What Is Qtum (QTUM) How It Works & Where To Buy It?

Qtum blockchain is a public blockchain platform that utilizes a hybrid mechanism to achieve optimal efficiency and security. The Qtum network utilizes a Proof of Stake (PoS) peer-to-peer network.

QTUM tokens are used to pay for transactions, and they act as the governance tokens of the blockchain protocol. QTUM holders receive voting rights when they buy QTUM tokens; they can participate in key decisions which contribute to making Qtum work more efficiently.

The QTUM cryptocurrency is currently the 95th largest cryptocurrency by market cap.

How Qtum (QTUM) Works

Qtum blockchain utilizes the same transaction model as Bitcoin – the UTXO transaction model. The mechanism of this model works as follows, similar to how change is given after cash is spent, the transaction model tracks the amount of cryptocurrency left after the particular transaction. These records are stored on a ledger and require a private key to be unlocked.

The blockchain platform utilizes smart contract functionality and achieves Ethereum compatibility via its native x86 virtual machine. Qtum virtual machine supports a variety of programming languages to cater to the mainstream adoption of smart contracts.

The blockchain protocol uses a unique account abstraction layer; this is used to decouple applications, typically from the underlying protocol. The AAL is also used to optimize UTXO transactions and provide a single account balance – streamlining the operations of the EVM and smart contracts.

These unique mechanisms enhance the functionality of the Qtum blockchain incorporates a hybrid mechanism that has the same transactional model as Bitcoin and has the potential to incorporate smart contracts innovatively.

Smart contracts allow the blockchain protocol to modify specific settings without disrupting the ecosystem; this is achieved through Qtum’s decentralized governance protocol.

Qtum’s whitepaper gives a more in-depth and technical overview of this innovative blockchain project.

What Is Qtum (QTUM) Used For?

The Qtum blockchain caters especially well to developers because it provides them with a secure, superiorly functional, and efficient blockchain. The blockchain protocol makes use of both Bitcoin and Ethereum’s mechanisms and boasts excellent developer resources, and a variety of supported programming languages makes it appealing for developers looking to deploy applications.

The QTUM cryptocurrency is seen as valuable because of its utility. There are a variety of uses for the QTUM token; the main uses include transaction and smart contract fees – this is a requirement for all developers. Token holders who stake their tokens also receive exclusive voting rights; they can exercise these rights when proposals and network upgrades arise.

Additionally, QTUM experienced swing and arbitrage traders can trade tokens for a profit on cryptocurrency exchanges. These types of traders aim to capitalize on price fluctuations – these fluctuations can be especially profitable when there are high trading volumes.

Where To Buy Qtum (QTUM) Tokens

QTUM tokens are frequently traded on several of the largest cryptocurrency exchanges. Recently, the Qtum protocol has attracted a lot of retail investors and blockchain enthusiasts due to the protocol’s innovative hybrid consensus mechanism.

QTUM tokens are available to purchase on most centralized crypto exchanges. Before you’re able to purchase QTUM, you’ll need to deposit fiat money onto an exchange, and sequentially QTUM tokens will be credited to your QTUM digital wallet on the exchange.

The crypto exchanges below are frequently used cryptocurrency exchanges where you can buy, sell and store digital tokens.

Popular crypto exchanges include:

• Binance
• Coinbase
• KuCoin
• HTX
• Crypto.com

Many individuals opt to store their tokens in a cold wallet or a digital wallet like MetaMask. This is mainly due to the reason that cryptocurrency exchanges are hacked from time to time, and hundreds of thousands of innocent retail investors their fortunes.

It is generally believed that storing your coins off-exchange is the safest option, and most individuals are aware that they need to have their private keys to truly take ownership of their tokens.

FAQs About Qtum Network (QTUM)

How long has Qtum (QTUM) existed?

Qtum was initially founded in 2016 by three founders, including Patrick Dai, Jordan Earls, and Neil Mahi.

Dai is an especially well-known and renowned figure and is best known for his role as the CTO of VeChain. QTUM held an Initial Coin Offering and managed to raise a total of $15,000,000.

The QTUM price in the initial coin offering was 1 QTUM = 0.3000 USD. Only a portion of the initial QTUM supply was available for purchase, and early investors and the Qtum team received a significant portion of the supply.

What’s controversial about Qtum (QTUM)?

The crypto space is flourishing with new projects and investments. In 2021, the total crypto market cap reached an all-time high of $3 trillion.

However, a common issue in the crypto space is scam projects and “rug pulls”. Many of these projects often look incredibly appealing and claim to offer revolutionary solutions to real-world problems. But, in most cases, the team behind the project acts anonymously and uses unfounded claims to artificially draw hype around the project.

Unknowing retail investors usually end up on the losing side. It’s always crucial to do extensive research before investing in any crypto project.

Let’s take a look at the top controversy surrounding the Qtum (QTUM):

• Founder Was Previously Involved In An ICO Scam – Many crypto projects use an initial coin offering as a lucrative way to raise funds and draw attention to their blockchain projects. Many of these blockchain projects are run by shady characters who prey on unknowing retail investors. Most notably, one of Qtum’s founders was previously involved in an ICO scam.
• Patrick Dai was involved in a project called BitBay. However, Dai didn’t use his real name and instead used the alias Steven Dai. Many members of the Qtum Community are unaware that Dai was involved in BitBay.
  Dai admitted to using a persona in the previous project and claimed that he had no involvement in scamming any individuals. However, several individuals believe that Dai is not as credible as he claims to be and that they won’t invest in Qtum because of his past.

How many Qtum (QTUM) tokens are there?

At the time of writing, QTUM has a circulating supply of 104,212,926.50 QTUM.

The total supply of QTUM is 190,165,060

Can Qtum (QTUM) be mined?

QTUM is not a mineable cryptocurrency. QTUM is a governance token, and the Qtum protocol utilizes a proof-of-stake algorithm for network security. Although Qtum aims to bring the best of both Ethereum and Bitcoin – the Qtum protocol’s newly minted QTUM are distributed to holders that stake QTUM tokens.

QTUM coins can be earned on various decentralized platforms that offer various DeFi products. The most popular products that offer users generous yields are staking, farming, and liquidity provision.

Some centralized exchanges also offer rewards for individuals that stake their QTUM tokens on the exchange.

What is the market cap of Qtum (QTUM)?

The market cap of Qtum (QTUM) is: the total amount of coins in circulation x the current market price of SQtum (QTUM).

Qtum (QTUM) Market Cap = 104,212,926.50 QTUM x $2.79 = $291 million (95th largest market cap).

Biggest Competitors Of Qtum (QTUM)

Several blockchain protocols have established themselves as top projects in the crypto market. Most of these projects have already amassed large communities and have tokens that are frequently traded on most cryptocurrency exchanges. These blockchain protocols provide solutions to real-world problems; however, competition amongst protocols is extremely tough.

Qtum’s competitors are:

• Bitcoin
• Ethereum
• Solana
• Avalanche
• Solana
• Cardano

What Are The Future Plans For Qtum (QTUM)?

Quantum already provides users with an extremely secure blockchain platform, works more efficiently than many traditional blockchains, and has nominal transaction fees. Quantum utilizes a hybrid mechanism which many consider to be an improvement of untraditional blockchains – the proof-of-stake mechanism that Qtum blockchain uses is much more energy-efficient.

The Qtum team has announced its intention to expand the number of programming languages that the blockchain is compatible with, increase global user adoption, and create more utility for the QTUM token. Additionally, the team seeks to expand the ecosystem and actively create more value.

Pros And Cons Of Qtum and QTUM Token

Pros:

• Hybrid Mechanism – The QTUM blockchain uses a hybrid mechanism that combines bitcoin’s UTXO transactional model and Ethereum’s DeFi components. This gives the blockchain enhanced capabilities compared to the traditional Bitcoin blockchain, this has attracted retail and institutional investors who believe the project has a very bright future.
• Low Supply – The total supply of QTUM is 103,944,501. This figure is significantly lower than most other blockchain projects. A low circulating supply is seen as appealing because it indicates that tokens are scarce.
• Energy-efficient – The blockchain utilizes a proof-of-stake consensus mechanism to securely run its blockchain. The PoS mechanism is much more energy-efficient than proof-of-work blockchains that require computational power from miners to secure the blockchain. The Qtum Foundation chose this model because they believed it is more efficient and will attract more user adoption globally.
• Governance Token – QTUM coin holders are given voting rights if they stake their tokens. Holders can exercise these rights when proposals arise.

Cons:

• Competition – Several blockchain protocols provide users with similar solutions to Qtum. Many of these protocols have already established themselves and are dominating the crypto space.
• Patrick Dai Was Involved In An ICO Scam – Patrick Dai (co-founder) used a persona, Steven Dai, and was involved in the BitBay scam.