Bitcoin and Ethereum are the main cryptocurrency platforms of modern times. Their tokens are very popular among users and consistently occupy the top two lines in the world ranking in terms of market capitalization. However, last year, Qtum hybrid cryptocurrency appeared, the developers of which used the main trump cards of top-end coins to create a unique project, which has no analogues in the market yet. You will learn about what came out of this, and whether the new cryptocurrency is worth the attention of investors, from our article!
Patrick Dye, Jordan Earls and Neil Mahi decided to unite the reliability of Bitcoin and the functionality of Ethereum in cryptocurrency called Qtum (exchange ticker – QTUM) in 2017.
They conducted an Ethereum-based ICO in the spring of the same year, during which they managed to sell 51 million coins worth about $ 16 million. They sent 21 million QTUM to the project development fund, and another 20 million coins were distributed among themselves, partners and project sponsors.
The developers took the classic Bitcoin blockchain, which uses sophisticated UTXO technology for conducting transactions. And they imposed a so-called abstract layer (AAL) on it, in which they started the Ethereum virtual machine.
They combined the technical capabilities of the two most popular cryptocurrency platforms. They created the first cryptocurrency, which supports both Bitcoin protocols and Ethereum protocols.
Their main feature – instant response to external circumstances. Any changes in the business relationship of the parties that signed the master contract are immediately sent to the blockchain. Delete or change this data is no longer possible.
The developers themselves explain the work of the master contracts with the following example. Some users enter into a contract for the purchase of goods and their transportation from point A to point B. A normal smart contract will be considered fulfilled only when the goods arrive at point B.
The master contract can also connect a third party to the transaction – for example, a carrier registered in the Qtum system who picks up the goods from point A. After accepting the goods, he sends the information to the system, and the recipient can monitor the fulfillment of the conditions of the contract online.
Another feature of master contracts is adaptation to industry standards. The Qtum team is actively developing and testing contract templates for various branches of telecommunications, the Internet of things, logistics, trade, entertainment and so on.
Qtum generally focuses on the business audience. In addition to the adapted master contracts, developers offer users to quickly and profitably launch decentralized business applications. And emphasize that this can be done even from a tablet or smartphone.
By the way, until the autumn of last year, the Qtum platform worked in test mode. Potential users could only look at the project and familiarize themselves with the basic templates of master contracts.
Qtum operates on the Proof of Stake (PoS) protocol, in which the decisive factor is not the computing power of the equipment, but the number of coins on the user’s balance.
Its main feature is randomness. According to the developers, every token in the user’s wallet is a lottery ticket that can bring a reward.
In other words, even the maximum share of ownership of coins does not guarantee that it is their holder who will be entrusted with confirming transactions. They are randomly divided between all QTUM holders.
It is curious that the developers do not plan to change the amount of remuneration for the block over time. As they are not going to deviate from the scheme of random distribution of transactions.
Despite the fact that Qtum has been running for only one year, the coin is already well represented on cryptocurrency exchanges. Most of them are local Asian sites. However, there are well-known names Binance, Bitfinex, Bittrex, Upbit, Bithump and others in the list of exchanges with QTUM support (117 names in total).
On most exchanges, QTUM is trading in pairs with BTC and ETH. However, on some sites you can buy coins for fiat money dollars (LiveCoin, Quoine) or euros (LiteBit.eu, Quoine).
Given that the project was launched on the basis of Ethereum, coins can be stored in any crypto wallet for ETH. For example, among multicurrency wallets, experts advise to pay attention to Exodus, and among hardware – to Ledger Nano S.
However, only official Qtum cryptographs are suitable for participation in PoS mining. You can download them on the official website of the project www.qtum.org in the “Wallets” section. At the moment, there are two types of wallets
However, the most important thing is that the Qtum team threatened to create a hybrid cryptocurrency, in which the virtual machine for launching Ethereum smart contracts is embedded in the Bitcoin blockchain. No one has yet offered such a solution, so technically Qtum has no competitors yet.
It is not surprising that immediately after the appearance of the token on the stock exchanges, its market value began to grow. Last July, 1 QTUM traded at $ 5-6, and in August, the coin overcame the threshold of $ 10. And this despite the fact that the starting price was only 15 cents.
True, the course fell markedly in September. It was then that the Chinese government passed a law prohibiting cryptocurrency operations. Due to that, Qtum has lost an impressive part of the audience. However, already in the middle of the month, when the network began to work in full, the coin began to quickly recover its position.
By the end of 2017, Qtum’s market performance rushed sharply upward. The price rose to $ 30, and capitalization overcame the $ 2 billion mark.
The positive trend continued until mid-January. Moreover, at the beginning of 2018, the coin strengthened its position reached a historical price maximum (about $ 80 for 1QTUM), increased its capitalization to $ 3.6 billion and took 12th place in the CoinMarketCup rating.
However, after a sharp jump, there was an equally sharp rollback. In March, the exchange rate dropped to $ 11, and the price of a coin changed within 200-300% during the day.
At the time of this writing, the cost of QTUM is $ 20.52, and the market capitalization has declined to $ 1.6 billion. In the world ranking of cryptocurrency dropped to 18 line.
However, for Qtum, the beginning of the year was also difficult due to the fact that South Korea imposed a ban on any operations with cryptocurrency. Most of the project nodes were located there.
In addition, the cryptocurrency community learned about the technical and reputation problems of Qtum, which led many potential investors to doubt the success of the project.
Qtum’s reputation has suffered because of a scandal involving the main founder of the project, Patrick Dye. The network has information that Dai left the BitBay project, in which he really worked in the past, taking with him 20000BTC from the budget. The proceedings between Dai and BitBay are still ongoing.
Experts from the team of Vitalik Buterin threw food for thought. They called the UTXO a technical dead end and told that when they abandoned the technology because of doubts that it would be able to work normally in conjunction with Ethereum.
Some experts even doubted that Qtum could make a price spurt and stay on the market for a long time. After all, there is no guarantee that the token, which now performs only the function of the system “fuel”, will become a full-fledged digital currency.
However, most of them assume that by the end of the year the price of a coin can rise no more than 2-3 times. That is, in 2018 it is unlikely to be able to reach the January maximum.
Given the business orientation, the main factor that can improve Qtum’s market performance is the adoption of the project in business circles. If large companies switch to technology, the price and capitalization of the coin will rise sharply. And vice versa.
Analysts say that the course of the coin, until recently, was in the correction phase and only recently began to slowly withdraw from it. However, now there is still an opportunity for profitable entry into the market.
However, because of the negative aspects of the project (in particular, Patrick Dye’s dubious past and the ambiguity of the UTXO technology), experts advise that Qtum should be treated with extreme caution and give a few recommendations for investors.