What is Qtum?
Qtum (pronounced “quantum”) is an open-source smart-contract platform that uses the Mutualized Proof-of-Stake consensus algorithm.
The Qtum blockchain combines Bitcoin’s transaction model (Unspent Transaction Output, UTXO) with the Ethereum Virtual Machine (EVM).
QTUM is the native token of the Qtum blockchain. For each block produced, validators receive a reward of 0.5 QTUM.
The block reward decreases every four years. By 2045 it will drop to zero, and the maximum token supply will reach 107,822,406 QTUM.
At present the Qtum token is supported by more than 15 wallets and 30 cryptocurrency exchanges. The Qtum ecosystem includes three staking and seven payment services, as well as three platforms for launching nodes. In development are the Moonland metaverse platform and the QiSwap decentralized exchange.
Who created Qtum, and when?
The platform was founded by Patrick Dai in 2016. He began his career as a product manager at Alibaba, then worked on the blockchain projects Factom, Vechain, Bitse Group and Meilink. He currently serves as chairman of the Singapore-based non-profit Qtum Chain Foundation.
Qtum’s chief technology officer is Neil Mahi. The lead developer is David Jansen. The project’s headquarters are in Miami, USA.
In 2017 the Qtum team issued 100m tokens on the Ethereum blockchain. In March that year it held an ICO, at which participants bought 51m QTUM for $15.6 million in bitcoin and Ethereum.
A further 8m QTUM were purchased by private investors, and 12m QTUM remained with the development team. The remaining tokens are controlled by the Qtum Chain Foundation.
Mainnet launched on September 13, 2017. After that, the ERC-20 QTUM tokens were reissued on the native blockchain.
What makes Qtum distinctive?
Qtum uses the Mutualized Proof-of-Stake algorithm, a variant of Proof-of-Stake. The chance of earning a block reward depends on the ratio of a user’s stake to the total amount of QTUM in staking.
The Qtum team developed the Account Abstraction Layer (AAL), which presents a user’s UTXOs as a single account balance, simplifying work with smart contracts.
AAL supports the C, C++, Rust and Python programming languages, enabling developers to port existing applications to Qtum.
To migrate DeFi protocols from Ethereum, developers can use the proxy adapter Janus, which allows popular projects such as Uniswap and OpenSea to run on Qtum’s UTXO blockchain.
In addition, the Qtum team implemented the Decentralized Governance Protocol (DGP), which lets users change core network parameters without a hard fork.
How do you become a staker on Qtum?
Users can stake QTUM directly (online staking) or delegate it to another user (offline staking).
For online staking you need to:
- download the Qtum Core wallet;
- synchronize it with the blockchain;
- move QTUM tokens into staking in the Stake section of the wallet’s side menu.
The Qtum protocol has no minimum staking limit. To estimate expected rewards, you can use a dedicated calculator. At the time of publication, staking yields 5.73% per year.
On August 28, 2020, the network activated update 0.19.1. It enabled delegating QTUM to other users (superstakers).
To delegate QTUM via the Qtum Core wallet:
- open the Delegations tab in the Stake menu;
- add a delegate by clicking “+” in the top-right corner;
- enter the superstaker’s name and address, and specify the fee you agree to pay for delegation.
The minimum amount for delegation is 100 QTUM, although superstakers may set their own limits.
Only tokens with 2,000 or more confirmations can be staked.
After the FastLane hard fork in April 2021, the average block interval fell from 128 to 32 seconds.
What role does the QTUM token play in the ecosystem?
The token can be used:
- to pay network transaction fees;
- to vote on proposals related to Qtum upgrades, such as changing block size or fee calculations;
- for staking as a delegator or superstaker.
At present QTUM trades on Binance, Huobi, Kraken and other exchanges at around $4.