Qtum attracted significant attraction when the cryptomarket experienced high voltage volatility between late December, 2017 and early January, 2018. Between early December, 2017 and early January, Qtum moved from about $13 to as high as $100 before retracting to the sub $40 levels by end January, 2018. Was Qtum only riding the crypto wave that impacted many altcoins, or is there a fundamental strength that attracts investors to this coin? Let us take a deeper look at Qtum to understand how this altcoin distinguishes itself from the rest.
Qtum is a blockchain company from the Chinese soil and its protocol shares the ability of Ethereum in executing smart contracts though its build draws significantly from UTXO which is the well-established transaction model of Bitcoin and the consensus mechanism for proof-of-stake is more practical for adoption by businesses. Qtum is encouraged by the emphasis on adoption by business in aiming to establish services that would close the gap between businesses and blockchain networks. While dapp or the broad centralized app from Ethereum may be more suited for games such as CryptoKitties, the Qtum ecosystem, by design, fosters lightweight and business applications that are effective and compatible with other notable blockchain. Qtum is the token used by the network.
Qtum is positioned as a breakthrough technology, lending more effectiveness to the cryptocurrency.
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The blockchain technology has trust and accountability in-built in the system and that paved way for the creation of a sea of coins, sometimes also called altcoins. But, some of these ahead in the pack were created to cater to a special use. Similarly, each major cryptocoin is designed to address a specific purpose or need. For instance, the intent behind Bitcoin was to act as a store of wealth. Privacy was the focus of Zcash and Monero while executable commands were the focus of Ethereum.
Now, there is a problem when cryptocurrencies have different focal points since they need a different platform which means that they cannot operate together. And, Qtum is seeking to address this problem by introducing interoperability. This technology has its origins in Singapore and was designed to introduce interoperability between major cryptocurrencies but also render smart contracts further easier and secure to handle. In simpler terms, Qtum is a combination of the best from multiple cryptocurrencies on a hybrid platform. Further, Qtum is optimized for mobile platforms deploying blockchain. Though most cryptocurrencies continue to employ desk-top oriented platforms, Qtum recognizes the increasing proliferation of mobile devices used by people to access internet. Thus, Qtum expects to close this gap providing easier access for mobile users through the mobile platforms. When you also consider that Qtum combines the stability of the Bitcoin blockchain with the advantages of Ethereum smart contracts, you can see that Qtum offers reach over a wider demography. Developers opine that the new technology can potentially lead to creation of a next generation in future contracts.
For more reasons than one, Qtum is thus a significant addition to the blockchain technology. More importantly is a vital infrastructure or key component in developing future cryptocurrencies. Blockchain also has a wide array of utilities such as in business and institutional applications, apart from cryptocurrency itself. For legacy institutions and established sectors Qtum makes it significantly easier to create interface with the blockchain technology. Developers can create their own tokens, have self-executing agreements in standardized environments and automate management of supply chains and test and verify them for stability.
Managing smart contract lifecycle
Qtum in association with their academic partners develop methods and tools for standardization of workflow for developing business smart contracts. This would also include formally verifiable translations of agreements that are human-readable into contracts that are machine smart and error-resilient specification of conditions, terms and elements.
The keenness with which the financial industry is pursuing blockchain technology is also evidenced by significant investments and involvement of lead players in the arena including JP Morgan, Goldman Sachs, Visa, MoneyGram, and MasterCard. Interestingly the financial industry has been the foremost in exploring blockchain technology though the industry itself is highly regulated and particularly so, in China, and yet holds the largest number of patents related to blockchain.
Away from the financial industry, most Fortune 500 names, airlines, automobiles and retail are also actively exploring bockchain for the potential benefits it can bring not just to the operations, but also security. These businesses as well as others are curious to examine if blockchain technology can help them improve certain processes and also reduce costs, advance customer and product data tracking, reduce fraud, enhance product safety and prevent counterfeiting.
The advancement in networking and sensors, industrial infrastructure and artificial intelligence, blockchain has the potential to propel businesses into what we may call “Industry 4.0” paradigm of interoperate and connected machines, connected supply chains and information transparency.
The team behind Qtum
The Qtum project also has the backing of some of the most prominent blockchain players, executives from some of the largest among China’s technology companies and traditional venture capitalists. The team itself is pretty business oriented and brings a history of execution to the table. Many reckon them as the best among Chinese teams.