What Is Qtum?
Qtum is a cryptocurrency that blends Ethereum’s smart contract capabilities with the robust security of Bitcoin’s unspent transaction output (UTXO) model. Geared towards large organizations, Qtum aims to integrate seamlessly with various industries such as finance and social media. Established in 2016 by Patrick Dai, Jordan Earls, and Neil Mahl, it held its initial coin offering (ICO) in March 2017.
As of August 2022, Qtum was ranked #98 in market cap, with a price around $3.48 and a market capitalization of $363.15 million.
Key Takeaways
- Qtum merges the security of Bitcoin’s blockchain with the adaptability of Ethereum’s smart contracts.
- It uses a proof-of-stake (PoS) consensus model, which is more energy-efficient compared to Bitcoin’s proof-of-work (PoW) model.
- Designed for large-scale organizational use, Qtum aims to play a significant role in various sectors like finance and social media.
Understanding Qtum
The core vision behind Qtum (pronounced “quantum”) is to fuse the advantageous elements of both Bitcoin and Ethereum, providing a secure platform for business-focused decentralized applications (dApps). Qtum aims to pioneer advancements in online transactions, aspiring to embed itself within sectors such as finance and social networks. Its native currency is known simply as a token.
Qtum leverages Bitcoin’s UTXO model, an accounting method that offers high transactional security. The UTXO system effectively keeps a receipt of unspent coins following each transaction. This model from Bitcoin was adapted and incorporated into the Qtum platform.
Additionally, Qtum adopts Ethereum’s smart contracts—self-executing code blocks that enforce the contract’s terms on the blockchain, making the agreements immutable and self-regulating.
Qtum, Bitcoin, and Ethereum: Unique Synergy
While Qtum draws from both Bitcoin and Ethereum, it possesses unique attributes that set it apart. Key among these is the Account Abstraction Layer (AAL), which facilitates the synergy between the UTXO and smart contract models, enabling them to function together seamlessly.
Qtum employs a proof-of-stake (PoS) consensus model, differing from Bitcoin’s proof-of-work (PoW) approach. This PoS model is more efficient, requiring significantly less computational effort and electrical power. PoW models consume enormous amounts of energy, rivaling the annual usage of entire countries.
In a PoS system, validators are chosen based on the size of their stakes within the network, rather than their ability to solve complex equations the quickest. The higher the stake, the greater the chance of being selected as a verifier—a critical feature for ensuring the network’s sustainability and security.
Related Terms: blockchain, decentralized applications, DeFi, UTXO, proof of work, staking, private blockchain
References
- Qtum. “Mastering QTUM - Developer’s Guide to QTUM”.
- PR Newswire, Cision. “Qtum Shatters Records Raising $15.6 Million During Innovative Token Crowdsale”.
- CoinMarketCap. “Qtum”.
- Qtum. “About Qtum”.
- Bitcointalk. [“Bitcoin Forum: [“ANN"] (QTUM) - A Scalable Smart Contract Platform w/ Proof of Stake”](https://bitcointalk.org/index.php?topic=1720632.0/).
- Coinbase. “What Is ‘Proof of Work’ or ‘Proof of Stake’?”
