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Qtum is an open-source blockchain platform and a value transfer protocol based on a proof-of-stake consensus mechanism. The aim of the protocol is to bring the strength of Ethereum and Bitcoin into a single chain. Founded by Patrick Dai, it was initially issued as an ETH-20 token, but later on, it got converted to the native blockchain with the launch of mainnet.
The two features that are combined in QTUM cryptocurrency are Bitcoin’s security for creating a coin that can be adopted by a large organization and a smart contract functionality of Ethereum. The current market price of QTUM is $30.78, with an increase of 69.56% over 24-hours, and it has managed to surge almost 117.08% in a week. It has a market capitalization of more than $3.13 billion. The coin provides voting rights to the holders in its on-chain governance system.
Qtum is designed to be used for a variety of different tasks by different businesses. It allows the users to build smart contracts and the decentralized application on a large scale. We know that Qtum combines the benefits of Bitcoin and ethereum. Additionally, it solves the problems faced with Bitcoin and Ethereum, i.e., Qtum can help businesses process millions of transactions efficiently, which is not the case with either bitcoin or ethereum. Its main goal is to provide an alternative to Ethereum, which can compete on the programming and maintain the compatibility with Bitcoin.
Notably, the Qtum platform leverages the security of UTXO and enables multiple virtual machines. The project is also scalable because it has the ability to decide its block size without performing smart forks. The platform has also added the support of DeFi applications.
To sum up, Qtum addresses the four major issues of Bitcoin and Ethereum, which are governance, rigidity, interoperability, and costliness of proof-of-work algorithm. It has two technologies for solving these issues, i.e., Account Abstraction Layer and decentralized Governance Protocol.
· Account Abstraction Layer (AAL)- It integrates the Unspent Transaction Output account layer with the smart contract layer. It allows the users to create applications and to host them on Virtual machines. It further supports several programming languages that make it easy to adapt existing applications and compile them on the platform.
· Decentralized Governance Protocol- This protocol allows the smart contracts to change the core parameters of the network, including gas fees and block size, without requiring to fork the blockchain.
Looking at the trend, it seems that the QTUM’s demand has been growing in the market, and its price might continue to show upward trends throughout the year.