Startup #22: ODSY | the secure, programmable and decentralized access layer for all web3.
Segment: Infraestructure Round: Seed
WHAT IS ODSY
Odsy Network is a blockchain that will revolutionize the cryptocurrency world by providing a decentralized and secure access control that allows users to have full control of their assets. The Odsy Network will become the primary access layer for all of Web3, and will serve as the infrastructure to bring trustless access control to any network.
Odsy’s dWallet technology allows users to create a decentralized wallet that lives on the blockchain and is linked to a wallet smart contract, ensuring robust and secure access control. This means users do not have to rely on centralized solutions and can be in full control of their assets.
Problem
Users new to WEB3 often prefer centralized exchanges (CEX) due to their user-friendly interface compared to decentralized exchanges (DEX). However, when using a CEX, users lose full custody of their assets as the exchange has control over them and the consequences are exposed in cases such as FTX.
On the other hand, in DEXs, users have full custody of their assets, but also the responsibility to protect their private keys. Hacking incidents in DEXs make many users wonder if decentralization is just an excuse to avoid responsibility. Although CEXs have also been victims of hacks, the crypto community believes it is still too early for mass adoption of DEXs.
The trend toward decentralization goes against the traditional centralized model and aligns with the transition to an open source software infrastructure. This trend offers advantages such as increased security, customization and a community-driven innovation, as well as freeing users from vendor lock-in.
However, this approach also has its drawbacks, such as the lack of development of financial products that meet customer needs, such as a satisfactory user experience, access rights, self-custody, risk controls, and regulatory frameworks and security measures tailored to local regulations.
ODSY and dWallets:
ODSY combines the advantages of centralized (CEX) and decentralized (DEX) exchanges to offer an innovative form of access control in the Web3 era: dWallets.
Through their implementation on the Odsy Network, dWallets allow users to set their own signature conditions and control over their digital assets, which is a major leap in wallet functionality.
In addition, thanks to the decentralization and security mechanisms used in Odsy Network, dWallets offer superior security compared to centralized wallets.
dWallets will be compatible with all blockchains, which means a single interface for all web3.
In summary, dWallets are a fundamental building block for the user journey to web3 and offer significant improvements in access control and security.
What value does it bring?
ODSY applies a new approach to access control that can turn previously custodial applications and financial products into self-custodians through its BYOW (Bring Your Own Wallet) model.
The BYOW model is an open source, decentralized framework for financial applications and services. With this model, users can connect their dWallets to products and services while maintaining full control over their assets. This is important because development teams face a major challenge in establishing custody of digital assets.
The BYOW model offers a decentralized solution that allows users to have complete control over their assets and securely protect them, without relying on third parties.
In addition, the decentralized approach enables the development of financial products that meet customer needs, such as user experience, access rights, self-custody, risk controls or rules-based frameworks and security measures for local regulations.
Unlike a centralized approach, the BYOW model does not sacrifice decentralization and offers benefits such as security, customization, community-driven innovation and no vendor lock-in.
Today’s development teams face a major challenge when it comes to establishing stewardship:
Imagine creating a blockchain-based financial solution, where customers would demand a user-friendly interface, forcing the solution to take custody of digital assets, with a regulatory burden and a technological barrier.
Imagine incorporating a new digital asset into an existing financial product, the existence of potential liabilities that companies must consider when offering cryptocurrencies due to risk management policies and consumer protection laws.
Imagine an existing web service3 that wants to expand to a new chain or work with a new asset, needing to run dedicated systems for each blockchain network instead of having a consolidated view of the crypto space.
All of these scenarios are solved with ODSY. Developers and builders can use Odsy Network’s access control layer to get rid of the heavy lifting. Users can use fully decentralized applications and have full control of their digital assets, which would feel more familiar and similar to web2 products.
Team
Omer Sadika, founder and president of Odsy Network, with a background in technology, cybersecurity and cryptocurrencies. (https://www.linkedin.com/in/omer-sadika)
Sean Lee, co-founder of Odsy Network, senior advisor to the Crypto Council for Innovation and former CEO of the Algorand Foundation. (https://www.linkedin.com/in/sean-lee-4b7a98/)
David Lachmish, co-founder of Odsy Network and dWallet Labs, with product and technology leadership experience at several companies. (https://www.linkedin.com/in/dehed/)
Nathan Kaiser, counsel to Odsy Network, international lawyer with experience advising fintech companies and digital policy. (https://www.linkedin.com/in/nathankaiser/)
Links of interest
Litepaper (https://odsy-network.github.io/odsy-litepaper/odsy-litepaper-version-1-0-august-2022.pdf)
Odsy Foundation (https://odsy.foundation/)
Interview (https://www.linkedin.com/company/odsy/videos/)
