Qtum is a blockchain project that combines different parts of Bitcoin and Ethereum, resulting in a cryptocurrency that large organizations can use. The open-source project seeks to provide a platform whereby developers can build decentralized applications that are compatible and executable on various blockchain systems.
Qtum comes with Ethereum smart contract functionalities that enable developers to come up with decentralized applications for performing different functions. Qtum developers incorporated a layer dubbed ‘Account Abstraction Layer’ that allows the Ethereum Virtual Machine to exist on top of the Qtum UTXO blockchain.
Likewise, Qtum provides developers a secure smart contract mechanism that is interoperable with Bitcoin and Ethereum blockchains. In this case, Ethereum smart contracts can run on Qtum blockchain, an important functionality that accords Qtum access to the Ethereum strong developer community. It also comes with Bitcoin’s security features that enable the creation of digital currency with Bitcoin functionalities.
Qtum leverages the Proof-of-Stake-consensus mechanism in the mining QTUM coins. In this case, mining is made completely virtual without having to rely on specialized hardware. Validators or miners looking to take part in the mining process must first stake their Qtum coins.
Once coins are staked, miners would be able to start validating blocks on the Qtum blockchain. A discovery of a new block is only added into the Qtum blockchain on being appended by other miners. The addition of a new block results in a miner being rewarded proportionately to the amount staked.
Qtum cryptocurrency or QTUM is the native token that powers the Qtum network. The cryptocurrency is used to maintain and operate the Qtum network while also enabling the holding, spending, sending, and staking in the blockchain.
QTUM is also used by developers and other people who operate or leverage services on the network. Developers use the coin to pay fees for executing smart contracts on the Qtum blockchain. Consumers, on the other hand, use the coins to pay fees for using dApps on the network.
QTUM coins also provide voting rights on the chain when it comes to governance. In this case, the more Qtum coins one owns, the more voting rights to influence Qtum software development. Likewise, the distribution of newly minted QTUM coins is based on ownership of the asset.
At inception, 100 million Qtum tokens were released into the market. The number of coins released is cut into half every four-year as a way of keeping the total supply finite.
What Affects Qtum Price
Qtum is ranked as the 60th largest cryptocurrency by market capitalization. Its valuation and market price is dependent on a number of things. Top on the list is the development of platforms that developers can use to develop decentralized applications. Competition is the biggest factor that affects the platform’s use, likewise its crypto price.
Ethereum poses the biggest threat in terms of competition as it is the most widely used platform for developing dApps. EOS and NEO are other platforms gunning for developer’s attention in the development of dApps, therefore, posing significant completion to Qtum ambitions in the development of smarty contracts.