Qredo’s unique architecture enables it to deliver on three core principles of digital asset custody:
1. Eliminating single points of failure associated with private key storage and access
Traditional multi-sig and centralized multi-party computation (MPC) implementations carry several authorization risks. Qredo addresses this by employing a decentralized MPC (dMPC) network, exclusively governed by the QredoChain. This approach eliminates the single point of failure risk, involved with asset custody and signatures, thus removing the vulnerabilities and friction associated with using private keys and dependence on vendors who offer proprietary closed-box solutions.
2. Tackling centralization issues in access records and reconciliation
MPC-based custody solutions may still encounter centralization issues concerning key and asset governance. QredoChain is a purpose-built Tendermint application that enables users to supervise and control actions through network consensus. This approach guarantees secure state transitions and MPC signatures, effectively addressing the centralization of authorization for MPC. This also ensures that in-custody managed collateral is always 100% collateralized by Layer 1 deposits.
3. Delivering an enterprise-grade self-custody user experience
Qredo Protocol empowers users to create permission-based access to digital assets. This allows for simple use cases, such as enabling users to apply familiar user permissions (role-based access) and organize assets into hierarchical asset management structures (Portfolios). This also opens up advanced use cases such as defining transaction rules governing digital assets (Policies), e.g., manual approval groups (Approvers), transaction limits (Whitelists), and complicated automated approval flows to support trade automation. Additionally, Qredo offers a range of recovery mechanisms to cater to diverse custody requirements.
Learn more in our technical papers.