According to JP Thieriot, Uphold’s co-founder “The early days of the interent 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.”
The UP platform is working with “proxy” tokens, which is a digital representation of a digital asset. It can represent Bitcoin, Litecoin, Ethereum, and many different digital assets living on any number of blockchains. The point is to host a common universal token allowing for distinct blockchains and token-based projects to interact freely and without friction with each other.
The protocol’s founding members state that the platform “will publish the value of its assets in custody in real-time on a public blockchain. The reserve will also be subject to quarterly third-party audits that will be shared with the community to demonstrate the financial soundness of the Proxy Token ecosystem.”
The platform may also allow proxy securities and private equity – users will be able to swap, exchange, and transfer value into a seamless environment that is designed to flatten many technological complexities of the current system. Overall, the platform is looking to “make an unprecedented amount of liquidity available for the ecosystem” by addressing disadvantages and using Bitcoin and other assets. This will ultimately make crypto more practical, convenient, and trusted in the business field. There are three safeguards in place: private key records, inheritability, and loss assurance.