Recently, according to the official announcement, Qredo has announced a name change to Open Custody Protocol (OPEN).

It is understood that since 2023, Qredo has undergone two large-scale layoffs, reducing the total number of employees from 200 to 50. Especially on November 2, 2023, the company once again cut 50% of its employees. This series of layoffs seems to have reduced public confidence in Qredo. However, the announcement of Qredo's name change may represent not only a reshaping of the brand image, but also a fundamental shift in the company's strategy.

The following provides a detailed interpretation of the renaming event.

The renaming implies an upgrade in the technical roadmap and a more precise solution to market pain points

The new name reflects the company's strategic move towards open and decentralized custody solutions, aiming to provide a wider range of services through innovative technology. This transformation may signal a new beginning for Qredo, indicating its repositioning in the future cryptocurrency market.

In addition, OPEN's new strategy focuses on using its second-layer protocol and multi-party computation (MPC) technology to optimize the security and liquidity of encrypted assets. Through these technologies, OPEN aims to eliminate pain points in traditional crypto custody, such as high dependency and security risks, in order to provide stable and reliable services to customers in a volatile market environment. These measures demonstrate OPEN's rapid response to market demand and commitment to innovation, potentially sparking a new wave in the crypto custody field.

As the crypto market continues to evolve, solving the problem of on-chain asset custody becomes increasingly crucial, and the innovative solutions in decentralized custody offered by the OPEN Custody Protocol (formerly Qredo) are gradually reshaping the future of crypto asset management. The core advantage of the OPEN protocol lies in its unique second-layer blockchain technology and MPC technology, which not only address the centralization risks in traditional custody services but also greatly enhance the flexibility and security of asset management.

By enabling instant transaction processing and providing a one-stop asset management dashboard, OPEN allows enterprises to quickly respond to dynamic market changes. In addition, its seamless integration with enterprise financial systems and natural adaptation to various international compliance requirements signify the practicality and forward-looking nature of the OPEN protocol in the global financial market.

However, despite OPEN's innovative breakthroughs in the crypto custody field, the interoperability issue across the entire blockchain industry remains a challenge. Cross-chain and multi-chain communication problems need to be addressed through continuous technological iteration and innovation. In this regard, the future development of the OPEN protocol still holds great potential and demand, requiring continuous exploration of more secure and efficient solutions to optimize its network architecture and expand functionality.

With the launch of the OPEN protocol, the protocol plans to utilize accumulated funds to drive growth through acquisitions, product development, and geographical expansion, despite recent bearish market sentiment making layoffs necessary. The transformation of OPEN is expected to fill a significant gap in the market for an open-source, on-chain, and cost-effective custody system.

Of course, the OPEN platform remains committed to its mission of providing a decentralized custody solution, ensuring not only the security and autonomy of digital assets but also promoting the formation of a more resilient and inclusive financial ecosystem. Qredo's transition to the OPEN Custody Protocol not only redefines the company's development trajectory but also enhances its ability to support the rapid demand of the digital economy.

An overview of the development history of the OPEN Custody Protocol and specific functional points: Anchoring on-chain financial and asset custody needs

The OPEN Custody Protocol (OPEN) was established in 2018 with the original intention of mitigating the risks associated with centralized custody solutions by enabling secure self-custody services. The rebranded OPEN not only retains Qredo's fundamental principles but also expands its infrastructure capabilities to serve institutional and individual investors.

OPEN achieves fully decentralized asset custody through its second-layer blockchain protocol. In this protocol, the private keys of digital assets are managed through a distributed network, not centrally stored in any single location, greatly enhancing security. This unique structure allows enterprises to flexibly choose self-custody, joint custody, or third-party custody as needed, without compromising between security and accessibility.

In response to the collapse of FTX and subsequent distrust of traditional custody services, OPEN optimized its platform to meet the growing demand for reliable self-custody solutions. In May of the same year, reports indicated that OPEN had upgraded its self-custody wallet platform, named "New Qredo," which introduced smart key sharding technology and improved control over team permissions and approval processes.

Despite completing an $80 million Series A funding round led by Coinbase and accumulating approximately $94 million in venture capital, OPEN had to strategically downsize due to a significant decrease in trading volume from an average of $25 billion at the end of 2022 to 2023. This strategic downsizing focused on concentrating efforts on core products, such as Web 3 wallets and other custody solutions, aligning with the broader movement of decentralized finance (DeFi) infrastructure in the crypto market.

The OPEN protocol supports instant asset transfers, enabling enterprises to quickly respond in dynamic and constantly changing markets. Financial managers can coordinate and manage assets among custodians, brokers, and financial institutions in real time through a unified dashboard. This not only enhances operational efficiency but also improves the speed and accuracy of transaction execution.

Built on open-source software, OPEN's RESTful API interface can be directly integrated into a company's financial management system. This feature simplifies the auditing and reporting of digital assets, allowing enterprises to easily access asset information from any network-connected device and achieve real-time visualization of fund flows.

Utilizing its advanced blockchain technology, OPEN records all transaction activities in an immutable ledger, ensuring audit transparency and permanent preservation of transaction records. Additionally, the platform has robust messaging capabilities to handle complex compliance requirements, such as international travel rules, ensuring clear traceability of the identities and transaction backgrounds of both parties.

OPEN's security architecture includes seven layers of defense, providing comprehensive protection from physical hardware to network protocol levels. The introduction of MPC technology not only disperses the risk of private keys but also provides bank-level security for user assets through a distributed execution environment underwritten by Lloyd's of London.

The increasing demand for on-chain asset custody, and the potential for OPEN to play a greater role, is worth looking forward to

As the crypto market continues to evolve, solving the problem of on-chain asset custody becomes increasingly crucial, and the innovative solutions in decentralized custody offered by the OPEN Custody Protocol (formerly Qredo) are gradually reshaping the future of crypto asset management. The core advantage of the OPEN protocol lies in its unique second-layer blockchain technology and MPC technology, which not only address the centralization risks in traditional custody services but also greatly enhance the flexibility and security of asset management.

By enabling instant transaction processing and providing a one-stop asset management dashboard, OPEN allows enterprises to quickly respond to dynamic market changes. In addition, its seamless integration with enterprise financial systems and natural adaptation to various international compliance requirements signify the practicality and forward-looking nature of the OPEN protocol in the global financial market.

However, despite OPEN's innovative breakthroughs in the crypto custody field, the interoperability issue across the entire blockchain industry remains a challenge. Cross-chain and multi-chain communication problems need to be addressed through continuous technological iteration and innovation. In this regard, the future development of the OPEN protocol still holds great potential and demand, requiring continuous exploration of more secure and efficient solutions to optimize its network architecture and expand functionality.

Looking ahead, we look forward to the OPEN protocol not only continuing its innovation in decentralized custody technology but also making new progress in the interoperability, security, and user-friendliness of the entire chain dApp. As blockchain technology continues to mature, the continuous innovation of platforms like OPEN will be a key force driving the development of the entire crypto economy. Additionally, the potential synergy with other cross-chain technologies such as LayerZero and Axelar also heralds the arrival of a more open and interconnected blockchain network world. With the impetus of the OPEN protocol, the future of crypto asset management will be more secure, efficient, and transparent.

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