Introduction
Qtum is an open source blockchain application platform that combines Bitcoin’s Unspent Transaction Output (UTXO) model, an Account Abstraction Layer allowing for multiple virtual machines including the Ethereum Virtual Machine (EVM), and proof-of-stake consensus aimed at tackling industry use cases. It was first proposed in 2016 and launched its mainnet in 2017. Qtum is designed to bridge the gap between the Bitcoin and Ethereum blockchain ecosystems and to provide tools for developers to create and deploy decentralized applications (dApps). With its powerful and flexible architecture, Qtum enables developers to create applications that can securely interact with the existing blockchain infrastructure. CryptoNewsHerald will provide you with an overview of Qtum, its features, and how it could potentially revolutionize blockchain technology.
05/16/2022
in-depthAltcoins
in-depthAltcoins
What is Qtum?
Qtum (pronounced “quantum”) is an open source smart contract platform that runs on the Mutualized Proof-of-Stake consensus algorithm.
The Qtum blockchain combines the Bitcoin transactional model (Unspent Transaction Output, UTXO) with the Ethereum Virtual Machine (EVM).
QTUM is a native token of the Qtum blockchain. For each block mined, validators receive a reward of 0.5 QTUM.
The block reward decreases every four years. By 2045, it will decrease to zero, and the maximum supply of tokens will reach 107,822,406 QTUM.
Currently, the Qtum token is supported by more than 15 wallets and 30 cryptocurrency exchanges. Ecosystem Qtum includes three staking and seven payment services, as well as three platforms for running nodes. The Moonland metaverse platform and QiSwap decentralized exchange are under development.
Who created Qtum and when?
The platform was founded by Patrick Dai in 2016. He started his career as a product manager at Alibaba and later worked on blockchain projects Factom, Vechain, Bitse Group and Meilink. Dai is currently the chairman of Singapore-based non-profit organization Qtum Chain Foundation.
Qtum’s CTO is Neil Mahi. Lead Developer: David Jansen. The project headquarters is located in Miami, USA.
In 2017, the Qtum team issued 100 million tokens on the Ethereum blockchain. In March of the same year, an ICO took place, the participants of which purchased 51 million QTUM worth $15.6 million in bitcoin and Ethereum.
Another 8 million QTUM were bought by private investors, and 12 million QTUM remained with the development team. The remaining tokens are controlled by the Qtum Chain Foundation.
The launch of the main network took place on September 13, 2017. After that, QTUM ERC20 tokens were reissued in the native blockchain.
What is special about Qtum?
Qtum is based on the Mutualized Proof-of-Stake consensus algorithm, which is a variation of Proof-of-Stake. The chances of receiving a block reward depend on the ratio of the user’s Stake to the total amount of QTUM in staking.
The Qtum team has developed the Account Abstraction Layer (AAL) technology, which allows you to present the user’s UTXO as a single account balance, which simplifies the work with smart contracts.
AAL supports the C, C++, Rust, and Python programming languages so that developers can embed existing applications on Qtum.
You can use a proxy adapter to transfer DeFi protocols from the Ethereum blockchain Januswhich allows you to run popular projects like Uniswap and OpenSea on the Qtum UTXO blockchain.
In addition, the Qtum team has implemented a Decentralized Governance Protocol (DGP) designed to allow users to change key network parameters without a hard fork.
How to become a staker on the Qtum network?
Users can stake QTUM tokens directly (online staking) or delegate them to another user (offline staking).
For online staking you need:
- download wallet Qtum Core;
- synchronize it with the blockchain;
- transfer QTUM tokens to staking in the section Stake wallet side menu.
There is no minimum limit for staking in the Qtum protocol. To calculate the expected reward, you can use special calculator. At the time of publication, the staking yield is 5.73% per annum.
On August 28, 2020, update 0.19.1 was activated in the Qtum network. It allowed to delegate QTUM tokens to other users (super stakers).
To delegate QTUM through the Qtum Core wallet:
- open tab Delegations on the menu Stake;
- add a delegate by clicking the “+” button in the upper right corner;
- enter the name and address of the super staker, as well as the fee you are willing to pay for delegation.
The minimum number of tokens for delegation is 100 QTUM, although superstakers are free to set their own limits.
Only tokens with 2000 or more confirmations can be staked.
After the FastLane hard fork in April 2021, the average block interval decreased from 128 to 32 seconds.
What role does the QTUM token play in the project ecosystem?
The token can be used:
- to pay network transaction fees;
- to vote on proposals regarding the upgrade of Qtum, such as changing the block size or calculating fees on the network;
- for staking as a delegate or super staker.
QTUM is currently listed on Binance, Huobi, Kraken, and other exchanges for about $4.
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Conclusion
Qtum is a revolutionary blockchain platform that combines the advantages of Bitcoin and Ethereum to provide businesses and individuals with a secure and reliable way to conduct transactions and manage their operations. With its smart contracts and ability to support dApps, Qtum is a powerful tool for entrepreneurs and developers looking to advance their projects. Qtum promises to offer an innovative and secure blockchain experience for users, and its growing popularity suggests that it is well on its way to becoming a major player in the blockchain space.
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