The cryptocurrency world is wrought with fraud, theft and other malicious activities, and companies like Crypto Garage are looking to change that.
Crypto Garage Wants Bitcoin to Be Safe for All
The enterprise – which is unveiling a new string of tools designed to build the cryptocurrency industry’s levels of transparency, decentralization and safety – believes that bitcoin is the king of digital assets, and is looking to establish all its upcoming products on the bitcoin blockchain. In a statement, Justin Dhingra – chief cryptofinance officer for the company – explained:
We see a world where there is a platform for various types of assets that can be transacted without counterparty risk. Our service is not here to replace the existing financial infrastructure, but to instead give the end customer, ranging from consumers to institutions, a choice to conduct different types of financial transactions on a peer-to-peer (P2P) basis.
Bitcoin and its altcoin cousins have the power to become mainstream tools built for more than simple speculation. The problem, however, is that malicious actors have made their way into the space, leading many to question just how safe digital currencies are.
For example, initial coin offerings (ICOs), at one point, were among the most popular methods of garnering funds for new blockchain and crypto-related startups, but many countries, i.e. China and South Korea, have sought to ban ICOs given how many were fraudulent and resulted in nothing other than funds stolen directly from investors’ pockets.
Furthermore, many large crypto exchanges and trading platforms, such as Coincheck and Mt. Gox, have been subjected to hardcore thefts that have resulted in millions of digital dollars disappearing overnight. Many institutional traders look at these incidents with great concern.
The lack of alleged safety surrounding crypto combined with the volatility many of these assets face make for a very scary and insecure industry that professional traders seek to avoid like the plague.
This attitude is preventing the crypto space from achieving the legitimacy it likely deserves, and Crypto Garage is working hard to make thefts and other security issues a thing of the past.
Among the products it’s working on is one called the Discreet Log Contracts (DLCs) protocol, which allows for the development of monetary contracts on the bitcoin blockchain. An oracle is used to determine the outcome of the contracts, though their presences are never revealed, keeping the identities of the parties involved in transactions hidden.
Getting Things “Settled”
Dhingra further stated:
Our approach is to go after long-term tech, but still win short-term business. In 2019, we broke ground on the announcement of our digital asset settlement application called SETTLENET on Blockstream’s Liquid Network. With SETTLENET, digital assets can be settled simultaneously using atomic swaps. The instant settlement is an attractive feature for trading purposes where one counterparty no longer needs to worry about who pays first when settling a trade.