What is Qtum?
Qtum (pronounced “quantum”) is an open-source smart contract platform that runs on the Mutualized Proof-of-Stake consensus algorithm. How does it work? What are its features? Let’s take a look!
The Qtum blockchain combines the Unspent Transaction Output (UTXO) model of bitcoin with the Ethereum Virtual Machine (EVM).
QTUM is a native Qtum blockchain token. Validators receive a reward of 0.5 QTUM for each block mined.
The reward per block decreases every four years. By 2045, it will drop to zero and the maximum supply of tokens will reach 107,822,406 QTUM.
Qtum token is currently supported by more than 15 wallets and 30 cryptocurrency exchanges. The Qtum ecosystem includes three stacking services and seven payment services, as well as three platforms for launching nodes. The Moonland meta-universe platform and the 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 at blockchain projects Factom, Vechain, Bitse Group and Meilink. Dai is currently chairman of the Qtum Chain Foundation, a Singapore-based non-profit organization.
The technical director of Qtum is Neil Mahi. The lead developer is David Jaenson. The project is headquartered 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, with participants purchasing 51 million QTUM tokens 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 main network was launched on September 13, 2017. After that, ERC20 tokens QTUM was reissued in the native blockchain.
What is the Qtum feature?
Qtum works based on the Mutualized Proof-of-Stake consensus algorithm, which is a variation of Proof-of-Stake. The chances of receiving a reward for a block depend on the ratio of the user’s Stake to the total number of QTUM in the Staking.
The Qtum team developed the Account Abstraction Layer (AAL) technology, which allows the user’s UTXO to be represented as a single account balance, making it easier to work with smart contracts.
AAL supports C, C++, Rust and Python programming languages so that developers can implement existing applications on Qtum.
To transfer DeFi-protocols from Ethereum blockchain, it is possible to use Janus proxy-adapter, which allows to run popular projects like Uniswap and OpenSea on Qtum UTXO-blockchain.
In addition, the Qtum team introduced the Decentralized Governance Protocol (DGP), designed for users to change basic network parameters without a hardfork.
How to become a staker in the Qtum network?
Users can send QTUM tokens to the stack directly (online stacking) or delegate them to another user (offline stacking).
For online stacking you need to:
- Download the Qtum Core wallet;
- Synchronize it with the blockchain;
- Transfer QTUM tokens to staking in the Stake section of the wallet side menu.
The Qtum protocol has no minimum limit for staking. You can use a special calculator to calculate the expected reward. At the time of publication, the yield of staking is 5.73% per annum.
On August 28, 2020 Qtum network activated update 0.19.1. It allowed delegating QTUM tokens to other users (superstackers).
To delegate QTUM through Qtum Core wallet:
- Open the Delegations tab of the Stake menu;
- Add a delegate by clicking the “+” button in the upper right corner;
- Enter the name and address of the superstaker, and specify the commission you agree to pay for delegating.
The minimum number of tokens to delegate is 100 QTUM, although superstackers are free to set their own limits.
Only tokens with 2,000 or more confirmations can be sent to staking.
After the FastLane hardfork in April 2021, the average blockchain interval decreased from 128 seconds to 32 seconds.
What role does QTUM token play in the project ecosystem?
The token can be used:
- To pay transaction fees for the network;
- To vote on proposals for Qtum updates, such as changing the block size or calculating commissions on the network;
- For steaking as a delegate or superstacker.
QTUM is currently traded on Binance, Huobi, Kraken and other exchanges at around $4.
What are your thoughts? If you have anything to add to the Qtum topic, please leave your comments below!
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