tl;dr
Qtum (QTUM) is a cryptocurrency that combines the security of Bitcoin's blockchain model with the flexibility of Ethereum's smart contracts that aim to integrate different parts of the Bitcoin and Ethereum design models in a bid to entice application developers. Qtum was released in 2016 by Qtum Fou...
Qtum (QTUM) is a cryptocurrency that combines the security of Bitcoin's blockchain model with the flexibility of Ethereum's smart contracts that aim to integrate different parts of the Bitcoin and Ethereum design models in a bid to entice application developers. Qtum was released in 2016 by Qtum Foundation, a non-profit organization based in Singapore.
It uses a proof-of-stake (PoS) smart contract open-source blockchain platform and value transfer protocol consensus model for creating new blocks, which is far easier and less energy-intensive than Bitcoin's proof-of-work model. By attempting a design that blends unique aspects of the two networks, Qtum aims to offer an alternative to Ethereum that can compete on programming while maintaining compatibility with Bitcoin, offering something like a best-of-both-worlds blockchain solution.
The Qtum team believes this design will entice users seeking to build applications running on a blockchain, the main value proposition of Ethereum, by allowing their creations to transact similarly to how Bitcoin does. Users are likely to find Qtum also includes many other aspects of other competing cryptocurrency networks.
The QTUM’s cryptocurrency, QTUM, for example, is used to pay fees to those who help operate the network, and the distribution of newly minted QTUM is based on ownership of the asset.
QTUM coins also provide voting rights in its on-chain governance system, meaning if you buy QTUM, you can influence the direction of the software’s development. Recently, the platform added support for DeFi applications, and as of March 2021, more than 20 tokens were created on the Qtum blockchain.
Thus, Qtum is a general-purpose blockchain that addresses four issues its founders found most problematic in BTC and ETH blockchain platforms: interoperability, governance, rigidity, and costliness of proof-of-work mechanism, and difficulty connecting smart contracts with real-life applications. The Qtum blockchain has two unique technologies to solve that: Account Abstraction Layer (AAL) and Decentralized Governance Protocol (DGP).
The Account Abstraction Layer integrates the UTXO (Unspent Transaction Output) account layer inherited from Bitcoin with the smart contract layer inspired by Ethereum. It allows users to build and host applications on virtual machines, including the Ethereum Virtual Machine (EVM) and the x86 virtual machine. It also supports the i686 instruction set and several programming languages like C, C++, Rust, and Python, making adopting existing apps and compiling for Qtum easy. Not only does it allow complete smart contracts, but Qtum also plans to integrate shared programming libraries in the form of smart contracts.
The Decentralized Governance Protocol allows smart contracts to change the core parameters of the network, such as block size and gas fees, without ever needing to hard fork the blockchain, which may save a lot of trouble as the network evolves. Miners (stakers), developers, and QTUM holders within the entire ecosystem are involved in blockchain governance through voting, and the blockchain can realize self-management, upgrades, and iteration.
The best use case for QTUM is amplified when using cryptocurrency; it can be a complex process, and getting ubiquitous acceptance from merchants can be an insurmountable task.
Businesses always seek ways to increase efficiency and reduce costs while improving customer experience. In order to achieve this, many companies are turning to blockchain technology, and Qtum is one of the leading platforms in this space. One of the latest partnerships announced by Qtum is with Zeux, a mobile payment and banking app. This partnership has the potential to be a game changer for businesses looking to integrate blockchain technology into their operations.
From Zeux's perspective, this partnership is all about empowering businesses. The Zeux app allows users to make payments and manage their finances all in one place. With the addition of Qtum's blockchain technology, companies will be able to take advantage of the benefits of decentralization and immutability. This means that transactions will be more secure and transparent, which is especially important for businesses that deal with sensitive financials.