Umbrella Cryptocurrencies – The First Insured Cryptocurrencies on Market

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Finally ! Something new in the cryptocurrency industry, we now have insured cryptocurrencies, you finally going have your crypto coins safe with the new “Umbrella” Series that will come and today(28/7/2014) ULTC(Umbrella-Litecoin)  .

What is Umbrella? And what do you mean by “insured”?

Umbrella is a basket of insured cryptocurrencies that are designed to hedge against the loss of its overlying cryptocurrency.  A secondary cryptocurrency by nature, Umbrella is designed to be merge-minded along each algorithms corresponding industry leaders.  Umbrella-BTC to Bitcoin, Umbrella-LTC to Litecoin, Umbrella-VTC to Vertcoin, and Umbrella-DRK to Darkcoin.  Using the ticker symbols UBTC, ULTC, UVTC, and UDRK, respectively.  Additional Umbrella securities will be added once clear leaders emerge for newer algorithms such as SHA3 and X13.  Similarly, if a new industry leader emerges for any particular algorithm, we will create new securities around it as well.  Since Umbrella are the only cryptocurrencies to be insured and backed by the Cryptocurrency Deposit Insurance Corporation or (CDIC), your currency is safeguarded against theft, hacks, and insolvency on participating exchanges.

Umbrella cryptocurrencies are also insured when held in the CDIC’s free cold storage service.  This means that you can now safely diversify your assets by allocating a percentage of your portfolio into Umbrella cryptos.

So, how it works, where the extra coins are coming from?

In a nutshell, Crypto-Asset Backed Insurance or (CABI) is what makes Umbrella possible with no premium required from the exchange or miner.  A portion of Umbrellas block reward is automatically allocated to an insurance fund as it is mined.  The insurance block reward is set to decrease geometrically, with a (TBD)% reduction rate, every (TBD)# of blocks.  The CDIC will use proprietary algorithms to calculate the decreasing insurance allocation block reward/rate or (diaBR/r).  A byproduct of reducing the insurance block reward is an increased reward, for standard blocks.  One of the models used for calculating the (diaBR/r) is a modified Monte Carlo Method (VaR) or Value-at-Risk measure algorithm.  This algorithm factors in the historical data of failed exchanges, the amount of Umbrella holdings per exchange, and it’s distribution on the network. These metrics will yield the rate at which insurance block rewards are generated and halved.

* Exchanges must provide proof of liabilities and pass a series of penetration tests before being insured.

Umbrella solves one of the major problems of owning cryptocurrencies

If your cryptocurrency is lost by an exchange due to a hack or insolvency, your options are extremely limited in recovering your losses.  While Umbrella cannot reimburse your loss of the overlying currency, through the CDIC, they can reimburse any loss of Umbrella currencies as incurred by the exchange.  For example: Holding equal amounts (in value) of Bitcoin and Umbrella-BTC would offer a real upgrade in asset protection compared to owning Bitcoin alone.  Having asset protection in place by reducing your exposure is a fundamental need in today’s financial markets.  Wall Street has different ways to deal with risk, from derivatives like options and futures to more exotic offerings like forwards and swaps.  It all comes down to minimizing risk; Umbrella makes this a seamless process.  While Umbrella does not solve all the problems plaguing today’s cryptocurrencies or exchanges, they can offer something no other cryptocurrency can at this hour, which is peace of mind.

4 Umbrella Cryptocurrencies – First launched is ULTC(Umbrella-Litecoin)

At the date of this article (28/7/2014) Umbrella its launching the first insured cryptocurrency ULTC (Umbrella-Litecoin), that will decide the success of this project. ULTC can be merge-mined with LTC, also Umbrella changes this model where profitability is no longer the sole reason for merge-mining, but rather insurance becomes the motive.  Merged-mining is also green by nature as the work is already being done for the primary coin.  In addition to keeping the network secure, merged-mining offers no interruption or loss of hash-rate on the primary coin.  In other words, no extra work is needed by the miner other than the initial configuration.  You can now mine Bitcoin, Litecoin, Vertcoin, or Darkcoin and it’s corresponding Umbrella currency in parallel.

Technical Details & Media Information about Umbrella Cryptocurrencies

 

Specs: Umbrela Litecoin

Ticker Symbol: ULTC , Algorithm: Scrypt , Type: POW , Total Coins: 6,000,000 , Block Reward: 10 , Block Time: 270 s , Preallocation: 2%

CDIC Preallocation: None , IPO: None , Halving: (diaBR/r) , Insurance: (CABI) Crypto-Asset , Difficulty Re-target: Every Block

Merge Mined with Litecoin, Insurance: (CABI), Crypto-Asset Backed Insurance

Release Date: 7/28/2014


Specs: Umbrela Vertcoin

Ticker Symbol: ULTC , Algorithm: NScrypt , Type: POW , Total Coins: 10,500,000 , Block Reward: 10 , Block Time: 150s , Preallocation: 2%

CDIC Preallocation: None , IPO: None , Halving: (diaBR/r) , Insurance: (CABI) Crypto-Asset , Difficulty Re-target: Every Block

Merge Mined with Vertcoin , Insurance: (CABI), Crypto-Asset Backed Insurance

Release Date: 8/10/2014


Specs: Umbrela Darkcoin

Ticker Symbol: ULTC , Algorithm: X11 , Type: POW , Total Coins: 10,500,000 , Block Reward: 10 , Block Time: 540s , Preallocation: 2%

CDIC Preallocation: None , IPO: None , Halving: (diaBR/r) , Insurance: (CABI) Crypto-Asset , Difficulty Re-target: Every Block

Merge Mined with Darkcoin , Insurance: (CABI) , Crypto-Asset Backed Insurance

Release Date: 8/20/2014


Specs: Umbrela Bitcoin

Ticker Symbol: ULTC , Algorithm: SHA256D , Type: POW , Total Coins: 2,625,000 , Block Reward: 10 , Block Time: 600s , Preallocation: 2%

CDIC Preallocation: None , IPO: None , Halving: (diaBR/r) , Insurance: (CABI) Crypto-Asset , Difficulty Re-target: Every Block

Merge Mined with Bitcoin , Insurance: (CABI) , Crypto-Asset Backed Insurance

Release Date: TBA – To be announced .


Social Media & Info Links :

Umbrella Bitcointalk , Twitter , Reddit , Facebook , Umbrella G+ , Umbrella Website  , C.D.I.C. Website , Umbrella Forum

 

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About Author

Full Name : Razvan Gabriel Paun , Owner of 24/7 Crypto News . Cryptoenthusiast , Bitcoin Fanatic . If you want to contact regarding any information you can email : office (at) cryptobuzzing.com . An active member of the Cryptocurrency Community, and enjoys collecting, trading, and writing about various coins & Bitcoin latest news .

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