What is Universa?
Universa is a next generation blockchain that looks to solve a lot of the issues some current blockchains face. A few of the big issues today are bloat, slow transaction processing, and high transaction fees. This generally makes it hard for a business to utilize, which is why Universa has chosen to focus address these with their blockchain.
Universa is not using a Proof-Of-Work consensus, but they are using a Proof-Of-State model. A Universa Node will execute contracts and verify state on the blockchain. These will be licensed and trusted nodes (think master nodes). By using this model, they can achieve speeds of over 20,000 TPS (transactions per second), which is a significant increase compared to other current blockchains. Even their light nodes that run on Android will be able to process 300 TPS, which is still a nice increase.
To help combat bloat, Universa will only store the necessary information when a contract is executed. In an example from their white paper, they reference a contract that is executed and sends 1 token to 10,000 different wallets. On the Bitcoin or Ethereum blockchain, all ten-thousand transactions and balances would have every detail of the transactions recorded. Universa would only save the hash-of-the-state of the final balances to its blockchain. It gets technical, but just know that this is a huge reduction in size. This can allow any future node to connect to the network and sync much quicker.
The Universa Token (UTN)
Each blockchain has its own token and Universa is no different. The UTN token funds the Universa ecosystem and is divisible to 18 decimal places. Execution of smart contracts will require fees to be paid using UTN. These fees will reward participating nodes for the processing power they are supplying to the network. The transaction fees will be split, with 80% going to the nodes and 20% going to the Universa Corporation. Universa holds the right to “burn” up to 1% of the fees retained by the platform each day, which can help drive value of UTN up.
Universa ICO Details
At the time of this writing, the ICO is currently running and will end December 8th . The UTN token price is tiered based on the date. The earlier you participate the better rate you get. Here is a chart from their website showing the breakdown:
The UTN distribution is great with 66% going to the public. A lot of times we see half or less going to the public, which raise some concern. If you include the bounty with the public allocation, it moves up to 70%. Here is a chart from their website showing the token distribution:
The fund distribution is also good, with a large chunk going to the development of the protocol. They are also allocating 20% to marketing and business development. It is good for them to be a little heavy in this category since they are focusing on attracting business clients. This is how they will generate revenue afterall. Here is a chart from their website showing the funds distribution:
The CEO is Alexander Borodich who was named “The Most Active Business Angel in Russia” by Russian Venture Company. His background is very heavy in start-ups, which is wonderful experience to bring to the table when leading a venture like this. He is also the founder and managing partner of VentureClub.co. The importance thing that some might miss, is that these experiences give them a vast network of business partners. Networking is key to growing any business, so they are already off to a good start.
A notable advisor they have listed is John McAfee. If you are not familiar with him, I highly suggest you do a quick Google search. He has a strong track record and is a very big supporter of the blockchain and cryptocurrency space. John McAfee is also creating his own token, and per a Tweet back in October, he will be releasing it on the Universa blockchain.
The team will grow proportionately to how much money is raised in the ICO. Here is a table from their white paper showing staff headcount based on amount raised:
Universa is working to solve actual problems that current blockchains are facing today. They are not creating a problem to create a solution like a lot of other projects in this space are doing. Having the business connections that Universa has, along with removing barriers from business adoption, sets them up to be a very successful project.
Be sure to check out more project and ICO reviews on my Investing page here.