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What Is Qtum (QTUM)? | Binance Academy

What Is Qtum (QTUM)? | Binance Academy


TL;DR

Qtum is a blockchain community based in 2016 that mixes Ethereum’s good contract capabilities with Bitcoin’s UTXO accounting system. It achieves this via a know-how known as Account Abstraction Layer, which provides Qtum the advantage of implementing updates from each Bitcoin and Ethereum.

Qtum is decentralized, which means there isn’t a permission required to validate transactions. Anyone can run a node, needing solely a tool and web connection. Qtum makes use of a Mutualized Proof of Stake consensus mechanism to disincentivize junk contract assaults. Rewards are cut up amongst a number of profitable validators and partly delayed for 500 blocks. 

Qtum has native help for token requirements resembling QRC-20, QRC-1155, and QRC-721. The QTUM cryptocurrency is the community’s native token, used for transaction charges, staking (which might even be accomplished offline), and governance. You should buy QTUM on Binance with a credit score or debit card or commerce for it utilizing different cryptocurrencies.

Qtum relies in Singapore, with places of work in Miami and Stockholm.

Introduction

We’ve moved a good distance from Bitcoin with regards to blockchain know-how. Most new Layer 1 platforms use improvements far past the unique Bitcoin mannequin. Qtum, nevertheless, has taken fascinating components from Ethereum and Bitcoin. This mixture makes it a very attention-grabbing venture on account of its distinctive structure. So, if you happen to’ve ever questioned what makes Qtum particular, Academy is right here to run you thru its distinctive facets collectively.

What is Qtum?

Qtum (pronounced Quantum) was based in 2016 by Ashley Houston, Neil Mahl, and Patrick Dai. The venture ran an ICO (Initial Coin Offering) in 2017, elevating $15.6 million earlier than launching its mainnet in September of that yr. The Qtum community’s major idea is to mix facets of Ethereum (ETH) and Bitcoin’s (BTC) networks. The workforce has taken Bitcoin’s unspent transaction output (UTXO) mannequin and mixed it with Ethereum’s good contract capabilities whereas leveraging the upstream advantages of each chains.

How does Qtum work?

There are 4 important facets to the Qtum community:

1. A UTXO mannequin for accounting.

2. A Solidity good contract platform.

3. An Account Abstraction Layer.

4. A Proof of Stake consensus mechanism.

To create this combine, Qtum has used a modified Bitcoin Core shopper software program to finish the transaction base of their community. The community can also be Ethereum Virtual Machine (EVM) appropriate and makes use of Solidity as its coding language.

This means you possibly can simply port code and DeFi (Decentralized Finance) tasks from Ethereum onto Qtum. Also, its customized Proof of Stake (PoS) consensus mechanism has been made to focus on vital safety points.

What is a UTXO?

UTXOs are Unspent Transaction Outputs and a standard idea within the cryptocurrency world. On some networks, cryptocurrency transactions are made from outputs and inputs. Sending 1 BTC, for instance, requires you to make use of UTXOs as inputs to then “send” as an output. These UTXOs are then marked as spent, and the output turns into a brand new UTXO.

Imagine you are sending 0.6 BTC. This really can be made up of 0.4 BTC and 0.2 BTC outputs from earlier transactions. However, if you happen to solely wished to ship 0.3 BTC, you would wish to separate the 0.4 BTC UTXO into 0.Three on your good friend and 0.1 for your self. This leaves 0.4 BTC solely spent and two new UTXOs of 0.Three and 0.1.

This system of accounting could appear odd, however it has its advantages:

1. It’s straightforward to fight double-spending as you possibly can see if an output is already spent.

2. A community can course of transactions in parallel as each transaction accommodates impartial outputs.

Ethereum, however, makes use of an account transaction mannequin much like what you’d discover with a checking account. This specific mannequin maintains a worldwide state of all balances on the community.

What is the Account Abstraction Layer?

Blockchains with good contract capability do not usually use the UTXO accounting system for technical causes. Qtum’s reply is to make use of an Account Abstraction Layer (AAL). As the identify suggests, Ethereum’s accounts system is abstracted from its technical implementation.

With an accounts mannequin, good contracts work with an handle or good contract’s finish steadiness. However, with UTXO, a good contract should resolve which UTXOs to make use of, usually throughout a number of private and non-private addresses. Internal transactions between contracts additionally present an analogous drawback. A UTXO blockchain should file all transactions, making the method troublesome.

AAL works through the use of a UTXO transaction’s output to create a good contract. It then sends the transaction to the contract account to set off the contract’s execution. The AAL processes the outcomes and adapts them to UTXO.

The AAL know-how permits Qtum to reap the benefits of each Ethereum and Bitcoin updates. For instance, when non-fungible token help was added to Ethereum, Qtum had the power to undertake it shortly. Notable Bitcoin updates have been Segregated Witness (SegWit) and Taproot. Being UTXO-based additionally permits Qtum to profit from the Lightning Network and different applied sciences.

What is Proof of Stake?

Mutualized Proof of Stake is Qtum’s customized consensus mechanism. The Qtum workforce designed it to fight junk contract spam assaults by rising their price. The mechanism shares block rewards between block-producing nodes and in addition delays the cost. Each reward is cut up equally between the profitable validator and the earlier 9 profitable validators. A portion of the rewards can also be delayed for 500 blocks. This system makes it troublesome for attackers to calculate the precise rewards from a possible assault.

What is offline staking?

In August 2020, Qtum launched a brand new offline staking mechanism for QTUM holders. Rather than hand over custody of your QTUM tokens, you solely want to supply your pockets handle. Your cash keep in your pockets and could be spent or undelegated at any time. The consensus mechanism has two actors: Super Stakers (validators) and delegators.

Delegators ship their pockets handle by way of a wise contract to a Super Staker. A payment is agreed on that the delegator can pay, and the Super Staker can resolve to just accept the delegation. The Super Staker can then stake the delegator’s UTXOs. If a Super Staker efficiently validates a block, they are going to share a reward with their delegators and cost a payment.

Once delegated behind a Super Staker, you passively earn QTUM. You do not must be locked right into a good contract, and you’ll work with an offline answer resembling a {hardware} pockets.

Super Stakers can then win block rewards for the delegates and cost a payment for staking. But after the delegation, the delegator’s pockets doesn’t must be stored related to the community. In different phrases, delegates obtain rewards in passive mode.

What is QTUM?

QTUM is Qtum’s native cryptocurrency, which is distributed to customers by way of the community’s consensus mechanism. You can use the QTUM coin to:

1. Pay transaction fees on the community. QTUM makes use of an Ethereum-like mannequin for calculating gas fees.

2. Participate in Qtum’s on-chain governance protocol by voting on proposals. These may embrace altering the block measurement or community charges. During instances of excessive utilization, the price of gasoline could be lowered, and the block measurement elevated to deal with layer 1 transactions as much as 1,100 TPS. If required, a layer 2 answer like Lightning Network can be utilized to extend this throughput.

3. Stake as both a delegator or Super Staker to validate blocks. Each new block supplies rewards to delegators and Super Stakers. Qtum halves the rewards periodically utilizing a way much like Bitcoin’s halving. This mechanism will in the end create a finite QTUM provide which is able to take a long time to attain. At this level, stakers can be rewarded with transaction charges solely.

Where can I purchase QTUM?

Binance affords two methods to buy QTUM. First of all, you should buy QTUM with a credit score or debit card in chosen fiat currencies. Visit Binance’s [Buy Crypto with Debit/Credit Card] web page, select the forex you need to pay in, and choose QTUM within the decrease subject. Click [Continue] to verify your buy’s element and comply with the additional directions.

You may also commerce a collection of cryptocurrencies for QTUM, together with BUSD, BTC, and ETH. Navigate to Binance’s Exchange view and sort QTUM within the buying and selling pair search subject. This will show all of the out there buying and selling pairs. For extra info on utilizing the Exchange view, go to our How to Use TradingView on the Binance Website information.

Conclusion

As an answer, the Qtum blockchain is sort of distinctive. It removes the issues seen with Proof of Work (PoW) by implementing a PoS system with upgrades. It permits for good contracts and Decentralized Applications (DApps) whereas additionally utilizing UTXO accounting. While many blockchain platforms within the ecosystem develop model new strategies, Qtum has taken profitable performance from earlier ones. So, if you happen to’ve been contemplating Qtum as an altcoin, you now could make a extra knowledgeable choice primarily based on its use circumstances.



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