Quantstamp — The business behind the future of Secure Smart Contracts
Today, we see around 100 ICOs every week. Quantstamp is just one among them. Why do you have to spend your time investing in this coin? What makes it special?
Quantstamp is the first scalable security-audit protocol designed to find vulnerabilities in Ethereum smart contracts. I know I lost most of you folks at security-audit and smart contracts. Let’s simplify them so it is relatable.
What are smart contracts and security audits ?
In a year, around 2 to 5 Million smart contracts are created. Before that,
What is a smart contract?
Suppose you rent an apartment from me. You can do this through the blockchain by paying in cryptocurrency. You get a receipt which is held in our virtual contract; I give you the digital entry key which comes to you by a specified date which lets you enter the house. If the key doesn’t come on time, the blockchain releases a refund. If I send the key before the rental date, the function holds it releasing both the fee and key to you and me respectively when the date arrives. You can pay for 12 months in advance and the contract holds it and releases it every month.
The system works on the If-Then premise and is witnessed by hundreds of people, so you can expect a faultless delivery. If I give you the key, I’m sure to be paid. If you send a certain amount in bitcoins, you receive the key. The document is automatically canceled after the time, and the code cannot be interfered by either of us without the other knowing since all participants are simultaneously alerted.
You can use smart contracts for all sort of situations that range from financial derivatives to insurance premiums, breach contracts, property law, credit enforcement, financial services, legal processes and crowdfunding agreements.
Now, let’s see how you implement a smart contract in real time.
Step 1 — You agree to rent the apartment. The Landlord creates a smart contract.
Step 2 — Somebody checks it and makes sure it does what it says. There shouldn’t be any loophole in the contract that benefits one party over other or worst case makes the contract hackable. Why? Since everything is in digital, somebody can come in and take the 1 BTC you pay your landlord every month by hacking the smart contract. This entire process is called security auditing and it’s mind numbing, manual, time consuming and an expensive process in today’s world. Also, this is one of the things that is not scalable. Let me introduce a new technology that will address and suggest solutions to all these problem.
Now, that you understand Smart Contracts and Security Auditing and how painful it is, let me introduce you to a world with Quantstamp. The same process of contract works here except that the second step of auditing is completely easy and simple and scalable.
Step 1 — You agree to rent the apartment. The Landlord creates a smart contract
Step 2 — The contract is posted into quantstamp and it gets quantstamp certified.
Look how easy the second step is. This is the idea behind the revolutionary new technology called Quantstamp. You don’t spend hours wasting your time on finding a manual tester and makes sure he does his job properly. That’s almost days or hours of time saved.
How does Quantstamp do it?
It collects third party automation testing codes from the world’s leading security advisors and automates the most part of the testing. For the part that needs some manual testing, it allows you to post a bug bounty program which will reward security advisors for finding flaws in your contract.
How much does it cost to test a smart contract today?
- Find a decent security tester. It will take you at least 1 working day to find an expert.
- Pay him to do that. We are talking about 10 to 20 man hours work. Average US Security Testers get paid at $150 per hour. The time and availability of highly on demand Security testers might cost you weeks to get your audit done. Total cost incurred — $1500 to $3000 for a contract
How much will it cost to test a smart contract with Quantstamp?
- Post it to Quantstamp and say you are willing to pay 1000 Quantstamp coins.
- At current market value, 1000 Quantstamp coins may cost you $50. Even if the value raises and you may have to pay 5000 Quantstamp coins, it will still cost you only $250, a fraction of today’s market value. $ saved even at worst case — 400% savings on an average compared to the painful old way of doing things.
- The second part is countless hours of time saved for you to create and execute a contract which is also very good.
But, is this a big market ?
You remember the first part where we told you that 2 Million smart contracts are created every year. Imagine we capture just 20% of that market. 200k smart contracts and assuming $250 per smart contract, we are talking about $50 Million worth of revenue.
Please also understand that not just you and me will use and get benefits out of this but also huge companies with 1000s of smart contracts will post them at the same time to make sure they also get it done as fast as possible. So, they might even be willing to pay $1000+ for advanced and very sensitive smart contracts.
On the whole, we are looking at a company with $50 M + in revenue easily within a year. In today’s world of SaaS and B2B businesses, that gives you a market cap of $500M to $600M within a year of product launch. This takes companies 6 years to reach on an average. This is why Quantstamp has huge potential. Logically, this makes Quantstamp an unicorn in the world of endless cryptocurrencies. Make sure to participate in the ICO and contribute your money and effort.
Assumptions — The numbers are all reasonable assumptions made. It will differ from real world numbers.