Blockchain technology is revolutionary so much so that we are seeing the financial industry, specifically banks, starting to heavily adopt blockchain for various uses. — ALFA Bank (Russia), Commonwealth Bank (Australia) and Kotak Bank, which enables blockchain based trade finance operation, partnered with Deloitte & JP Morgan (Singapore).
THE FLOODGATES OPEN
Many companies can and are now offering ICO’s, instead, of listing on stock exchanges which is great for the public. However, because of the sheer amount of companies choosing this route, a number of unanticipated challenges have arisen.
The big problem
In a nutshell, the problem is transferring tokens/cryptocurrency across different decentralized networks. Think of the world; there are 195 countries using 180 different currencies, not an efficient system by a longshot. Now think of the difficulties for transferring money across different currencies — its costly(fees), it takes time and then there is the risk. Financial institutions, retail investors, centralized exchanges and developers are, similarly, facing these issues with the ever-expanding world of cryptocurrency.
Imagine if all the nations in the world agreed to adopt one currency, this would solve all the earlier mentioned problems and more. The universal protocol takes this “perfect world” concept and applies it to the crypto-world
Universal protocol (https://universalprotocol.io) is an alliance of like-minded cryptocurrency companies and blockchain pioneers. Their goal is to develop a platform is designed to ensure that value can be instantly sent, shared, and converted across blockchains. This platform is the Universal Protocol. Two of the partners include:
Brave: A powerful open-source web browser that blocks ads and website trackers, keeping your private information truly secure. Supports Windows, macOS, Linux, Android, and iOS. Brave also currently offers the ability to support content creators monetarily and has plans to monetize the ads you do allow i.e You will be able to get paid to view ads you approve!
uphold: A cloud-based digital money platform enabling users to buy, hodl, convert and transact across over 30 currencies and commodities, including 8 cryptocurrencies.
Universal Protocol Platform introduces a foundational architecture for interoperability between blockchains, both enabling users to buy exposure to multiple cryptocurrencies on a single network, and freeing developers to choose the most appropriate protocol for their individual projects. This is accomplished by making any blockchain readily compatible with Ethereum and its ecosystem of smart contracts, DApps, and decentralized exchanges by using Ethereum Proxy Tokens, based on a new ERC-20 compatible token, capable of representing any underlying asset held by the platform reserve.
“For every Proxy Bitcoin issued, for example, a ‘real’ Bitcoin is held in custody, a reserve model that emulates the security of the goldbacked dollar. By translating the value of any cryptocurrency — or other tokenized asset — into the language of Ethereum, Proxy Tokens act as the ‘conversion layer’ in the ecosystem. “
For Developers and exchanges
Adding a new cryptocurrency to an exchange is a decision which results in an enormous amount of work; weeks, if not months of valuable time.
With the vast majority of cryptocurrencies sitting on distinct blockchains, writing the business logic and integrating the system is a task which only needs to be performed once, tailored to the individual protocol. This is a slow, labor-intensive, and needlessly expensive exercise.
For an exchange that supports Ethereum, a vast array of tokenized assets supported by UPP is available without any further integration. This allows exchanges to be able to provide a wider range of digital assets at lower cost.
The arrival of a single protocol to access all cryptocurrencies has accelerated the adoption by major banks such as HSBC and Barclays to a broader array of cryptocurrencies.
The diminishing appeal of cryptocurrencies is majorly due to the fact it is not being easy to spend or use in everyday life. The Universal Protocol Platform facilitates the introduction of credit, which allows users to borrow in fiat currencies against the value of cryptocurrency holdings. This is a revolutionary step for the industry, the advent of credit means that users can separate purchasing decisions from divestment decisions.
Think of this classic example; you would like to buy lunch but you are short on cash. No-one wants to willingly sell a valuable, fast-appreciating asset for a such a routine purchase. Now you no longer have to, instead, of selling your Bitcoin to fund daily life if temporarily short of cash, the Universal Protocol Platform allows users to borrow against their crypto holdings instead of having to sell — something that until recently was impossible
Many users may want to spend cryptocurrencies or non-domestic fiat currencies when shopping online. Using a UP Wallet, users can shop at integrated e-commerce sites that accept certain currencies (whether digital fiat or crypto) and pay using a currency stored in their UP Wallet. Additionally, the Universal Protocol Platform makes cryptocurrencies and other digital assets seamlessly exchangeable with 24 fiat currencies, enabling users to fund accounts (or withdraw funds)
By helping decentralized ledger technology achieve mainstream adoption as a universal method for transferring value over the internet — Allowing the instant and seamless transfer of value across different decentralized networks. Providing a common language through which incompatible protocols can ‘reason’ with each other, this will reduce the time, cost, and risk of trading digital tokens and cryptocurrencies.
Connecting Digital Assets
Universal Protocol, an Alliance to connect digital assets.
*This article was created in exchange for a potential token reward through Bounty0x.