What is Qtum?
Qtum (QTUM) was created by the Qtum Foundation, a non-profit organization based in Singapore, in 2016. In 2017, the foundation raised $15 million through an initial coin offering (ICO) by selling 51% of the 100 million units of Qtum’s cryptocurrency, QTUM. The remaining supply was either given to investors and the founding team or allocated for business development. The total Qtum supply is 107,822,406 (107.8 million), which is earned by staking. The amount of Qtum received using this method halves every four years. After December 2025, the amount of Qtum will halve again, making the block reward 0.25 Qtum approximately every 32 seconds. The Qtum main network became operational in October 2017.
The Qtum Network
Qtum is a decentralized blockchain network. It uses the Ethereum Virtual Machine to support smart contracts and a proof-of-stake for consensus. The blockchain is based on Bitcoin’s UTXO model but incorporates the best parts of Ethereum and Bitcoin to merge future updates and unique developments.
Token standards
The Qtum project supports multiple token standards. It has its own version of Ethereum’s ERC-20, called QRC-20. Qtum also integrated the BRC-20 standard from Bitcoin, naming it qBRC-20 (https://brc20-test.qtum.info). Along with NFT support, Qtum offers developers more capabilities than Bitcoin or Ethereum can individually.
Speed
Qtum’s throughput, or transactions per second, can be anywhere from 1100 on the layer1 chain or “millions to billions” if using a layer2 solution similar to Lightning or using layer3.
Qtum bridge
Qtum is currently deploying an audited bridge that will allow Circle USDC and other Ethereum ERC-20 assets to be bridged to the Qtum blockchain. This infrastructure includes bridge validators and a web front-end that interfaces with an audited “MetaMask Snap.” USDC will be minted and burned on Qtum using Circle’s “Bridged USDC Standard” set of smart contracts. This ensures greater protection against bridged liquidity pools being drained by bad actors.
The Qtum Consensus
Qtum is decentralized, so it doesn’t require special nodes or masternodes to make it fast. Anyone with an internet connection and a device that can run a node can participate in the transaction validation process. There’s no need to hold coins or vote for a centralized validator.
How does the consensus work?
Qtum uses a proof-of-stake (PoS) consensus algorithm. With PoS, mining is achieved by token holders trying to solve blocks by generating hashes with the tokens they hold in their wallets. When the block is added, validators are rewarded based on their stake. In Qtum’s Proof of Stake system, participants stake a certain number of coins and are randomly chosen to validate the next block of transactions. Based on the amount of coins being staked.
Here are some design details of Qtum’s PoS:
It helps combat junk contract spam attacks. Shares block rewards between block-producing nodes and delay payment. The reward’s use is delayed for 2,000 blocks, making it difficult for attackers to exact rewards from a potential attack.
Offline staking
In August 2020, Qtum introduced a new way of staking coins offline. Instead of giving up custody of their owned QTUM, users can simply share their wallet address. This allows the coins to remain in the wallet while still being staked.
The staking system has two parties — Super Stakers (validators) and delegators.
- Delegators send their wallet address via a smart contract to a Super Staker.
- Super Staker has the choice to accept the delegation.
- If a Super Staker successfully validates a block, they will share a reward with their delegators and charge a fee.
- Super Stakers can charge the delegators a fee for staking.
Qtum fees
The gas model on Qtum is designed to protect the blockchain from attacks while keeping it affordable for anyone to deploy Smart Contracts. The cost of gas is measured in QTUM Satoshis, which is the smallest unit of a QTUM token (1 Qtum Satoshi = 0.00000001 QTUM). The fees depend on network demand. However, community members can vote to change the parameters if the fees become unmanageable by using the “Decentralized Governance Protocol” set of smart contracts. This ensures that even if the blockchain volume and secondary price of Qtum in dollars spikes, there will be an avenue to prevent the gas price from soaring. This also allows users not to rely on third-party “layer 2 networks” or other complicated tools that circumvent high network fees.
Benefits and Features of the Qtum Ecosystem
- Smart Contracts: Qtum makes it easy to automate processes for decentralized applications (dApps) using smart contracts.
- Hybrid Blockchain Architecture: Qtum’s architecture combines the security of Bitcoin’s UTXO model with Ethereum’s smart contract capabilities.
- UTXOs: Qtum uses Unspent Transaction Outputs for better security and transaction verification.
- Scalability: Qtum can handle up to 1,100 transactions per second at the core level.
- Segregated Witness (SegWit): Qtum has implemented SegWit to improve scalability and reduce transaction costs.
- Lightning Network: Integrated as a layer-2 scaling solution to further control transaction costs.
- Non-Fungible Tokens (NFTs): Qtum supports the creation and management of unique digital assets.
- Mobile and Web Wallets: Qtum provides user-friendly access to the platform through mobile and web wallets.
- Cross-Platform Compatibility: Qtum is compatible with multiple programming languages.
- Developer-Friendly: Qtum offers extensive documentation and tools for smart contract development.
- EVM Compatibility: Qtum allows migration of existing Ethereum smart contracts.
- Cross-Chain Integration: Qtum facilitates interaction with other blockchain networks and assets.
QTUM Tokenomics
The QTUM token serves two main purposes: paying for gas on the Qtum network and securing the network through the Proof-of-Stake model. Any other use of the QTUM token is simply speculation on the secondary market price.
Sending coins and executing smart contracts on the Qtum network require a token cost. Additionally, QTUM tokens are needed to solve blocks (staking) and secure the blockchain.
It’s important to note that attempting a 51% attack on the Qtum chain comes with a financial penalty. The attacker would need to purchase a significant amount of QTUM tokens, driving up the price and making the attack extremely expensive.
QTUM token holders also play a crucial role in the platform’s governance.
Qtum AI
The Qtum Foundation has acquired and brought online 10,000 Nvidia GPUs to support its AI initiatives. These initiatives feature:
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Qtum Solstice: A conversational chatbot similar to ChatGPT, based on open-source models. The alpha deployment of this chatbot will engage users in helpful and intelligent conversations.
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Qtum Qurator: This tool is based on open-source models and is a text-to-image generation model similar to Midjourney. It will enable users to create images that typically require time-consuming work in image editing software.
According to Miguel Palencia, co-founder of Qtum, plans for Qtum AI will be implemented in three stages. The first stage, which is completed, includes the chatbot and image generator. The following two stages will involve the modeling layer and, finally, the decentralized economy layer, which will integrate everything on the Qtum blockchain.
How to buy QTUM on Guarda
Guarda is a crypto platform where you can buy, exchange, store, and even stake your cryptocurrencies. Follow these steps to buy the QTUM token on the platform. Create an account on the Guarda platform via browser, in-app, or even the Chrome extension. Input the amount you want to pay for the QTUM coins. Guarda supports many currencies, USD, EUR, etc.
Choose your preferred payment option. On Guarda, you can pay with Visa/Mastercard or SEPA. Verify your identity and payment. After verification, click buy, and your coins will appear in your wallet.
Conclusion
Qtum is a versatile blockchain platform that combines the best of Bitcoin’s security model with Ethereum’s smart contract capabilities. Its unique architecture, which includes proof-of-stake consensus, offline staking, and cross-chain integration, offers a scalable and secure environment for decentralized applications.
Qtum supports various token standards and is working to enhance interoperability with other blockchains through its bridge infrastructure. The QTUM token plays a central role in network security and governance while offering opportunities for staking and smart contract deployment, making QTUM a robust option in the blockchain ecosystem.