Why did we build atato custody?

For the past 3 years we built blockchain solutions for the financial services industry. Our clients were national banks, brokers, digital assets exchanges, and decentralized finance protocols. All of them were facing the same issues: how to store and manage crypto assets efficiently?

Today we are launching the custody solution that we believe answers most of the challenges that businesses are facing by holding or managing cryptocurrencies.

As a cryptocurrencies user (some of our clients pay us in crypto) we started looking at custody providers on the market to store our digital assets. Custody solutions are not new, large custodians securing billions of assets for many years are already well established. We studied their offerings including security, price, functions, and capabilities. None of them were actually fitting our needs. Mostly, the underlying cryptography technology was not the most efficient or the features didn’t allow enough flexibility for users. But first and foremost, the process it took before you could start using the custody service is far from an easy online sign-up you would expect. It was unnecessarily time-consuming, and even after that you don’t usually get to test the product before payment..

The problem.

  • For most of them you had to go through a sales representative, book a demo, make 2 or 3 calls before getting documentation and access. It is very unlikely that a “simple business-owning crypto” was going to go through that process just to store assets.
  • Moreover the pricing was always based on assets under management or transaction fees, meaning the target customers of a few thousand usd in digital assets was not one of their targets.
  • On top you could only store tokens that were supported by the custodian. No smaller ERC20 or new Defi protocols. The process of listing was often long and with no guarantees.
  • No DeFi lending and staking integration for most of them.

What’s available today.

Owning digital assets or being paid in cryptocurrencies when you are a company today is not a simple task. Businesses have rules, regulations, and different departments with different mandatory requirements. Today for an enterprise to own or receive crypto assets you don’t have much options:

  • . While being a very good solution for individuals willing to be their own banks, they present major risk management issues when you are a corporate. Who in your company will have the responsibility to manage those assets and how? What if a mistake is made? What is the recovery process?
  • . The most trusted Web3 wallet is a perfect tool to access all the Ethereum ecosystem. However, securing your Metamaks to an enterprise-grade standard is not easy. Many hacks and stolen passwords have been reported. The security is simply not good enough.
  • . While they are extremely successful for large institutions they are built around the same principles of traditional custodians. They are extremely effective for financial services such as liquidity or clearing but not that much for the simple storage of digital assets. Their customers are handling large amounts of cryptocurrencies with large deposits and withdrawals as well as many transactions per day. Their pricing is also reflected by using either asset under management (AUM) or transaction fees.

All the above flaws presented room to improve in the market: building a custody solution for any business holding cryptocurrencies from the exchange handling thousands of transactions a day to a smaller business just looking at storing its digital assets with an enterprise-grade solution.

Building the product we wanted as a user.

Atato Custody was imagined around the user first in mind.

  • : atato custody uses multi-party computation for decentralized security. Our secured cryptography key management system is audited and certified.
  • : atato custody allows transaction and change policies approved by multiple parties to avoid a single point of failure.
  • : atato custody offers disaster recovery. As every human can make a mistake it allows your business to handle digital assets custody by yourself while having a backup in case of password loss.
  • : with atato custody, you can set up your own rules according to your company’s risk management policies. Different amounts of crypto transfer might need different approvals. For the best practice of monitoring, you can also generate regulatory-required reports and export any transaction information at your disposal. On our platform, all of this process is customizable as per your needs.
  • : we believe that tokens are going to become more and more regional and in a much greater number. With that in mind, we allow our clients to list any ERC 20 (and other chains soon) with one click. You don’t need to wait for your custodian to list your token anymore. We call this feature: .
  • : as mentioned above most of the custodians use AUM or a number of transactions to set their price. We believe that a business should be able to predict their cost no matter the amount of crypto you own. We offer a fixed price per user with no AUM or transaction fees.
  • : Create as many wallets as you need while saving up 90% in transactions and ERC 20 fees with our MPC technology.

Custody on the rise

As businesses around the world are adopting digital assets at an increasing rate the need for custodians service will only continue to grow. So far offerings on the market were mainly tailored for large financial institutions or crypto exchanges but with the adoption by smaller companies we need a product that fit their needs while maintaining the same level of security,

AUM managed by custodians are growing fast.

Welcome to atato custody.

With atato custody, we want to offer the same security whether you are an exchange handling billions of USD value in crypto or if you are a business holding just a few thousand. That is why we are now offering our solution for any businesses holding crypto with the same infrastructure.

Following our first requirements we are offering online signup for our application coming out early November. You can already register here to get your private access: https://pages.atato.com/atato-custody-launch

. Atato custody will soon be allowing you to do much more:

  • Lend or stake on major DeFi protocols
  • Bring your own chain. Add any blockchain you want in one click
  • Custody wallet with exchange integration.

And many other features are coming up!

Onboard with atato custody today and try our unique features! We are making a limited offer for our public launch with 3 months for free for any company onboarding with us within End of November. Try it and adopt it.

Get your free trial access!

Maxime Paul

The Ethereum Bangkok Event 2021

This year the Ethereum Ecosystem has been growing exponentially especially in South East Asia.

For this edition, we are proud to welcome again the biggest name in DeFi, NFT and the Ethereum ecosystem.

The list of speakers will keep on growing while we get closer to the event.

Make sure to register here to get your private link for this free online event

We are really excited to welcome you again this year!

Organized by atato

Why do we need secure computers?

This is an article following the announcement that Thai authorities had let a database containing information of 106 million visitors to the country out on the open web and indexed by a search engine.

Every day additional data leaks news are coming up and the last one is affecting passport numbers. Data leaks are unfortunately not uncommon but this is raising the need for a redesign of the internet as we know it.

How?

It is time to make security part of the design and not an additional layer of the existing infrastructure. Gladly the technology to solve this issue already exists and it’s called “secured computer AKA Blockchain”. As you may know, a blockchain is a chain of digital blocks that contain records of transactions (information). Each block is connected to all the blocks before and after it. This makes it difficult to modify a single record because a hacker would need to change the block containing that record as well as those linked to it. Every single transaction is recorded on the blockchain.

How does blockchain enable secure computers?

Since all the information is recorded and distributed to thousands of computers (nodes) around the world it is almost impossible to hack the database (ledger). That is why blockchains are called decentralized systems and are by design much more secure than traditional systems.

Blockchain also launched a series of innovations (often called the Web 3.0) forecasting the web evolution that allows us to share and transfer information without compromising security.

In order to avoid data leaks, all the information could be embedded in the blockchain to rebuild trust by showing consumers exactly who has access and what personal information is shared. Any person can fully audit the system and verify that it indeed operates as intended by the company or authority that manages the data.

As everything is automated, there’s no need to rely on human operators to do their jobs correctly and no reason to fear that a human error could occur.

This image was taken from a very good article on the same topic by Nat Wittayatanaseth and her article on what is Web 3.
 https://www.nattariya.com/post/what-is-web-3-0-why-should-you-care

So can blockchain be the solution for data leaks?

Blockchain has moved on significantly from its early days with Bitcoin and the infrastructure that is being built today will soon enable large application and security features that were not possible without a decentralized infrastructure. In the case personal data and other leak information blockchains allow each individual to manage their own data and how it is shared. The data can be encoded in their blockchain wallets, similar to the Apple Pay wallet. People will then be able to share only the data that is needed, using cryptographically encoded and decentralized networks, to fulfill the purpose of the data collection.

While we’ve got a long way ahead of us, we also have an amazing arsenal of tools built by the blockchain, cryptography, and computer science communities. If we go back to the fundamental security properties that we require, we can pretty much map them one to one to some of the recent information technology innovations.

Integrity, just like blockchain records can represent ownership they can also represent arbitrary data. And when coupled with distributed file systems, we can now enable guaranteed data integrity. A number of companies have been doing this, including atato back in 2018. Yes, this is a shameless plug.

Availability, secure computers have very high availability guarantees, by being widely distributed. While this isn’t true for all blockchains, the Ethereum network is distributed across 9,214 computers as of writing this article. In 2017 Joseph Lubin stated, “we’ve built an unstoppable, uncensorable world computer”.

Confidentiality, we can perform computations while keeping the inputs and outputs private. This is done using fully homomorphic encryption and zero-knowledge-proofs, with companies like Aztec, Zama, and NuCypher demonstrating how this can be used already today for securing AI, or sharing secret information.

Authenticity, we know how to build verifiable decentralized identities too. They can be used to securely make and prove claims of authorship of information, and the covid-19 crisis demonstrates how a global identity system could allow global proofs of vaccine or test claims, for example.

Possession, we can now maintain distributed records of ownership and guarantee the security of transfers as no central authority can modify someone else’s records. Blockchains have been doing this for years with both fungible and non-fungible tokens.

Utility, we have created a machine that allows us to store and retrieve information anytime, anywhere using common standards, the internet. The information itself is increasingly standardized as well, and we have built ways to decouple the schema of information from its computer representation.

At atato we have the vision of an internet where security will not be an option but embedded in the design. That is why we are building a blockchain operating system with the first building block being an MPC custody solution. While crypto custody might sound far from data security it is actually an essential part of the future “secure computer” that blockchain enables. You can now store and manage tokens in a secure way while keeping information private and safe.

Read atato manifesto on www.securecompute.org

If you want to know more about blockchain, MPC cryptocurrency custody, or secure computers, and understand how atato sees the future of Web 3 you can check www.securecompute.org where we lay down our vision for a world more secure.

#atato #custody #securecompute

Maxime Paul

 

Atato onboard Zipmex on its SaaS custody service

Atato (www.atato.com), a digital asset custody provider, is proud to announce that Zipmex (www.zipmex.com), one of the fastest-growing crypto exchange in Southeast Asia with operations in Singapore, Indonesia, Australia and Thailand will start using its unique SaaS cryptocurrency custody service.

Atato Custody SaaS brings up the decentralized security of multiparty computation technology to any enterprises holding digital assets in a revolutionary style with flexible support to any chains, integration with Defi, and thorough customization, all under transparent cost-saving fixed subscription packages. 

As one of the blockchain solution pioneers in South East Asia, Atato has led extensive successful digital assets platforms for financial institutions Defi projects, and corporates since 2018 by its growing team of blockchain builder veterans and cryptography experts.

Quote from Marcus Lim, Zipmex CEO:

“We are thrilled to be partnering with Atato, kicking off with the cryptocurrency custody service. This is only the beginning of our partnership, and we look forward to more exciting opportunities together in the near future. Our goal is to extend our reach beyond just a cryptocurrency exchange, to become a digital asset ecosystem – from DeFi opportunities to even one day a native Zipmex Blockchain. This is a critical first step for Zipmex; we are confident that with Atato, we can continue to diversify our offering and become one of the region’s key players”

Quote from Guillaume Le Saint, Atato CEO:

“We aim to offer an alternative solution to what exists on the custody market today. Exchanges and crypto businesses need their custodian to be removing their pain points and not create new bottlenecks. For these reasons, we are providing an enterprise-grade MPC based custody solution with simple online signup and fixed price no matter the assets under management or the number of transactions. We are really proud to have Zipmex, one of the fastest-growing exchanges in the region, trusting our solution and we look forward to implementing the unique new features of atato custody.

You can already register to atato custody and get access to the free trial here.  

About atato:

Atato is a digital asset technology company offering an enterprise-grade MPC custody solution. Atato enables exchanges, funds, OTC brokers, and anyone holding crypto assets to securely manage and store digital assets.  Atato custody is also the first building block of the next generation of secure operating systems to enable the next 100 million crypto users.

About Zipmex:

Zipmex is one of Asia-Pacific’s fastest-growing digital asset platforms, having just closed $41M in their Series B funding. Zipmex’s mission is to educate, excite and enrich the lives of everyday people by demystifying crypto. With Zipmex’s easy-to-use platform, users gain access to various financial services and unique lifestyle experiences. From our market-leading interest-bearing accounts to the newly launched ZipWorld platform that gives access to exclusive products & experiences, Zipmex aims to build a financial & lifestyle ecosystem. To date, the platform has seen over US$4 billion in gross transaction volume since its 2019 launch.

Atato’s vision: Secure Computing Operating System

Listen to atato’s vision during the Asian fintech podcast with Guillaume Le Saint, Atato’s CEO: 

Computers were designed for one role: to process data as fast as possible. That is fine if there are only a number of computers exchanging data on the internet. Today, there are billions of devices on the internet, but the lack of secure computing is an issue (think ransomware and data leaks).  We have come to accept those limitations as part of our lives.

Welcome to Web 3.0! Blockchain and encryption technologies have enabled us to add secure properties to the internet like never before.

Atato is building tools for businesses and people to interact with secure computing. As more applications use secure computing, Atato starts with custody because the standard of secure computing today is token, but it aims to facilitate access to different applications in the future.

We covered all about the internet vs Web 3.0, challenges of today’s blockchain technology, killer use cases that blockchain can enable today and in the future, and Atato’s vision at #AsianFintechPodcast.

5 Great reasons to choose MPC over Multisig

This article is a summary of an article that was written by Frank Wiener Sepior’s CMO, MPC Alliance Co-Founder & Executive Director at MPC Alliance.

Until the fall of 2018, the most widely accepted scheme for secure multiparty approvals of cryptocurrency transactions was Multi signature wallets. Approximately one year later, the CEO of Binance tweeted that Threshold Signatures are “far superior” to MultiSig, saying they would “reshape the landscape for wallets and custodian services.” Let’s examine 5 great reasons to select Threshold Signature wallets over MultiSig.

Reason # 1: Single Signature versus Multiple Signatures

Implication: Universal interoperability versus custom integration

Threshold Signatures appear on-chain as a standard single signature. Presumably, every blockchain and digital asset protocol natively supports a standard single signature, so no special coding or smart contracts are required for multiparty approvals with Threshold Signatures. In contrast, MultiSig requires the ability for each digital asset protocol to record a variable number of multiple signatures. Bitcoin natively supports this capability for basic MultiSig, but most other digital assets do not. This results in the requirement for many MultiSig wallets to support smart contracts or other customizations which introduces the opportunity for new vulnerabilities, added expense, and often delayed support of new digital assets.

Reason # 2: Single Signature versus Multiple Signatures

Implication: Smaller transaction size, lower cost, higher prioritization

Threshold Signatures appear on-chain as a standard single signature regardless of the number of approvers. In contrast, MultiSig requires the recording of signatures for each participating approver. In the case of Ethereum, the processing of additional smart contracts required to support MultiSig consumes additional gas. In this case, the net result is an increase in the mining fees, which results in higher overall transaction fees for MultiSig.

Reason # 3: Single Signature versus Multiple Signatures

Implication: Increased privacy and security

Threshold Signatures appear on-chain as a standard single signature, regardless of the number of approvers. Approvers can be changed, added, or removed, and there is no change in the resulting signature. So potential adversaries have no visibility to the security policy of a particular wallet, the timing of periodic updates, etc. In contrast, MultiSig records the signature of each approver on the public blockchain for successful transactions. The result is, potential adversaries have full knowledge of security policies such as how many parties are approving transactions, and have visibility whenever changes are made. No other security scheme provides such transparency to adversaries because this information can be used to defeat the system.

Reason # 4: Key Share Refresh Without Changing Public or Private Keys

Implication: Increased security efficacy, without the burden of transactions

A best practice in key management security is to proactively change private keys on intervals that are frequent enough that a hacker is unlikely to gain access to and use them before a new key is activated. This can be done with MultiSig, but each time you change the private key, or replace a lost key, you must also execute an on-chain transaction to synchronize the public-private keys and accounts. This results in increased transaction fees and complexity that make proactive security impractical with MultiSig.

In contrast, Threshold Signatures use multiparty computation (MPC) to create a private key in the form of distributed key shares that are held by different parties. It’s possible to generate a massive number of different and random combinations of distributed key shares to represent the same private key. As a result, Threshold Signature wallets can proactively refresh the key shares on a recurring, on-demand, or combination basis without changing the private key (and eliminating the requirement for an on-chain transaction as is required with MultiSig). Doing so materially reduces the probability that an adversary could penetrate the defenses of multiple different parties concurrently, and collect enough shares to recreate an entire key and execute a fraudulent transaction. As a result, Threshold Signatures provide the option to be inherently more secure than what is practically achievable with MultiSig.

 

Reason # 5: Operational Flexibility

Implication: Ability to evolve and adjust to changing requirements

The only constant about the rapidly evolving digital asset market is change. Regulations are changing, customer expectations are changing, the digital assets themselves are expanding to include not only cryptocurrencies but security tokens which could completely redefine the scope and scale of the digital asset market. Regardless of how these things evolve, the nature of digital assets will require secure and increasingly flexible wallets. The off-chain nature of Threshold Signatures makes them profoundly more flexible and adaptable than the on-chain multiparty approval model of MultiSig.

Custodians, exchanges, and institutional investors who are starting with a clean slate will enjoy the competitive advantage provided by going directly to Threshold Signature wallets. The increased security, privacy, flexibility, and lower operational and transactional cost advantages will add to the motivation for incumbent MultiSig solutions to migrate to Threshold Signatures.

You can find the whole article on: https://www.mpcalliance.org/blog/5-great-reasons-to-choose-threshold-signatures-over-multisig

Crypto Custody: Old concept, new applications.

 

The price of bitcoin and other crypto-assets is again a dinner table conversation due to the latest price correction. However, part of the great benefit of Decentralized Finance is bringing the concept of self-government, democracy, and inclusion. We have talked in the previous articles on what are the associated risks in the crypto-industry: low participation of institutional capital (yet) and high-risk perception compared to the traditional system, both problems faced and partially solved by digital custodians.

In this article, we will dive into the characteristics of a crypto custody company, their relevance in the current context, and the most important innovative solutions offered in the emerging digital asset industry.

What is a crypto custodian?

To define a crypto custodian, we must first describe how traditional custodians operate.

A custodian in the world of traditional finance is a business or company that essentially holds and keeps track of the ownership, exchange, and status of financial assets. 

Custodians are often regulated financial institutions and charge a fee for providing the service. Traditionally, a customer transfers the ownership of the asset to a custodian that offers the benefit of security and efficiency to manage these assets. 

Almost, in the same way, crypto-custodians are certified companies that deliver security and institutional guarantees to customers while holding their crypto assets. They allow them to be sure that their digital possessions are well protected with different layers of security and with backups or insurance against data loss (among other services).

An “essential” for institutional adoption.

One big difference to the traditional system is that with crypto, users often interact via self-governance mechanisms (hardware wallets such as Ledger or Trezor) and become de facto their custodians. However, if they would like to manage and save these assets, a hardware wallet is often not approachable by most people. A more convenient option for individuals and companies is to deliver them to a digital asset custodian.

An important aspect to consider is that crypto custody companies are often regulated (Thailand and Singapore are working on their custodian requirements and framework) and provide institutional-grade security with a relatively easy customer experience.

Today it is challenging for a large company that would like to hold digital assets to secure them by itself. Setting up metamask and any hardware wallet would create some technical and sometimes compliance risks that they are not willing to take.

Custodian services are an excellent solution for everyone who wants to support their digital assets in an ecosystem that meets security requirements and local legislation. It is not a surprise that large players such as Paypall or Galaxy digital are acquiring custodians to secure strategic positions in this growing market.

Security

A pinnacle requirement when working with a digital asset third-party provider is security. Custodians operate almost like traditional custodians but with blockchain technology. They are often using two technologies: Multi-Signature wallet or Multi-Party Computation.

  •     Multi-signature wallets are a digital signing process that enables two or more users to sign transactions as a group. While multi-sig offers solutions to some of the problems of single-signature wallets (e.g. the single point of failure), it also introduces new issues such as protocol accepted and limitations in terms of policies and security rules
  •   Multi-Party-computation (MPC) has quickly become accepted as the next generation of private key security. MPC removes the concept of a single private key; such a key is never gathered as a whole, neither during the first creation of the wallet nor during the actual signature. MPC follows a set of steps to guarantee that there is never a single point of compromise of the private key.

While Multi-Signature wallets have been here for longer, MPC technology brings additional advantages, especially in terms of security and transaction costs. 

All in all, custodians are an essential part of the growing adoption of digital assets. Institutions will not secure their digital assets by themselves but will let specialized technology companies manage this technical and crucial work for them. While custodians are used mainly by exchanges and large financial institutions today, their offerings are growing to offer cost-effective solutions for individuals and small businesses willing to keep a part of their cash reserve in digital assets. Those new players are on the lookout for a simple to onboard custodian, priced accurately, and that ticks all the security boxes that a large company requires.

For more information on crypto-custody, please feel free to reach us at [email protected] 

Maxime 

The Bangkok Blockchain Meetup: CEFI & DEFI with Alkemi

For this edition, we had the pleasure to welcome Brian Mahoney CSO, and Co-founder of Alkemi Network. Alkemi is building an on-chain liquidity network with a suite of tools and products that serve as onramps for everyone to participate in decentralized finance.

The Bangkok Blockchain Meetup: CEFI & DEFI with Alkemi

For this edition, we had the pleasure to welcome Brian Mahoney CSO, and Co-founder of Alkemi Network. Alkemi is building an on-chain liquidity network with a suite of tools and products that serve as onramps for everyone to participate in decentralized finance.

The Bangkok Blockchain Meetup: How to secure your cryptos!

For the May edition of the Bangkok Blockchain Meetup, we will receive Khun Bit: CEO and founder of Bitcast
Maxime Paul CMO of atato.

As many newcomers are entering the space we wanted to take some time to show what are the tools and proper way to secure your cryptos.

In this meetup, we will show you different ways to secure your holding and still be able to participate in different blockchain protocols.

We will have 2 presentations from Khun Bit and Maxime and open the discussion with a traditional Q&A

If you want to join the next meetup please register here: https://www.meetup.com/bkkblockchain