$QTUM Token Potential In Growing Market With Digital Data, Logistics & Production Uses | March Report

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There are several industries that would find QTUM a useful application because of its strong foundations. Let’s dig a little deeper to find out why this coin is so capable.

The solid and proven architecture of Bitcoin coupled with the dynamic capabilities of Ethereum — with the promise of this connection between two worlds, Qtum takes off. As a blockchain solution for a variety of business and production areas, this newcomer represents the topic of cryptography in the business world.

Qtum, to express as quantum, is twofold: On the one hand, a project is behind the name, which is to connect existing cryptocurrencies in the form of a new blockchain among themselves and make exchangeable, in particular, it concerns here the market leaders Bitcoin and Ethereum. On the other hand, Qtum designates simply a cryptocurrency, which gains the profit, with which the development of the first-mentioned system is to be financed.

Qtum was conceived by the Singapore-based Qtum Foundation and is aimed primarily at the Asian market, although the Chinese market is naturally the focus of interest. Nevertheless, since its launch in 2017, Qtum has also been traded on global markets and is intended to be no less international than the blockchains that are to be connected.

In fact, Qtum is still a pure crowdfunding project so far [as of Sept 2020 when this article was written]. Within the framework of a so-called ICOs (Initial Coin Offering), i.e., an open sale of Qtum tokens from March to April 2017, considerable sums of bitcoin and ether have been generated, which form the basis of the project financing. In this way, 51% of the available 100 million QTUM were put into circulation, 49% are reserved for internal use.

The makers of Qtum have a clear objective with regard to possible areas of application and target groups. They define Qtum as “the public blockchain for business applications.” They see possible applications in areas like:

  • mobile telephony
  • Forgery-proof digital data
  • Financial sector
  • Logistics and Fulfillment
  • Production sector

How does Qtum work?

As mentioned above, the primary goal is to provide a technology that creates a link between the blockchains of Bitcoin and Ethereum. Qtum calls itself a hybrid blockchain application platform. For this purpose, Qtum is designed as a fork of the Bitcoin implementation Bitcoin Core. The developers’ concept is based on this core of Qtum, the Account Abstraction Layer, a platform and programming interface that enables virtual machines such as the Ethereum Virtual Machine (EVM) to be emulated and, thus, smart contracts and decentralized apps to be implemented even on the Bitcoin blockchain that was not actually intended for this purpose.

To mediate between the blockchain cultures of Bitcoin and Ethereum, Qtum has to make certain decisions. Perhaps the most important one is accounting. Unlike Ethereum, which is account-based, Bitcoin uses so-called UTXOs. These Unspent Transaction Outputs are, as the name suggests, the outputs of transactions, i.e., simply the confirmation that the recipient has received the amount in question. Instead of crediting the amount to an account, the UTXO acts like a promissory bill or crossed check, which is then available as a means of payment and can be offset against any transferred amounts. Qtum itself follows the UTXO model in its conception. Its developers justify this with the long time successful use by Bitcoin and the fact that UTXOs are easier to verify by a blockchain than account balances.What are Smart Contracts?Smart Contracts are a functional extension of Blockchain.medium.com

Qtum uses a proof of stake algorithm to validate its blockchain (or to reach consensus). The respective stake of a maintainer is converted into the network weight, i.e., into the percentage of the stake of the total amount of available QTUM. This value, in turn, corresponds to the probability with which the maintainer will append the next block to the blockchain. On the one hand, this procedure is fast, uncomplicated, and efficient, and on the other hand, it is perhaps appropriate with regard to the intended application areas of Qtum. On the other hand, it is no coincidence that Proof of Stake has a reputation for contributing to monopolies’ creation. Qtum, in particular, is a particularly prominent example: While it is assumed for conventional cryptocurrencies such as Bitcoin that 40% of the total amount of money has a few dozen top prospectors, Qtum is assumed to be 90%.

Qtum has still another long way before itself, is it the self-set goals to reach. This new crypto-currency speaks that it promises comparatively well-defined features, relies on proven technologies, and is also compatible with their further development or so-called “second layer” solutions.

Via //medium.com/coinmonks/5-industries-that-could-benefit-from-qtum-74598c49929f

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