GAINS Associates
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GAINS Associates

Qredo — Telegram AMA — August 13

On Friday, August 27, we had the pleasure to welcome to our Telegram chat:

Anthony Foy, CEO, and
Josh Goodbody, COO.

We asked them questions about the development of Qredo.

Some sentences have been slightly edited for readability but the meaning has been conserved.

Summary

Qredo is a radical new blockchain infrastructure that delivers interoperability, lightning-fast settlement, and decentralized custody. Qredo is transforming the way investors (individual and institutional) can hold and get the most from their digital assets.

As of July 2021, Qredo has raised $65M. Many of Qredo’s investors recognize the distinct role that Qredo plays in bridging the gap between DeFi and TradFi, bringing institutional investors closer to the digital asset ecosystem.

Qredo replaces centralized private keys with a computational process where separate nodes collaborate to sign transactions, allowing multiple parties to make calculations using their combined data, without revealing their individual input. This is known as multi-party computation (MPC).

Introduction

Q — Ayeley from GAINS: What did you do before crypto and did you have any other previous venture in crypto? What is your role at Qredo?

A — Anthony from Qredo: I am Anthony Foy, CEO, and co-founder. This is my 5th start-up. My entire career has been partnering with leading CTO’s to scale and build successful organizations. I was in the data centre business 2010–2011 and several early miners started to show up contracting space and power in our data centres across Europe. I was fascinated by these early pioneers, some of who did exceptionally well and opened the door to crypto for me.

I Co-Founded Qredo in 2018 with our CTO, Brian Spector. We are currently a 75 people strong team. We are in an aggressive hiring mode and we are looking to increase our headcount to 150 by the end of the year.

A — Josh from Qredo: I’m Josh Goodbody, the COO here at Qredo. I’m a derivatives lawyer by background and was previously leading Europe for Binance, and before that, I was the General Counsel for Huobi’s international business.

I’ve been a commodities and derivatives lawyer and through 2016 and 2017 all things blockchain and Bitcoin were blowing up — I dived down the rabbit hole and never looked back.

I’ve been an advisor to Qredo since 2020, I have overseen the process of realizing Qredo’s vision of decentralized custody. Now as COO, I am in charge of implementing its go-to-market strategy and the push towards complete decentralization.

About Qredo

Q — Ayeley from GAINS: What is the project about in a few simple sentences? And for how long have you been working on Qredo? How many people are on the team?

A — Anthony from Qredo: In a nutshell, we are transforming the way that investors (both individual and institutional) can hold and get the most from their digital assets. Our unique implementation of something called Multi-Party Computation (MPC) is a new paradigm in digital asset security — eliminating the risk of private keys and vulnerable centralized storage solutions. But MPC also mitigates a number of the existing security issues in the space, which unlocks secure cross-chain activity — allowing Qredo Network to really open up the potential of the blockchain and its rich ecosystem for everyone.

Q — Telegram user Femi Oyinloye: I have never heard of the word Qredo before. Where did you derive this name from, what does it mean and why did you decide to name your project Qredo?

A — Josh from Qredo: Qredo stands for Quantum Resistant Encryption Decryption Operations.

Q — Twitter user @jchika46: How was the idea to create this project born? What do you want to achieve? What are your expectations?

A — Anthony from Qredo: Back in 2018, my co-founder Brian Spector presented this idea that the fragmentation and siloes we see in blockchain are caused — at the root — by the need to manage private keys. He convinced me that we had to decentralize the management of these private keys, otherwise the growth and potential of crypto would be limited.

This insight really set the path and, after 18 months of working in stealth mode, Brian and his team landed on the concept that is now at the heart of Qredo — i.e. a decentralized, Layer 2, consensus-driven MPC network that eliminates the need for private keys to manage digital asset ownership rights.

While we were working on this, we realized that we had also unlocked an opportunity to transform the way crypto assets are settled. This led us to build a protocol that offers true cross-chain settlement and interoperability.

Q — Telegram user Poker: Qredo looks like a very interesting network where Dapps developers can use to build, but do you offer any particular SDK or API to help these developers?

A — Josh from Qredo: We do — everything we do will be open source, and we have a suite of APIs and SDKs that will let people build their own front-end web apps utilizing the Qredo Network

Q — Telegram user 🙋🏻‍♂️ Kevin | NEW HIGH 📊: I was really struck by the slogan #TheNetworkIsTheVault, it sounds really interesting, but I’m not sure I fully understand the idea. Could you explain in a simple way how this phrase represents the idea of Qredo?

A — Josh from Qredo: On Qredo Network, shares of the private key controlling digital assets are contained in the MPC nodes. Together, the nodes generate a digital signature to sign transactions without ever producing a private key. The MPC nodes are distributed between security-hardened Tier 4 data centres distributed across global financial hubs and controlled by the Qredochain. The Qredochain is a Layer 2 network that provides an immutable registry of assets and activity. Each custodial operation — each transaction, each signature, and each change to wallet custodial policies — is mined into the blockchain. In this way, the network becomes the vault.

Q — Telegram user iGervacio: I was struck by something you said “Using MPC allows us to generate Layer 1 blockchain addresses and Layer 1 signed transactions WITHOUT there being a single private key (single point of compromise).’’ How can this be achieved without using private keys?

A — Josh from Qredo: Multi-party computation (MPC) is a cryptographic tool that allows multiple parties to make calculations using their combined data, without revealing their individual input. Why is MPC such a breakthrough? MPC is a breakthrough because it allows one to not only conceal information (as with other forms of cryptography dating back to the Caesar Cipher) but to compute on that data without revealing it. In the context of digital assets, MPC can be used to replace individual private keys for the signing of transactions. MPC distributes the signing process between multiple computers. Each computer possesses a piece of private data representing a share of the key, and together they cooperate to sign transactions in a distributed way.

Q — Twitter user @KiyokoSumaru: Qredo is still in the process of execution, but once completed, how will the process to incorporate it into the cryptographic market be, or will it be owned exclusively by Qredo Network?

A — Josh from Qredo: So, we are strong believers in both the practical application and spirit of blockchain.

As a result of this — we are on a path that will see the Network becoming an independent and decentralized life form.

This journey to decentralization began with the launch of the QRDO token and will end with the network becoming completely owned and operated by the community through a Decentralized Autonomous Organization (DAO).

Q — Telegram user Am4 SF: Why does Qredo Network need to pass centralized, federated, and decentralized phases for their development?

A — Josh from Qredo: The more decentralized, the more robust the network — this is the highest degree of security we can attain!

Q — Telegram user Ampri: When you create a wallet called “Qredo Wallet” I see you mentioned you don’t need to use private keys. So to reassure investors, tell us have you completed the security audit? Maybe by a third party? as We have seen so many hacks, exploits & stuff like that this year, What actions have been taken to protect the community from it?

A — Josh from Qredo: We are at our core a security company and take audits very seriously. It is a constant and ongoing operating priority of the company. NCC Group has conducted a security assessment of the Apache Milagro MPC library, and Zokyo has pen-tested the web app and iOS app. Quantstamp has audited the token repository.

Q — Telegram user Elena Felicity: Can you explain what the MPC implementation features in Qredo are like? and what does it mean that Qredo is blockchain agnostic?

A — Josh from Qredo: Spot on. Most Layer 1s and Layer 2s can be supported and integrated!

Q — Telegram user kouba ba: You’ve just announced Liquidity Center in Beta and it’s in progress now. Can we get involved or How do we provide feedback for your Project?

A — Anthony from Qredo: Just open an account and start playing around. We would love your feedback:

Q — Telegram user James: Do you also have any user guide to guide newbies like me?

A — Josh from Qredo: You can check it out here

Token

Q — Ayeley from GAINS: What is the token use case and how does it capture the value of the ecosystem you’re building?

A — Josh from Qredo: Unlike Layer 1 tokens that only reward validators for securing the network, QRDO benefits from a tailor-made Layer 2 token model that is designed to reward ALL Network participants. We have built QRDO to be uniquely suited to a Layer 2 — to build the network effect!

Anyone participating in the network — from traders to corporate treasurers and liquidity providers — will be incentivized through two incentive structures: fee-based compensation and inflation-based compensation.

A — Anthony from Qredo: This combination of incentive mechanisms is designed to fuel an engine of rapid growth and adoption. Read all the details on our Token Paper and blog post introducing QRDO

Q — Telegram user Nico: The main advantage of Qredo is that it offers a new tokenomics model, which rewards ALL participants in the network. So, can you explain what are the main features of the $QRDO token? Is this new model really fair to the participants? How do ALL network participants benefit?

A — Josh from Qredo: Typically layer 1 blockchain token only incentivizes the validators. QRDO has been custom-built for layer 2 — to incentivize all network participants. Check it out.

Q — Telegram user Hello_C7: How can we buy the $QREDO Token?

A — Josh from Qredo: Check out this article.

Security

Q — Twitter user @PKragak: I was able to read that despite the benefits that MPC provides, it may also have counterparty risk. Could you give us more detail about this possible risk? Will it be a risk of operation or is it vulnerable to cyber-attacks?

A — Josh from Qredo: We operate a network of MPC nodes with onboard HSMs (Hardware Security Modules) used to secure their own key material. The nodes are in several tier 4 data centres spread across the world. The machines are not connected to the internet and instead share a secured network with our blockchain validators. They are built to destroy their secret material if an attempt to open their enclosures is made. Using MPC allows us to generate layer 1 blockchain addresses and layer 1 signed transactions WITHOUT there ever being a single private key (single point of compromise). Permission to use the MPC to sign withdrawal requests is controlled by the Qredo blockchain which is driven by our flexible m of n governance controls using either human users or bots who must sign their transaction requests using a BLS signing key which is only known to each individual.

A — Anthony from Qredo: It is a lot to take in. For those interested here is the White Paper.

Q — Twitter user @antonio50221026: Nowadays hackers are more present in the crypto space and the cases keep multiplying. So, can you explain how Qredo will ensure the security of users’ assets? Can you give more details on audits and other aspects of Qredo security?

A — Anthony from Qredo: We are at our core a security company and take audits very seriously. It is a constant and ongoing operating priority of the company. NCC Group has conducted a security assessment of the Apache Milagro MPC library, and Zokyo has pen-tested the web app and iOS app. Quantstamp has audited the token repository.

Assets on Qredo are also protected against adverse events, such as theft from Lloyds of London, underwritten by Sompo. Read more about our Seven Lines of defence here.

Financial

Q — Ayeley from GAINS: Did you raise funds so far? If so, how did you handle them? Are you planning to do any future raises?

A — Josh from Qredo: Yes — we’ve been busy with this! Our seed investment round raised over $11M and was led by a diverse group of investors including GSR, G1, Gumi Cryptos, Kronos Research, Maven 11, Spartan Group, 1kx, Wintermute, and Kenetic. We also have a great group of strategic investors that are building on the Network — including Celsius and Deribit.

A — Anthony from Qredo: Other big crypto names, including Coinbase Ventures and Nexo, invested in our private token sale which raised over $16M. On top of that, there is our loyal community: over 35,000 QRDO token holders that participated in our public token sale on Coinlist, which raised over $18M in under two hours. Overall we have raised over $50 Million and a Series A is the horizon.

Business Development

Q — Ayeley from GAINS: What stage is the project at? And what are your plans looking like?

A — Josh from Qredo: This year has obviously been a busy one in terms of Network development. After our fundraising efforts, we now have a base of amazing individual and institutional investors and a financial war chest that will help us accelerate the Qredo roadmap.

We made 3 big announcements this week: The one everyone already knows about 🙂 is that next week are listing on Kukoin and Gate.io

We’ve also just launched the open beta of our Liquidity Hub — a new peer-to-peer trading venue that I’d encourage you all to try. We’d love your feedback and input. Details here.

And you may have seen today the launch of our zero custody fees campaign — this is an exciting step for us as we’re seeing a lot of interest in what MPC can offer. Some details of that.

A — Anthony from Qredo: Longer term, we are on track with several important initiatives: We’re increasing the range of instruments that can be stored and traded on the Network — and have a busy pipeline of partner and venue integrations that will increase the range of cross-chain trading and yield activities.

Version 2.0 of the protocol will be released next year, it will bring a fully decentralized custody network with independent validators, market makers, and liquidity providers.

Watch out too for the launch of our encrypted Layer 3 network. This game-changer will enable secure communication between traders and the easy sharing of transaction data to meet compliance needs.

Q — Telegram user Juan Sandoval: On your website, I could see a roadmap with the “Milestones achieved”, but I saw that they ended in the second quarter of this year, which makes me wonder, what are the next milestones that you plan to achieve? Do you have another roadmap for the next few months or years?

A — Josh from Qredo: Yes!

Josh and Anthony, thanks for coming into our community, and taking the time to answer our questions. We enjoyed interacting with you today. Anything else you’d like to say? Where can we follow you to stay updated? — Ayeley Commodore-Mensah from GAINS Associates 🐋

Thank you everyone for your curiosity and interest in the Qredo project. We knew ahead of time that you’d been a strong crowd and you’ve proved us right! Thanks for the opportunity to speak with your community. — Anthony Foy from Qredo

We are so grateful for you hearing us out. Please join us on Telegram and Twitter — Josh Goodbody from Qredo

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