Estimated reading time: 2 minutes, 27 seconds
This episode of Blockchain – What is it? covers Qtum! In this series, we will cover the different types of blockchain platforms and cryptocurrencies on the market right now. We’ll give you a quick description of each /token, its function, who is their competition and where you can learn more.
In this episode we are going over a platform that combines the best of both worlds: Quantum
QTUM (pronounced “quantum”) is a Singapore-based blockchain technology that bridges Ethereum’s on top of Bitcoin’s stable blockchain while using proof of stake for verification. By doing so, QTUM hopes to increase the range and interoperability of smart contract applications, especially for business and institutional purposes.
Basically they are bringing Ethereum’s smart contract capabilities to the bitcoin blockchain, trying to have their cake and eat it too.
Qtum’s aim is to make smart contracts easier and more secure while offering interoperability with leading cryptocurrencies such as Bitcoin and Ethereum. QTUM’s code is based on the Bitcoin’s blockchain, but the QTUM developers have added layers to the blockchain that allow the Virtual Machine and its smart contracts to run on top of Bitcoin’s chain. (Check out this episode of Ask an Expert of the differences of Bitcoin and Ethereum.) I like to call it the Frankenstein chain. Smart contracts built on Ethereum can easily be ported over to QTUM as well.
Quantum has a 2 minute block time and a 2 MB limit, designed to work more quickly than the bitcoin chain. Quantum uses a mining system that caps inflation at around 1%.
They have decided to focus on providing business solutions by using smart contracts. Their goal is facilitating the transition from legacy systems in aging organizations over to blockchain-based solutions that increase automation and decrease cost. It’s tough for businesses to abandon a platform or practice they have used for a long time. They are used to the platform, know how to use it, and it is often expensive to transition to something new. Quantum looks to make the transition to the blockchain as easy as possible.
They point out issues with the Bitcoin and Ethereum blockchains. They point out the Ethereum relies on maintaining transaction balances instead of a UTXO based system. Bitcoin is not turing-complete so smart contracts cannot be built into the chain.
By producing a hybrid chain, QTUM can offer the best of Ethereum and Bitcoin, making it a very intriguing project.
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