What is Qtum?

What is Qtum?

What is Qtum?

Qtum (pronounced Quantum) represents a unique open source blockchain technology. It was created with the intention of providing a wide array of opportunities for businesses and advancements of security features. Singapore-based developers decided to marry the best features of two major cryptocurrencies, Bitcoin and Ethereum, into an innovative smart contract platform.

Most consider them to be an Asian blockchain, but the team is international. Patrick Dai is the head of the team consisting of 30 members from 9 countries. They have two offices, in Shanghai and Belarus, and they are opening another one in the USA, too. In an interview for Boxmining, Dai explained that the search for developers who understand both Bitcoin and Ethereum is not easy, which is why their team comes from all around the world.

The main goals of this hybrid platform are to become a cutting-edge public blockchain for businesses and institutions, such as mobile telecommunications, finance sector, industry and manufacturing. The Qtum’s ecosystem strives to be simple, stable and adopted by users, developers and businesses on a massive scale. It also brings a fresh and interesting perspective to the cryptocurrency market with announced long-term ambitions. Keep reading to find our all about it.

How does Qtum want to advance businesses?

By combining the best features of different cryptocurrencies, they managed to increase the usability and possibilities of their platform. Adapting Qtum for mobile use while simultaneously strengthening the security of the network is a step in the right direction for both mass adoption and overall system quality. Key features here are interoperability and backward-compatibility which will enable users to transfer their smart contracts more easily to the Qtum platform. What this means will be explained in more detail just a bit later in this text.

The most important elements Qtum coin is introducing to the cryptocurrency market are the stability of Bitcoin and loads of business opportunities that stem from flexible smart contracts. Also, they plan to develop their own smart contract language, and they have announced a lot of work to be done in the future with the intention of further advancing the platform and its usability. Since there still are some challenges with switching from old legacy systems to blockchain technology, it is good to know their team is constantly working on improving things, as well as making everything more mainstream. But, what is Qtum all about? Read on and find out.

Key features of the Qtum platform

Qtum intertwines concepts of two successful ecosystems by taking what they consider to be the best parts of both cryptocurrencies. Qtum is based on Bitcoin’s core and the extensive possibilities of Ethereum’s smart contracts. Platform connects Ethereum’s Virtual Machine and stable Bitcoin’s UTXO model (Unspent Transaction Output) with Proof-of-Stake. Most smart contract platforms these days are using Proof-of-Work. Qtum’s team regarded PoW as unsuitable and inefficient for business purposes, and therefore decided to implement Proof-of-Stake considering it to be more decentralized.

Qtum facilitates this interoperability through an innovative Account Abstract Layer that allows executing smart contracts and running decentralized applications. Account Abstract Layer serves as the communication between these two technologies in a creative and useful way which overcomes certain disadvantages of both technologies.

Qtum Specifications

Qtum Specifications

One of Qtum’s assets is definitely providing possibilities for building decentralized apps (also known as dapps) on the blockchain, which should create a robust environment for the developers.

Qtum’s developers consider Ethereum’s account-based model, which represents the way a transaction is executed, to be somewhat lacking. Because of that, they decided to use Bitcoin’s UTXO model that enables Simple Payment Verification or SPVs. SPV protocol supports light wallets, meaning you don’t have to download the entire blockchain which can be dozens of gigabytes heavy. UTXO architecture solves this problem and makes it compatible for mobile use.

The use and implementation of smart contracts was difficult on top of Bitcoin due to coin-picking. In the UTXO model, associating coins with addresses is not as straightforward as with an account-based model that Ethereum uses. You are not sending coins from an address to an address, but rather outputs. For example, you want to send 10 coins to another person. Your account is comprised of series of outputs that represent previous transactions. Let’s say you have one output with 5 coins, and another output with 6 coins. You will send both outputs, and you will receive change of 1 coin creating a new output. This change is called UTXO or Unspent Transaction Output. Although coin-picking is seemingly more complex, it opens up more possibilities for mainstream use of smart contracts, as mentioned before.

Another big advantage is backward-compatibility. What this means is that users are able to bring old smart contracts from Ethereum platform to Qtum. Backwards-compatibility entails interoperability with older systems without any upgrades. This makes the system easier and faster for adoption.

Qtum Wallet

Qtum Wallet

How to obtain Qtum coins?

As with any other coin or token, you will have to set up a wallet for storing your funds. You can do it on Qtum Ignition Main Network known also as Qtum mainnet where tokens hold value. Most altcoins can only be traded with other cryptocurrencies. This demands that you buy bitcoins, ethers or other altcoins that can be traded with Qtum. Then you send your altcoin to a cryptocurrency exchange and start trading your coins. At the moment of writing this article, Qtum price stands at 55 USD. During last December, though, which was a really exciting month for the cryptocurrency market, Qtum price leaped 186 percent in just 8 hours at one point. It will, therefore, be interesting to see what this year will bring to the table. Some plans are already known, and we will discuss them in the next paragraph.

Qtum Blockchain Explorer

Qtum Blockchain Explorer

What’s on Qtum roadmap for 2018?

What Patrick Dai and his team have announced is introducing a library for smart contracts. This will open up a lot of opportunities for businesses to automate their processes, making everything a lot cheaper. Also, they are developing a messaging app and a wallet. The team is constantly working on evolving the technology, but the most interesting thing will definitely be sending satellites into space. Qtum is cooperating with Spacechain, and they are planning to deploy blockchain nodes on satellites. This space blockchain would be used for data-processing and secure in-space data storage, which will make mining possible even if you’re not on this planet! Even the final frontier is no longer a limit for blockchains.

Author's overall rating:
Author: Ben Prescott
Updated:

RISK DISCLAIMER
BinaryOptionsTrading-Review.com has taken reasonable measures to ensure the accuracy of the information in the website, however, does not guarantee it. The data exhibited in this website is not necessarily always real-time or completely accurate; this includes market analysis, forecasts, signals, assets’ price quotes and charts. Readers should not treat any opinion expressed by the authors of BinaryOptionsTrading-Review.com as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of their current opinion. The risks involved in trading binary options are high and may not be suitable for all traders. BinaryOptionsTrading-Review.com doesn't retain responsibility for any losses readers might face as a result of using the information presented in this website. This website is owned by Next Media Corp.
In accordance with FTC guidelines, BinaryOptionsTrading-Review.com has financial relationships with some of the products and services mentioned on this website. BinaryOptionsTrading-Review.com may be compensated if consumers choose to click links in our content and ultimately sign up for mentioned products.