What is QTUM?
Qtum is a cryptocurrency that seeks to bring together elements of the Bitcoin and Ethereum design concepts in order to attract application developers.
That’s because, despite some basic similarities, Bitcoin and Ethereum differ in the details of how their blockchains work and how users’ balances are recorded and updated.
Qtum seeks to provide an alternative to Ethereum that can compete on programming while being compatible with Bitcoin, providing something like to a best-of-both-worlds blockchain solution, by trying a design that combines distinct features of the two networks.
The Qtum team thinks that this architecture would attract people looking to create blockchain-based apps, which is Ethereum’s primary value proposition, by enabling their creations to trade in a similar manner to Bitcoin.
How does Qtum work?
Qtum is the first “UTXO-based smart contract system with a proof-of-stake (PoS) consensus model,” according to the developers.
Simply said, it adds unspent coins from numerous transactions to the user wallet and chooses the next creator node depending on the amount of money each node has. This contributes to the achievement of two goals. The first is the issue of safety.
Ethereum’s blockchain is vulnerable to attacks, as numerous instances have shown over the years.
On the other side, Bitcoin has shown to be quite safe. The second goal is to make it simple to create new currencies. The Proof-of-Work algorithm used by Bitcoin is resource-intensive. In comparison to bitcoin, a Proof-of-Stake algorithm streamlines the process of generating a new block and uses much less electricity.
Qtum is built on bitcoin core code, which follows UTXO principles and is operated on an Ethereum Virtual Machine, which follows an account-based architecture. Qtum achieves this by using an Account Abstraction Layer (AAL) that conceals the identity of transaction parties.
Qtum intends to provide a layer for smart-contract requirements in order to guarantee industry adoption. According to the creators of Qtum, the layer will be more secure than an Ethereum-based comparable layer.
What is the History of Qtum?
The Qtum Foundation, a non-profit organization headquartered in Singapore that develops and maintains the software, published it in 2016.
The Qtum Foundation earned $15 million in 2017 via an initial coin offering (ICO), selling 51 percent of the 100 million units of Qtum’s cryptocurrency, QTUM.
The remaining stock was either distributed to investors and the founding team, or it was used for company growth. In October of 2017, the Qtum software became online.
How Do I Hold QTUM?
QTUM can be held on the native QTUM wallet, along with other servicers such as TrustWallet.