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What is the Qtum? – Definition, Types, and More

What is the Qtum? – Definition, Types, and More

Definition of Qtum

Qtum is an open-source blockchain platform that takes some of the best parts of Bitcoin and Ethereum and wraps them into a developer-friendly platform. It is capable of supporting highly secure decentralized applications (DApps).

Specifically, Qtum takes Bitcoin’s UTXO transaction model and combines it with an adaption layer interface to the Ethereum Virtual Machine.

Also, it produces the first UTXO-based intelligent contract platform. And unlike Bitcoin and Ethereum (for now), Qtum is secure by proof-of-stake (PoS) — more on this later.

Also, the platform features a theoretical amount of up to 70 transactions per second (TPS) — making it around 16 times faster than Bitcoin and seven times faster than Ethereum.

It also topographies low inflation and fairly distributes block rewards, ensuring stakeholders and sufficiently compensated for securing the network.

Qtum was founded in 2016 and launched its main net in September 2017. Like many 2016-2017 era platforms, Qtums was initially funded through an initial coin offering (ICO).

And it’s raising a total of dollar15.6 million in Bitcoin (BTC) and Ether (ETH). At the time, this is the fourth highest-grossing ICO always.

What is Qtum?

The Beginner’s Guide

Qtum (pronounced “quantum”) is cryptocurrency software that aims to combine different parts of the Bitcoin and Ethereum design models in a bid to attract application developers.

This is because, despite some general similarities, Bitcoin and Ethereum diverge in the details of how their blockchains work and how they record and update user balances.

What is Qtum_

By attempting a design that combines unique aspects of the two networks, Qtum aims to offer an alternative to Ethereum that can compete in programming, while maintaining compatibility with Bitcoin, offering something of a blockchain solution with the best of both worlds.

The Qtum team believes this design will appeal to users looking to create applications that run on a blockchain, Ethereum’s main value proposition, by allowing their creations to transact in a similar way to how Bitcoin does.

However, users are likely to find that Qtum also includes many other aspects of other competing cryptocurrency networks.

Qtum’s cryptocurrency, QTUM, for example, is used to pay fees to those who help operate the network, and distribution of the newly minted QTUM is based on ownership of the asset.

QTUM coins also grant voting rights in their on-chain governance system, meaning that if you buy QTUM, you can influence the direction of software development.

Those who wish to stay connected on the status of the Qtums project can follow its official blog.

There, project leaders publish detailed quarterly updates on the status of their development direction and overall finances.

What Types the Qtum Unique?

Its design provides a secure, reliable, and highly efficient platform for private, public, and enterprise use cases. Some of its main distinguishing features include:

On-Chain Decentralized Governance

Its uses the custom-built decentralized governance protocol (DGP).  And it allows different stakeholders to take their say over how the Qtums platform functions.

Also, it allows specific blockchain parameters to change via smart contracts.

Large Node Network

And it’s one of the largest node networks of any blockchain platform operating today. As of May 2021, there are 1200 nodes distributed throughout 60 countries.

And it’s making it one of the most open and decentralized blockchains. Bitcoin and Ethereum count as the only blockchains with a higher active node count.

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