How will Multi-Signature be used in progressive USDQ and KRWQ made by Platinum Q DAO Engineering in counterweight to BitFinex`s Scammy Tether? Exclusive tech guides from BTCNEXT exchange developers.

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SINGAPORE – 06-07-2019 — Slava Mikh is a Blockchain Architect at Platinum Q DAO Engineering. In this article, he shares the unique nature of USDQ and KRWQ, a stablecoin his team is helping to develop. Prior to his career, Slava successfully participated in a number of software development projects for major European and Asian banks. USDQ/KRWQ leverages a stack of novel technologies, among which are predictive capabilities, algorithmic stabilization, and community incentives. Soon there will be even more fully backed stable coins: JPYQ, KRWQ, SGDQ, HKDQ, CNYQ, RUBQ under Q DAO brand.  Read on to learn about what makes USDQ/KRWQ so unique. Moreover, KRWQ – a stablecoin pegged to Korean Won will be attached to Q DAO family. This will not only make a huge impact on the local Korean market but also to the whole Asian region. It will be traded like other ERC-20 tokens on exchanges like BTCNEXT.

Multi-SignatureIn this article, I want to talk about the Multi-Signature mechanism that we use in order to bring higher level security and protection against wrongdoing by external parties. Importantly, there’s been a number of major hacking attacks on large exchanges which could have been easily prevented by using the multi-signature mechanism within the system.I’d like to make sure that readers understand that I am talking about the current iteration of the system and it might undergo some significant changes in the near future. Our project is work in progress and we are currently looking at competing options for particular components, so things might change a lot.First, let’s look into a general description of how Q DAO operates.Figure 1 below maps out interactions between the system’s modules. Each module is shown by a yellow rectangular. All of them are autonomous and isolated pieces of software and integrated within the application.

Figure 1The block “Customer Web Panel” shown in the top left corner is responsible for managing interactions between users and the system. Essentially, this component is the user interface. Another external component “dApp p2p network” is a decentralized systemic module, controlled via the consensus, reached by neutral network agents.In addition, Figure 1 depicts the actions, allowing users to be taken in the decentralized part of the system. Each action goes through the Security Module, which helps assure the integrity of the local blockchain. In this article, I use the term “Local Chain” to identify the distributed ledger, i.e. a “chain of transactions”, used to change the status of the loan recorded within the system. This blockchain is required for additional verifications of the actions within the system between Bitcoin and Ethereum blockchains, while the local chain acts as an interaction tool between distributed QBox applications, transactions for mining the governing token and transaction for “sharing experiences” within the neural network, responsible for decision-making.BTC Node Integration and ETH Node Integration are the elements, used to connect the system with external blockchains. The “Listener” Module is an information delivery mechanism, supplying the system with the data on market conditions as at specific points in time. The “Notify” Module is an auxiliary component, used to notify the system’s external components as to any changes occurring within the system. This module is not used to process users transactions.Not that we’ve discussed the overall architecture of the system, let’s take an in-depth look into how the multi-signature brings security and protection against external attacks.Multi-Signature ComponentTo enable sufficient protection for collateralized Bitcoins, all BTC wallets have a multi-signature design. For a transaction to be performed, the system requires confirmation from more than one participants.A good analogy would a kid’s wallet. Whenever a kid wants to carry out a transaction, he needs to obtain a confirmation from either of his parents. To confirm, parents use their signatures. This is a 2-from-3 consensus mechanism, and it’s not only the child, but also both parents that can transact provided that the parent-to-parent consensus has been reached.In our system, we employ a more complicated 5-from-6 consensus mechanism. The following modules – Security Module, Listener, BTC Node Integration and ETH Node Integration – have their own private keys, enabling them to sign transactions. Meanwhile, both the User and Q Box Modules also have their own keys.Importantly, the local chain is used to verify the validity of users actions based on their signatures, which helps prevent an attack on the system, waged through errors in application development. Since the system requires 5 out 6 confirmations to be obtained, a loss of integrity within the local chain will not enable a user to sign a transaction, even in case of collusion.Additionally, each module (including Q Box) has an internal key, which is not connected with the external blockchains. This internal key is required to confirm transactions within the application and place modules signatures for those actions within the local chain that do not originate from external blockchains.Within the system, the atomic operation is a transaction in the Bitcoin blockchain. Any transaction (or several thereof, including a non-integer number thereof) can be used to create new collateral. As a result, this enables to carry out operations to mint new USDQ tokens, repay loans (i.e. repay collateralized assets) and change loan amounts by the user.The data as to a specific type of transaction is stored within the local chain. In the event that the local chain’s integrity has been compromised, the Security Module will stop processing any transactions (generation, retirement of stablecoins) within the system. The decisions as to how this problem should be resolved will be made through the vote by the community stakeholders (including the neural networks-enabled actors).I hope that you liked this review into the use of the multi-signature component within the system. If you have any questions, feel free to ask them in  Telegram. I would be delighted to help you understand our system better.AfterwordMaybe you heard about the project MAKER DAO and their DAI?I want to praise these guys – they are first to create a decentralized stable coin.We occupy an honorable second place at this race, and basically, we were inspired by the technologies of MAKER`s DAI.Some Q DAO functionality is similar to MAKER DAO, so we decided to use Maker`s terminology because we do believe – their technologies should be a reference for creating any decentralized stable coins.Why we are using BTC as collateral? 1) Bitcoin is a most liquid digital asset 2) we have many friends who are big Bitcoin holders (BTC whales) or Bitcoin OTC traders.We hope even so big guys like Brothers Winklevoss (Cameron Winklevoss and Tyler Winklevoss) will start to use Q DAO. They have a lot of Bitcoins, but they don’t want to sell it. So if they need money – they can pawn their bitcoins to Q DAO and immediately get USDQ/KRWQ.Why we built Q DAO based on Ether smart contracts, but not Tron (by Justin Sun) and not EOS ( by Daniel Larimer)?Our genius engineers are love ETHEREUM because of mass adoption of this blockchain, also we respect the approach of Vitalik Buterin (we met him a few times). Maybe in the future, we will consider using TRON or EOS, in case their foundations can provide enough funds to proceed with development.BTCNEXT Exchange – next generation spot and margin trading platform by the PLATINUM Q DAO ENGINEERING team. It is the first Strategic business partner of USDQ/KRWQ stablecoin that is based on a DAO technology. All pairs will be listed with USDQ/KRWQ. BTCNEXT customer service will be happy to answer all of your questions.Platinum Q DAO Engineering is always happy to share its latest development and architecture solutions, helping stakeholders to spread improvements across crypto projects. Being an expert company on the market, Platinum Q DAO Engineering has already helped 150 crypto startups, enabling them to efficiently raise funds and introduce blockchains to their business models. With offices in Japan, South Korea, Thailand, Russia, Belarus and Australia the team is always ready to have in-person meetings, focusing on how companies can leverage blockchain technology in order to meet their unique needs. The team welcomes readers to connect on Telegram, and Facebook.This overview may not be fully exhaustive and does not assess the viability of any project, nor its team legitimacy. Readers should conduct their own due diligence before using or investing in any of the listed Stablecoins. This article represents the author’s opinions only and should not be considered investment advice. All described functionality in the article is still under development, it can be changed/processed. Please follow the updates.

Media Contacts:

Company Name: Platinum Engineering
Full Name: Slava Mikh
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Website: https://usdq.platinum.fund/

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