Qtum is a blockchain platform that merges the advantages of Bitcoin’s UTXO blockchain design and Ethereum’s Smart Contract functionality.
This combination enables users to create, manage, and engage in blockchain services and products efficiently.
Let’s explore the unique features and inner workings that make Qtum a notable player in the blockchain sector.
History of Qtum
In September 2017, Qtum’s main network came to life, marking a significant milestone in the blockchain’s history. Over the course of six years, the Qtum core team has tirelessly worked on enhancing the platform, with more than 40 wallet releases to their name.
Some notable updates include:
- The Decentralized Governance Protocol allows the community to increase the block size up to 8000kb and adjust gas fees on demand.
- 32-second block targeting and Segregated Witness for higher throughput.
- Proof-of-Stake consensus model.
- Taproot and EVM one updates to the Ethereum Virtual Machine.
- Qtum core codebase updated to keep up with all BIPs offered with the latest Bitcoin Core release.
- Qtum’s “Account Abstraction Layer” which allows the UTXO model to host the Ethereum Virtual Machine without needing an Ethereum blockchain clone.
- Implementation of popular ERC standards like ERC20, ERC1155, ERC721, etc.
Their efforts have focused on increasing blockchain speed while ensuring that the code remains in sync with the latest developments from Bitcoin Core and Ethereum.
Since its inception in 2015, Qtum’s mission has been to create a blockchain that blends the battle-tested stability of Bitcoin Core’s UTXO model with the capabilities of smart contracts on a decentralized Proof-of-Stake mechanism. This unique recipe has proven its relevance over the years.
One of Qtum’s notable achievements in the realm of scalability is the introduction of smart contracts that allow the community to adjust gas fees and block sizes.
This innovation, known as the “Decentralized Governance Protocol,” has made Qtum faster than both Ethereum and Bitcoin without compromising decentralization.
Decentralization remains a core concern for the Qtum team, especially in a landscape where high throughput often takes precedence.
Their perspective is clear: true mass adoption necessitates a strong foundation of decentralization on the base layer, with layer 2 solutions catering to the need for “millions to billions” of transactions.
Uses of QTUM Token
The purpose of the Qtum token is to pay for gas on the Qtum network and to secure the network through the Proof-of-Stake model. Any other use of the Qtum token is merely speculation on secondary market price action.
The Qtum network requires a token cost to send coins. If there wasn’t a cost associated with a transaction, anyone could create a looped transaction between two or more wallet addresses and effectively kill the blockchain with spam transactions.
This is exactly why there’s a gas fee, and the only purpose of the Qtum token is to pay that fee. This doesn’t mean the Qtum network’s only capability is to send and receive tokens. This applies to smart contracts as well.
Qtum tokens are also required to solve blocks, also known as staking, which secures the blockchain.
Proof-of-Stake is important for a number of reasons, most notably the green aspect of the consensus model, but it also allows Qtum to avoid competing for Proof-of-Work hash with other chains that could crush the difficulty of the chain in seconds, thus grinding the Qtum blockchain to a halt.
This was witnessed a few years ago with Bitcoin Cash. Another point to keep in mind is the financial penalty associated with a 51% attack attempt on the Qtum chain.
In order to attempt this, one can’t simply rent a bunch of hash rate for a short period of time. The attacker would need to purchase a lot of Qtum.
The more Qtum they have to purchase, the higher the price becomes, making it cost millions of dollars even to attempt an attack.
In addition to this, QTUM token holders play a crucial role in the platform’s governance, giving them a voice in shaping its future.
Finally, QTUM tokens are integral to Qtum’s staking mechanism, where users can stake their tokens to secure the network, earn rewards, and participate in the platform’s governance.
Qtum’s Features
- Smart Contracts: Qtum supports smart contracts, automating processes for decentralized applications (dApps).
- Hybrid Blockchain Architecture: Combines the security of Bitcoin’s UTXO model with Ethereum’s smart contract capabilities.
- UTXOs: Uses Unspent Transaction Outputs for enhanced security and transaction verification.
- Scalability: Achieves up to 1,100 transactions per second at the core level.
- Segregated Witness (SegWit): Implemented 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): Supports the creation and management of unique digital assets.
- Mobile and Web Wallets: Provides user-friendly access to the platform.
- Cross-Platform Compatibility: Compatible with multiple programming languages.
- Developer-Friendly: Offers extensive documentation and tools for smart contract development.
- EVM Compatibility: Allows migration of existing Ethereum smart contracts.
- Cross-Chain Integration: Facilitates interaction with other blockchain networks and assets.
How to Acquire QTUM Tokens
Qtum doesn’t sell tokens directly. Everything that was sold to the community wrapped up after the March 2017 crowdsale.
If you’re a developer looking to test deploy a smart contract on Qtum, we do keep a funded test network faucet that allows you to get free testnet Qtum tokens for testing purposes.
If you’re looking to deploy a contract on Qtum or lend your computational resources to help secure the blockchain through Proof-of-Stake, it’s possible to find main network tokens on the secondary market.
It should only cost a few pennies worth of Qtum to deploy a contract, and you can stake with any amount of Qtum.
Running a node to validate transactions requires no Qtum, simply run the wallet software on a supported device and leave it online.
Qtum is an innovative blockchain platform that offers a wide range of services and products, fostering the development of decentralized applications and smart contracts.
Its user-centric approach, diverse offerings, and continuous efforts for innovation make it a significant player in the blockchain sector.
To stay updated with Qtum’s latest developments and offerings, you can follow @Qtum on Twitter and join the Qtum community.
