Coin Specs: Ʉ
Ticker Symbol: ULTC
Merge-Mined with: Litecoin
Total Coins: 6,000,000
Block Reward: 10
Block Time: 270 s
Halving: Proprietary (diaBR/r)
Difficulty Re-target: Every Block
Insured: Yes (Foundation)
What are the Umbrella coins and what do they provide?
The Umbrella coins are a collection of coins which are insured versions of coins that are dominant in each hashing algorithm, and they can also be merge mined together. The reason they are insured is because when you merge mine Umbrella-LTC with Litecoin, a % of each block is rewarded to miners and a % of it goes into an insurance fund. This means that if one exchange goes down and a trader/miner loses all of his holdings, they can file a claim with the foundation and will be reimbursed the entire amount of Umbrella that was lost.
How do they help?
What these in turn provide is an extra safety net, a layer on which amateurs, beginners or pros can feel safe about when they mine or trade. This is much needed as lots of people who haven’t traded cryptos before and are interested, may get scared away from bad stories. These stories include hackers, ponzi schemes or dodgy exchanges, which in turn generates bad media and then limits the overall user base and values of all cryptos altogether. Umbrella will provide them the much needed reassurance and security that is needed, it will help people make a smooth transition from fiat to cryptos. This will ensure that once something bad happens, they won’t be completely wiped out and can return to trading once more.
What is Merged Mining?
A quick summary of merged mining would be a method of mining where a miner submits shares to both blockchains of both coins, such as LTC and ULTC as they share the same algorithm, and try to solve blocks on both blockchains. Since you get to do this with multiple coins, merged mining is usually more profitable when compared to normal mining which is another reason why mining ULTC is more beneficial.
How will decisions be made and the coin be managed?
Part 1, The Insurance: The way that the insurance fund will be managed is that every single ULTC mined that is allocated for insurance will be sent off to multiple multi-signature wallets. These wallets will be in control of 3 members of the foundation, 2 of which will be voted in and hold their own special keys. This will insure that no one person can move the funds on their own free will, as they will require permission from the other 2 parties too. This will all be kept on a transparent wallet, and every time funds are used or claims fulfilled, it will all be available for the public to see.
Part 2, The Foundation: Upon further consideration, it was decided that since the recent laws and coming regulation in New-York regarding the bit-license, the partnership with Umbrella Holdings and the CDIC will terminate in the near future. Once the foundation comes online, the transition will be made. The foundation will consist of 7 board members who will each play a role in Umbrella, all decisions will be put forth and discussed by the foundation until something is resolved and decided upon.
Part 3, The Exchanges: What the Umbrella Foundation does to provide an extra layer of security for all of its holders, is puts each potential exchange through a security audit. The penetration test is a good measure of the exchanges commitment to security and the safety of it’s customers, you. Working with the exchanges, Umbrella puts to work it’s knowledge of web application and network security to help make the exchange a safer place to store and trade all cryptocurrencies. The tests include network scans, denial of service attacks and general injection type attacks. This of course is done in cooperation with the exchange and is confidential. When deemed safe and all security concerns have been patched, the risk threshold is lowered to an acceptable level. At this point all Umbrella funds are insured against thefts and hacks on that exchange.
Insured Exchanges At The Time Of Writing:
Below you will find a list of exchanges which have successfully gone through the pen-testing procedure successfully at the time of writing.
And also, a list of exchanges who have not taken the pentest at the time of writing.