Bitcoin is the first generation cryptocurrency that introduced the world to the benefits of blockchain technology . Due to high fees and the problem of scaling BTC, the developers decided to go even further and created the Ethereum platform, on which many decentralized applications exist today. These projects deservedly lead the ranking of cryptocurrencies with the largest capitalization. But in 2022, a hybrid called Qtum appeared in China, the creators of which decided to borrow the best features of the two above-mentioned systems. In this article, we will take a closer look at this third-generation cryptocurrency and tell you how investors evaluate it.
History and team
Quantum was launched in 2022. This project is being created by a group of blockchain experts who are widely known in the Asian region, including:
- Patrick Dye (project founder);
- Jordan Earls (lead developer and co-founder);
- Neil Mahy (Head of Block Development) and others.
The list of the largest investors in the project includes:
- Anthony Di Iorio (co-founder of Ethereum);
- Star Xu (CEO of OKCoin);
- Roger Ver (founder of Bitcoin Com) and others.
All three invested over $1 million in the creation of Qtum.
Official website: qtum.org.
Taking advantage of fears
Patrick Dye, founder of the Qtum Foundation, believes that Bitcoin and Ethereum have design flaws that will prevent certain uses that would allow the platform to become a prominent alternative.
For example, Dye believed that enterprise developers could be dissuaded from launching a private Bitcoin network due to the use of proof of work for their consent model.
“The consensus part is not scalable. You cannot deploy a permissioned blockchain and maintain the network,” Dai said.
What is Qtum
Qtum (Quantum) combines block technology with the Ether virtual machine. It allows developers to use the current blockchain network to write applications based on smart contracts. It is based on the SHA-256 algorithm.
One of Qtum's main goals is to create first-of-its-kind smart contracts based on UTXO, a system with a proof-of-stake (PoS) consensus model.
Qtum is compatible with the Bitcoin and Ethereum ecosystems and aims to be an alternative to Bitcoin with Ethereum Virtual Machine (EVM) compatibility.
Quantum developers rely on a strategy that includes the use of mobile devices. This allows Qtum to promote blockchain technology among a wide range of Internet users. Its authors also intend to revolutionize the way applications are stored in databases. Applications created on the Quantum platform will be stored in the blockchain in the form of transactions.
Advantages
Qtum's work was based on expanding the functionality of the most popular systems running on the basis of smart contracts.
Thus, in their place in the project, “master contracts” were put in place, the main difference of which is the ability to make decisions about activation based on additional factors outside the blockchain.
Example.
A specific order was made, specified in the contract. According to the current state, it was completed, and data on its implementation were entered by the contractor. An ordinary smart contract will not be able to fulfill its part of the agreements (in this case, payment), while the master contract will be able to take into account in its work the data of a third-party organization and confirmation of the fulfillment of obligations on their part.
Information will be taken exclusively from verified sources, the data of which allows us to be sure of their reliability.
The user can independently program his contract for certain resources that supply information, which allows him to automate the process.
Additional benefits that Qtum offers its users include the following:
— Possibility of communication with other blockchain projects. At its core, Qtum is a hybrid of Bitcoin and Ethereum. Taking all the best from its older brothers, the project was endowed with the ability to implement communication between systems.
This means that working with it allows you to eliminate the third link in the chain, in the form of intermediary exchanges.
— Customization to the needs of the business industry. The creators place special emphasis on this side of their work. The main advantage for business is the desire of the project to fully comply with the legal side of the issue.
In other words, Qtum operates in accordance with current laws, which allows it to be considered by large businessmen.
There will be no mining in the project. The system will run on POS, allowing users to earn additional income. It will be charged for processing confirmations of transaction requests.
Description of the differences between Qtum and Bitcoin
While Bitcoin is content with its leadership, providing limited functionality, the creators of Quantum are working on a platform aimed at developing and launching decentralized applications and smart contracts.
In the UTXO model, transactions are used as input of unspent coins, which are subsequently destroyed, and new UTXO are created as output. The UTXO model has a parallel processing function with the ability to initiate transactions between multiple addresses. In addition, it maintains a higher level of privacy for these users and offers the ability to change the address that serves as an exit in the transaction.
Accepting tokens
The address for receiving tokens can be generated in File->Receiving addresses…. To do this, click on New, enter an optional text label, and click OK. To copy an address to the clipboard, click on it, and then on the Copy button at the very bottom of the window.
It is also possible to generate addresses in the Receive tab of the wallet. By clicking on Request payment, a new address will be received and a QR code corresponding to it will be created. If you specify the requested amount and message, this information will also be reflected in the graphic code.
Decentralized applications (dApps)
Traditionally, after creating a new application, its database is hosted on a server. It does not matter whether it is hosted on one or several servers. In any case, it is at risk of a hacker attack. Cyber fraudsters can change information stored on the server, but it is impossible to verify what exactly was changed.
Qtum provides the ability to develop decentralized applications. Using blockchain technology prevents any possibility of changing the stored data.
Overview of technical features
Qtum technology combines the Bitcoin transaction model with the advanced Ethereum consensus system. On the one hand, the Quantum blockchain uses a UTXO (non-transaction outputs or set of unused transaction outputs) model. This requires users to provide proof of ownership of assets in order to spend them. Bitcoin works on this principle.
Along with this, a virtual machine for smart contracts, created by analogy with Ethereum, is built into the Qtum blockchain. Thus, the Qtum blockchain combines proof-of-work (PoW) consensus and smart contract technology.
Due to the hybrid nature of the system, combining elements of PoW and PoS (proof of stake), Qtum applications can be compatible with major blockchains, mobile devices and the Internet of Things (IoT).
Setting Industry Standards
By collaborating with a number of partners as well as institutional organizations, Qtum aims to create a kind of smart contract hub. It will offer specialized, secure and thoroughly tested templates that can be used for smart contracts. Each of them will be tailored to work in different industries, such as supply chain management, social media, telecommunications, etc.
Mobile capabilities
The platform is based on a simple Bitcoin UTXO payment verification protocol. As a result, it is possible to execute smart contracts through Lite Wallets (light wallets). They are available for downloading on any mobile gadget.
Market forecast by experts
As we all know, the cryptocurrency market is full of volatility and uncertainty, so predicting the future of crypto is a difficult task, but we have come up with certain predictions based on Qtum cryptocurrency news and what market leaders or websites are saying. Let's look at some of them:
- Wallet Investor
Wallet Investor is one of the most famous cryptocurrency prediction sites that analyzes almost all crypto assets. They predicted that the asset could reach $2,090 by the end of 2022;
- Trading Beasts
Trading Beasts showed forecast data based on months and concluded that the coin would be valued at $3.54 by December. They even predicted that Qtum could reach $8.28 by 2022;
- Crypto Ground
This resource does a good job of laying out the likely price changes of a cryptocurrency over a day, a week, a month, 6 months, a year and 5 years. According to Crypto Ground, it can reach $3.5648 in 6 months and $4.0957 in a year. By 2024-2025 it will be worth $68.79, which is about 2164% growth.
- Digital Coin Price
An analytics site that predicts that QTUM could reach $5.12 by the end of 2022, which is December;
- Coin Fan
Fan Coins also came up with a chart where they predicted the maximum and minimum price of Qtum each month. They predicted that the crypto asset would be worth $5,083 (high) or $3,757 (low) by the end of the year.
Where to buy Qtum
The QTUM token (ERC20 standard) is actively traded on many of the world's leading cryptocurrency exchanges. ERC stands for Ethereum Request for Comments. This is the official protocol for proposing improvements to the Ethereum network, and 20 is the unique ID number for the proposal.
ERC20 is a standard that is primarily a set of functions required to develop tokens compatible with it. Thanks to its wide support, many authors of new ICOs based on the Ethereum network are launching their projects with tokens that support this particular standard.
It is mainly traded in pairs with BTC, KRW and USD:
- Coinone;
- EXX;
- Binance;
- Lbank;
- Bittrex.
Exchange rate dynamics
In March 2022, with the help of an ICO, the developers sold 50 million tokens, collecting 14 thousand bitcoins. At the beginning of January 2022, the coin rate made a jump, breaking through the $100 mark. At this time, its exchange rate to Bitcoin was 0.006 BTC. Using simple arithmetic operations, we can conclude that the qtum rate has increased by 20 times.
Now there is some decline in value, most likely caused by the fall of Bitcoin. Bitcoin has become a universal cryptocurrency, an analogue of the US dollar in the world of fiat money. Altcoins always react sensitively to the rate of the main cryptocurrency and follow it.
How to mine Qtum
Quantum mining is based on the PoS algorithm and is very simple. In order to earn commissions from online transactions, just take a few simple steps:
- select Qtum wallet;
- send purchased coins to them;
- wait for the next 500 blocks to complete;
- keep your wallet active.
Each transaction to send coins to the Qtum wallet requires 500 blocks (or confirmations), after which they begin to generate profit for the owner. The network weight is the total number of Qtum bets. It determines the probability with which 1 QTUM will mine the next block. The more weight, the less likely it is.
Currently it takes about 2 minutes to create a block. Each block rewards its miner with 4 tokens, as well as commissions for transactions included in that block.
There is no such thing as “progress” when it comes to the Quantum network. Block creation is entirely based on probability. It's like a kind of lottery. Each token in the wallet is one ticket to participate in the lottery for its owner.
Last news
Some news about Qtum:
Qtum Foundation will launch a system of ultra-small space satellites for PoS mining
The Qtum Foundation and Singapore-based SpaceChain Foundation have announced a partnership to launch standardized cubesats that will allow Qtum users to mine tokens on Raspberry Pi devices.
The Qtum Foundation believes that the Proof-Of-Work consensus algorithm is a natural barrier to the mass use of many cryptocurrencies, since it makes the maintenance of blockchain networks extremely expensive.
Moreover, the status of the mining industry in many countries is in question due to the lack of a regulatory framework.
The cubesat network, in turn, will allow Qtum users to mine tokens on cheap British Raspberry Pi single-board computers, which will also solve the problem of the colossal electricity consumption of modern mining equipment.
In addition, placing validating nodes in space will greatly simplify the regulation of the sphere.
Results of the ICO
The Qtum ICO took place between March 16 and April 15, 2022. Within 24 hours from the start of the token sale, about $10 million was collected. The total amount of funds that the developers were able to raise during the sale of 100 million tokens was $15.6 million.
Token distribution scheme:
- public sale - 51 million coins;
- developers, sponsors and founders - 20 million coins;
- development fund for Qtum-related projects - 29 million coins.
It is planned to increase the total number of coins in the future by 1%.
Reasons for the decline in coin value
Proponents of the project perceive the cost during the correction as a natural stage of development. Among the main reasons for the depreciation are:
- long-term correction;
- regulatory policies;
- outdated technology.
Since the cost of all projects fell sharply in January, analysts are more often talking about the impact of South Korean legislative initiatives. When the country banned transactions with cryptocurrency, Qtum had problems with nodes, most of which were located in this country. The loss of capacity affected the position of cryptocurrency on exchanges.
Another unfavorable factor was rumors about the illegal activities of Patrick Dye, whose reputation was significantly damaged due to suspicions of organizing a fraudulent scheme. Users learned that Dai worked with the BitBay project, and after he left, 20 thousand BTC disappeared there.
The developer has not yet been able to refute the accusations.
Investors were also influenced by statements from Vitalik Buterin’s project participants. They said that UTXO technology has no future, so at one time they had to abandon its use due to fears that it would ruin the prospects of Ethereum. Many considered the increase in the value of Qtum to be speculative, since, in theory, a cryptocurrency with increased volatility should not inspire investor confidence. The developers have not yet offered any arguments in favor of the fact that the project really has a future on the market.
