For an -dimensional Leibniz/Lie algebra over a field we introduce a new invariant , called the \emph{universal algebra} of , as a quotient of the polynomial algebra through an ideal generated by polynomials. We prove that admits a unique bialgebra structure which makes it an initial object among all commutative bialgebras coacting on . The new object ${\mathcal A} (\mathfrak{h})$ is the key tool in answering two open problems in Lie algebra theory. First, we prove that the automorphism group ${\rm Aut}_{Lbz} (\mathfrak{h})\mathfrak{h}U \bigl( G({\mathcal A} (\mathfrak{h})^{\rm o} ) \bigl)$ of all invertible group-like elements of the finite dual . Secondly, for an abelian group , we show that there exists a bijection between the set of all -gradings on and the set of all bialgebra homomorphisms . Based on this, all -gradings on are explicitly classified and parameterized. is also used to prove that there exists a universal commutative Hopf algebra associated to any finite dimensional Leibniz algebra .

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