Exploring QTum: A Beginner Guide

Blockchain platforms often seem like they must choose between security and functionality. Bitcoin represents the former as the gold standard of decentralization. Ethereum has tried to straddle both worlds with mixed success. QTum is one of the few that have better success, and it is now listed as one of BC GAME’s available cryptocurrencies.

Paypal Suspends Stablecoin Development Due to NYDFS Examination

February 11, 2023

Evolution of Crypto – Its Advantages Over Traditional Fiat Currencies

February 8, 2023

In 2016, Patrick Dai and two co-founders brought QTum to life. Dai participated in other blockchains like Fantom and VeChain and brought a wealth of tech and management experience to the project. Today, QTum is a significant blockchain project with some prominent backers. Keen to learn more? Let’s explore what QTum is.

What is QTum Crypto?

QTum is an open-source blockchain seeking to achieve utility in the era of enterprise blockchain. It combines Bitcoin’s transaction model with the ability to support smart contracts. Accordingly, users have a secure blockchain that adds flexibility and decentralized application development in its multi-wallet ecosystem.

QTum seeks to leverage a global talent pool to foster development on the blockchain. The team has also initiated collaboration with researchers in leading universities to foster innovation. Accordingly, the project seeks to combine Bitcoin’s transaction model with the smart contract functionality.

Bitcoin’s blockchain has a secure way of preventing double-spending using the unique Unspent Transaction Output (UTXO) architecture. Notably, a computer transaction consists of inputs and output. A UTXO is an unspent output from a Bitcoin transaction. Accordingly, users take a UTXO or a combination to serve as input for new transactions. The user provides a digital signature proving they own the input. Once the UTXOs get spent, they can no longer provide valid input. Therefore, UTXO ensures that once input is spent creating valid output, it cannot be spent a second time. The overall result is to secure the blockchain, which has a decentralized mechanism to prevent double-spending.

QTum has also improved its functionality in the Decentralized Finance (DeFi) era. Accordingly, there are dozens of tokens created on the QTum blockchain. QTUM still serves as the native token of the blockchain and continues to benefit from overall blockchain utility. Entrepreneurs can utilize QRC-20 standard tokens, which take inspiration from Ethereum’s ERC-20. Overall, it is a secure and stable smart contract development platform.

What makes QTum Unique?

QTum had the advantage of launching after Bitcoin and Ethereum. By then, scalability issues had become apparent, with Ethereum’s smart contracts proving to be a formidable force.

Utilizing the UTXO transactional model ensures that the network combines Bitcoin’s security with the functionality of Ethereum. The combination is a rarity in the blockchain era. Most POS blockchains prioritize scalability and commerce, leaving some platforms vulnerable to double-spending and hacking attacks.

QTum does not sacrifice performance either. Its Account Abstraction layer complements its governance structure efficiently. QTum also borrows from Ethereum’s gas model, allowing a refund of unspent gas after a transaction. This blockchain is an excellent environment by combining features one finds in different blockchains.

Proof of Stake Consensus Algorithm used by QTum

Like everything in crypto, developers have sought to make Proof of Stake (POS) consensus more efficient. QTum’s implementation is the Mutualized Proof of Stake mechanism. The tweak in this POS implementation is to prevent double-spend attacks on the blockchain. Bitcoin’s use of UTXO makes it secure as QTum brings this asset on board. Accordingly, the network rewards participants for staking tier coins longer. Staking is valuable for governance and voting on network upgrades.

Mutualized Proof of Stake also ensures that the network is safe from junk contract attacks. It achieves this utility by factoring in network security in allocating block rewards. Those who contribute by staking get gas fees and newly-minted QTum. Therefore, this form of POS consensus aims to preserve the UTXO security of pioneer blockchains while allowing smart contract enterprises to thrive.

QTUM COIN

The initial total supply of QTum was 100 million, which the current total supply is slightly above. This figure creates a semblance of scarcity, which was a fundamental idea of Bitcoin. The project also took inspiration from the halving of Bitcoin’s block rewards every four years. Accordingly, QTum should reach its maximum supply in 2045 or thereabout. At press time, a coin retailed for about $4.08 with a market capitalization of $423.3 million.

Notably, the coin launched at the peak of ICO mania in 2017. Over half of the coins went to the public, about ten percent to early private investors, and the rest allocated to the project team and QTum Chain foundation. This foundation is non-profit and operates from Singapore, a relatively crypto-friendly jurisdiction.

Just like every cryptocurrency, safe storage is vital. Therefore, one must always be careful with private keys and the wallets they choose. For significant amounts of coins, offline hardware wallets are excellent. Alternatively, online wallets are convenient for trading or short-term storage of coins. Either way, the BC GAME mobile app is smooth for transferring and monitoring your coin in-game.

Using QTUM on BC.Game

QTum’s development team and community did a great job retaining Bitcoin’s UTXO model and adding smart contract functionality. The balancing provides the best of both worlds for users. Additionally, this blockchain utilizes the efficient Proof of Stake (POS) consensus, more sustainable than Bitcoin’s Proof of Work Consensus.

BC GAME gaming enthusiasts get a versatile cryptocurrency. The coin’s scalability means it is efficient for payments, including micropayments. Besides, this coin has shown some resilience in a challenging year for cryptocurrencies. Pun intended; it may be worth the gamble. Moving QTum is low-cost and fast, which bodes perfectly for online crypto gambling. Additionally, gamers interested in developer activity can explore its many use cases from the enterprise blockchain angle. You can also utilize your QTum winnings for staking and governance on the platform.

Post Views: 282