Blockchain Firms Form Universal Protocol Alliance To Enable Interoperability Of Cryptocurrenciesbr>
Four blockchain organizations have joined forces for a new project designed to help drive mass user adoption of cryptocurrencies.
Uphold, Blockchain at Berkeley, Brave and Cred – formerly known as Libra Credit, announced the foundation of the Universal Protocol (UP) Alliance to advocate a universal custody and reserve standard that they believe will usher in the next 100 million users of blockchain and crypto assets. The alliance’s Universal Protocol Platform (UP Platform) will serve as the hub for the creation and management of ‘proxy’ tokens and user features that will drive mainstream adoption of cryptocurrencies.
The alliance said that cryptocurrencies, such as bitcoin and ethereum, currently exist on separate blockchain platforms and cannot interact with one another. This results in significant inefficiencies as separate blockchain projects are unable to collaborate in any meaningful way, without complex and often costly work-around solutions. The UP Platform looks to solve this issue by allowing all cryptocurrencies to become accessible on a single network through proxy tokens, a digital representation of their underlying asset and can exist on other blockchains.
“Using these proxy tokens, the UP Platform creates a common universal language that allows distinct blockchains and token-based projects to interact freely and frictionlessly with each other,” the group said. “This technology enables proxy bitcoin, for example, to exist on ethereum and be reasoned with directly by ethereum’s preponderance of decentralized applications, decentralized exchanges and smart contracts.”
Decentralized exchanges will be able to use the UP platform to offer tokens previously unable to reason with each other, and private custody of any digital asset with a secure wallet option. The platform will also introduce new types of safeguards for everyday users that render cryptocurrencies significantly more practical and convenient to own, such as private key recovery, inheritability and loss assurance.
JP Thieriot, President of the UP Alliance and Co-founder of Uphold, said that the early days of the Internet were very similar to the world of blockchain today, with many different technology platforms fragmented and incapable of communicating with one other.
“We believe that the Universal Protocol Platform is a technology that has the potential to connect blockchain technologies, much like the breakthrough of the TCP and IP protocols that drove the internet towards mass adoption,” said Thieriot.
Dan Schatt, Chairman of the UP Alliance and Cofounder of Cred, said that the founding members of UP all share their belief that a more transparent, fair and interoperable financial ecosystem will benefit everyone, and lead to more economic prosperity.
“We’re proud to do our part to help bring what we hope and expect to be an unprecedented amount of fairness, transparency, and prosperity to global financial systems supporting crypto assets and the UP Platform,” said Schatt.