About Qtum (QTUM)

Qtum (pronounced “quantum”) is a smart contract platform touted as a hybrid of Bitcoin and Ethereum.

Qtum uses a core fork of Bitcoin as base network security via a UTXO model while also integrating the Ethereum Virtual Machine (EVM).

The chain supports smart contracts, and, by extension, decentralized applications (dApps).

Qtum's native token, QTUM, allows users to pay transaction fees, participate in network security and vote on protocol upgrade proposals, Messari explained.

 "By making it possible to run the EVM, the runtime environment for smart contracts in Ethereum, on QTUM’s own blockchain which was based on Bitcoin, the founders hoped to enable fast programming of smart contracts, combined with the innate stability of this blockchain for the best results," CryptoNews said.

How the project describes itself: a business-friendly smart contract platform.

Qtum provides “a standardized, stable and safe development environment for smart contracts, enabling business-friendly smart contract coding, deploying and execution,” the project said.

 It’s decentralized, and modularized, such that new technology can always be added as Qtum looks to expand the types of customized solutions it can deliver to clients (enterprise).

When was QTUM created and how much was it worth?

The project was launched in Singapore in 2017. The Qtum Foundation includes Patrick Dai, Neil Mahi, Jordan Earls and others, all well-known in the communities that helped create Bitcoin and Ethereum. By January of 2018, the project’s native asset, QTUM, soared above $100 but has since pulled back amidst severe downside volatility.  

How is the price of QTUM determined?

QTUM was created as a deflationary asset, with the aim of supply shrinking over time, while demand increases, Capital.com said.

The maximum supply of QTUM is capped at 107.8 million coins. That level will be reached in December 2045. There are currently 99 million coins in circulation, of a total of 103.9 million in supply, according to CoinMarketCap.

 Some 51% were allocated to investors who participated in a crowd sale.

More allocation details: another 8% went to angel investors; 12% were set to be gradually distributed to Qtum team members over a four-year period; 9% were allocated to a marketing budget and released over a two-year period; 20% was reserved for business development and also released on a gradual schedule.

 QTUM is used to pay transaction fees; holders to stake their coins on the network to validate transactions and product blocks. Stakers have the potential to receive block rewards.

Why does QTUM have value?

Gas, governance, staking, other use cases; stakers get block rewards for locking their tokens on the protocol.

With its focus on making smart contracts more readily available, QTUM will potentially challenge Ethereum, industry experts say.

"Its future will depend on the adoption of the Quantum blockchain and cryptocurrency in applications, over the range of other blockchains that are being developed," Capital.com said.

Is QTUM secure?

 Qtum's UTXO model was chosen to support consistent, traceable on-chain transactions, Messari said.

 The project plans to implement the first iteration of a new Proof-of-Stake consensus mechanism, Incentive Proof-of-Stake (IPoS), enhancing traditional PoS models via reward mechanisms. Qtum's Contract Ledger stores smart contract language, data feeds, and oracles for contract execution, Messari said.

What are the main benefits of QTUM?

•  Laser focus: making smart contracts “smarter.”
•  Major hybrid: the project melds Bitcoin’s and Ethereum’s technologies, combining them for ease of use by corporations in a fast-changing institutional landscape.
•  The system aims to improve smart contract automation and reduce costs.
•  The platform offers creative types a range of smart contract templates and development tools.
•  The UTXO system enables Qtum to run light client nodes, making it feasible to manage smart contracts from mobile phones.

What do critics say about QTUM?

CoinCodex, giving a technical analysis in May of 2022, was bearish, citing 24 out of 30 indicators as sending bearish signals.