The thinking behind Universa (UNTP) is that present-day blockchain solutions like Ethereum are not fast enough.
Like Ethereum, Universa is an operating system for decentralized applications (DApps) associated with a cryptocurrency. The rationale behind the Lithuania-based Universa team is that there are serious shortcomings to Ethereum (ETH) and other blockchain solutions.
Smart Contracts are not Very Smart
Some of the drawbacks to the existing blockchain they have identified include:
- Bitcoin (BTC) and Ethereum blockchains are slow and expensive.
- The cost of transactions is high; and getting higher, on existing blockchains.
- The speed of transactions is low on blockchains.
- The amount of bloat created by today’s blockchain ecosystem is huge, and growing every day.
- Cryptocurrencies like Ethereum (ETH) and ERC20 utility tokens require special non-zero knowledge wallets for every transaction.
- Today’s “smart contracts are not very smart.”
A Fast Blockchain Protocol
Universa aims to solve those problems by providing a simple protocol that makes creating Dapps and blockchains easier. The team behind it believes that protocol will make the transactions enormously low, offer a high speed of transactions, increase liquidity, and eliminate bloat.
Some of the benefits Universa claims to offer include:
- A low transmission cost.
- A fast blockchain protocol.
- Full decentralization.
- No wallets necessary because they offer a zero-knowledge platform.
- A safer smart contracts language.
- A light client for Alphabet’s (NASDAQ: GOOGL) Android operating system. Android is the most popular mobile operating system in the world, and it was installed on 86.1% of smartphones in 2nd Quarter 2017, our friends at Statista noted.
- A digital asset (euphemism for cryptocurrency) for apps and contracts called UTN or UTN-P.
Universa Claims to be 1,000 times Faster than Bitcoin
The Universa team claims that their system will be one thousand times faster and one hundred times cheaper than Bitcoin (BTC). They also boast that their system will be far more scalable and capable of offering 20,000 transactions a second.
That compares favorably to Visa’s (NYSE: V) global payment system which is supposedly capable of handling 24,000 transactions a second. Visa claims to be able to process 24,000 transactions a second and to handle 140 million transactions a day. That might translate into a lot of cash of if Universa is capable of living up to that hype.
Visa reported revenues of $4.86 billion that were growing at a rate of 8.99% for 4th Quarter 2017, Google Finance data indicates. Those revenues netted Visa $2.42 billion in net income, $3.33 billion in operating income and a net profit margin of 51.87% for 4th Quarter 2017. Visa’s net income grew at a rate of 21.84% and its operating income grew at a rate of 6.81% during 4th Quarter 2017.
That definitely makes Visa a value investment because it had $8.14 billion in cash on hand on 31 December 2017. The amount of cash on at Visa grew by 39.73% between 4th Quarter 2016 and 2017.
Is Universa a Good Investment?
One person who does not buy the hype about Universa (UTNP) is Mr. Market. Universa Tokens were trading at 39.6¢ on 28 February 2018.
Disturbingly, that low price was probably far too high because a lot is unknown about Universa. No Market Capitalization was available on Coin Market, but Universa had a small Market Volume of $1.038 billion on 28 February 2018.
The Coin Price and Market Cap are way too high because the actual Universa token is not available yet. Instead what is on the market is UTN-P a placeholder token. The Univera website admits that the real token the UNP is still under development and does not say when it available.
Although it claims that UTN-P can be exchanged for UNP on a one on one basis once the Universa Mainbot or platform is up and running. Unfortunately, it does not say when that event will occur.
Universa is a Terrible Investment
That makes Universa a terrible investment because nobody knows what the price of UNP or UTN-P will be when the mainbot goes online. Investors should stay away from Universa until it has a real token on the market.
Better investments would be actual tokens associated with functioning payment systems. A great example of such an altcoin is the Raiden Network Token (RDN) which was trading at $2.73 on 28 February 2018. Another is Ripple (XRP) which was trading at 92.1¢ on 28 February 2018.
Universa might have some good technology, but investors should stay away from it until a real token is available. There is no guarantee that Unviersa’s solution will be any better than the Raiden Network, the Lightning Network or Ripple, or any evidence that it actually works. This is one cryptocurrency to avoid until more information is available.