What is Qtum?
In this article, I would like to review Qtum with its blockchain and native coin. It was created by the Qtum Foundation, which is a Singapore based entity. The project was so popular back in 2016 that only 5 days after launching their ICO, the funding target was met.
The Qtum blockchain is dedicated to developing an open-source ecosystem that will differentiate itself from others that resemble BTC or ETH. With the help of an implemented Value Transfer Protocol (VTP), it aims to build a dApp platform which will bring blockchain technologies to different businesses and sectors like financial services, supply chain management, gaming, social media, and others.
Advantages
Qtum can be considered quite advanced in terms of the implemented technology it has. The network uses the Proof of Stake 3.0 consensus method, which allows users with less coins but 24/7 node uptime to get more frequent rewards when compared to other users with larger holdings but lower online time. Other advantages worth mentioning are:
- Best of Both Worlds – Qtum implements the best features from the two goliaths of the crypto sphere – Bitcoin and Ethereum
- DGP – The Decentralized Governance Protocol gives the ability for the network to quickly vote and implement new features within certain parameters without the need for a fork. It also gives the ability to recover from attacks quickly and efficiently
Disadvantages
Of course, with advantages, come disadvantages. One of the main drawbacks of the Qtum cryptocurrency network is its infinite incremental scalability model. Since minting this coin became available, users will always receive new Qtum coins, which can affect the long-term scalability and stability of its value. Other notable shortcomings are:
- Deficiencies with the EVM – The programming language used for creating smart contracts, called Solidity, is still in its early phases and it is known to have some security faults, which with proper testing can be rectified
- Staking with less loss – since Qtum doesn’t have a minimum amount of currency for staking, malicious users can try to confirm improper transactions at a low risk due to the lower necessary investment
History and Evolution
Back in March 2017, a crowdfunding campaign was started with the goal to raise money for a new blockchain project launched by Qtum. Originally, it was scheduled to last about 30 days or until all the tokens have been sold, but over 10 million USD was raised within the first 90 minutes. Eventually, the total value of the funds got to $15.7 million and Qtum stopped the campaign on its 5th day.
In September 2017, the main network of the Qtum blockchain was launched and all the ERC20 tokens given out during the ICO were changed to the Qtum coin. The co-founders of the project are Jordan Earls, Neil Mahi, and Patrick Dai. With the help of their development team comprised of lead devs Jordan Earls and Yungi Ouyang, Qtum is in the process of creating QtumX, which is the enterprise-focused version of the blockchain and focusing on creating partnerships with large companies.
Qtum’s Future
After taking a look at the roadmap of the project and the goals of the team, the future of the project looks bright. A large system update will be launched soon that will tackle all of the inherent issues that the EVM faces and substantially increase the security of the network. Also, as I mentioned earlier, the focus will be shifted towards creating new partnerships and development of the enterprise version of the network, called QtumX.
Qtum Blockchain
Qtum is a decentralized peer to peer blockchain network that uses the Proof of Stake consensus mechanism and the SHA-256 hashing algorithm. The block rewards are halved every 985,500 blocks, which is roughly 4 and a half years. The first halving of the rewards is expected to be around 9th March 2022 due to the block time being about 120 seconds. The block size is set at 1MB and the network automatically adjusts for difficulty every block, which is relatively standard for PoS.
Qtum Nodes
Currently, in the Qtum network, there are two types of nodes – full nodes and lightweight nodes.
- Full nodes are the ones responsible for distributing the blockchain to the other users on the network that are staking, which creates new blocks. Since there are no mining nodes or masternodes, everything depends on the work of the full nodes that are online on the network. Currently, there are over 4800 Full nodes and Staking (Lightweight) nodes active.
- Lightweight nodes are quite different from the full ones. They are not a part of the consensus mechanism and do not provide any direct benefits to the system but are very easy to use. These nodes do not require the full blockchain transaction history in order to operate and are designed to be used on portable hardware like phones and hardware wallets.
There is a third type of node that is not yet a reality but is being developed. They are called Authority nodes and will be in charge of creating and validating blocks on the currently in development sidechain, called QtumX. Keep in mind that there isn’t much information on them yet and that they will not be active on the main Qtum chain.
How to Get Qtum
If you would like to get a hold of Qtum coins, you can do so via an exchange or setting up a staking node. You can find exchanges that support this cryptocurrency, but only a few of them offer the possibility to use fiat money for the purchase. If there is no fiat option, you can always obtain other cryptocurrencies that can be traded to QTUM and do it that way. Alternatively, you can buy a small amount or even a single coin and just set up a staking node and generate some passive income.
Where to Buy Qtum?
As I mentioned earlier, the only way to obtain any amount of QTUM cryptocurrency is from an exchange that supports it. What I can recommend is to check out Bitfinex as it offers fiat to crypto pairs and you can buy QTUM there with money. Alternatively, you can use Binance and OKEx, where you can exchange other currencies.
I would like to also talk about why you might consider buying and trading this coin. As you may already have noticed, the Qtum network gets frequent updates and has a lot of support and interest from the community. The developers are dedicated and co-founders active as much as possible. At a steady pace, new dApps are created or migrated to the platform and by learning from the two giants, Bitcoin and Ethereum, Qtum can work towards building a flexible hybrid blockchain ecosystem.
| Exchange | Cryptocurrencies | Fiat Money | |
|---|---|---|---|
|
Binance
|
Bitcoin + 3 more | – | Trade now |
|
Bitfinex
|
Bitcoin + 2 more | EUR, USD, GBP, JPY | Trade now |
|
Okex
|
Bitcoin + 2 more | – | Trade now |
Wallets for Qtum
In any case, if you would like to own QTUM coins, you will need a wallet that will provide access and control over your funds. There is an official one that is backed by the development team, called Qtum Core. It is compatible with both 64 and 32bit versions of Windows, MacOS, and Linux. You can find the official download source in the link below.
Additionally, in order to make it as easy as possible for you, I would like to include a Windows Install Guide and a Linux Install Guide that is applicable to the Raspberry Pi as well. Also, you should never forget that backing up your wallet is very important as it will give you an option for recovery if something happens to the device or wallet.
Alternative Wallets
What if you do not like the official QtumCore wallet? Well in that case there are other alternative wallets that you can consider. These types of wallets are created by third-party entities that usually specialize in that type of technology. The features that they possess can vary, from an improved user interface, to a built-in exchange and multiple cryptocurrency support. Some offer innovative technologies that are implemented to boost security as well, if you are the type of user that values security above everything else. You can find my recommendations for alternative wallets below:
Mobile Wallets
Web Wallets
Hardware Wallets
Staking Qtum
Let me talk about staking again. As I mentioned in an earlier section, there is no minimum requirement on how much QTUM coins you will need to own in order to start staking. Additionally, due to the implementation of the Proof of Stake 3.0 consensus mechanism, even with a low investment, you can earn great rewards as long as your staking node is online 24/7.
Qtum Network Security
From the start of the project up until now, there have been no major security threats or issues.
News and Useful Weblinks
If you would like to be a part of the Qtum network and keep yourself updated with the latest information, you can start with visiting the official website. Alternatively, you can register and become an active member of their forums or follow their social media account.