Wallet company aims to create a stable crypto ecosystem

Sovereign Wallet develops a MUI token that meets the three basic principles of a fiat currency as a value, a means of exchange and a payment unit. The value of the token is created by software that manages the current level between supply and demand without the need for another asset in reserve or collateral.

While Blockchain technology is already recognized as the next step in financial services, there are several important issues that continue to hamper the mass adoption of cryptoLights.

For example, the high volatility of the Crippo markets, which is responsible for the unprecedented and rapid rise or fall in the value of the asset in question. Volatility has also contributed to the creation of countless tokens - including stablecoins and stable tokens - that use different mechanisms to keep their value stable and thus reduce the risk of investment by improving predictability.

The most famous secured Token with a fiat currency is Tether or TetherUSD, which is tied to the dollar in a 1: 1 ratio. This type of towel requires a high level of confidence in the publisher to ensure the high value of the towel and at the same time maintain good reserves. But this type of tokens are susceptible to bankruptcy due to their centralized structure.

Crypto - secured tokens are secured with Cripp assets that have a large market share like Bitcoin or Ethereum. But in order to overcome the high fluctuations of the Crippo markets, they require greater investment than with fiat-bound tows.

The third type of stable robots are unsecured. They are not backed by other asset classes such as fiat or krypto. It is this type of tower that is at the heart of the platform that is being developed by Sovereign Wallet.

Their MUI tower is backed by specialized software called the Algorithmic Central Bank. Operates as a true Central Bank and moves the asset's value versus the quantity in circulation.

If the MUI price goes up, the ABC smart contract automatically issues new tokens, reducing the value of the coin and vice versa. The purpose of ABC is to be managed only by autonomous smart contracts. This is built on the so-called Blockchain 3.0 infrastructure. It is envisaged that their M.DEX platform will be launched in mid-January 2019.

Photo: Unsplash

Read more:

• Bitcoin again over $ 8000, but will buyers retain control
• Crypto enthusiasts with huge expectations for Bitcoin in 2020 – the third halving is in May
• YouTube restored deleted Crypto-content, but not confidence in crypto influencers
• Bitcoin with buy signal just before Christmas
• Ether went into negative territory for the year