secure their assets in decentralized custody.
  • developers to create systems that leverage the peer-to-peer exchange functionality and can access a pool of shared liquidity.
  • partners to configure their nodes in order to meet their specific liquidity requirements.
  • validators to run their nodes for staking in Qredo's blockchain.

A Layer 2 network shifts computational activity away from the blockchain to supporting nodes and services. With Qredo, this is the MPC network and various services for processing transactions.

Protocol Components#

The Qredo protocol is open-source and provides the technologies for building third-party solutions. The Qredo Web App, the Qredo Signing App, and the APIs provide our current implementation of the protocol. The protocol consists of four main areas:

Qredo Protocol

1. Treasury and fund management.#

These include the Qredo Partner API, the Fund Management SAAS, and the Qredo Web App. The Qredo Partner API and the Qredo Web App provide you with the tools to manage:

  • peer-to-peer atomic swaps
  • transfer of funds from one party to the next
  • withdrawal of funds outside the Qredo Network
  • governance of funds on the Qredo functions
  • transactions via the UI
  • a single view of all your funds

The Fund Management SAAS manages the metadata of the transactions from the app and the API.

2. Signing#

These include the Qredo Core Client API and the Qredo Signing App for signing transactions that are recorded on Qredo's blockchain according to the governance rules set at the treasury and fund management level. For more information, see Writing Blocks on the Blockchain.

3. MPC Network#

The MPC network computers create addresses and signs transactions. The MPC network signs and validates transactions in a way that replaces the need for private keys. The MPC network is, therefore, trustless and consensus-driven.

4. Validator#

The validator allows those who have joined Qredo as validators to use their nodes for creating new blocks using and staking in the Qredo protocol.

Qredo Partner API#

The Qredo Partner API enables authorized partners to create applications that use the Qredo protocol. OMS and EMS ISVs, exchanges, and other financial service providers can create accounts and initiate transactions on behalf of users. For more information, see Partner API and the API Reference.

Qredo Core Client API#

Used in conjunction with the Qredo Partner API, the Qredo Core Client API lets developers create applications that sign transactions. Transactions are based on governance rules set in the Qredo Partner API. When approved by custodians in accordance with governance rules, transactions are written to the Qredo blockchain.

Writing Blocks on the Blockchain#

The Qredo blockchain is an auditable and immutable record of transactions and movement of cryptoassets on the Qredo network from the governance rules. The high-performance creation of blocks is possible as the blockchain is built using the Tendermint protocol, which allows Proof-of-Stake validation.

The Qredo blockchain permits decentralized custody as updates to the chain from transactions must be approved by all custodians of an associated governance rule before a block is written. Refer to Layer 2 Concepts for more information.