In an effort to create a financial ecosystem around the wallet application, SovereignWallet company develops what it calls the “Algorithmic central bank” for the platform, along with the “Meta blockchain”, capable of using different protocols. Combined, these services allow any user to issue a valuable token and convert it into different crypto assets.
The SovereignWallet company has developed a mobile wallet application where transactions could be “as simple as sending a text”, while also providing “banking grade” security features.
The team is motivated to promote financial inclusion and enable individuals without access to banking services to create accounts for crypto directly on their smartphones. Different tokens are already available on the platform, including MUI, Ethereum, OmiseGo, 0x, AirSwap, Kyber Network, TenX, Status, TrueUSD, Golem, Augur and more to be added soon.
Besides storage and remittance, SovereignWallet has developed a suite of crypto-related financial products. On November 2, the company has announced the M.DEX, a custody-free decentralized exchange platform with fixed rates, which leverages the atomic swap technology to make low-cost direct transactions.
Central bank in a crypto world
The SovereignWallet ecosystem is running on the proprietary Ethereum ERC-20 cryptocurrency dubbed MUI token. It is a stable token, whose value is protected by the automated stabilization tool called Algorithm Central Bank (ACB). This software manages the supply of tokens on sale and helps users make purchases, and obtain their MUI tokens, minimizing the possibility of fraud or error.
As the blog post reads, ACB operates as a national central bank, which can create or destroy money to stabilize the market. The SovereignWallet CEO Seokgu Yun explains, “In simple words, if the MUI coin is trading too low, the smart contract will automatically withdraw a required amount from the supply to increase the value of the coin.”
MUI token is utilized as an exchange asset of the M.DEX and the master-coin of the MUI Meta-Blockchain.
An easy way to mint a token
Users of SovereignWallet will have an opportunity to mint their own tokens through the MUI Meta-Blockchain. It is a programmable blockchain network that will be able to support multiple protocols on a single blockchain. Using this technology, every user gets an option to create new coins and pegged stable coins without a need to build a proprietary blockchain network.
Meta-Blockchain uses a Mainnet that can program and operate several cryptocurrencies in the form of a decentralized application (DApp) on a blockchain and is light enough to work on mobile applications.
For issuers, it will be possible to keep the value of the stable coin by controlling the circulating volume, while the Proof-of-Service protocol ensures the continuity by giving incentives to the network’s nodes.
“In the Meta-blockchain, anyone can create their own coin, preempting the need to develop a custom mainnet when issuing the cryptocurrency version of the local government or a country’s national currency,” says the white paper.
Creating crypto-pegged coins
In addition to tokens, there’s an option for every user to roll out a crypto-collateralized “meta coin”, backed up by the crypto asset with a large market cap, such as Bitcoin (BTC) or Ethereum (ETH). This can be achieved by putting a required amount of collateral asset as a reserve in the ACB, and then tying it to the issued token with a 100% ratio.
Combined, Meta-blockchain and ACB allow minting of new “meta coin” and their conversion into other assets. Gainings from services, provided by the platform, will be gathered in the treasury, aimed at supporting the value of MUI token.