Nick Krash is a Blockchain Architect at Platinum Q DAO Engineering. In this article, he shares the unique nature of USDQ/KRWQ, a stablecoin his team is helping to develop. Prior to his career, Nick 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.
Look into procedures to register and obtain loans
In this article, I’ll share about the processes users undergo in order to register within the system and obtain loans, collateralizing Bitcoins. Our development team at PLATINUM Q DAO ENGINEERING has focused on delivering high security and ease of use so that any user can start accessing Q DAO without any trouble.
Working as a team, we are looking into lots of competing solutions for particular components. And it’s quite possible that the system’s architecture will undergo major changes in the near future. This means that what you see in this article might not be relevant in a couple of months. Our project is work in progress, so, even though we already see contours of the system’s architecture, we still leave lots of “wiggle room” for potential changes.
Before we look into those processes, I want to give a birds-eye overview of the inner workings of Q DAO.
Figure 1 shows the main modules of Q DAO as yellow rectangles. The arrows are used to identify possible interactions between individual modules.
The interactions between users and the system are controlled by the Module “Customer Web Panel”, which is an external component used as a user interface. The “dApp p2p network” Module is another external block, controlled through the consensus of neural networks. These modules are used together as a barrier between the external blockchains the decentralized portion of the system.
I’d like to draw your attention to the fact that all users’ actions pass through the Security Module, which is used to assure the integrity of the Local Chain. I use the term “Local Chain” to identify a distributed ledger, employed to record changes to transactions’ statuses within the system.
When designing the system, we saw the need to implement this solution in order to enable verification of interactions between Bitcoin and Ethereum blockchains. At the same time, we use the Local Chain to carry out interactions between our Q Box application, operations to mine the token and “share insights and experiences” between different agents in the decision-making neural network.
We use BTC Node Integration and ETH Node Integration Modules as interfaces with external blockchains. A listener is employed to furnish external data into the system. And Notify serves to notify external components about the changes occurring within the internal system.
I think that this should serve as a good introductory description to anybody who wants to learn more about the technical solutions underlying Q DAO. And now let’s take a deeper look into how users actually register and create the collateralized contracts within the system.
New User Registration
In order to register, the system requires the performance of the following actions:
- Creation of a unique BTC wallet, designed with the multi-signature function enabled
- Verification of user personal data (email, username). Importantly, we use this information exclusively for expedited notifications to users whenever any emergency events occur (e.g. the need to take actions in order to prevent the imminent liquidation event). We could have created the system as fully anonymous, but we just want users to get timely notifications.
- Creation of the wallet that will be used to store tokens (which is needed in order to simplify the user interface in line with traditionally used solutions already on the market. We make sure that users can still specify their own wallets and authorize in the system via Metamask).
As you can see, the registration process we use is quite simple and elegant. Meanwhile, in order to assure sufficient resilience against potential attacks, we design the system, so that all key sets are always unique. Additionally, we’ve designed the system, so that each individual module uses a unique ciphering principle.
Loan Provision to Users
Figure 2 presents a schematic depiction on interactions between the system’s modules, occurring upon the user’s transaction for transferring Bitcoins to the BTC wallet.
I would like to describe this process step by step so that you can fully understand all of the underlying processes and interactions. I use the  symbols to identify the signature’s order number.
Stages for Loan Issuance
Here’s a brief rundown on the stages we’ve designed:
- The user transfers the funds to the BTC address, which was generated for this purpose and which supports the multi-signature function.
- The user interacts with the special interface where he has to choose the parameters, size and interest rate for the loan he wishes to obtain. Upon completion of this step, the user places his signature below the new record, entered into the Local Chain.
- The Module “BTC Node Integration” is used to verify the funds’ sufficiency and validity of the data specified. Upon completion, the module places his signature below the new record, entered into the Local Chain.
- The Listener Module verifies that the specified information is valid and in line with the current market conditions, while also checking the validity of the liquidation parameters and the data on the current market conditions, specified in the record within the Local Chain. Upon completion, the module places his signature below the new record, entered into the Local Chain.
- The Security Module verifies the integrity of the Local Chain and places his signature below the new record, entered into the Local Chain.
- The ETH Node Integration Module verifies the validity of the specified address and the sufficiency of the funds (which we use to pay for gas) at the technical address, which will be used to mine USDQ/KRWQ. The module places his signature below the new record, entered into the Local Chain and then proceeds to mint the tokens.
I have tried to describe all of the key stages within the procedures to register new users and create the collateral. We have designed them based on the best practices for security, optimization and execution time.
I think that Q DAO will win popularity among the wider crypto community, drawn by the intuitive and simple interface and elaborated underlying solutions for security and robustness. I welcome your questions in the comments below and would be happy to help you understand our system better.
Maybe 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 stable coin 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.
Disclaimer The views, opinions, positions or strategies expressed by the authors and those providing comments are theirs alone, and do not necessarily reflect the views, opinions, positions or strategies of CoinGape. Do your market research before investing in cryptocurrencies. The author or publication does not hold any responsibility for your personal financial loss.
Passionate about Blockchain and has been researching and writing about the Blockchain technology for over a year now. Also holds expertise in digital marketing. follow me on twitter at @sagar2803 or reach out to him at sagar[at]coingape.com