UMA vs. RemiDe

Executive Summary — UMA vs RemiDe

Two competing blueprints for compliant cross-wallet remittances: UMA is an open, peer-to-peer protocol that turns every licensed VASP into an “email server for money,” while RemiDe is a managed routing service that gives wallets a one-stop API, alias directory, and audit trail.

Angle	UMA (Lightspark / open standard)	RemiDe (Remedy.xyz network)
Architecture	Fully decentralized: VASPs talk directly over HTTPS/LNURL; each holds two secp256k1 key pairs (signing + encryption) for auth & end-to-end privacy(docs.uma.me)	Hub-and-spoke: wallets call `/route` → get `destAddr`, chain & 4-digit confirm code; RemiDe orchestrates same- or cross-chain transfer via Circle CCTP
Compliance flow	Flag `isSubjectToTravelRule`; originator/beneficiary IVMS-101 sent encrypted VASP-to-VASP before payment(docs.uma.me)	Off-chain `/travelRule/notify` relay; beneficiary must ACK within 1 s or tx reverts; both sides sign JSON attestation logged by RemiDe
Data custody	No network datastore; PII stays only with the two VASPs involved in a payment	Twin-DB pattern: identity shards (PII) kept separate from global ledger; daily Merkle root of hashed KYC anchored on-chain for audit
Trust & risk	Trust is bilateral + optional Travel-Rule Authority PKI; no single point of failure but uptime depends on each VASP	RemiDe is a single coordinator (robust cloud + contract audits); introduces a central PII surface but never touches user funds; stake + slashing deter bypass
Regulator friendliness	Compliance tooling provided, but audit logs live in each VASP	One-stop audit: RemiDe stores signed IVMS payload hashes 5 yrs, offers immutable registry and GDPR right-to-erasure via salt rotation

Bottom line: UMA maximizes decentralization and keeps data siloed, ideal where VASPs already have strong compliance ops. RemiDe centralizes the messaging, bridging, and record-keeping, making Travel-Rule, cross-chain USTD/USDC, and fee reconciliation turnkey for emerging-market wallets—but at the cost of trusting a network hub.

Integration opportunity: RemiDe could adopt UMA’s key-based end-to-end encryption (and future ZK attestations) to hold less PII, while UMA wallets could leverage RemiDe’s routing for cheaper stable-coin corridors—blending open interoperability with audit-ready operations.

1. OVERVIEW: What Are UMA and RemiDe?

UMA (Universal Money Address)

What it is: An open protocol allowing wallets and exchanges (called VASPs – Virtual Asset Service Providers) to send money using usernames (like [email protected]) instead of blockchain addresses.
How it works: VASPs communicate directly in a peer-to-peer manner using secure messages. The actual money moves using the Bitcoin Lightning Network or other compatible rails.
Why it’s designed this way: UMA aims to be decentralized – no central company operates it. It allows any regulated wallet or service to plug in and speak the same language without relying on a central authority.

RemiDe (Remedy)

What it is: A managed, API-based service that connects licensed wallets for cross-border stablecoin transfers using human-readable handles like @alice.wallet and enforces Travel Rule compliance.
How it works: Wallets send alias lookup requests to RemiDe, exchange encrypted KYC data (Travel Rule info), and perform token transfers (often via USDC) using smart contracts and bridges.
Why it’s designed this way: RemiDe simplifies onboarding and compliance for regulated partners. Wallets integrate once and gain instant access to a broader network with built-in compliance checks.

2. ARCHITECTURE & EXECUTION PATHS

On-Chain vs Off-Chain Transfers