What is Qtum (QTUM)?
Qtum, pronounced “Quantum” is an open-source, decentralized Blockchain platform and Value Transfer Protocol. It can execute smart contracts on multiple virtual machines and run environments with Proof-of-Stake consensus.
Qtum is a hybrid of both Bitcoin and Ethereum, which combines Ethereum smart contracts with the stable blockchain of Bitcoin. It is build from Bitcoin’s core code, and modified to work with Ethereum Virtual Machine (EVM). All this while replacing Proof-of Work with Proof-of-Stake as consensus mechanism.
QTUM is official cryptocurrency of Qtum Blockchain platform. QTUM serves its function as a fuel to make transaction on Qtum network. A total of 100 million tokens were issued during ICO (Initial Coin Offering). The platform allows QTUM mining of its token on Smart Stake Protocol which is based on Proof-of-Stake protocol, PoS 3.0.
Development of Qtum
Qtum was developed by the Qtum Blockchain Foundation (a non-profit organization). The foundation was established during November 2016 by Patrick Dai, Patrick Dai, and Jordan Earls. Patrick, a Draper University graduate, had previously worked in Alibaba.
During its Initial Coin Offering in March 2017 which was aimed to last 30 days, Qtum raised $15.6 million within a little less than 5 days in exchange for 51 million QTUM tokens, effectively making it the fourth largest Initial Coin Offering of all time.
What are the benefits of Qtum (QTUM)?
- Qtum is a hybrid platform, altered to advantage of both Bitcoin’s Unspent Transaction Output (UTXO) model and Ethereum Virtual Machine. It adds additional layers to Bitcoin blockchain to make it compatible with Ethereum Virtual Machine, and introduces consensus mechanism Proof-of-take.
- Qtum is committed to bring blockchain technology to real world like finance, DNS, Internet of Things, gaming etc. by creating a global open-source community with the cooperation of other blockchain communities. It is bridging the real world to blockchain world by utilizing Oracle and Data feeds.
- Decentralization as one of its core characteristics, Qtum facilitates dApps development by developing diversified module for different systems and users. with Mobile Go strategy QTUM aspires to bring blockchain technology to common internet users by developing lite dApps.
- Qtum claims to be the blockchain made ready for business. It employs business centered consensus mechanisms to facilitate business development. Qtum provide a robust way (like Qtum’s hybrid smart contracts) to accept blockchain technology without the complexity connected to Bitcoin and Ethereum. It supports a variety of industries which involve but not limited to finance, healthcare, social media, digital assets, logistics, etc. 2.
- Qtum’s ability to create lightweight decentralized apps (dApps) and Mobile Go strategy allow ordinary internet users to engage with blockchain technology. With the release of projects like Spring Email and Qloha, Qtum aims to use email address as digital wallets.
How Qtum different from other cryptocurrencies?
Qtum is built by combining two major cryptocurrencies: Bitcoin and Ethereum. It takes best elements from both cryptocurrencies to create its on hybrid blockchain solution. Another key area where Qtum differs from Bitcoin and Ethereum in the use of consensus mechanism. While Bitcoin and Ethereum use PoW (Proof-of-Work), Qtum has opted PoS (Proof-of-Stake).
QTUM is not just a cryptocurrency, It is created to facilitate the use of blockchain technology to businesses and common internet users. Qtum has allowed the creation of Lightweight dApps in many programming languages.
QTUM’s future and Roadmap
Conceptually, QTUM cryptocurrency future looks very bright because with a Bitcoin code base it will be able to incorporate Bitcoin’s improvements like Sewgit, Lightning etc and with EVM it will be able to host any Ethereum-based DApp or smart contract.
It may not seem very significant right now, but in the future, with the multitude of apps being built on QTUM, this innovation will help QTUM scale quickly. Also, QTUM is a mobile-friendly infrastructure where user can deploy smart contracts from mobile-like lightweight interfaces too. Currently, Qtum hosts more than 20 DApps, the ICOs of which were executed on the QTUM blockchain itself. User can see some of the DApps in the image below.
The only worrisome aspect is the fact that projects like Ethereum have a strong user base and alliance. It will be interesting to see how QTUM goes further considering it doesn’t have as strong a user base. However, working on the alliance and user base is part of QTUM’s roadmap. This space is not a zero-sum game and that more than one blockchain platform for smart contracts and DApps can definitely exist.
Qtum is a mobile-focused hybrid of both Bitcoin and Ethereum’s blockchains. It combines value transfer capabilities on one layer with smart contract processing on the second. This enables both dApp and financial ecosystems to develop and flourish. Qtum’s success is fueled by these key factors.
- Qtum was the first Proof-of-Stake blockchain, proving it’s more nimble than Ethereum. It still benefits from development on both Ethereum and Bitcoin, giving it the best of both worlds.
- The Qtum Foundation partnered with Amazon as part of the AWS marketplace BaaS offering. It also expanded partnerships during 2018’s bear market.
- Because it’s based on Bitcoin and Ethereum, Qtum is an attractive option for developers looking to migrate away from these popular platforms.
With these pieces in place, Qtum is well-positioned for success. It truly lives up to its promise of merging the best of Bitcoin and Ethereum. One can only wonder if that’ll be enough to truly shine in tomorrow’s blockchain market.
Source : CoinMarketCap, CoinSwitch and CoinSutra.
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