What is Qtum for Dummies | Qtum Review

What is QTUM?

The QTUM cryptocurrency was built by the Singapore firm, Quantum Foundation. The foundation plays a central role in bringing widespread adoption of blockchain technology in parts of Asia. Quantum has a long-term plan that does not compete with Ethereum and other leading currencies like Bitcoin, rather its goal is to form QTUM to become a hybrid of both Ethereum and Bitcoins’ protocols to build a better and secure platform with more blockchain benefits for big businesses in the mobile sector.

The Quantum management team are in talks with commercial giants Alibaba, Tencent, and Baidu in recent times. Quantum has several major efforts underway that can result in significant growth toward its goals of universal acceptance of its cryptocurrency in the big business sector.

How QTUM works

Quantum is different from other cryptocurrencies because it has Proof of Stake (POS) support. Most digital currencies use proof-of-work to manage their blockchains. Quantum uses Proof of Stake which is a more efficient and secure method of distributing control over the blockchain.

For those not familiar with the difference, proof-of-work requires a miner to perform a complex computation to win the rights to mine, or close, the block. In theory, it is possible that over time the number of miners, and their fees, drop too low. Underpaid miners could have a dollar incentive to attack the system by creating false blocks for themselves and destroying blocks of other miners.

Proof of Stake does not require costly computation and time-consuming steps to close a transaction block and make it an official and secure record. Proof of Stake limits the number of blocks anyone can control to the amount of currency they hold. If they hold three percent of the coins, then they can mine up to three percent of the blocks. Users with malicious intent could not attack the system unless they somehow got 51 percent, but if they had so much, then they would never attack what they own because of how much they have personally invested.

POS rewards the most productive participants, and because they can keep and grow their shares, they will not have any reason to be disloyal to the organization. They will only benefit as the coin and organization grows.

Recent major developments

Quantum will make it easier to put smart contracts into the hands of everyday commerce; Quantum will expand its library of tested codes and make them available for developers. This library of tested and verified parts will reduce the time required to create smart contracts and reduce the costs. As a further enhancement, Quantum offers rewards for developers that successfully place smart contracts on their blockchain.

Quantum has a new partnership with China video company, Baofeng, to expand its blockchain to 50,000 nodes. Bitcoin has about 10,000 and Ethereum about 20,000 nodes.

How to buy Qtum

Qtum’s coin is mostly bought and sold on Bittrex. You can’t buy it with fiat currency yet (USD), so here is a quick guide on how to buy Qtum starting with fiat:

  1. Buy Bitcoin or Ethereum at an exchange that uses your fiat currency on Coinbase.
  2. Transfer your BTC or ETH to an exchange that supports Qtum. Currently, Bittrex is the best choice. (Tip: if you bought BTC/ETH on Coinbase, look into using GDAX to avoid transfer fees)
  3. Buy Qtum by trading your BTC/ETH for their coin, and you’re done!

Fun fact

The Quantum strategy will put blockchain technology into the hands of big businesses. With the large market share that the mobile industry has currently, QTUM is wise to tackle big businesses in the booming mobile industry. Quantum recently initiated its Go Mobile plan in 2016, which has seen improved speeds and accuracy of transactions on QTUM’s blockchain.

QTUM will soon introduce a new virtual machine called the X46. The new machine will improve the usage of the blockchain as it can work with multiple computer languages for smart contracts.

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