An Ethereum Compatible Bitcoin Has Arrived
Universal Protocol Releases Universal Bitcoin
Today marks another major milestone for the Universal Protocol Alliance as we unveil our second tokenized financial product, the Universal Bitcoin (UPBTC). This proxy asset is designed to expand the usability of blockchain’s highest valued, and most globally recognizable cryptocurrency and can earn a ten percent annual return on CredEarn.
Universal Proxy Tokens are an important innovation because they can represent the value of any cryptocurrency (or other asset) and render it accessible and seamlessly convertible through a single blockchain network. Built on an extension of the ERC-20 Standard, Universal Proxies have embedded smart contracts that use IFTT (If This, Then That) logic to determine the validity of any transaction on-chain. For example, they can interact with the Universal Protocol Platform’s issuance contracts, the mechanism by which Universal Proxy Tokens are matched to underlying assets and priced, to calculate how many Universal Dollars are required to buy one Universal Bitcoin. If the conditions are met, the agreements will execute instant trade and settlement, with the correct number of tokens sent to each party’s Ethereum wallet.
There are several ways of solving the interoperability problem between blockchains. Decentralized models, such as cross-chain atomic swaps, allow users to exchange tokens from different blockchains without any centralized authority.
However, these solutions usually rely on each blockchain’s individual smart contract functionality and therefore — unlike the Universal Protocol Platform – can’t easily scale to connect the hundreds of different blockchains in operation. By contrast, Universal Proxies can represent the value of virtually any asset held in the reserve and translate it into the common language of Ethereum. Furthermore, they are easy to produce, being standard ERC-20- compatible Tokens, and also deliver wide connectivity.
The Universal Protocol Platform brings together Universal Proxy Tokens for all major cryptocurrencies on a single protocol, effectively solving the challenge of interoperability in an elegant and scalable way.
The Universal Protocol Platform is purpose-built to make tokens representing most asset-class seamlessly convertible on a single decentralized ledger. The process is simple and easy to reproduce. An asset is acquired and held in custody by the reserve, converted into Universal Proxy Tokens at a strict 1:1 ratio, and rendered into a fungible Ethereum unit of value.
“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,” said Dan Schatt, Chairman of the UP Alliance. “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.”
What’s the difference between WBTC and UPBTC?
UPBTC differs in a few important respects. First, it is architected with institutional level security in mind. Attackers cannot create arbitrary new proxy tokens to spend on the networks. The Universal Protocol Platform contains a request system that can manage whitelists and revoke access to addresses addressing critical security issues associated with compromised keys. Second, UPBTC works seamlessly with the Universal Protocol Token (UPT), designed to allow for quick, low cost conversion of UPBTC to Bitcoin and other digital assets. Third, UPBTC is designed as a smart bookkeeping system that logs deposits and withdrawals on a smart contract. If a bad actor wishes to down the website housing the transparency page, anyone can still query Ethereum for the data, a huge advantage that instills trust and confidence in the system. Finally, UPBTC is backed by some of the biggest names in the blockchain industry, all supporting various aspects of the UPBTC ecosystem. CertiK validates the code integrity of the UPBTC smart contracts, Cred offers UPBTC lending and borrowing services, Blockchain at Berkeley supports cutting edge features and functionality and Uphold provides wallet and exchange functionality.
As always, to discuss any aspect of Universal Protocol, reach out to us in our Telegram community: https://t.me/universalprotocolplatform
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