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How does value locking work in regards to my digital fiat balance?

Value Locking is accomplished in various methods including smart-contract based locking, ecosystem powered locking, and user based locking to offer security, ease of use and additional options according to verification levels. Other value locking mechanisms are constantly being researched, developed and deployed to reduce dependency on any one system.

  1. Smart Contract Based Locking: Smart-contract based locking is a form of scripted automatic updates to multi-signature wallets that maintain a digital currency balance (such as Bitcoin) that is equal to the fiat currency value (ie. USD, CAD, EUR, INR, etc.) the users of the platform are locked in at. Liquidity providers guarantee certain amount of funds in real-world financial contracts with U.CASH network master converters and its users, and allows for these providers to participate in the long-term value increase of digital currencies, without having the risk of holding the actual digital funds themselves, while also gaining fees on liquidity provided to master converters.
  2. Ecosystem Powered Locking: Ecosystem users including master converters will hold financial obligations with 3rd party liquidity providers for the amount of funds received. These will then go towards the purchase and acquiring of stablecoins for transaction settlement. In this way, the ecosystem brings in the liquidity, denominated in fiat values to power the locking mechanism.
  3. User Based Locking: Users will be able to instantly sell their incoming cryptocurrencies for stablecoin balances, and when outgoing, convert back to their preferred cryptocurrencies. This can be done seamlessly to ensure best user experience and efficiency for having a stable fiat balance on accounts.
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