Many leading blockchain organizations like Blockchain at Berkley, Uphold, Brave, and Cred recently announced on August 23, 2018, the creation of a Universal Protocol Alliance (UPA).
One Network Called Proxy Tokens
The goal of UPA is to ensure that blockchain technology and cryptocurrencies will reach the mainstream public. They believe that the current verticalization of blockchain platforms leads to many inefficiencies. The coalition’s plan to solve these challenges is to ensure that all cryptocurrencies can be accessed on a single network.
According to the official announcement, the UPA believes that interoperability between different blockchains must occur for mass user adoption of these technologies. Currently, digital assets like bitcoin and ether can only exist on separate blockchain platforms and are unable to interact with one another. Unfortunately, this siloing often results in inefficiencies as independent projects cannot collaborate in meaningful ways, hindering innovation.
The UPA’s solution to existing interoperability challenges is a Universal Protocol Platform that allows all cryptocurrencies to be accessed on one network through “Proxy Tokens.”
The idea is that Proxy Tokens can exist on a variety of different blockchains. Through the Proxy Tokens, the UP Platform has a universal language which allows communication across different blockchains and token-based projects. Although these blockchains are distinct, they can now interact frictionlessly via the Proxy Token.
“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 JP Thieriot, the president of the UP Alliance and co-founder of Uphold.
A new World of Tokenized Digital Assets
The EconoTimes noted that the Universal Protocol Platform could potentially unlock the full potential of blockchain technology. It will usher in a new world of tokenized digital assets which include proxy blockchains, proxy securities, and proxy private equity.
The goal is to ensure that these tokenized assets can facilitate instant and seamless conversion of the different forms of value. Furthermore, it will allow decentralized exchanges to provide tokens that have been unable to reason with one another in the past and provide private custody of digital assets that have a highly-secure wallet option.
The group also stated that they will have a Universal Transparency Reserve and Custody Standard which are subject to quarterly third-party audits and will be open to the community. The platform is currently supported by a number of investors including FBG Capital, Alphabit, Dekrypt Capital, and Arrington XRP Capital.