Two of the most popular cryptocurrencies in the world right now is Bitcoin and Ether, popularly known as Ethereum. These were not only among the first blockchain based projects, but they also serve as an example for other developers to follow. In fact, since the rise of these two coins, numerous projects have been developed with functionalities similar to Bitcoin and Ethereum. The main idea behind this was to overcome the drawbacks of these two cryptocurrencies and develop further on it. In this article, we will take a look one such project - Qtum - and the driving technology behind it.
What is Qtum?
Qtum is an open source, decentralised platform that can be utilised to build and develop decentralised applications, or DApps on top of its blockchain. While there are many such projects that exist in the world, it is worth noting that Qtum is unparalleled when compared with the rest and is definitely in a league of its own.
This is owing to the inherent design of Qtum. Qtum has been developed by combining the core infrastructure of Bitcoin’s blockchain with the Ethereum Virtual Machine. In simpler terms, Qtum bridges the gap between the functionalities of Bitcoin and Ethereum by taking the best from the two.
As we know, Ethereum is primarily a smart contracts platform while Bitcoin is a decentralised payment system. By combining the two, Qtum has essentially given this world a universal, business-friendly blockchain solution that supports the development of DApps and also serves as a value transfer protocol. Using this platform, businesses and institutions alike can easily interact with blockchain technology and develop smart contracts for better performance.
Furthermore, Qtum aims to bring all of these functionalities to mobile phones with the help of lite wallets. This makes Qtum one of the very first projects to introduce blockchain based decentralised applications on mobile. The idea behind this stemmed from Ethereum’s requirement for synchronization with the entire blockchain in order to utilise their decentralised applications. Since this involves downloading more than 30 GB of data, this leaves out a very significant percentage of the mobile market.
Qtum protocol also makes it possible for users to initiate and execute smart contracts on the blockchain with the help of triggers coming from the outside world. This is definitely a major improvement over Ethereum smart contracts, which require for the trigger sequence to originate from within the blockchain itself. As a result, Qtum has made it possible for blockchain technology to be used for real-world applications with utmost ease and simplicity.
The native cryptocurrency of the Qtum Network is known as QTUM token. According to the official website, the total supply of the token is capped at 100 million.
Where to buy QTUM tokens?
QTUM tokens are available for purchase on some of the leading cryptocurrency exchanges in the world - Binance, Upbit, Huobi, OKEx, et cetera. Keep in mind that Qtum is considered to be an altcoin and therefore, instead of purchasing it directly with fiat currencies, you may have to purchase it with either Ether or Bitcoin.
QTUM Token Wallets
The developers of Qtum have designed official wallets that support QTUM tokens. These wallets are available on different platforms like desktop, mobile, and web. They can be downloaded from the official website of Qtum.
You can also choose to store your QTUM tokens in a hardware wallet like Nano Ledger S or Trezor.
QTUM Token Mining
Qtum protocol utilises decentralised proof-of-stake (DPoS) model to achieve consensus through its network. This essentially means that a person can mine or validate block transactions depending on the number of tokens he/she holds. The more QTUM tokens a person holds, the more mining power he or she has.
QTUM Price Trends
QTUM tokens, for the most of 2017, stayed below the $15 mark. The price rose significantly only in December, when the growing hype in the cryptocurrency space led to plenty of digital currencies undergo a dramatic appreciation in their prices. The price of 1 QTUM token rose from 12 USD in early December to roughly 67 USD in late December.
In January 2018, there was another sharp rise in price and this time, the value of QTUM token soared to touch $90 mark. Needless to mention, Qtum tokens gained more than 700% in a matter of weeks. However, they shed these gains just as easily as they gained them. By the end of March, the token was once again being traded at values less than $15.
Risks Associated with Investing in Qtum
As seen from the price trends above, Qtum tokens are highly volatile from an investment perspective. Therefore, until and unless you plan on using the services of Qtum protocol - developing decentralised applications and smart contracts - it is recommended that you do not invest your money in this volatile instrument in order to make a quick buck.
Instead, you should look into other investments like mutual funds, which are considerably safer and less volatile.