What is Cryptocurrency Qtum (QTUM)? Intro to its Features
We will explain the cryptocurrency Qtum and its possibilities for the future.
“What problem does Qtum solve?”
“What ground basis can we expect from the future of Qtum?”
“I want to understand how Qtum’s technology works.”
Aren’t these some of the things you were wondering?
Qtum has received a large amount of funding from celebrities and ICOs, and the technology provided by Qtum has elements that are expected to grow in the future. So, in this article, I will touch on the outline of Qtum, the technology, and the future of it.
What is Qtum (Pronounced – Quantum)
Qtum (Quantum) is a currency developed by the Qtum Foundation, which originated in Singapore, and is a decentralized application platform combining Bitcoin and Ethereum technology. Qtum was published on December 19, 2016, and is famous for having launched its ICO on March 16, 2017 raising a total of over 1 billion Yen in its large-scale funding event. In addition, it has successfully raised approximately $1 million USD from cryptocurrency celebrities.
This is affected by the fact that Qtum’s development team is magnificent. Patrick Dai, who is originally from Alibaba in Qtum and was elected as a “30 under 30” in Forbes; Anthony Di Iorio, co-founder of Ethereum and founder of the Ajax Blockchain Interface; co-founder of the cryptocurrency Augur, Jeremy Gardner; and Xiaolai Li, who is famous as a Bitcoin holder in China, are all engaged in Qtum demanding very high expectations from users.
In addition, a system that incorporates the superior parts of Bitcoin and Ethereum technologies is highly valued by investors and is a factor in the successful raising of large amounts of money.
The Qtum platform uses the key currency “Qtum”, and as of March 13, 2019, it is ranked 31st in total market capitalization on CoinmarketCap.
Merge the excellent parts of Bitcoin and Ethereum
First, I will briefly explain the problems of Bitcoin and Ethereum.
The Bitcoin system is developed with an emphasis on preventing fraud such as transaction tampering and double spending, and it is a system that assumes that payments will be completed safely. With this, transaction records are maintained and monitored by all network participants and it is considered extremely unlikely that tampering will occur. However, transaction processing requires a great deal of time and money.
On the other hand, Ethereum’s system is an improved system that can handle Bitcoin transactions that are more complicated. However, because of the complexity of Ethereum, it is vulnerable to security, and in the past there have been hacking incidents aimed at targeting smart contract vulnerabilities. Thus, Bitcoin and Ethereum have weaknesses and strengths, but Qtum has been developed by inheriting systems such as Bitcoin’s strong security and smart contracts for complex Ethereum transactions.
Specifically, Qtum implemented Ethereum’s smart contracts while taking the UTXO method (balance confirmation method) adopted by Bitcoin by adding a layer called Account Abstraction Layer (AAL) to the blockchain.
In other words, the AAL plays the role of connecting Bitcoin and Ethereum, maintaining a highly secure UTXO method while using Ethereum’s extensible platform.
Realizing effortless operability with a wallet
Since Ethereum’s balancing method uses an account balance method to download all transaction records, the bottleneck is that the operation becomes heavy when using Ethereum wallets. However, if you use the UTXO method like with Bitcoin, you can use the wallet with only a part of the transaction records and you can realize smooth operability with your smartphone.
Using a PoS system
Qtum uses the consensus algorithm of the PoS system adopted by Ethereum, not the PoW system adopted by Bitcoin.
PoW has a vulnerability in that if the agreement of the network participants exceeds 51%, fraudulent transactions would be approved. However in PoS, participants with more holdings of cryptocurrency would benefit from transaction approval. Therefore making the success rate of a 51% attack extremely low.
Major cryptocurrency exchanges where you can buy and sell Qtum
Qtum Official Information
Qtum Official Website
Qtum Official Twitter
Qtum Official Facebook
Qtum White Paper