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Crypto Guides

Universal Protocol – A Potential Platform to Connect Digital Assets

Introduction

Introduction

Introduction

The Bitcoin blockchain became a success as people realized the power of the decentralized technology. Then came Ethereum, offering many features and abilities in the existing technology. Given the enormous potential of this decentralized technology, it will take platforms like Universal Protocol for blockchain to be widely accepted in society.

The Universal Protocol offers various products and has partnered with well-known firms like Cred, Bitcoin.com, Blockchain at Berkeley, Uphold, and Brave.

The vision of the Universal Protocol

Universal Protocol was created with a vision to connect every possible financial market participant with Cryptocurrencies, be it publicly traded equities worth millions of dollars or merely buying anything from a local departmental store.

Precisely speaking, the Universal Protocol Platform is visioning to attract 100 million new users to the world of Cryptos and facilitate a company or group to make a seamless platform to create digital assets. The goal might seem far-fetched, but present stats show that it has made impressive progress.

Problem and Solution

The Universal Protocol addresses the non-existence of scaled interoperability. The platform allows users instant and seamless transfer of value across various decentralized networks. It mainly provides a common language via which incompatible protocols can ‘reason’ against one another, and at the same time, reduces the time, risk, and cost of exchanging digital assets.

With an advanced architecture for interoperability, the UP platform will allow users to interact with several cryptocurrencies on a single blockchain. The Universal Protocol combines the revolutionary smart contracts and reserve functionality to enable highly secure and convertible proxy tokens through its platform.

Applications and Benefits

As stated by the vision of Universal Protocol, we can affirm that everyone in the financial industry can make use of the platform. Below are some ecosystems where the platform can be employed to make digital assets a part of the everyday financial system.

Financial Institutions

The Universal Protocol tries to solve the custodial challenges that some major financial institutions have faced since the past. The model created by UPP provides single standard compatibility with the help of Proxy Token, which can be used for tokenizing any financial asset. Thus, it will remove the requirement for multiple types of custodial programs, and the institutions will have to print their business logic only once, on Ethereum.

Centralized Exchanges

The process of listing new coins on a centralized exchange is a complex, expensive, and time-consuming process that could take up to months of work. But with the help of the Universal Protocol Platform, centralized exchanges can dramatically streamline the process of listing new cryptocurrencies. With UPP, exchanges will have to add ERC-20 to list proxies representing any digitally tokenized asset.

Innovators

For developers as well, UPP is an excellent tool for innovation. The best part being, developers will only have to deal with one type of network, even if they’re looking to build their blockchain. The Universal Protocol model would ensure system-wide compatibility and also simplify the use of dApps and smart contracts.

Conclusion

The goal of the Universal Protocol is still intact, and apart from that, it has been working on other projects as well. This has hence led to the emergence of new opportunities in the world of blockchain. And we believe that it worth keeping an eye on the further developments on the Universal Protocol Platform.

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Crypto Guides

Have You Heard of Mimblewimble Blockchain Protocol?

Introduction

Introduction

Introduction

We have been discussing many basics of cryptocurrencies and the groundbreaking tech behind them – Blockchain Technology. By now, we know the properties, features, pros, and cons this revolutionary technology possesses. It is evident that more research is being done on continually improving the blockchain technology, which will eventually make the crypto space better. One such innovation in this space is the Mimblewimble protocol. In this guide, let’s briefly understand what this protocol is all about and its successful applications.

What is Mimblewimble?

Mimblewimble is a protocol that has the potential to improve the scalability and privacy of a blockchain. This tech was published in the mid of 2016, and the first successful application of it was in early 2019. This protocol is built on the principles of advanced cryptography known as Elliptic Curve. The main advantage of using this cryptography technique is that it uses relatively smaller keys. Also, a Mimblewimble network doesn’t have any addresses in them and hence taking lesser space in the block.

To put things in perspective, the maximum block size of the Bitcoin network is 4MB. But the block size of a network that runs on Mimblewimble protocol is a mere 400 KB, which is 10% of the Bitcoin block size. But the pros of this protocol are not just confined to the lesser storage capabilities. As the size of a block is small, the scalability of the network increases. Also, the anonymity factor is an additional advantage this protocol offers.

Working of the Mimblewimble Protocol

To clearly understand the working of this protocol and to know how it’s transactions are different from the rudimentary transactions, let’s understand the inputs and outputs involved in a single Bitcoin transaction. In a typical Bitcoin transaction, if you send ten Bitcoins to another person, the network won’t subtract those ten Bitcoins from your account and add those Bitcoins to another person’s account. Instead, the network considers multiple inputs from the older Bitcoin transactions in order to generate an output. This process doesn’t only consume more space but also reduces the transaction speed.

On the contrary, Mimblewimble protocol works more efficiently by eliminating these inputs and outputs. Instead, a multi-signature is used to replace all of the inputs and outputs. In this case, if you want to send 10 Bitcoins to someone, both of you will get a multi-signature key for verifying the transaction. Also, we have mentioned about the elimination of addresses in the Mimblewimble network. This is made possible by including a Blinding Factor. It is used in the encryption of both the inputs and outputs along with the public and private keys of both the parties.

This blinding factor will remain a secret between you and the person you want to send Bitcoin to. This increases the privacy of the transaction you are making as only you, and the receiver knows about the transactions you made.

Bottom Line

Grin and Beam are the two cryptocurrencies that have successfully implemented the Mimblewimble protocol to their respective networks. So we know that these cryptos are incredibly private and scalable as well. Please do your research to understand the properties of this coin better. Innovations like this bring a lot of hope for us and increase the usage of cryptocurrencies in real life.

Fun Fact: The anonymous inventor of the Mimblewimble technology portrayed himself with the name ‘Tom Elvis Judisor,’ which in French translates to ‘Voldemort,’ the famous Harry Potter character. Also, the name Mimblewimble is taken from the Harry Potter series, which means a tongue-tying curse.