In the cryptocurrency market, Bitcoin and Ethereum continue to hold the status of the main cryptocurrency projects. These two cryptocurrencies are in the first place not only in terms of popularity among users but also in terms of the value of one coin.
At the end of 2017, Qtum cryptocurrency entered the market. Its goal is to conquer the first position in the world TOP of the largest crypto assets. Based on the availability of several innovative technical solutions, this project is quite capable of showing a significant price jump and increase in popularity.
General information about Qtum
In 2017, three crypto enthusiasts decided to combine their efforts to create a new crypto coin, distinguished by the reliability of Bitcoin and the functionality inherent in Ethereum. This cryptocurrency project is called Qtum.
In the spring of 2017, the developers of this coin organized an initial ICO based on the Ethereum crypto network blockchain, which allowed them to raise almost $ 16 million in investments from interested users. As part of the emission process, 21 million QTUM coins were sent to a special fund dedicated to supporting the development of the crypto project. Another 20 million crypto coins were distributed among investors, creators, and partners of the crypto project.
The Qtum crypto coin has managed to attract the attention of investors by using a new approach to creating a reliable and secure crypto network.
The crypto platform is based on the Bitcoin blockchain, which uses UTXO software technology to carry out financial transactions. At the same time, the authors of the coin put an abstract layer (AAL) on top of the Bitcoin blockchain, which made it possible to launch the Ethereum virtual machine.
This approach allowed the creators of Qtum to combine the technical advantages of two of the most popular and largest cryptocurrency projects. Qtum is the first project based on Bitcoin and Ethereum technical solutions, making it a unique crypto project.
Features and characteristics of Qtum
The Qtum technology is based on combining the transaction model of the Bitcoin crypto network with the advanced Ethereum consensus algorithm.
The Qtum crypto coin blockchain operates based on the Unspent Transaction Outputs programming model, which requires the user to provide proof of ownership of the crypto asset to conduct a transaction. The work of the Bitcoin cryptocurrency is based on this principle.
Mining Qtum does not require efforts and specific knowledge from users and participants of the crypto network, as it is based on the Proof-of-stake algorithm. All transactions for sending Qtum are carried out only after receiving 500 confirmations from miners. Only then can they bring profit to the owner. It is possible to mine it both in solo mining mode and using cloud mining or within a mining pool.
The formation of one digital block of Qtum takes two minutes. For each new block, the miner receives a reward in the form of four tokens. Also, crypto miners receive commission fees, whose size fits into each new block when mining. The principle of creating a Qtum token block is based on an algorithm of the random probability of an event. In a way, this principle resembles a lottery. Therefore, Qtum tokens stored in user wallets represent lottery tickets for their holders.
Advantages of Qtum
The Qtum crypto coin, like many other similar cryptocurrency projects, has some advantages that distinguish this coin from other digital crypto assets.
The main advantages of the Qtum coin are the following characteristics of the crypto coin:
- a professional team of programmers worked on the coin, which managed to gain fame and popularity within the crypto community;
- the presence of serious financial and technical support both from large representatives of the cryptocurrency market and from significant companies with a serious status in the IT field;
- primary focus on working with representatives of the business segment, which guarantees the availability of financial resources to ensure the subsequent development of the coin;
- the use of master contracts that surpass the smart contracts of the Ethereum crypto network in all key indicators;
- ensuring full automation of the process of using and functioning of master contracts;
- adaptation for functioning on portable gadgets;
- the ability to quickly implement changes in the structure of the blockchain of the crypto network while simultaneously coordinating with the user community.
The most important advantage of this coin is its hybrid structure, which allows combining the main advantages of Bitcoin and Ethereum in one project. Therefore, the prospect of the Qtum cryptocurrency entirely depends on the subsequent introduction of new technical solutions. They can attract the attention of the user community.
Disadvantages of Qtum
Like other cryptocurrency projects, this coin has some software and structural issues.
The disadvantages of this digital asset include:
- lack of comprehensive information on the principles of cryptocurrency mining;
- high competition in the market from similar projects;
- the rapid development of other coins offering users the ability to use smart contracts;
- the relative youth of the cryptocurrency.
Due to the presence of these disadvantages, one of the main tasks of the creators of this cryptocurrency should be the elimination of existing problems. Only in this way, the authors of the cryptocurrency will be able to strengthen the coin in the market and increase its popularity among users.
