Qtum, what is it and how does it work?
Qtum tries to train large organizations with the help of cryptocurrencies and other blockchain-based solutions. Combine the functionality of Ethereum smart contracts with bitcoin security to create a comprehensive approach to blockchain technology.
The project focuses on four elements as a competitive advantage: UTXO model, smart contracts platform, proof of stake network and value transfer.
The Qtum team is made up of members of the Ethereum and Bitcoin communities. There are also former employees of large companies such as Baidu, Alibaba, Tencent, and NASDAQ.
Some of the most famous players in the blockchain ecosystem support this project with the help of traditional venture capitalists and executives from large Chinese companies.
What is the Qtum?
Qtum focuses on the economic principles of blockchain technology. It is a public platform, which means other developers can use it to make blockchain based products. The underlying security technology in this blockchain is UTXO or Unspent Outbound Transaction.
Bitcoin blockchain used UTXO at first as a secure solution to handle transactions. Blockchain uses this technology and combines it with other fundamental solutions from the technological world.
Qtum blockchain can handle multiple virtual machines like EVM and x86 VM. This blockchain has revolutionary features like the Decentralized Government Protocol (DGP) and the POS-based network. Therefore, specific configurations such as block sizes can be modified using smart contract solutions without the need for a hard fork or other solutions.
Companies are the main area of focus for this project. It provides them with a platform to execute smart contracts taking into account business use cases.
Unita, previously called Qtum Enterprise and QtumX, is the private blockchain solution that focuses on businesses with Proof of Authority as the underlying protocol. Block producers in this private network are chosen by the owner of the blockchain.
Qtum also provides a platform for software development based on standard blockchain infrastructure rules. The development of a decentralized application on this platform is similar to other public blockchain platforms.
The Abstraction Layer
One of the essential characteristics of this blockchain is its layer of abstraction. The account abstraction layer makes it possible for developers to separate the application from the underlying protocol and add smart contract features to that in the future.
The feature focuses on using the performance of the blockchain network and growing the application based on that.. The UTXO runs on the Ethereum virtual machine, and Qtum uses the account abstraction layer to communicate between machines.
Developers who create blockchain applications can use Neutron middleware and x86 virtual machine. The system supports the Rust programming language, one of the main programming languages in the security area.
The proof of stake network is powered by nodes around the world. It claims to be the third network considering full nodes (after Ethereum and Bitcoin).
There are currently more than 2,000 full Qtum nodes worldwide that most of them are active in South Korea.
Qtum tries to support its developer community as much as possible. All the necessary development tools and components for blockchain-based solutions and applications are provided on the official website, including the source code.
Additionally, they run some reward plans to incentivize developers on ongoing projects on the main blockchain, like the browser, wallet, translation, and other optimizations.
Qtum has a primary cryptocurrency like all other public blockchains. The underlying core code is based on the Bitcoin code, but the network has its cryptocurrency called QTUM.
The QTUM coin is the block reward that is distributed in a lottery model among full nodes, based on the amount of holding in the node wallets.
Many major cryptocurrency exchanges support currencies, such as Binance, OKEx, HitBTC, Huobi, Kraken, and Bitfinex. The token was launched in 2017 with a starting price of approximately $ 5.
Qtum blockchain supports QRC20 tokens which are derivations of Ethereum ERC20 tokens. These tokens can be used within dApps.
QRC20 transitions need QTUM coins as gas rates. The cryptocurrency was an ERC20 token prior to the launch of its main network.
Users can store QTUM coins in various support wallets. Although there are limited wallets for desktop users, multiple mobile cryptocurrency wallets support this currency. ABRA, AToken, Atomic Wallet, Bitpie, ColdLar, Edge, Exodus, Guarda Wallet, HyperPay, PlayWallet, QBao, SWFT and Trust Wallet are some of them.
Users who prefer a desktop wallet can download the Official Qtum Core wallet from the website. The desktop client is available for Mac, Windows (64-bit only), and Linux.
Downloading and installing the Core wallet creates a complete node on the user's computer. Official desktop wallets also support stakeout.
There is also a alternative available for desktop users called Qtum Electrum, which is only available for Mac and Windows users. The project also has a web wallet qtumwallet.org. Those interested in hardware wallets can also store their currency in wallets Ledger or Trezor.
The Qtum ecosystem consists of multiple dApps in various categories. There are always ongoing dApps projects within the community, too. DApps range from smart contracts, currencies, and healthcare solutions to traceability projects and energy-focused products.
There is also a browser for block searches on this network, like many other blockchains. The qtum.info browser also provides information on block height, transaction volume, and total addresses.
Qtum claims to be the first "UTXO-based smart contract system with a proof of stake (PoS) consensus model," according to the white paper.
Combine the Ethereum blockchain with Bitcoin. Ethereum blockchain has many advantages to developing smart contracts, but it is vulnerable to hackers.
So the development team added fundamental concepts of Bitcoin, the most secure blockchain. On the other hand, using the POS system as an alternative to the Bitcoin Proof of Work makes it easier to generate a new block on the blockchain.
Qtum's plans for the future consist of essential developments that focus on further adoption by the industry. Offline Staking, Phantom and Neutron are the main development projects on the roadmap.
- Official Website: https://qtum.org/en
- Twitter: https://twitter.com/qtum
- Facebook: https://www.facebook.com/QtumOfficial/
- Reddit: https://www.reddit.com/r/Qtum/
The post Qtum, what is it and how does it work? appeared first on Crypto Economy.