The Beginner’s Guide to QTUM

Marius Bogdan Dinu

@bdinu89

BlockchainBlockchain NetworkQTUM

QTUM is an open-source public blockchain platform that leverages UTXO security while supporting several virtual machines, such as EVM and ARM VM.

It took a long time for a crypto to take center stage. Now, use cases like DApps and smart contracts are at the forefront. Furthermore, blockchain-based platforms have become more valuable. And, except Bitcoin, few other billion-dollar projects are still in the market.

Although Ethereum is the most famous one, other dApps platforms are also bridging the gap. And, this is where a project like QTUM comes into the picture. QTUM (Quantum) can compete with some of the best P2P and decentralized blockchain platforms.

Today, the market contains many crypto platforms with over $1 billion in market capitalization. However, Ethereum, or any other blockchain-based decentralized platform, aims to ensure swift blockchain adoption and unique execution.

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Market Position of QTUM

CoinMarketCap states that the QTUM has a circulating supply of 98,844,353.73. As of now, the token’s price stands at $16.12 per unit, with a market valuation that exceeds $1,593,829,293.

When it comes to the total supply of QTUM, the ICO had been modest. However, it still managed to raise $15.6 million in funds, the 4th highest in the crypto landscape. At first, the total distribution of QTUM tokens was 51 million in the ICO, with 100 million in the supply. At the same time, the token’s supply had a positive annual 1% of PoS inflation.

You can break down the initial QTUM token supply as:

The project distributed 51% QTUM tokens via the usual crowd sale. Additionally, it allotted 20% of tokens among early backers, the development team, and founders. Lastly, it assigned 29% of tokens for academic research and community initiatives around business development.

When it comes to wallets, users can stake QTUM on desktop-compatible wallets. This way, they can earn a sizable passive income as staked dividends. With specific token holdings, you can get 8% of annual returns. On the flip side, users cannot perform the same staking on mobile wallets.

QTUM History

After Bitcoin, many blockchain projects decided to opt for smart contracts execution and development of dApps. But unlike Ethereum and Bitcoin, QTUM wanted to solve traditional blockchain issues. The enthusiastic response of QTUM was to build new and dedicated software that can combine the specialties of Ethereum and Bitcoin.

At the rollout, it was undoubtedly the best tactic to attract more developers to the QTUM platform. Through the UTXO model, the platform managed to extract the best out of Bitcoin and Ethereum. For starters, like Ethereum, the Quantum platform has its dedicated cryptocurrency as QTUM.

It uses rewards to maintain the entire network and make transactions possible. It is vital to understand that one of the hallmark aspects of QTUM is its top-notch network security. And it manages it through the PoS (Proof-of-Stake) consensus mechanism.

The QTUM Fundamentals

QTUM serves as a cryptocurrency and decentralized open-source blockchain. The QTUM Foundation is responsible for the development and maintenance of the platform. The platform is more than capable of executing smart contracts on various virtual machines through PoS consensus. After all, this blockchain is the ideal blend of Ethereum and Bitcoin.

You can view QTUM as a hybrid of Ethereum and Bitcoin Blockchains. Like Ethereum, you can use the platform to implement dApps and smart contracts without a single point of failure. But unlike Ethereum, the infrastructure of this network is different and offers better security and scalability.

QTUM uses Bitcoin’s UTXCO model and executes dApps on virtual machines using EVM in layman’s terms. When it comes to real-dApps real-world applications, QTUM is a perfect tool for developers. This blockchain platform is more accessible to develop and deploy dApps for companies. Later on, you can deploy dApps on compatible mobile devices.

QTUM in the Spotlight

QTUM continues to be part of the discourse in the crypto world due to offline staking. Through offline staking, the blockchain focuses on the non-waking wallet that can delegate specific transactions in the super staker. Offline staking is non-custodial, which gives delegation users complete control over private keys and coins.

Technically, the delegation of offline staking occurs via smart contracts. The delegated user sends the address to the main super staker suing the smart contracts. Delegation users maintain the ownership of the assets and don’t have to worry about funds locking throughout the process.

QTUM platform also plans to start a separate NFT program. The objective of this pilot test initiative is to offer more insights into NFTs. The platform rolls out new impressive features on its web wallet. In fact, users can now create QTUM-based NFTs using the wallet interface and QRC-155 protocol in no time. Adding NFT support is a big step forward for the QTUM. After all, NFTs continue to be one of the most growth-driven industries in the crypto scene.

What Makes QTUM Different?

Unlike most blockchain platforms, QTUM addresses critical issues that users can solve through its protocol. With this platform, users won’t have to perform hard forks. Traditionally, hard forks are an essential requirement for network upgrades. The QTUM’s network model is designed to make core changes or upgrades without hard forks.

QTUM offers a sophisticated decentralized alternative to various fiat currencies. The network consists of thousands of distributed nodes throughout six continents. In fact, the PoS network of QTUM is one of the biggest in the world. In terms of node count, QTUM stands just behind Ethereum and Bitcoin.

QTUM Benefits

Open Access

QTUM offers users and developers open access to market decentralization. It means the network cuts out the third parties right from the start. This flawless mechanism allows anyone to be part of the platform and take advantage of its unique services and tools.

Modularization

Another aspect that makes QTUM beneficial to users and developers is its modular design approach. In fact, the developers made sure the current blockchains were compatible with its system. The network comes with a long list of development resources that make it easier to build next-gen dApps and new blockchains.

Flexibility

One of the quintessential benefits of QTUM is that it cuts out conventional developer restrictions for onboarding. This blockchain supports programming on various virtual machines like ARM VM and EVM. For instance, if you’re an Ethereum developer, you can migrate your creations to the network. It’s the best way to incur much lower fees and enjoy a responsive and innovative user experience.

QTUM Mechanics

QTUM is a P2P network and offers uniform access to businesses. The platform provides reliable and efficient smart contract rollout and implementation. The functionality of this platform can alter blockchain settings with smart contracts that make it more secure and scalable.

The developers used the core code of Bitcoin and altered its primary consensus mechanism to PoS. After that, developers managed to implement EVM or Ethereum Virtual Machine on top of the modified codebase. The decision to stick to Bitcoin’s code is because of its UTXO model.

QRC-20 & QRC-721

QTUM platform offers QRC-721 and QRC-20 market standards that offer developers to count on standardized experience.

On the surface, these two standards may come across as similar to Ethereum. However, their design is to function solely on the platform. Standardization is the best measure to improve innovation and allows developers to align their efforts.

Abstract Account Layer

The ecosystem of QTUM operates on AAL or Abstract Account Layer mechanism. On AAL, user creations and as well as dApps exist. The idea is to decouple applications from blockchain and boost scalability.

Neutron and Virtual Machine

QTUM virtual machine and neutron represents run time in the environment. Since the platform has the Rust programming language, it can simplify decentralized application development.

Consensus and Governance

QTUM governance works around the PoS (Proof-of-Stake) mechanism. It allows network users to earn rewards through QTUM token staking. The QTUM platform also holds true to its decentralized finance (DeFi) roots through its community governance mechanism.

Token holders can vote on fundamental changes or upgrades in the network’s features and services. Users can also submit proposals before the commencement of the final community vote. Ultimately, the projects that get community approval gain community access to the vault funding.

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Final Thoughts

QTUM blockchain now comes with a new product design and other exciting developments. This project represents what the blockchain landscape has best to offer. By using the UTXO model of Bitcoin and EVM of Ethereum, the blockchain proves that a platform can be highly scalable, secure, and unique at the same time.

With offline staking protocol, you can expect to see more participation in the network and take scaling to new heights. The offline staking would also leave a positive growth impact on the  project. When it comes to the big picture, this blockchain has managed to add more market flexibility.

QTUM is the epitome of other platforms and will make the smart contracts blockchain market more competitive in the coming years. Crypto experts profess that the programmability flexibility of this blockchain is better than Ethereum.

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After all, QTUM focuses on a uniform and secure strategic solution based on Bitcoin. Not to mention this chain offers a lower fee structure on its network than significant market competitors. At its core, QTUM works in favor of developers and empowers them to develop next-gen dApps.