What is Universal Protocol? An Alliance to Connect Digital Assets
Decentralized assets like Ethereum offer the world new ways to create efficiency. While the potential for great new technology exists, it will take platforms like Universal Protocol to make the potential of blockchain a reality.
Universal Protocol has a number of innovative products, as well as partnerships with companies like Cred, Bitcoin.com, Uphold, Blockchain at Berkeley, and Brave.
Universal Protocol has a vision. It wants to create a way to connect every participant in the financial markets with crypto, no matter if they are making a deal for millions of dollars worth of publicly traded equity, or just buying something at the local grocery store.
More specifically, Universal Protocol is working to attract 100 million new users to the cryptocurrency space, and give any company or group to make a streamlined platform to create tokenized assets. It might sound like a bold view of its future functionality, but Universal Protocol has already made progress.
Universal Protocol has a Deep Platform
According to Universal Protocol:
“The Universal Protocol Platform addresses one of the biggest challenges facing blockchain technology by 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, UPP will reduce the time, cost and risk of trading digital tokens and cryptocurrencies.”
There is little doubt that the multitude of blockchains that exist at the moment do pose a challenge to business, especially when custody is a concern. In addition to custody, it is difficult to spend cryptos in the real world. Part of this is due to a lack of acceptance, but another part of the problem is choosing a specific crypto to accept as a means of payment.
For the moment, many companies that choose to accept cryptos just opt to accept a basket of them and then convert the tokens into an asset that can be held safely. This isn’t any idea system by any means, the blockchain that Universal Protocol has created can help.
Universal Protocol asserts that:
“By building foundational architecture for interoperability, the Universal Protocol Platform will allow users to interact with multiple cryptocurrencies (and an abundance of other assets) on a single blockchain. UPP combines proven technologies – smart contracts and reserve functionality – with genuine innovation: highly secure & convertible Proxy Tokens.”
If you are interested in learning more about how the platform works in detail, check out Universal Protocol’s website, or contact the company directly. It has a range of solutions no matter what kind of needs your business has, and can create new applications to operate in the crypto space.
Who Can Benefit from the Platform?
As mentioned above, just about everyone in the financial ecosystem can take advantage of the platform that Universal Protocol has created. Here are some of the ways that Universal Protocol can be employed to make cryptos a part of the everyday financial system that we all need!
Financial Institutions
The Universal Protocol Platform (UPP) makes the custodial challenges that major financial institutions face a thing of the past. The UPP model creates system-wide compatibility via the use of a Proxy Token that can be used to tokenize any financial asset. This removes the need for multiple types of custodial programs, and it also allows a business to write its business logic one, in Ethereum.
Retail Investors
The UPP model allows retail investors to create a spendable crypto holding. It would be possible for a crypto holder to use Proxy Tokens as collateral for fist currency, which can then be spent into the existing financial system. These transactions can act as a loan, or as a one-way transaction that would then be settled against the holdings that were used to secure the transaction.
Centralized Exchanges
The UPP model makes trading in new tokes a breeze for centralized exchanges. Instead of having to list each new token on an individual basis, once ERC-20 is added to the exchange, any new token can be listed via Proxy Tokens. The UPP model would also allow just about any tokenized asset to be traded on ERC-20 compliant exchanges, which opens up the business model of a centralized exchange to non-crypto assets as well.
Innovators
The UPP model is a great tool for innovation. Developers only have to deal with a single type of network, even if they want to create their own blockchain. The UPP model would ensure system-wide compatibility and also ease of use with numerous dApps and smart contracts, and decentralized exchanges.
New Tokens from Universal Protocol
The team at Universal Protocol knows that cryptos need to have an asset that is easy for people who aren’t crypto-savvy to use.
The new UPUSD token is a perfect way for people to get into digital assets, without having to buy what they may see as exotic, risky tokens.
The UPUSD token is a stablecoin that is tied to the US dollar, on a 1-to-1 basis. The USD that back up the value of the UPUSD tokens are held in FDIC protected US bank accounts.
According to JP Thieriot, the CEO of Uphold:
“This is crypto finally delivering the goods to the mass market…Worldwide, over 2.5 billion people with bank accounts want cheaper credit and a higher yield on their deposits. This isn’t about imagined “utility” for some stretch use case. The Universal Dollar should have broad appeal to a wide array of people and, for some in developing economies, could be life changing.
Without thousands of employees, miles of high-rent real estate and the baggage of legacy systems, companies in our industry have a big structural advantage over traditional banks. This advantage has to accrue to the benefit of the mass market, or our industry will remain the exclusive domain of technophiles and speculators.”
In addition to UPUSD, Universal Protocol has also created UPEUR. This token is more or less the same idea, however, Euros ensure the value of the UPEUR token.
Universal Bitcoin
Another project that Universal Protocol has launched is Universal Bitcoin or UPBTC. The Bitcoin blockchain is by far the most popular globally, but it isn’t well suited to become a global payments system.
The Bitcoin blockchain is far too slow to deal with retail payments, and if BTC is ever going to become a global currency, there needs to be a way for regular people to use it.
Dan Schatt, the Chairman of the UP Alliance, said:
“Universal Bitcoin is an important innovation because it makes Bitcoin accessible and seamlessly convertible through a single blockchain network. We are bringing Bitcoin to Ethereum in the form of a secure proxy token that can now reason with any Ethereum application.”
He went on to comment:
“UPBTC is the safe, convenient way for anyone to hold and interact with Bitcoin and benefit from the same consumer safeguards, code integrity, transparency and interoperable properties as the Universal Dollar (UPUSD) and every other Universal Token issued through the Alliance.”
Basically, UPBTC can be used like any other Proxy Token on the UPP network. This is a major advantage, as the scalability issues that the BTC blockchain faces are eliminated, and it could be used with full smart contract functionality, as well as numerous other features that the BTC blockchain simply can’t support.
Building Necessary Connections
The world of decentralized assets has grown up without any sort of central design philosophy, and that is one of the biggest challenges to adapting decentralized digital assets into a form that could be widely used.
Universal Protocol has addressed these challenges, and it has a number of partnerships that could help digital assets easily penetrate into new markets.
There is a lot more information about Universal Protocol and its projects on its websites, which you can access by clicking on this link. There are always new opportunities emerging in the world of blockchain, and Universal Protocol is worth keeping an eye on.
The post What is Universal Protocol? An Alliance to Connect Digital Assets appeared first on Blockonomi.
OhNoCryptocurrency via https://www.ohnocrypto.com/ @Nicholas Say, @Khareem Sudlow
