Coin Vs. Coin: UMA/MLK
In the business services sector of the crypto market, two of the top coins are UMA and MLK. Both of these blockchain companies provide investment services for the free market in ways not possible with traditional finance. These coins show the power of DeFi and the extent to which web3 technology is revolutionizing business.
What is UMA coin?
Universal Market Access (UMA) is a blockchain protocol that allows users to create their synthetic assets, the digitized representations of traditional financial securities. UMA provides users with quick price information with its smart contract so the assets can be traded.
Three parties are involved in the UMA network: Proposer, Disputer, and Requestor. Asset prices are considered “true unless disputed.” When a dispute arises, the Disputer must stake a bond to refute a price submitted by a Proposer.
UMA’s Data Verification Method (DVM) then arbitrates the conflict by independently validating the correct market price. If the Proposer’s price was wrong, they forfeit their asset value reward to the Disputer; if the Disputer was wrong, they forfeit their bond to the Proposer. This incentivizes participants to input only real data onto the network. To date, there have only been 5 legitimate disputes validated, meaning that UMA network data is by and large trustworthy.
What is MLK coin?
MLK (also spelled MiL.k) collects various business reward points that customers accumulate on the blockchain. Since granting points to customers is a loss to the granting company they typically yield about 1% of the payment back to the customer. As such, attracting more customers with low-value reward points is ineffective.
The MLK blockchain collects a user’s reward points from different industries such as fashion, leisure, and travel, thus raising the overall value of the user’s total amount of points. The overall amount’s value can then be redeemed by converting the points into the MLK coin.
Similarities
Both UMA and MLK are cross-chain platforms providing price control for users.
Each of these blockchains puts the power back into the user’s hands; they also put the onus back onto the user by incentivizing them to collect rewards and input truthful data.
The business services provided by UMA and MLK remove the middleman, unlock the transparency and enforce each network’s smart contract.
Differences
UMA mainly serves retail investors and MLK serves average consumers.
UMA is a governance token; MLK is a Burn/Redistribution/Auto-liquidity token.
MLK enforces its smart contracts by unlocking assets (reward points); UMA enforces its smart contracts using transparency and independent verification.
Final analysis
Both of these coins have major benefits for retail investors and average consumers. They both give the asset value back to the user, thus ensuring the user can control the finances they have already invested.
Web3 tools like UMA and MLK are proving there is a demand for greater transparency and control over finances, pushing DeFi into new territory. No matter how successful MLK and UMA become, there is no doubt that these two coins are proving that the market wants more control over the money they spend.
