Qtum is a decentralized blockchain platform that enables smart contracts through the Ethereum Virtual Machine. It utilizes the Bitcoin UTXO model for its blockchain while relying on proof-of-stake to reach consensus. As a hybrid project, Qtum combines the strongest features of both Ethereum and Bitcoin, allowing it to integrate future updates from these projects alongside its unique advancements.
Qtum operates in a fully decentralized manner, with no need for "delegated" proof of stake or masternodes to create the illusion of speed. Anyone with a device capable of running a node and an internet connection can participate in validating transactions. There's no requirement to hold coins or vote for a centralized validator. The network aims for block times averaging 32 seconds, storing up to 8000kb of data per block. With SegWit integration, it can process up to 1100 transactions per second. Since Qtum is based on Bitcoin, if needed, a Layer 2 solution can boost transactions to "millions or billions" per second via the Lightning Network.
Qtum supports various token standards, including a version of Ethereum's ERC-20 known as QRC-20. It has also adopted the BRC-20 standard from Bitcoin, referring to it as qBRC-20. Alongside NFT support, Qtum provides developers with more options than Bitcoin or Ethereum can independently offer.
For a deeper understanding of this project, explore our detailed examination of Qtum.
What Makes Qtum Unique?
Qtum is a versatile blockchain designed to tackle four major issues identified in Bitcoin and Ethereum: interoperability, governance, the high cost and rigidity of proof-of-work, and the challenges of linking smart contracts to real-world applications. To address these, Qtum features two unique technologies: the Account Abstraction Layer (AAL) and the Decentralized Governance Protocol (DGP).
The Account Abstraction Layer brings together the UTXO account layer from Bitcoin with a smart contract layer inspired by Ethereum.
The Decentralized Governance Protocol enables smart contracts to modify fundamental network parameters like block size and gas fees without needing to hard fork the blockchain. This flexibility can prevent complications as the network grows. Involvement from miners (stakers), developers, and QTUM holders ensures comprehensive governance, allowing the blockchain to self-manage, upgrade, and evolve.
How Many Qtum (QTUM) Coins Are There in Circulation?
The Qtum whitepaper states that the initial supply of QTUM coins was set at 100 million, all minted before the project's launch. Out of these, 51 million coins were sold to the public through an ICO in March 2017. Additionally, 8 million coins were distributed to early private investors, and 12 million were reserved for the project team with a four-year lock-up period. The remaining coins are managed by the Qtum Chain Foundation, a non-profit registered in Singapore, which received them in four installments by March 2021. These include 20 million coins allocated for business development and 9% for academic research and promotion.
The coin supply is dynamic; new tokens can be mined with block rewards halving every four years, starting from an initial reward of 4.0 QTUM per block. This will continue through seven halvings until it reaches zero by 2045, with the maximum supply capping at 107,822,406 QTUM.
How Is the Qtum Network Secured?
Qtum employs a different technical approach compared to Bitcoin and Ethereum, opting for the MPoS (mutualized proof-of-stake) consensus mechanism to ensure network security. This is an adapted version of Proof-of-Stake 3.0.
The protocol encourages users to lock their coins, known as staking, to aid in the block validation process. Coin holders compete to confirm each block, with connectivity and random selection determining who gets the right to validate. Unlike early PoS methods, the block reward remains constant and isn't influenced by coin age. Rewards are distributed according to the amount staked, meaning higher stakes yield greater rewards. To protect against "junk contract" attacks, the MPoS protocol allocates 10% of the block reward to the producing miner and nine previous miners, delaying the other 90% by 500 blocks.
Unlike Bitcoin's proof-of-work, proof-of-stake algorithms are much less expensive to maintain, more eco-friendly, and offer substantial decentralization, which is crucial to blockchain security.
Where Can You Buy Qtum (QTUM)?
QTUM is a widely-traded token available on numerous exchanges. It can be exchanged with Bitcoin and altcoins, stablecoins, and fiat currencies.
The leading platforms for trading Qtum include Binance, Huobi Global, OKEx, HBTC, and Hydax Exchange. Additional options can be found on our crypto exchanges page.
