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QTUM Coin – Ultimate Cryptocurrency Guide
About this guide: This article will aim to provide you with everything you need to know about QTUM coin and the QTUM project. We will explain what QTUM is, what the project does and how it differs from other application developer platforms. You should know that the project was created by the Quantum Foundation. As always, we do urge caution before investing in any cryptocurrency and encourage you to do your own research.
What is QTUM?
Based out of Singapore, the Quantum Foundation has produced one of the most exciting blockchain projects offering many advantages to the world of smart contracts and industry. The project has a young and talented team. They have been making waves in the crypto world and this is why the project is known as: “The Blockchain Made Ready For Business.” QTUM plans to be a public blockchain for business, mainly targeting mobile telecommunications, counterfeit protection, finance, industrial logistics, and manufacturing.
Imagine a blockchain platform that combines the best of Ethereum’s flexibility with the high security of Bitcoin. Through the QTUM network, developers can build highly secure decentralized applications that can be used by financial institutions and other corporations. This gives QTUM the potential for wide-scale adoption, especially at the enterprise level by corporations looking to take advantage of blockchain technology.
QTUM’s official introduction video.
The QTUM ICO & Token Supply
QTUM’s Crowd sale took place in March 2017 raising over $15m in just 5 days. $10m of that funding was raised in the first 90 minutes! This puts the project in the top 10 crowd sale campaigns in crypto history.
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The total QTUM token supply will be allocated in three ways.
- Firstly, 51% of tokens (51 million) were distributed though the project’s ICO. Funds raised through this method will finance QTUM’s operations for the next four years. This includes business functions such as development, administration, marketing, and financial/legal consulting.
- Secondly, 29% of tokens (29 million) will be allocated to community initiatives. These include business development, research, education, and market expansion.
- Finally, 20% of the tokens have been distributed among the founders, early backers, and the development team.
How is Qtum Different?
What makes Quantum Foundation’s approach to smart contract development so unique is that it looks to bridge the gap between Bitcoin’s and Ethereum’s projects. In a nutshell, the project is a developer platform which combines the smart contract functionality of Ethereum and enjoys the network security of Bitcoin. QTUM enjoys the best of the Bitcoin and Ethereum networks.
A More Technical Explanation Of QTUM’s Difference Vs Other Developer Platforms
Its core technology combines a modified Bitcoin Core infrastructure with a compatible version of the Ethereum Virtual Machine (EVM). What on earth is the Ethereum Virtual Machine? Put simply, all this does is focus on security and execute untrusted code through a global network of computers. Practically, this acts as a counter measure for denial of service attacks, which can bring down networks with an excess of fake traffic. This type of attack is very common in the cryptocurrency space, so having a safeguard is a wise move.
QTUM merges the reliability of Bitcoin’s unfailing blockchain with the endless possibilities provided by smart contracts. The Quantum Foundation achieves this by using an account abstraction layer (AAL). This is simply the technical system that enables the Bitcoin blockchain and the Ethereum Virtual Machine to communicate with each other. The result of this innovation is that any new developments on the Ethereum or Bitcoin blockchain will directly improve QTUM.
Both Ethereum and Bitcoin have either implemented or are in the process of deploying solutions that will make transactions faster and cheaper for users. All these developments will strengthen QTUM. These include:
- Lightning Network – this will enable instant transactions, increase transaction capacity to billions of transactions per second, reduce transaction costs and enable the ability to make transactions across different blockchains (e.g. Litecoin blockchain).
- SegWit – Increases the number of transactions per second that are processed on the Bitcoin blockchain. Historically, Bitcoin experienced scaling issues due to each block only being 1MB large. SegWit increases this to 4MB.
- Raiden network – this enables near instant transactions with very low fees on the Ethereum network.
How Does QTUM Benefit From The Ethereum Virtual Machine?
The project benefits from the strengths of The Ethereum Virtual Machine in the following ways:
- It makes it incredibly easy for developers to add content to the QTUM network.
- Existing dApps (Decentralised applications) can be easily moved over to to the QTUM network. If existing APPs on other blockchains move over to QTUM, this will increase the projects value.
- The network is protected from denial of service attacks.
The Quantum Foundation’s Major Contribution To Crypto: The Account Abstraction Layer
So you already know that the Account Abstraction Layer is what enables QTUM to enjoy the benefits of both Bitcoin and Ethereum networks. What we didn’t tell you is that this system results in Quantum not being confined to the Ethereum Virtual Machine as a smart contract platform. Any other virtual machine that is compatible with AAL, will be compatible with QTUM and can replace Ethereum’s Virtual Machine.
For the full potential of the Account Abstraction Layer to be realised, QTUM need to create their own solution. The good news is the team are working on this now and are creating their very own x86 Virtual Machine for the QTUM system.
QTUM’s own x86 Virtual Machine solution has the following featured goals:
- Unlock new possibilities for smart contracts.
- Provide data storage.
- Add programming support for common languages like C#, C++ and Java.
The last point is a much bigger deal then it seems. Right now, there are 14 blockchain developer job opportunities for every blockchain developer. A blockchain that enables developers to code in common and widely used programming language would mean that specialist blockchain developers are not required. We are very excited about what a development can mean for the crypto market.
It must be noted that QTUM is not the only project looking to enable developers to code in common languages. Other projects like LISK are building this functionality.
A Clash Of Transaction Systems
This is maybe the simplest example of how the project has taken the best of Ethereum and Bitcoin to help make their own developer platform. We know it’s a little bit technical, but just hang on in there.
The Account Ledger System for Ethereum works much like a traditional bank. Every person on the network has a balance and can subtract a portion of their balance to increase the balance of another person. This is the technical way of how sending money works. However, to make this system work on the blockchain, many pieces of logic must be added to avoid “double spending”, spending the same funds twice. This logic makes the account model more complicated internally, and adds a number of restrictions.
The Unspent Transaction Output (UTXO) model, is similar to having an ecosystem built on bank checks (without an actual bank account, the check itself is the money). There is a “pay to” field, which in our example provides instructions to how the money must be spent, and each check has an amount. You cannot go to cash the check and say “cash half the check and give me half back”. Your ‘balance’ is simply the sum of the checks which you are capable of spending. All you need to know is that every token is either “spent” or “unspent”, and crypto balances are calculated by the sum of spent or unspent transactions. This method is simpler in a blockchain environment and requires less logic to maintain security.
Each model has its own pros and cons. QTUM has chosen the UTXO model for transactions, which has been tested and proven to be secure by Bitcoin. For smart contracts, QTUM uses the simpler Account Ledger System like Ethereum does.
There is a growing trend in people accessing the internet using their mobiles. A fun fact is that mobile usage overtook desktops for the first time in 2016. With such trends you would have thought that cryptocurrency projects would take mobile seriously. QTUM was the first cryptocurrency project that realised and focused on the untapped potential of the mobile market.
QTUM has made it’s platform mobile friendly through its simple payment verification protocol, based on Bitcoin’s UTXO mode. This gives mobile devices the ability to execute smart contracts through lite wallets. The result is that mobile users can interact with the Bitcoin network and validate their own transactions without having to download and sync with the entire blockchain.
The project has been heavily influenced by trends in East Asian countries like China where there is already a strong developed mobile payment infrastructure e.g. with WeChat Pay and Alipay dominating the market. No matter where you are or what you want to buy, you can use your phone to pay, from taxis to local street food vendors. The goal of QTUM wallet is to launch a similar concept and make it mainstream across the world with at least 10 million users.
We do think that mobile support will become an increasingly important requirement for crypto projects. We are very excited about QTUM’s first mover advantage and feel this strategy will pay dividends in the future.
The Quantum Foundation’s thoughts on mobile support:
“Making smart contracts work on smartphones and tablets heralds a new age in the field of decentralized computation. With about half of all internet traffic being generated by mobile devices, every real-world use case for decentralized applications would massively benefit from mobile support — especially if we’re taking the tendencies of developing markets into account”
Patrick Dai (Founder of Qtum)
Typically associated with the Ethereum project, a decentralized application (dApp), is an application that runs on a peer-to-peer network of computers, as opposed to a single computer. The key benefit of this is that users of the network do not depend on a central computer in order to send and receive information. QTUM already has a wide selection of dApps currently being developed on its network. The Account Abstraction Layer has already made a huge impact on making it easier for developers to build on QTUM.
These dApps show just a small number of examples on how the Qtum platform could be used. You will be able to see that the application are almost endless and include industries like the global creative industry, food, social, medical, and even space industries.
Current global blockchain infrastructure covers just 5% of the earth, this means 3 trillion devices are not networked. This puts significant restrictions on the number of potential blockchain users and cryptocurrency project builders. All is not lost. SpaceChain aims to create a network of 72 satellites (each acting as an operation node) to give blockchain infrastructure a truly global reach and is powered by QTUM.
What’s in it for the user?
- Space based data storage service.
- Blockchain hardware and software satellite sharing test platforms.
- Narrow and wide band communication service.
Another exciting project being built on the QTUM network is MediBloc. In short, Medibloc aims to record every interaction you have with a medical professional and securing this on the blockchain.
- Patients would be empowered by controlling and owning their healthcare data.
- With user healthcare data a new economy can be created where developers can build new services for patients and healthcare providers.
- Doctors can get access to complete health records and streamline their care for patients.
- Health researchers can access the information they need to drive forward the advancement of medicine.
Medibloc’s goal is to build the foundation of the future of healthcare and is powered by QTUM.
Halal-Chain is a decentralized global monitoring solution for product safety and accountability. It focuses on the Halal industry which covers food, medicine, and cosmetics. Halal has become big business having a global market value of approximately 45.3 billion U.S. dollars in 2016 and is expected to reach 58.3 billion U.S. dollars in 2020. Blockchain can provide value in this area by reducing the costs of buying and selling of goods and tracking products through tamper proof systems. All this would be built on QTUM.
Qbao is a QTUM based decentralized social network, with digital currency wallet, exchange, payments, APP store, and a variety of applications scenarios. The project’s goal is to serve the QTUM community and global blockchain users by creating a great user experience and create a social network, similar to WeChat.
The Quantum Foundation has partnered up with Bingo, which is a independent blockchain entertainment ecosystem for developers, publishers, and gamers. The company developed the first ever cryptocurrency game on QTUM, known as “QTUM Heroes”. These technological upgrades in the gaming industry are aimed at providing a fun gaming experience and doing this all on the blockchain. This is a historical moment combining blockchain technology and gaming and this only adds to the ecosystem.
The Quantum Foundation and Proof Of Stake
Proof-of-Stake (POS) is a consensus model for digital currencies, in which a Blockchain can be secured by using coins to generate blocks, as opposed to large networks of specialized hardware. The Proof-of-Work (PoW) consensus model requires complex problems be solved in order to generate a block. The problem becomes more difficult based on the amount of computing power being utilized.
The POS model allows for QTUM owners to use their personal devices to secure the Blockchain. This means instead of requiring an expensive Application Specific Integrated Circuit (ASIC), Field Programmable Graphics Array (FPGA), or Graphics Processor Unit (GPU), that a laptop, or even a personal computer, can be used.
In recent research, experts argued that bitcoin transactions may consume as much electricity as Denmark by 2020. It also creates a safer network as attacks become prohibitively expensive, a hacker would have to own 51% of the coins to gain control over the platform.
Should I Invest In QTUM?
We cannot make a recommendation on whether you should invest in QTUM. But we are happy to share our thought’s with you:
- Project seems to be a solid mobile play.
- Application developer platforms like QTUM dominate the top 20 list of most valuable cryptos.
- We think there are some exciting projects being built on the platform; SpaceChain in particular.
- We like that the project is picking and choosing between the best parts of Ethereum and Bitcoin.
- The Account Abstraction Layer makes QTUM an interoperability play. In the future we believe that there will be many blockchains, so successful developer platforms will need to communicate with many different types of blockchains.The Account Abstraction Layer makes this possible for QTUM.
- QTUM allowing developers to build on the platform using common programming languages such as Java and C++, should make the platform more popular with APP builders.
- The project has nowhere near the adoption levels of competitors like Ethereum.
- The project currently has a very small number of decentralized applications being built on it’s platform Vs competitors.
- Can QTUM really beat competitors like Ethereum or Neo?
How To Buy QTUM coin?
We have put together this comprehensive guide showing you how to buy QTUM coin.
In conclusion, QTUM shows many exciting projects for the future, and this is still the very tip of the iceberg. The Quantum Foundation’s main focus on mobile, security and communication with other blockchains mean that there are almost endless possibilities across virtually every industry.
They have a lot going on this year with the launch of multiple wallets on mobile platforms, lighting network, and even the launch of their very own satellite. QTUM will also focus on increasing thier presence in the West by opening an office in Denver (USA).
We at TotalCrypto can see a very bright future for QTUM. We will be keeping our eyes on this project and are excited to see where it may go.
For full disclosure, we do hold a position in QTUM and consider it a long term hold.
Below we’ve listed some key resources relevant to QTUM.
? Safest QTUM Wallets
Hardware wallets are the safest crypto storage solutions available. These wallets store your private keys and do not expose them to the outside world, making your crypto as safe as possible. Maybe you should treat your crypto like the million dollars it could well be worth one day?
Want to find out what other crypto you can store on Ledger? Just check out our Ledger Vs Trezor comparison guide.
? Best Free Wallets
We recommend using the official Quantum Foundation wallet.
? Best Apps To Track Your QTUM Investment
Want to learn more about how QTUM marries together Bitcoin’s blockchain and Ethereum smart contracts? Just read the QTUM white paper.