Do you love Bitcoin? :D
Do you love Ethereum? :D
Why not get the best of both worlds? :D
(okay, no more smileys)
Today’s review is of a coin that tries to combine the advantages of both networks into one.
Today’s review is… Qtum!
Let’s dig in…
Qtum (ticker: QTUM)
Wtf is this shit?
Qtum is aiming to build the first UTXO-based smart contract system in combination with a Proof of Stake consensus algorithm, essentially allowing the EVM to run on a Bitcoin-type blockchain. LOLOL and by the end of this that will all make sense to you.
Let’s break down what Qtum is doing so we humans can understand.
Okay, so the base technology of Qtum (yes, it has its own mainnet) is a fork of Bitcoin Core that will allow for multiple virtual machines (including Ethereum’s EVM) to run on top of it. Bitcoin’s codebase and overall protocol is known to be one of the most secure, but Bitcoin is not turing complete. This means that developers cannot create applications on top of Bitcoin like they can with Ethereum; Bitcoin uses very low level logic focused on providing a secure and reliable environment.
Qtum’s claim to fame is their Account Abstraction Layer. It is this magic puppy which allows users to build dApps on Bitcoin. So, they want to offer a more secure smart contract environment without getting rid of the ease that Ethereum provides, while also offering interoperability with Bitcoin, Ethereum and others.
Wtf is the Account Abstraction Layer doing?
Great question….so, remember that Qtum is the bridge between Bitcoin’s security and Ethereum’s functionality.
The Bitcoin ledger uses UTXOs (unspent transaction outputs) to track wallet balances. The output of a prior transaction is used as the input for the next transaction.
On the other hand, Ethereum tracks account balances much like how a bank or we intuitively think they would. This makes it easier for devs to create smart contracts and interact with the chain.
^^this means there is incompatibility between how Bitcoin and Ethereum track transactions...they fundamentally do not work well together.
So, the Account Abstraction Layer converts the blockchain’s UTXO’s into account balances so that the EVM can comprehend wtf is going on. It's what enables them to communicate properly.
Again, the Account Abstraction Layer is a bridge between the Ethereum virtual machine and Bitcoin Core codebase.
Now users have the freedom to create smart contracts like they would on Ethereum, while taking advantage of the security, scalability and reliability that Bitcoin Core offers.
Back to Qtum
Additionally, Qtum utilizes proof of stake as the consensus model because they find it more robust than PoW as used in Bitcoin.
NOW - go read the first sentence in this review….I bet it makes more sense now? You’re a genius!
Qtum also offers other services to foster adoption:
- They have introduced lite wallets and nodes so that these dApps can run well on mobile devices (thanks to the use of UTXOs and other shit)
- Compatible with existing Ethereum smart contracts
- Compatible with existing Bitcoin payment gateways
- They focus on businesses and instiutions at the moment, although anyone can create a smart contract. With businesses in mind, they also allow for API integrations and for external data to communicate with the blockchain...in other words, ORACLES.
Welp, that wraps it up for the most part. That’s what the hype is about.
Who tf is behind this shit?
Qtum Foundation is a Singapore based company. Judging by the team page on their website, they stay away from official titles. Still, we will pick the first name on the list: Patrick Dai. He is one of the founders who dropped out of Draper University (fancy shmancy) before obtaining his doctorate in China. Academically, both of these are impressive and he has work experience at Alibaba. He has been involved in the blockchain space for a while and Qtum seems to continue to gain positive press.
All in all, high-tier shitcoin at the moment. Let’s see how they do...per usual, marketing is the major hurdle. We are not sold on the name ‘Qtum’...but whatever.
Hope you learned some shit.
- Mike and Aaron