Didn't catch the Crypto Daku Robinhooders AMA with Qredo's Anthony Foy and Josh Goodbody on August 13th? Here's our pick of the ten best questions. Big thank you to everyone who attended!
(NOTE - For clarity, we've corrected any small typos in original Q&A below).
Q1. Where does the "QREDO" name come from? (Question from Akira)
AF: I’ll start with the easy one: Qredo stands for Quantum Resistant Encryption Decryption Operations. It is geeky but fits our project.
Q2. What motivated you to start this project? (Helen)
AF: Fundamentally, we were inspired by the promise of creating a new financial system that would not benefit the few but allow for broad participation and access to opportunity to many. We recognised that to allow real money to enter the market we needed to solve fundamental problems around crypto security and performance. By solving this for institutions, we could provide greater opportunity to all users. An institutional solution available to all participants.
Q3. Can you list 3 killer features of your project that make it ahead of competitors? What are the competitive advantages that you feel most confident about?? (Jayla)
JG: Yes, Jayla!
1. Cross-chain with native cross-chain atomic swaps.
2. Making MPC-based security accessible to everyone.
3. A Layer 2 that is compatible with almost all Layer 1 blockchains.
Q4. Can you explain the meaning of crosschain liquidity and settlement? And how can that benefit the user? (Guddu)
JG: Cross-chain liquidity is the ability to make trades between two separate Layer 1 assets that settle instantly.
No wrapping, or pegging of assets — a pure, simple BTC to ETH swap (for example).
You can do this directly from within your self-custodial wallet, without having to move assets onto an exchange or anything else.
Q5. I learnt that there is no need for private keys when we use the Qredo Wallet. If a private key becomes compromised due to a fault in MPC nodes, do you cover that loss? Are there any insurance providers with you to provide financial support in that kind of situation? (Amina Peter)
JG: This is the beauty of our MPC deployment, versus the existing providers in the market who are centralised.
Our MPC nodes are on a consensus-based trustless network, operating across six data centres.
Regarding insurance, yes we have GBP 10m coverage, and are looking to scale that over time!
Q6. A major problem for DeFi is liquidity. Is there a solution for this that you would like to share? (Frank)
JG: This is spot on.
One of the reasons for this is because it is really hard for institutions to get access to DeFi with the right infrastructure/platforms...
They cannot and will not use self-custody wallets built for retail — and that's what we've fixed.
This, combined with our investor base, is a great cocktail for deep liquidity on the Qredo Network.
Q7. Do you have any audit report and how safe is your smart contract from bugs? (Bella Rosary)
AF: NCC has audited the cryptographic libraries. QuantStamp our smart contracts. We have a large audit underway of our L2 chain. We are at our core a security company and take audits very seriously. It is a constant and ongoing operating priority of the company.
Q8. Binance Smart Chain provides low fees, fast transaction speeds, reliable and easy-to-use services. Do you have any plan migrate BSC or others chains? (Liu Yifei)
AF: BSC, Polkadot, Solana, Algorand and Cardano are all on our list for Layer 1s to be supported this year.
Q9. Almost every investor holds the token for the short-term without understanding the long-term value. So, how can you ensure for us that holding this token is more beneficial for long-term and what is your plan to increase the demand and scarcity of the token? (Bull)
JG: Unlike Layer 1 tokens that only reward validators for securing the network, QRDO is tailor-made for a Layer 2 solution and designed to reward all Network participants.
Qredo has created a user-centric tokenomics model that rewards network activity through multiple innovative incentive structures. Check it out here:
AF: We have designed our token to incentivise usage. Users of the network benefit from rebates in QRDO. We believe this will drive not only further participation but also allow users to profit from the appreciation of the token and yield.
Q10. It is stated that in Qredo V1, that all MPC nodes are controlled by the Qredo team, and that this control will be gradually relinquished to the community in a secure step-by-step process. With work on V2 already in progress, how do you intend to transfer total control of all nodes to the community, what will be the procedures and processes, what will be the requirements for community members who intend to own nodes in Qredo, and when do you intend to begin this transfer of nodes? (Foisal)
AF: We are moving carefully towards our version 2.0 to ensure we have covered all the potential security and performance risk. Decentralisation is the best answer but is also the highest order of software operation and complexity. Our approach is to move thoughtfully from our current centralised approach to a federated approached then ultimately to full decentralisation in 2022. At this point, all control will be in the hands of the community.