Qredo Research Paper

Nguyễn Minh Hoàng

July 26, 2021

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QREDO
Project industry: Blockchain Infrastructure
Product type: DeFi

“What is Qredo?

Qredo is the name of the company behind the Qredo Protocol - the Cross Chain
Liquidity Protocol.

Qredo utilizes deep applied research expertise in cryptography and blockchain

technologies to solve many of the problems associated with capital markets
entering the world of decentralized finance.”

Accord the company itself

- Qredo was founded as a new blockchain venture by Anthony Foy and Brian
Spector in 2018
- Qredo Ltd is an international company registered in the British Virgin Islands,
with two regional offices in London and Sofia, and employees scattered
across the globe.
- Qredo is a radical new blockchain infrastructure that delivers interoperability,
lightning-fast settlement, and decentralized custody.

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Table of contents

1. Overall 4
2. Network and architechture 5
3. Technology 6
4. Leadership team, Partners & Backers 8
5. Competitor 11
6. Token metric 12
7. Road map 17
8. Sum up 18
9. References 20

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 1. Overall

Cryptocurrencies now use a randomly created private key for security.

However, when it’s hacked, stolen, or just be lost. It will be gone forever, and
there’s no way to take it back. So many investigators lost a lot of their assets just
because the private key is gone.

Swap cost, slippage in cross-chain are also significant problems in DeFi.

So Qredo Network’s Contributors said, “Qredo changes all of that”

Qredo is a pioneer in using multi-party computation (MPC) custodial

network, which will eliminate the centralized private key to custody assets, and it’s
called decentralized custody. There are also native cross-chain swaps, cross-
platform liquidity access.

About Qredo video: www.youtube.com/watch?v=3HQ5DTPVix4

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2. Network and architechture

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 3. Technology

- Fast Finality Blockchain: Qredo’s Layer 2 records asset ownership across

different layer 1 blockchains and within the liquidity network. It’s tuned to
handle thousands of transactions per second.
- Consensus MPC Network: Consensus mechanism, assets defender,
eliminate the risk of being hacked. Increase security in trading and access
to DeFi smart contract.
- Encrypted Messaging: Encrypted, decentralized messaging network on
layer 3 enables user issue RFQ, pre-trade negotiation safely.
- Client and Partner API: provide API for Qredo’s market participants,
partners so they can develop their applications that integrate with Qredo
network.

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4. Leadership Team, Partners & Backers

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 The leadership is a team with many experienced people and got some
achievements in their fields.

- CEO Anthony Foy, Many years experience in being CEO and board director.
He was the one who increased the company's productivity and built its
revenue to more than $350 million and another more than $100 million. He
also managed to sell a company to a larger competitor.
- CPTO Brian Spector, he tried to sell his company to get into blockchain when
bitcoin grew up.
- COO Josh Goodbody, he scaled up Binance and Huobi, 2 largest
cryptocurrency exchanges. Maybe he will contribute to the development of
qredo.

We have to wait for what this team with these seasoned people can do, can
they make it happen?

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 - Coinbase: The largest exchange in the USA, listed on Nasdaq with a market
cap value is $47B.
- Deribit: a famous derivatives exchange in the market.
- Celsius: Top 7 Exnetwork Capital Portfolio by Market Cap on Coinmarketcap.

Coinlist ICO projects all have one thing in common: Prominent backers

Spartan Group is an investment fund organization for blockchain projects.

Some projects that they invested in are Polkadot, MarkerDAO, The Graph, etc.
These projects have a considerable market cap.

Audited, Verified & Insured

- Security Audited: QUANTSTAMP, TRAIL OF BITS, NCC GROUP

- Tested: ZOKYO
- Insured: LLOYD’S, SOMPO

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 5. Competitor

Source: Coin98 Analytics

Polygon (formerly Matic Network) is Ethereum layer 2 and cares about

transaction speed, transaction fee, security.

Polygon is an Ethereum layer 2 scaling solution that has the largest market
cap ($6.2B), number of projects participating in their ecosystem.

Although they are 2 projects with the same purpose but different
implementation and application technology. Qredo was released later, but with a
pioneering role in MPC use, Qredo is said to be "Radical New Infrastructure". They
can completely get a foothold in the market and compete with each other for more
users.

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 6. Token metric

Token name: Qredo

Ticker: QRDO
Blockchain: Qredo Blockchain
QRDO is a utility and governance for Qredo Network.

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The total number of tokens is hard capped at two billion.

- The public sale is hard to precisely at 4% because of some problems when

ICO on coinlist.co.
- The percentage of tokens owned by investors overwhelm community
- Treasury/ Reverse has a 3.784% proportion. This is the number of tokens
they reserve for arising purposes, but I haven’t seen any project that has this
distribution. This might be a proof that they distribute carefully and foresight
or any other purpose?
- The pre-seed round by mid 2019 has raised £2.3m ~ $2,7M, has a 13% of
1B tokens, equivalent to 1 token about $0,0207
- The seed round in May has raised $11M, has a 21.3% proportion, equivalent
to 1 token is $0.05164.
- The private sale in June has raised $16M, has a 7.216% proportion,
equivalent to 1 token is $0.2217.

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- The public sale in July has raised $18.1M, has a 4% proportion, equivalent
to 1 token is $0.4525.
- So, the project has the initial market value is about $47.8M.
- When the investors of the public sale option 1 get their tokens. Those will be
the first tokens on the market. The initial market cap is $15,000,000

Qredo Moonsheet

Initial Circulating Supply Initial Market Cap Initial Price

30,000,000 $15,000,000 $0.5

ROI Price Marketcap Same Market Cap

x1 $0.50 $ 15,000,000
x10 $5.00 $150,000,000 ZKSwap (ZKS)
x20 $10.00 $300,000,000 Loopring (LRC), Skale (SKL)
x30 $17.50 $525,000,000
x40 $20.00 $600,000,000
x50 $25.00 $750,000,000 OMG Network (OMG)
x100 $50.00 $1,500,000,000
x400 $200.00 $6,000,000,000 Polygon (MATIC)

Those mentioned projects in the table are Top 5 Ethereum Layer 2 Projects

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 The first 1 billion tokens will be allocated according to the below timelines.

Another billion tokens are set aside for when Version 2 of the protocol goes
live, and will be given to ecosystem participants.

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 You can see the initial validators are not vested in any tokens. In the
beginning, all the validators, watchers, MPC are Qredo’s. Then at H2 of 2021,
when their ecosystem works, users join the ecosystem and become validators, the
number of third party validators will increase toward a fully decentralized.

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7. Roadmap

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 8. Sum up

Qredo is considered a large project by attracted significant investment funds

and partners such as Spartan Group, Coinbase, Deribit, etc. Qredo is the first layer
2 project to use MPC technology, a completely new technology to sign transactions
and secure them by generating public keys, solving the billion dollar problem.

With a seasoned Leadership team and their strategic vision, we can be

optimistic about a future that they lead qredo incredible growth. Build an ecosystem
that provides all financial services. Support their partners create apps based on
Qredo’s platform.

However, Qredo has great potential to become a significant platform in the

market, but the project is still in the early stages of running, MainNet is still version
1, 6 validator nodes all belong to qredo and are centralized. Especially at the
moment, the token is not listed, the initial Market Cap is only 15M. So we need to
wait for the token released and their strategy on the next phase of the Roadmap.

Rating (Personal Opinion)

Technology: 4/5
“Radical new infrastructure”, pioneer in developing the MPC custodial network,
this is their Unique Selling Point. However, it is difficult to evaluate the
effectiveness

Leadership team, partners, backers: 4/5

Seasoned leaders, some quality partners, backers

Token metric: 2.5/5

The number of tokens are holding by investment funds is large, which can greatly
affect the market cap when their all tokens are unlocked. Honest in matters of
validators

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Community: 2.5/5
Their community is quite small, 9200 followers on twitter and 7300 members on
Telegram
Rating Average: 3.25/5
Worthy a small amount of your venture capital

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 9. References

A Deep Dive into Qredo: Radical New Infrastructure for Digital Asset Ownership
blog.coinlist.co/a-deep-dive-into-qredo/

Qredo lite paper

qredo.com/qredo-litepaper

Qredo overview
support.qredo.com/docs/Qredo-overview

Qredo token paper

qredo.com/qredo-token-paper

Qredo introduction
coinlist.co/qredo

The Network Is the Vault: Why Decentralized Custody Is the Future

qredo.com/blog/decentralized-custody-for-decentralized-
assets?hsCtaTracking=1a7c9a28-5687-4f19-b58f-
ac14af9694f3%7Cd9d04a79-2a39-4520-94d2-4f1c54261b60

Around the network in 80 questions

qredo.com/new-blog/qredo-
faq?utm_source=twitter&utm_medium=organic&utm_campaign_type=corp
orate&utm_campaign=tweeting&utm_content=faq&utm_content_type=text
#tech

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Anthony Foy
topionetworks.com/people/anthony-foy-5719e24c2453d6b4e0000000

Deep Dive #8 | Qredo | Radical new infrastructure

cryptodaily.io/deep-dive-qredo/

Layer 2 won’t save Ethereum

medium.com/coinmonks/layer-2-wont-save-ethereum-a52aa2bd719b

Fund raising spotlight #13 |

coin98.net/fundraising-spotlight-13

Qredo Raises $35 Million in Token Sale as Demand for Cross-Chain Infrastructure
Grows
qredo.com/blog/crypto-infrastructure-token-sale-success

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