The token called Universal Bitcoin is the second financial product of the Universal Protocol Alliance
A group of crypto companies gathered in the Universal Protocol (UP) alliance began issuing a tokenized financial product anchored to the Bitcoin price. This one is the second of its kind.
The information was released this Wednesday, March 13th, through a statement published on the official blog of the alliance, which states that it is a “universal proxy token”, a cryptoactive that can represent the value of a cryptocurrency or any other asset in a single network, in this case the blockchain of Ethereum.
The important UP consortium brings together companies in the cryptocurrency sector such as Bittrex International, Uphold, Brave, Cred, Blockchain in Berkeley, Bitgo and CertiK.
A week ago, this consortium launched a token anchored to the US dollar, which they called UPUSD, so the new token, called Universal Bitcoin (UPBTC), is the second financial product that it issues.
Universal Bitcoin’s design is based on the ERC-20 standard and works through smart contracts integrated into “universal proxy” servers. This is the reason of its name. These servers determine the validity of transactions in the Ethereum chain, which makes it reliable for its users.
The official publication of the Alliance explains that the project’s objective is to achieve a standard in the systems of interoperability between blockchains. This system would be different from decentralized models. The interaction is based on the representation of a cryptoactive, or traditional assets, which are backed by the Universal Protocol (UP) platform.
In this way, users acquire the asset and deliver it in custody to the platform reservation, which converts the token into universal proxy tokens in a 1:1 ratio. In this way, the tokens become fungible values on the Ethereum’s chain of blocks.
The UP alliance ensures that, because universal proxy tokens can represent the value of any virtual asset, they would allow a greater scalability compared to decentralized solutions. The alliance considers that traditional mechanisms hinder scalability when interconnecting hundreds of block of chains.
A Reliable Asset
Dan Schatt, president of the UP Alliance, said that UPBTC is a safe and convenient way to interact with Bitcoin. It allows benefiting from the integrity of its code. This is despite the fact that the UPBTC token does not connect directly to Bitcoin’s blockchain.
“We bring Bitcoin to Ethereum in the form of a secure proxy token that can now reason with any Ethereum application”, said Dan Schatt, President of Universal Protocol. The executive commented that the UPBTC token differs from other similar projects such as Wrapped Bitcoin (the ERC20 token backed by Bitcoin) because it was designed with levels of institutional security.
According to Schatt, Universal Bitcoin has a system that allows managing white lists, which means that it will not allow transactions that it considers suspicious. Similarly, it is possible to revoke access to addresses with compromised keys, in order to obtain processes that guarantee the security of operations.
By María Victoria Rodríguez
