Qredo Unveils Its New Self-Custody Wallet

[She shining]

I came across a tweet talking about self custody of ones private key that's different from the conventional of writing ones private key at a secure location. The Platform boast of enabling users control their assets like a non custodial wallet but circumventing its flaw of private key misplacement or exposure( sad fact: nearly 4million Bitcoin have been lost forever, guess we can never get more than 17 million BTC in circulation).

private keys are distributed in shards across Qredo Network, which is why they say that at Qredo, the Network is the Vault.

I am inexperienced in all this so can't really understand if this can be possible having best of both world (custodial and non custodial).
Qredo overview: https:/[Suspicious link removed]/aJkmm1TStF
Twitter: https://twitter.com/QredoNetwork?s=20
what are our takes on this?

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[mocacinno]

I took a glance at their website... For me, it looks problematic... Flashy buttons, keywords that get repeated, links to big company's to gain trust.... Whilst keeping vague on how this wallet would work. Also, there seems to be a token with the same name, which is also something that always makes me frown...

Personally, i'm not a big fan of any wallet that would keep your keys anywhere but on your own device, and this one seems to do right that: keep your keys on a network?
Now, for me that's a red flag, but i guess there might be relatively ok ways to do this (for example, by using a strong encryption scheme and keeping the encryption key on your device only whilst backupping the encrypted private key(s) in a network... i would never trust this, and i wouldn't recommand anybody else to trust this setup either, but for some it might be ok.... DYOR), the thing is: they're not clear about how any of this works straight away. Maybe if you dig into their whitepapers???

Anyhow, i think there are plenty of trustworthy wallets out there... Why roll the dice with an unknown company that's going to save your keys in the cloud? We're talking about money here... Why would you use a company like this if there are plenty of trusted, good alternatives around... it wouldn't make sense to me...

[FatFork]

Self-custody refers to the practice of personally holding and managing your private keys, which are used to access and control your funds. By entrusting your private keys to someone else, such as a custodial service or third-party provider, you are effectively giving up control and relying on them to safeguard your assets. It's safe to say that it's no longer a self-custody wallet. Plain and simple.

[rat03gopoh]

They claim to be a self custody wallet with 2 main features^[1].

Qredo's on-chain custody stores private keys using dMPC and our powerful policy engine

I don't know much what dMPC is but the second one got me thinking about how they enforce policies on their security engine (which I thought sounded a bit centralized). Then I found this^[2],

*Note that the Algorand, Cardano, and Solana networks require any type of wallets with one of these assets to have a minimum balance and a minimum withdrawal amount of the asset in question. For example, you’ll have to leave 0.1 ALGO in each Algorand wallet on Qredo when withdrawing outside of Qredo. Additionally, the minimum withdrawal amount for Algorand is 0.1 ALGO, excluding GAS and other fees. This doesn't apply to Transfers and Atomic Swaps within the Qredo Wallet.

Decentralization works

1. https://www.qredo.com/web3-wallets
2. https://support.qredo.com/introduction/supported-assets

[Yamane_Keto]

I am surprised at the difficulty of taking responsibility for writing 12 words and keeping them, as many platforms invest in such services.
As I stated previously, Ledger Wallet has not moved towards *encryption* cloud services. There is a demand from users for such services. They fear for their money, and these companies embellish some technical terms to suggest to the user that his money is safe and that he can access it at all times.

@She shining These services have found a market and are trying to exploit it. All of these services are fraud and at some point a hacker can access your money. If you are not willing to manage your private keys, it is better to use banking services. At least your money is guaranteed and here no one guarantees you. .

[joniboini]

The Platform boast of enabling users control their assets like a non custodial wallet but circumventing its flaw of private key misplacement or exposure( sad fact: nearly 4million Bitcoin have been lost forever, guess we can never get more than 17 million BTC in circulation).

People can prevent those kinds of things. It is not like you'll eventually lose your Bitcoin as time goes. I believe there are tons of people who share guides here and there about private key/seeds backup, there are even products dedicated to helping you print your seed offline and so on. I tried checking their website and it seems like you need to register an account to access their "Vault" feature. Unless I'm missing something, I doubt that can be called self-custody. Heck, I won't be surprised if they can simply block accounts if they want to. It seems like they mislead people by using marketing terms. What they refer to as "self-custody" is basically customization. CMIIW.

[pooya87]

sad fact: nearly 4million Bitcoin have been lost forever, guess we can never get more than 17 million BTC in circulation

This is not a fact, this is a speculation and even if it were true or even if 20 million out of 21 million were lost it still doesn't justify taking any step back from having full 100% control over private keys that are  generated on a 100% airgap system and never letting anything about them leave your machine.

[She shining]

This is not a fact, this is a speculation and even if it were true

oh wrong use of words.Thanks.

@Fatfork and mocacinno, Thanks for insight. I was also feeling skeptical about their claims so had to post it here to hear from the experience of the board. About the question on why won't I want to control 100% of my private key. I lost my private key of a wallet in 2021 last year due to renovations on my parents home . This made me cautious and felt keeping the current one in my e-mail was safe from loss (prior to entering the forum I never knew that keeping ones private key in emails was not safe) have moved it to a safer place(s)but there's this element of doubt if it is really safe.

@She shining These services have found a market and are trying to exploit it. All of these services are fraud and at some point a hacker can access your money. If you are not willing to manage your private keys, it is better to use banking services. At least your money is guaranteed and here no one guarantees you. .

Noted I guess? But Money kept on banks are affected negatively by inflation.

[FatFork]

I lost my private key of a wallet in 2021 last year due to renovations on my parents home .

This can be easily avoided by keeping multiple copies of the private key in different locations.

This made me cautious and felt keeping the current one in my e-mail was safe from loss (prior to entering the forum I never knew that keeping ones private key in emails was not safe)

You're totally right! It's definitely not safe at all. Don't ever store anything valuable in the cloud, like your emails, cloud storage, or online databases. You never know who else might have access to that stuff besides you.

have moved it to a safer place(s)but there's this element of doubt if it is really safe.

It's actually a good thing to have a bit of doubt about the safety of your valuable information. It keeps you on your toes and encourages you to take necessary precautions and be mindful of potential risks.

[Yamane_Keto]

why won't I want to control 100% of my private key. I lost my private key of a wallet in 2021 last year due to renovations on my parents home . This made me cautious and felt keeping the current one in my e-mail was safe from loss

You can buy some Metal Seed Storage with HW wallet and thus ensure that it will not be lost against shocks, burns, ... etc. a good review can be founded here https://jlopp.github.io/metal-bitcoin-storage-reviews/ and distribute more than one copy in places you trust, thus ensuring that you will not lose it.

If you are afraid that someone will discover it, then use the passphrase option, which is an option that enables you to create several accounts (standard wallet and hidden wallet) for the same wallet seed, so that the standard account does not contain bitcoins or a small amount, and the other contains your bitcoins, you can keep passphrase in a separate place.

learn more here https://trezor.io/learn/a/standard-hidden-wallets