Uma - the oracle is needed on the cryptocurrency market?

The oracle appeared in the cult movie "The Matrix". She was an unconventional person with extensive knowledge, who resolved disputes, dispelled doubts and showed directions in which to follow. In the digital version, the oracle also exists on the cryptocurrency market. Will it fulfill its role? We check.

We continue the series of the Forex Club portal, in which we analyze and describe the largest, most valued, most interesting, most developed, advanced and also the most controversial cryptocurrency projects around the world. Now it's time for the system Uma - a system that serves ... searching for the truth and settling all disputes.

Origins of the oracle Uma

The idea to create the Uma oracle was born in 2017. It was founded by Hart Lambur. When in December 2018 he presented the white paper of the project, after only a few months the programming work was completed and the Uma oracle could be officially launched. It was the first public project on the exchange Uniswap.

How the oracle of Uma works

It is called the optimistic oracle. optimistic oracle, OO), and is responsible for a wide spectrum of recording in blockchain technology any verifiable truth. How is it done?

Data is entered into the system for which there are apparently no open disputes. However, three parties are involved in validating the information: the party requesting the data, the participant offering the data, and possibly someone who disagrees with it. The smart contract also provides a specific period in which the dispute must be resolved. Depending on its complexity, it can be a few minutes, but it can also take a few days, which in the blockchain world seems like an eternity. If no one challenges the data during this time, it is assumed that they are true. Then they are transferred to the blockchain network in an unchanged form.

It is different when someone finds in a pre-selected period that the data is - in his opinion - untrue. He puts his case to a vote and the dispute is resolved by the entire Uma community within 48 hours. The winner of the dispute gains not only hard data and satisfaction. He also gets a share of the loser's bail because both parties have to pay it beforehand.

Users can accumulate prizes for winning votes. Thanks to this, they then have more tokens and more votes in resolving subsequent disputes.

All of this makes Uma a much different product than the standard oracles of the price channel that deal only with numbers. Uma will help solve literally any problem that can be assessed on the basis of specific data.

The project is developing rapidly, taking, among others, participation in settling disputes concerning insurance policies.

How does the UMA token work?

The UMA token works in the ecosystem Ethereum in ERC-20 format. Each unit of cryptocurrency translates into the power of votes in settling disputes. Users are eligible for an inflation reward for each vote they participate in. 0,05% of the current supply of UMA is distributed to all voters based on the number of votes they vote.

UMA tokens also entitle you to manage and select changes to the system.

UMA cryptocurrency quotes

As of June 26, 2023, UMA tokens can be traded on 54 cryptocurrency exchanges from around the world, including the world's most popular - Binance. You currently have to pay USD 1,61 for each of them, which, with the supply of 71 tokens, translates into over USD 943 million in market capitalization. A maximum of 533 tokens will be in circulation. The peak of quotations took place on February 119, 114, when UMA was valued at USD 268.