Qtum, pronounced quantum, was launched in September 2017, after a first Crowd Sale in March.
Its headquarters are in Singapore, and it is already very well positioned in terms of market capitalization: it is in fourteenth place crypto currencies.
This capitalization is $ 3.09 billion (January 2018). Its price is trading around 30 dollars.
The goal of the Qtum team is to democratize smart business contracts through the technology that underpins it.
The objectives of Qtum
First, Qtum hopes to facilitate the creation and execution of Smart Contracts for businesses.
To do this, the Qtum Blockchain connects Ethereum’s Smart Contracts over the Bitcoin chain using a “proof-of-stake”.
This allows an interaction between the Ethereum Blockchain and the Bitcoin Blockchain.
Thus Ethereum contracts can be easily transferred to Qtum.
It should be noted that Qtum, although open to all, is more specifically aimed at businesses.
To understand the ambitions of Qtum, we must first clarify that according to its developers, the Ethereum chain in the current state, still has stability gaps and impossibilities of interaction with Bitcoin.
And that, on the other hand, Bitcoin, while being the most stable Blockchain, can not offer smart deals.
That’s why Qtum wants to be the bridge between the two crypto currencies. It would thus provide the best of both technologies: an Ethereum type of programming facility, combined with the security of the Bitcoin Blockchain.
It will also enable the rapid construction of decentralized applications and will offer other uses for businesses.
How does Qtum work?
In practice how does it work?
As explained above, Qtum is a bridge between the two technologies, Ethereum and Bitcoin. Because these two Blockchains are basically incompatible, their storage methods are fundamentally different: Ethereum uses a method of balancing accounts while Bitcoin uses unspent transactions outputs (UTXO) to mark the values.
It is true that the technology used by Ethereum is easier to write, but with UTXO, it is easier to validate transactions. In addition UTXO allows to process several transactions at the same time.
This is a real technological challenge for Qtum developers. They solve this challenge with an abstraction layer that facilitates the transfer of information from one Blockchain to another.
That’s what makes Qtum so special and that’s what allows it to benefit from the updates of the two Blockchains.
In addition, in order not to overload compute networks, Qtum uses trusted third parties to provide this off-grid power. They are called “oracles”.
Another feature of Qtum is its proof-of-stake system.
This allows Qtum to be the only blockchain of smart contracts powered by proof-of-stake.
That’s what gives it its extreme speed, and that’s what allows it to run a Smart Contract from a mobile phone in a few clicks.
Some Qtum specifications
Some numbers that define Qtum:
the Qtum Blockchain works at the speed of 120 seconds per block.
Each block has a capacity of 2 Mb.
Finally the total number of coins distributed is 100 millions.
The Qtum team
Who is the team behind Qtum’s technological prowess?
This is a young team, based in Singapore.
One of Qtum’s early investors is Ethereum founder Anthony Di Iorio. He put his trust in this team because, he said, he considers it the best in China and Asia.
In addition to investor Di Iorio, Qtum raised $ 1 million in preliminary sales, thanks to eleven investors. Then in March 2017, during a Crowdsale, Qtum still raised $ 15.6 million in about five days.
It should be noted that Qtum also uses PwC’s consulting services to comply with the regulations.
In conclusion, we can say that for the moment, Qtum is still considered a Chinese cryptocurrency. This is why it sees its price reduced by the uncertainties of this market.
Yet Qtum is a serious and ambitious cryptocurrency.
Some think that Qtum is the next big startup of the Blockchain system. And for many, Qtum should arrive at a multi-billion dollar market capitalization.
So it is certainly a currency to follow closely.