Qtum - A network solution for actual business
Qtum (pronounced Quantum) is an open-source platform that combines the concepts of two major blockchains, Bitcoin and Ethereum. It is a hybrid platform that merges Ethereum’s smart contract network with Bitcoin’s value transfer protocol. Just like in the Ethereum ecosystem, Qtum can be used to develop smart contracts. The company seeks to offer businesses an improved smart contract platform that extends functionality with a more secure and transparent environment.
Qtum has an all-star team and multifunctional purpose
Based in Singapore and founded by a prominent team of Patrick Dai, Jordan Earls and Neil Mahi, who have previously worked at top companies like Nasdaq, Alibaba and Baidu, Qtum resolves Ethereum’s scalability issues. While Ethereum is widely known as the most popular solution for Dapps, it has always been plagued with the problem of scalability and large network loads. Just like Ethereum, Qtum can be used to create decentralized applications and raise ICOs. It uses Proof-of-Stake as opposed to Proof-of-Work algorithm and has its own QRC-20 token standard. The coin has total supply of 100m QTUM with a 1% Proof-of-Stake inflation, and utilizes Ethereum’s Virtual Machine (EVM) modified over the Bitcoin code base.
Qtum implements a Proof-of-Stake (PoS), making it the only Proof-of-Stake smart contracts platform. Unlike Proof-of-Work (PoW) where solving each block gets harder as chains expand with an increase in the number of transactions, Proof-of-Stake consensus randomizes the creator of each new block on the chain by introducing a deterministic algorithm that chooses based on a user’s stake. With this, miner block rewards are removed, as well as the need for expensive mining operations that have plagued Bitcoin and the likes.
After exploring the practical applications of both Proof-of-Work and Proof-of-Stake, with concerns on security and efficiency, PoS made more sense from the institutional perspective to the development team Qtum. This model suits businesses as it ensures that transaction fees stay low.
Qtum Use Case
Qtum models itself as a network solution for business, providing all the benefits of the Bitcoin and Ethereum network, while eliminating its inherent risks. One of these benefits is the hybrid smart contracts that are more secure than the Ethereum smart contracts, thanks to UTXO. The combination of Bitcoin’s secure transactions and Qtum smart contracts provides an extra layer of protection.
The Qtum blockchain allows developers to build lightweight decentralized applications (dApps) in several computer languages, unlike the Ethereum blockchain. Several dApps have already been built on the Qtum blockchain such as marketing, healthcare records, artist copyright protections, prediction markets, and food traceability.
Qtum’s smart contract design will help them attract bigger institutional players and become a bride for business-to-business transactions. The combination of UTXO and Ethereum smart contracts means that it truly provides a trustless ecosystem for transactions, while removing the need for the third party as well as reducing overheads for businesses.
Qtum has already partnered some giant companies in a bid to raise its profile and create for appeal as the go-to blockchain for dApps development. One of them is Starbucks, although the terms are yet to be fully specified. They have also partnered with China’s 360 Finance to create a blockchain research lab dedicated to improving the system’s technology.
While Qtum still has to gain ground in the private sector, the massive potential of the cryptocurrency cannot be neglected as it aims to offer a safer and more efficient way for businesses to transact.