What Is Qtum (QTUM)?

Qtum is an open-source public blockchain platform built on a Proof of Stake peer-to-peer network. It uses Bitcoin’s transaction model, with the added flexibility of smart contracts. The project provides a range of resources for blockchain and decentralized app development, as well as a multi-wallet ecosystem.

In addition to leveraging the skills of an open-source global talent pool, the Qtum team has been collaborating with researchers at leading universities. Qtum applications connect blockchain with the real world and the project aims to meet the needs of businesses by providing a business-friendly development environment and customized blockchain solutions for enterprise clients.

QTUM is the native token of the blockchain and is used to pay for executing smart contracts. It can also be staked to help secure the network and used to participate in platform governance. Businesses and developers can deploy QRC-20 tokens – Qtum’s own token standard. These can be used within dApps and QRC-20 transactions require gas fees to be paid in QTUM.

How Does Qtum Work?

Qtum uses Bitcoin’s UTXO transaction model. This stands for unspent transaction outputs and refers to the amount of cryptocurrency left unspent after a transaction, like change left over after a physical cash transaction. UTXOs are continually processed and records of them stored on the ledger. They require a private key to unlock.

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The platform also introduces smart contract functionality and Ethereum compatibility through the x86 virtual machine. Qtum’s x86 VM supports widely-used programming languages such as Rust, C, C++, and Python to drive mainstream adoption of smart contracts.

Achieving both Bitcoin’s transaction model and Ethereum-compatibility is done through the Account Abstraction Layer, which decouples applications from the underlying protocol. The AAL abstracts individual UTXO transactions to provide a single account balance for the smooth operation of smart contracts that use the Ethereum virtual machine. This also makes it possible to add more smart contract capability in the future. Smart contracts can be used to modify specific blockchain settings without ecosystem disruption through Qtum’s Decentralized Governance Protocol. For example, DGP allows the community to modify block size and base gas fee without the need for a hard fork.

Who Are The Founders of Qtum? (History of Qtum)

Qtum was founded in 2016 by Patrick Dai, Jordan Earls, and Neil Mahi. After gaining a master’s degree in computer science, Patrick Dai served as CTO of VeChain and Chinese Bitcoin mining company Bitse Group before turning his attention to Qtum and becoming the chairman of the Qtum Foundation. Jordan Earls has been developing software since the age of 13 and is also the President of Earl Grey Tech and the Co-chair of the Smart Contracts Alliance initiative. Neil Mahi has a master’s degree in business administration and has been working in software development for 20 years.

The founders are supported by a large group of team members with previous experience at NASDAQ, Alibaba, Tencent, and Baidu, as well as the Bitcoin and Ethereum communities. The project is also backed by venture capitalists, important members of the blockchain sector, and executives from some of China’s largest technology companies.

The first Qtum hard fork took place in 2019, when the launch of Qtum 2.0 upgraded the consensus mechanism and introduced new features such as confidential assets, offline staking, and chain-cloud integration.

What Makes Qtum Unique?

Qtum created the first Proof of Stake blockchain to use the UTXO transaction model with added smart contract functionality. The project aims to combine the security of Bitcoin with the functionality of Ethereum – all while employing the more efficient Proof of Stake consensus mechanism. The unique application of the Decentralized Governance Protocol and Account Abstraction Layer technologies is what makes this pragmatic design approach possible, providing a performance advantage over other blockchains.

In determining the fee paid to miners, Qtum finds the Bitcoin blockchain insufficient as it only relies on the size of the transaction. As such, the project adopts the gas model of Ethereum as it allows the refunding of unspent gas post-transaction. However, Qtum expects the gas price to differ significantly from Ethereum and creates a free-market fee model in which both miners and users can optimize operations.

What Gives Qtum Value?

The Qtum blockchain is a valuable environment for developers by virtue of its combination of security, functionality, and efficiency. Its compatibility with both Bitcoin and Ethereum, developer resources, and range of supported mainstream programming languages also make the platform suitable for an array of applications.

The QTUM cryptocurrency, on the other hand, derives value from its utility. As it is required for paying the fees for smart contract execution and QRC-20 transactions, there is demand for the token from developers. QTUM is also an important part of the Proof of Stake consensus mechanism, which allows token holders to accrue more value through staking. Furthermore, those who stake QTUM have the right to participate in protocol governance and vote on network upgrades. Their voting power is proportional to the amount of QTUM they stake.

How Many Qtum (QTUM) Coins Are in Circulation?

There are currently loading QTUM in the circulating supply out of a total of loading QTUM. The token was launched with an initial supply of 100 million QTUM, which was minted at genesis. The circulating supply increases over time as the token was created with a mining reward of 4 QTUM per block. However, the token follows a similar schedule to Bitcoin, with the block reward halving approximately every four years. By 2045, the block reward will reach zero and the max supply of 107,822,406 QTUM will be reached.

Other Technical Data

In March 2017, 51% of the initial QTUM supply was sold to the public through an initial coin offering. A further 8% was sold privately, 12% was given to the team with a lock-up period of four years, and the rest was allocated to the non-profit Qtum Foundation, which will use the funds for promotion, business development, and academic research.

As of June 2021, there are 1,253 Qtum nodes distributed across 60 countries. Only Bitcoin and Ethereum have more nodes.

How To Use Qtum

Qtum’s Ethereum-compatibility means that Ethereum dApps can easily be deployed to the network. The range of supported programming languages also mean that mainstream developers can use the project’s technology stack. The blockchain is designed for use by businesses and its interoperability makes it suitable for supporting functions including production, logistics, planning, and external partner systems.

The QTUM token is used for transferring value, staking, and paying fees for smart contract execution and QRC-20 transactions. QTUM holders can also participate in protocol governance.

How To Choose a Qtum Wallet

The official Qtum Core can be downloaded for desktop and mobile and used to store your QTUM. There are also plenty of other places you could store your QTUM and the wallet you choose will likely depend on what you want to use it for and how much you need to store.

Hardware wallets or cold wallets like Ledger or Trezor provide the most secure option for storing cryptocurrencies with offline storage and backup. However, they can require more technical knowledge and are a more expensive option. As such, they may be better suited to storing larger amounts of QTUM for more experienced users.

Software wallets, including Qtum Electrum and Atomic, provide another option and are free and easy to use. They are available to download as smartphone or desktop apps and can be custodial or non-custodial. With custodial wallets, the private keys are managed and backed up on your behalf by the service provider. Non-custodial wallets make use of secure elements on your device to store the private keys. While convenient, they are seen as less secure than hardware wallets and may be better suited to smaller amounts of QTUM or more novice users.

Online wallets or web wallets, such as the one provided on the Qtum website, are also free and easy to use, and accessible from multiple devices using a web browser. They are, however, considered hot wallets and can be less secure than hardware or software alternatives. As you are likely trusting the platform to manage your QTUM, you should select a reputable service with a track record in security and custody. As such, they are most suited for holding smaller amounts of cryptocurrencies or for those making more frequent trades.

Kriptomat offers a secure storage solution, allowing you to both store and trade your QTUM tokens without hassle. Storing your QTUM with Kriptomat provides you with enterprise-grade security and user-friendly functionality.

Buying and selling QTUM, or trading it for any other cryptocurrency, is done in mere moments when you choose our secure platform as your storage solution.

Qtum Proof of Stake

Qtum employs a Mutualized Proof of Stake consensus mechanism. This is an improvement on Proof of Stake 3.0, which protects against double-spend attacks by rewarding participants who stake their coins for longer rather than those who leave their wallets offline. MPoS also protects against junk contract attacks by sharing block rewards between block-producing nodes and delaying payments. Those who help secure the Qtum network by staking are rewarded with smart contract gas fees, QTUM transaction fees, and newly minted QTUM. There is no minimum amount of QTUM required to stake, but larger amounts of staked coins are more likely to win block rewards.

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Conclusion

By combining Bitcoin’s UTXO transaction model with the Ethereum virtual machine, Qtum aims to provide the best of both worlds, with security and functionality. The addition of a Proof of Stake consensus mechanism also makes Qtum highly efficient and tackles the shortcomings of other platforms.

The project’s virtual machines, development resources, and array of supported programming languages make the platform an ideal environment for a wide range of developers and applications. Qtum aims to meet the needs of enterprises and has many possible use cases, including finance, internet of things, mobile, and DeFi applications.

The QTUM cryptocurrency is an integral part of the ecosystem and required for staking, governance, and paying fees. As the Qtum network expands and blockchain technologies gain broader adoption, QTUM could turn out to be a valuable asset.

Qtum FAQ

Is Qtum more efficient than Bitcoin and Ethereum?

Qtum runs on a Proof of Stake consensus mechanism, which is more cost-effective and less energy-intensive than the Proof of Work mechanism currently employed by both Bitcoin and Ethereum. Qtum also processes up to 70 to 100 transactions per seconds and can be improved by using the Lightning Network and other Layer 2 technologies. In comparison, Ethereum currently processes 30 TPS and Bitcoin just 3 to 7 TPS.

What is Unita?

Previously known as Qtum Enterprise and QtumX, Unita is a private blockchain for businesses with a faster block time and a Proof of Authority consensus mechanism.

How to Buy Qtum

Buying QTUM is as easy as visiting Kriptomat’s how to buy QTUM page and choosing your preferred method of payment.

How to Sell Qtum

If you already own QTUM and hold it in a Kriptomat exchange wallet, you can easily sell it by navigating the interface and choosing your desired payment option.

Qtum Price

QTUM price is influenced by a lot of the traditional factors such as project news and development details, market sentiment, the flow of cryptocurrency on exchanges, and the economy in general. 

In addition to these factors, QTUM price is also affected by demand from developers for smart contract execution and QRC-20 transactions, as well as the number of applications and users on the network.

The current QTUM price is loading EUR.

The 24-hour trading volume of QTUM is loading EUR. QTUM is currently ranked of all cryptocurrencies by total market cap, with a market cap of loading EUR. It has a circulating supply of loading and a max supply of loading.

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