Oddbean new post about login | logout GM My Bitcoin bank XAPO made me lie to confirm I don't invest a lot in crypto and I had to lie and state it is an extremely risky investment. However that aside, it then told me about UMA (Universal Money Address) https://www.uma.me/ It's like a Lightning address mike@mikehardcastle.com but for USD. Is the fiat world copying us? What is this, is it just lightning, or is it something built on top of lightning?
A closer look at how UMA uses the Lightning Network UMA enhances LNURL and Lightning Addresses by including compliance messages and currency exchange features. This upgrade, along with the Lightning Network's fast settlement and Bitcoin's global reach, ensures affordable worldwide money transfers. LNURL is a protocol that simplifies Bitcoin transactions over the Lightning Network, making them more user-friendly by enabling actions like payments and login without complex addresses. https://www.xapobank.com/en/blog/introducing-universal-money-addresses-at-xapo-bank nostr:note1pvx2eepa54wd0pe56ruqmfm2ypxe8p3vy5t6w4nsgud4gg48dv4s998rga
UMA - That's what LightSpark came up with. "The UMA standard combines human-readable Lightning Addresses with real-time, global payment rails. It extends the capabilities of Lightning and LNURL to add support for compliance and fiat currency FX." To me, it reads like "KYC Lightning as a service". Lots of Travel Rule compliance speak. It seems like permissioned custodial networks for transferring any assets over lightning. https://www.lightspark.com/uma
Yeah LightSpark is basically the Coinbase of Lightning
More concerning since they seem more competent than Coinbase. Raising the bar for the fiat world, but it's still absolutely fiat in the IOU sense. It can very possibly become a one way street Hotel California for any Bitcoin you send there.
I predict nobody is going to remember Universal Money Address in 5 years. And you won't be able to find anyone who ever used it.
But if it gets in peoples consciousness that you@yourbank or you@yourdomain can be a payment address, that can only help Lightning in general, right?
Maybe? I dunno. I don't really see the value in this UMA because Zelle is already integrated with everyone's bank, and it only requires a phone number or email address to send money. And if you're sending money to family and friends, you already have their phone number and/or email address. So, what problem does this UMA address? I don't see it.
I do, I really do. I don't mean UMA, I mean you@yourdomain or you@yourorganisation One address for communications, identity and payments. Sure, most people will end up with the equivalent of a payment & identity hotmail address, but for me. I am mike@mikehardcastle.com You want to communicate with me: mike@mikehardcastle.com You want to find out who I am (NIP-05): mike@mikehardcastle.com You want to pay me: mike@mikehardcastle.com For me this is game changing. This doesn't just separate money from the state it separates identity from the state. And just like Bitcoin, it is for anyone, but not for everyone. Also, it works equally well for those seeking anonymity. For friends and family you are you@yourdomain For online activity you are nym@privacydomain
I don't think you can uma on your own domain. If you do, other people can't pay you because their banks won't recognize you as a bank. It's just more permissioned, centralized, KYC, fiat BS.