The mass layoffs and rebranding of major Web3 projects may hide deeper mysteries

Recently, according to official announcements, Qredo has rebranded itself as Open Custody Protocol (OPEN).
It is understood that since 2023, Qredo has undergone two rounds of large-scale layoffs, reducing its total staff from 200 to 50. Notably, on November 2, 2023, the company cut another 50% of its workforce, which has seemingly diminished public confidence in Qredo. However, the announcement of the rebranding may signify 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 this rebranding event.

The rebranding implies an upgrade in technological direction and a more precise solution to market pain points

The new name reflects the company's strategic move towards open, decentralized custody solutions, aiming to provide broader services through innovative technology. This transformation may signal a springtime for Qredo, indicating its intention to reposition itself in the future cryptocurrency market with a fresh approach.
Additionally, OPEN's new strategy focuses on leveraging its second-layer protocol and distributed multi-party computation (MPC) technology to optimize the security and liquidity of crypto assets. Through these technologies, OPEN aims to eliminate pain points in traditional crypto custody, such as high dependency and security risks, thereby providing stable and reliable services to clients in a turbulent market environment. These measures demonstrate OPEN's rapid response to market demands and its commitment to innovation, promising to spark a new wave in the crypto custody sector.
As the crypto market continues to evolve, addressing the challenges of on-chain asset custody has become particularly critical. The OPEN Custody Protocol (formerly Qredo), with its innovative solutions in decentralized custody, is gradually rewriting the future of crypto asset management. The core advantages of the OPEN protocol lie in its unique second-layer blockchain technology and multi-party computation (MPC) technology, which together not only mitigate the risks associated with centralized traditional custody services but also significantly 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 respond quickly in a dynamically changing market. Furthermore, its seamless integration with corporate financial systems and natural adaptation to various international compliance requirements signify the practicality and foresight of the OPEN protocol in the global financial market.
However, despite OPEN's innovative breakthroughs in the crypto custody field, the interoperability issues within the entire blockchain industry remain a challenge. Problems related to cross-chain communication and multi-chain communication need to be addressed through continuous technological iteration and innovation. In this regard, the future development of the OPEN protocol still holds significant potential and demand, necessitating ongoing exploration of safer and more efficient solutions to optimize its network architecture and expand its functionalities.

With the launch of the OPEN protocol, the protocol plans to leverage accumulated funds to drive growth through acquisitions, product development, and geographical expansion, although recent bearish market sentiment has made layoffs necessary. OPEN's transformation is expected to fill a significant gap in the market for open-source, on-chain, and cost-effective custody systems.
Of course, the OPEN platform remains committed to its mission of providing a decentralized custody solution that not only ensures the security and autonomy of digital assets but also fosters the formation of a more resilient and inclusive financial ecosystem. The transition from Qredo to the OPEN Custody Protocol not only redefines the company's development trajectory but also enhances its capacity to support the rapid demands 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 intention of mitigating the risks associated with centralized custody solutions by enabling secure self-custody services. The rebranded OPEN not only retains the foundational principles of Qredo but also expands its infrastructure capabilities, aiming to serve institutional and individual investors.
OPEN achieves complete decentralization of asset custody through its second-layer blockchain protocol. In this protocol, the private keys of digital assets are managed through a distributed network, not stored in any single location, greatly enhancing security. This unique structure allows enterprises to flexibly choose between self-custody, joint custody, or third-party custody as needed, without compromising on security and accessibility.
In response to the FTX collapse and the 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, now called "New Qredo," which introduced smart key sharding technology to improve control over team permissions and approval processes.
Despite OPEN completing an $80 million Series A funding round led by Coinbase and accumulating approximately $94 million in venture capital, the significant reduction in monthly trading volume from an average of $2.5 billion at the end of 2022 forced OPEN to strategically downsize. This strategic reduction focuses 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 respond quickly in a dynamic and ever-changing market. Financial executives can coordinate and manage assets among custodians, brokers, and financial institutions on the network in real-time through a unified dashboard. This not only enhances operational efficiency but also improves the speed and accuracy of trade execution.

OPEN operates on open-source software, and its RESTful API 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 device connected to the network, achieving real-time visualization of cash flows.
OPEN utilizes its advanced blockchain technology to record all transaction activities on an immutable ledger, ensuring transparency in auditing and the permanent preservation of transaction records. Additionally, the platform has robust messaging capabilities to handle complex compliance requirements, such as international travel rules, ensuring that the identities and transaction backgrounds of both parties are always clear and traceable.
The security architecture of OPEN includes seven layers of defense, providing comprehensive protection measures from physical hardware to network protocol levels. The introduction of MPC technology not only decentralizes the risk of private keys but also provides bank-grade security for user assets, with its distributed execution environment insured by Lloyd's of London.

The increasing demand for on-chain asset custody raises expectations for OPEN's greater effectiveness

As the crypto market continues to evolve, addressing the challenges of on-chain asset custody has become particularly critical. The OPEN Custody Protocol (formerly Qredo), with its innovative solutions in decentralized custody, is gradually rewriting the future of crypto asset management. The core advantages of the OPEN protocol lie in its unique second-layer blockchain technology and multi-party computation (MPC) technology, which together not only mitigate the risks associated with centralized traditional custody services but also significantly enhance the flexibility and security of asset management.
OPEN enables instant transaction processing and provides a one-stop asset management dashboard, allowing enterprises to respond quickly in a dynamically changing market. Furthermore, its seamless integration with corporate financial systems and natural adaptation to various international compliance requirements signify the practicality and foresight of the OPEN protocol in the global financial market.
However, despite OPEN's innovative breakthroughs in the crypto custody field, the interoperability issues within the entire blockchain industry remain a challenge. Problems related to cross-chain communication and multi-chain communication need to be addressed through continuous technological iteration and innovation. In this regard, the future development of the OPEN protocol still holds significant potential and demand, necessitating ongoing exploration of safer and more efficient solutions to optimize its network architecture and expand its functionalities.
Looking ahead, we expect the OPEN protocol not only to continue its innovations in decentralized custody technology but also to achieve new progress in the interoperability, security, and user-friendliness of full-chain dApps. As blockchain technology matures, the ongoing innovations of platforms like OPEN will be a key driving force in advancing the entire crypto economy. Additionally, potential synergies with other cross-chain technologies such as LayerZero and Axelar herald the arrival of a more open and interconnected blockchain network world. With the promotion of the OPEN protocol, the future of crypto asset management will be more secure, efficient, and transparent.