Published Jan 10, 2022
By Qredo Team
5 ways families and friends can benefit from Qredo governance
Qredo enables hedge funds, banks, and corporates to overcome the operational challenges and business risks of digital assets with institution-grade security and granular governance.
Yet equally, the same tools can be configured for any groups of people — from families and friends to freelancers and investment clubs.
Read on to join the world's most famous cryptographic couple — Alice and Bob — as they demonstrate five ways that Qredo's organizational accounts can benefit anyone managing digital assets.
1. Joint digital asset accounts 💑
Fortunes worth millions of dollars have been lost due to digital asset holders not planning for the worst case scenario. As the infamous case of QuadrigaCX illustrated, sudden death can leave loved ones of crypto holders unable to access their wealth.
To collaboratively control their cash and ensure they retain access if one of them gets hit by a bus, our crypto-loving couple Alice and Bob might set up a joint digital asset account.
One way of doing so would be sharing the private key that denotes ownership. But this would be a bad idea: Sharing a single private key would allow either Bob or Alice to run off with the digital assets if the relationship turned sour, and replicating the private key to have two copies increases the likelihood that it could be stolen — just as a burglar might break in and steal gold coins.
On Qredo, Alice and Bob can take joint control over their digital assets without sacrificing security. This could be achieved by setting up a crypto wallet with a simple signing scheme where the signature of either spouse can authorize transactions (1 of 2).
2. Crypto accounts for children 👪
If Alice and Bob had a baby called Charlie, they might want to set up an account for their child to teach him how to be a master hodler.
One way of doing this would be setting up a standard crypto wallet for little Charlie, giving him the password, and depositing some crypto. But what happens when he inevitably forgets his password, feeds his seed phrase to Rover, or sends his coins to a friendly scammer?
The blockchain has no forgotten password or transaction dispute button. So there is no way to recover the assets.
On Qredo, Alice and Bob could create a shared crypto wallet for Charlie that requires two members of the family to approve a transaction (2 of 3). This means Charlie would need the approval of one of his parents to spend the bitcoin. (And if he loses his password and feeds the master seed to the dog, he can still be readded to the fund).
3. Investment clubs and shared accounts 🧑🏿🤝🧑🏽🧑🏾🤝🧑
When Bob wants a vacation, he might decide to pool digital assets with his buddies to pay for a shared getaway.
Alternatively, he might decide to start an investment club in which he and his friends share control over a single portfolio.
Either scenario could be accommodated with a Qredo Wallet, which would allow all of the group to contribute funds while minimizing the risk of collusion between any members.
For example, Bob could set up a crypto wallet that requires 3 approvers between 6 friends (3 of 6). If one person drops out of the trip, or the membership of the investment group changes, then the account could be altered to change the approvers without needing to send the entire balance to a new account.
4. Business and personal accounts 🧑💼💼👛
Aside from her investments, Alice might also receive digital assets as payment. This could mean she needs to maintain distinct pools of assets — each under the control of a different legal entity and with their own distinct tax requirements.
On Qredo, Alice could consolidate all of her crypto subaccounts into one Qredo Wallet for easy management from a single dashboard. Then when tax time rolls around, she can instantly export the individual records to keep her books in order (export function coming soon!), or assign view permissions to give her accountant instant access.
5. DAO Treasury management 🌐👨👨👧👦
If Alice formed a decentralized autonomous organization (DAO), she would need a tool for managing the shared custody of funds between members.
On Qredo, Alice could set up a treasury contract guarded by a multisig in which any transaction must be approved by at least 4 of 7 total signers (4 of 7). Plus, assets held in the fund could then be securely traded across centralized exchanges on Qredo Network and easily deployed in DeFi — giving the DAO the ability to easily diversify it's holdings and allocate assets to investments and yield-earning opportunities.
Qredo vs Multisig
Qredo offers multiple advantages over traditional onchain multisignature schemes:
Flexible governance changes
Unlike onchain multisig, Qredo organizational accounts can be adjusted on the go. So if the group membership changes, new approvers can be added and the size of the quorum can be altered without needing to send the entire balance to a new account.
Setting up multisignature schemes with third party providers can mean paying expensive subscription fees, and each onchain transaction costs even more than usual because of the additional complexity. Qredo offers zero fee custody, allowing even complex governance schemes to be set up and executed at no cost.
Multi asset support
Most multisig schemes only support assets on one blockchain, while Qredo's crosschain MPC supports assets across multiple chains.
Multisig solutions only permit basic approval schemes with a limited number of participants. Qredo organization accounts allow an infinite number of transaction approvers to be assigned, in addition to other roles with different permission levels.
|Qredo vs Multisig||Multisig||Qredo|
|Multiple asset support||❌||✅|
|Multiple permission levels||❌||✅|
|Changes to governance||❌||✅|