Blockchain Company Develops ‘First’ Crypto Wallet with Built-in Decentralized Exchange

To drive the financial inclusion and further adoption of the blockchain in finances, the Sovereign Wallet is building a mobile wallet with “banking grade” security and proprietary stablecoin, which is to be equipped with a decentralized exchange – M.DEX.

Photo: SovereignWallet / Twitter

Photo: SovereignWallet / Twitter

As the blockchain technology has fundamentally moved forward finances, the high volatility of cryptocurrencies’ prices remains a bottleneck for the mass adoption. Another issue is that cryptocurrency exchanging platforms lack security and are subject to major cyber attacks, resulting in the theft of users’ funds. Additionally, there are still more than 1 billion people worldwide that do not have access to even basic financial services.

These problems are addressed by the Sovereign Wallet, striving to establish a “self-sovereign finance scheme”. Initially, it is based on the Ethereum blockchain, but later will be switched to a proprietary MUI Meta-blockchain, able to support multiple protocols in a single network.

The company develops a messenger-style cryptocurrency mobile wallet, which includes “banking grade” security features, added with an encrypted messenger for a safe communication and reportedly rapid remittances. The wallet already supports more than 10 cryptocurrencies.

Monetary Policy for Stablecoin

The Sovereign Wallet claims in their blog it is building a decentralized exchange platform which allows investments, trading and sending tokens, or “even holding your own ICO”.

In the core of the Sovereign Wallet platform is the MUI token, designed to protect assets from volatility. It is a non-collateralized yet a stable currency, whose price is supported by the Algorithmic Central Bank (ACB), along with the Sovereign Treasury.

This software operates according to the principles of central banks, controlling the amount of MUI tokens in circulation, which affects the price of a token. It means that with a high supply, the price will decrease, and vice-versa.

Now, the Sovereign Wallet introduces the M.DEX, a mobile decentralized exchange platform made to foster the utilization of MUI tokens and “reach the goal of a self-sovereign finance opportunity to all”.

The company says M.DEX will become “the world’s first decentralization exchange for mobile wallets”.

Being a decentralized, M.DEX does not possess any central entity, instead, it works as a “matching environment” for the direct trade between users. Such approach allegedly provides better security and fewer fees. Moreover, users are in “total control” of their funds and data.

A secondary effect comes for the “real economy” because in such a system government taxation or fund confiscation becomes “nearly impossible”. As the project team stresses out, “This can arguably have profound long-term consequences to the macroeconomic, especially for people without access to financial services”.

M.DEX Major Features

M.DEX leverages “Zero knowledge” protocol, according to which the Sovereign Wallet can’t read the data of users. Private keys are kept at user side as well. With all the data and funds secured and owned by the users, there is “no single point of failure”.

The exchange rates are managed by the trading bot, which analyzes current trends and activities, including time, price, and volume of transactions, thus helping users to improve the quality of their exchanges.

M.DEX serves as the gateway to other decentralizing exchanges, providing a single interface for traders, but keeping them in a secure and no-fee environment. On November 6, the Sovereign Wallet has announced a partnership with the ChangeNOW.io, a user-friendly crypto exchange with non-custodial exchange mechanisms, support for over 150 crypto assets and no requirement of initial registration. More partnerships are imminent.

The peer-to-peer trading service is equipped with the Atomic Swaps technology, which guarantees cross-chain trustless token exchanges, with different types of coins trading directly from wallet to wallet, without intermediaries and the risk of a failure.

The M.DEX is expected to be concluded in December, the implementation in the Sovereign Wallet app is scheduled for mid-January, 2019.

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