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Allison Lu and Hart Lambur found this cryptocurrency in the year 2018. Their aim was to build an unbiased, handy, secure, and decentralized market that anyone could use across the globe. This network is an optimistic oracle that can record verifiable truth on the blockchain. The Optimistic Oracle also known as OO is an oracle that mixes real-world data with decentralized systems. It works as a human-powered truth machine. This network protects the vast ecosystem of web3 applications which includes cross-chain bridges, prediction markets, and customizable DAO tooling products. 

How Are New UMA Coins Created?

This network works on the Ethereum blockchain. This means this digital currency can be mined. However, unlike the traditional coins that use proof-of-work consensus for mining and consume large-scale energy, this coin uses a developer mining process. In this process, the developers can use their financial contracts and can get rewarded. By doing this the developers obtain holdings in the coins network. Moreover, The developers are free to keep the earned rewards for themselves or distribute them to the consumers. 

How does UMA work?

This network is an Optimistic oracle. The OO verifies data in different stages. Below listed are those stages that are used by the OO to verify data.

• Statement 

The statement is an important part of the verification process. This statement should be in natural language. On the top of it, it should be given with a bond. This bond works as a reward for those who want to raise a dispute if they have proof of unagreeing.

• Challenge Period 

The undisputed statement reaches this stage. Here anyone can suggest an answer to a data request and it is accepted as true since it has passed this stage without any dispute. 

• Dispute 

When the statement is under validation. Here anyone can earn a reward by correctly disputing. Since the incentives are consistently honest it makes the occurrence of disputes very less. This causes the OO to be promising. 

• Voting 

Here the token holders can vote on disputes to earn rewards. The token enables economic assurance to the Optimistic Oracle which means the community members who are also the token holders are enabled to vote for disputes. The majority earns rewards.
 

How to acquire UMA tokens?

To acquire this digital currency you have to follow some simple steps mentioned below:

• Search Your Exchange 

Search for a reliable cryptocurrency exchange that supports this token.

• Account Creation 

Create an account on that exchange by finishing the necessary authentication process. 

• Fund Deposit 

Deposit funds into your account and place purchase orders for the required amount of coins. 

• Wait for Fund Deposit Confirmation 

After your purchase order is confirmed the coins will get deposited into your account. 

• Transfer in Secure Wallets 

Transfer the digital coins from your account to safe and secure wallets. 

Challenges and Risks Faced by UMA Tokens 

Before investing in any kind of cryptocurrencies you should consider all the risks and challenges that are associated with them. We have mentioned some of the common challenges that every cryptocurrency has to face.

• Regulatory Uncertainty 

Regulatory Uncertainty is something that is associated with every digital currency. Each country has a different outlook towards digital coins. Therefore, there is no uniform regulatory body with universal rules and regulations. Moreover, As it is still in its evolving stage it is difficult to understand what kind of effect it can have on the coins in the near future. 

• Competition 

Every now and then a new cryptocurrency is launched. The new digital coins have to make their place in the cryptocurrency market and even have to maintain their position. Moreover, they even have to face competition from the existing crypto giants. 

• Volatility 

Just like the traditional financial systems, even the cryptocurrencies face price fluctuations. The fluctuations are so rapid and so uneven that every investor has to consider them. Not only that, a user should always be prepared for sudden price changes. 

Future Outlook for UMA 

This cryptocurrency had a goal to create a platform that allows users from around the globe to create their own unreliable financial contracts without any effort. They were able to create such a network successfully and they have come a long way in fulfilling their goal. It has some innovative technologies and a huge number of communities that take active participation in the coin's functionality. The network's growing traction and adoption clearly state a bright future ahead for this coin. 

considered for security purposes. 

FAQs 

How Many UMA Tokens Are in Circulation?

There are by now 68,947,415 tokens in circulation.

Where Can You Buy UMA?

This token can be bought from major centralized currency exchanges like Binance and Coinbase, and DEXs like SushiSwap and Uniswap. 

Conclusion 

With the increasing demand for decentralized finance, there are chances for the cryptocurrency market to flourish in the near future. The vast range of use cases and the unique features that are provided by the digital economy pave the way for widespread adoption. But just like any other investment before investing, each and every challenge and risk should be measured. 

We have done extensive research and helped you understand this cryptocurrency. Similarly, you should also conduct a comprehensive review which can assist you in understanding this new digital currency.