Preselected questions about the Qredo DeFi project.

Luis merino 🇪🇸 | Satoshi Club:

Q1 from telegram user @dk177

You have mentioned that there is no need for private keys when we use the Qredo wallet. It will be convenient. However, there is a saying, “not your keys; not your coins”. When multiparty computation nodes generate private keys, don’t we have the risk of accessing our private keys by a third party? What kind of mechanism do you use to prevent this threat? Generally, it is our fault if we loose our private key. When using Qredo wallet, do you take that responsibility? 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?

Easy one to start with 😉

Josh:

Woooah, good question.  @Brianspector you got this 👆

Brian spector:

I got this. Ok, MPC does not ever store a private key, that’s the thing people don’t understand right away. The reason MPC is such a breakthrough is because, for the first time ever, there is another way, completely different, to generate a signature on a transaction, or generate a public key that will verify that signature. Prior to MPC the only way to do this was to create a private key. Now there is a different way. Decentralized computers do a network protocol, throw some big primes at each other, and if they all are given the same thing to sign, they will all output the same signature. No private key ever exists. Crazy, but it’s true.

The risk is that all of those nodes engaging in the MPC protocol, if they got hacked, they could potentially move the money out of your wallet. But we also run those nodes in secure enclaves. So, the whole vm is encrypted, including the memory, with a key that is inside a secure element. If a hacker tried to get the secure element open, which they can only do if they have physical access, the key blows up, like mission impossible. That’s what we have built.

Yea man, it’s high tech.

Luis merino 🇪🇸 | Satoshi Club:

No private key 🤯 Mind-blowing

Brian spector:

Hope that answered your question.

Luis merino 🇪🇸 | Satoshi Club:

So, it’s impossible to access users funds?

Brian spector:

Oh yea, I forgot. I created the meaning behind Qredo.

Luis merino 🇪🇸 | Satoshi Club:

I’m not a dev and nothing similar, so I need simple explanations 😂😂

Josh:

The magic of MPC means no one, but you, has access to your funds within the Qredo network

Brian spector:

Nothing is impossible. But it’s the best security that the current state of technology can deliver. There are no known theoretical or practical attacks that exists against this architecture. That are known. Put simply, it’s a shit ton safe than trusting your funds to some centralized custodian. Why?

Luis merino 🇪🇸 | Satoshi Club:

Got it

Brian spector:

Because a centralized custodian, even if they are using MPC, has all your ownership information in a database. Guess what? I don’t need to hack their MPC network, I can just hack their database. It’s total snake oil. I hate it when vendors do this.

https://www.Qredo.com/blog/Qredos-consensus-driven-MPC

Luis merino 🇪🇸 | Satoshi Club:

Nothing is impossible. Let’s say, almost impossible. Impossible with our current knowledges about technology? 🤔😂

Brian spector:

Some good articles.

Luis merino 🇪🇸 | Satoshi Club:

Satoshi Club… Go and check this article.

Brian spector:

It’s the best security you can get, bar none. I can’t say it’s impossible because there might be zero days that I don’t know about. But those are very very remote odds.

Josh:

This is why our slogan is “the network is the vault”

Brian spector:

Hell yea. It’s an obvious idea actually I don’t know why no one did this before.

I think maybe it’s the combo of things we put together. It’s an MPC network that uses a blockchain as its oracle. To me that was obvious. But it had not been done before. The other thing is a layer 3 coms channel over a layer 2. Obvious to me, but hey, i’m weird.

Luis merino 🇪🇸 | Satoshi Club:

If anyone did this before, probably you wouldn’t attend to this ama, so let’s thank god 😂👏 Okay… Ready for the next question? Or do you want to add anything else?

Josh:

Keep ‘em coming!

Luis merino 🇪🇸 | Satoshi Club:

Let’s goo! 🚀

Q2 from telegram user @jonahapagu

It is stated that in Qredo v1, 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.

Brian spector:

Oh man, that’s a lot. So, we intend to get test net rolling at the end of the year. Note: Qredo is still going to run some nodes, but not all of them! We’re coding up the v2 protocol right now. But it’s got some groundbreaking things in it around economic security which I can’t talk about yet or marketing dept will shank me.

Josh:

In the second half of 2021, Qredo will move

Into a federated model, under its version 2 protocol testnet, where a curated set of third-party validators will start operating validator nodes.

On completion of this phase in early 2022, the number of third-party validators will increase towards a fully decentralized model, assuming all

Operational tests and security review findings are low to informational.

Brian spector:

Once our economic security paper comes out, which I’m like 3 months late on, probably won’t get my bonus, anyway, you guys don’t care about that, what I meant to say is that is all covered in the economic security white paper I am still drafting and now needs to be surgically removed.

Luis merino 🇪🇸 | Satoshi Club:

Looking forward to those news 😏

Brian spector:

A lot of the capability is covered in out white paper though.

Luis merino 🇪🇸 | Satoshi Club:

That’s huge, josh:! 👏💪

Josh:

Yeah, a big milestone for us! We see decentralization as the highest bar of security that can be achieved.

So, in recap, the requirements for validators will be made public soon!

Luis merino 🇪🇸 | Satoshi Club:

We have another question somehow related to this one… So let’s jump into the next one so that we don’t cover it, okay? 😀

Josh:

Sure!  The big brains are in the house today!

Luis merino 🇪🇸 | Satoshi Club:

Protection… That message wasn’t offensive 😭😂

Q3 from telegram user @xperia3

As I read in your medium article, there are 7 lines of defense for the security of Qredo. However, I recognized in the 4th line “global node distribution”, Qredo nodes are distributed among 6 different cities (New York, Chicago, London, Hong Kong, Singapore, and Tokyo) around the world. What was the reason of choosing specifically these cities? Do you plan to extend this number in the future or is this secure enough?

Josh:

This is our current decentralized footprint. But – the decentralization never stops!

As you might know, these locations are centers for world class technology infrastructure, such as data centers, so tapping into this is a natural fit for us

Brian spector:

Ok peeps, come on. I’ve got 15 minutes left. Let’s get freaky.