Qtum platform and token overview
By Iaroslava Kramarenko 544 23 Jan 2023
Qtum is a public and open-source blockchain platform. Its creators attempted to merge the benefits of the Ethereum and Bitcoin blockchains into a single network.
How does the Qtum blockchain work?
The Qtum blockchain employs the Proof-of-Stake (PoS) consensus mechanism. It is the first network to implement the decentralized governance protocol (DGP) in its operation. DGP is unique in that it enables changing the settings for performing operations with the help of smart contracts.
The Qtum project was developed for large companies rather than ordinary users. The founders stated in a presentation from 2017 that their main objective was to attract the attention of technology companies by offering them the chance to build decentralized applications (dApps) on their blockchain that can easily integrate with any systems and devices, including smartphones. The protocol employs the BTC transaction model while also connecting several global distributed computers to their processing at the second level, which function similarly to the Ethereum virtual machine (EVM).
The Qtum network has a native token with the same name. Users use QTUM to pay for platform services and transaction fees.
What are the features of the Qtum token?
QTUM had an initial supply of 100 million tokens.
The annual inflation rate was planned to remain at 1%. To accomplish this, an algorithm was written into the code that halves the number of new tokens every four years until QTUM reaches a maximum supply of 107,822,406 coins in 2045.
Since QTUM is needed to pay fees when using the platform’s smart contracts, developers and businesses that use the token's native blockchain are the primary source of demand for the coin.
In other words, we can evaluate the platform's functionality, the team's effectiveness at network promotion, and the number of dApps created using it by looking at how the price of the token changes.
The project's staking rewards are another source of demand for QTUM. Anyone can lock up their QTUMs to receive a portion of the block rewards and fees.
The price of the Qtum token was $6.18 at the time of the project's launch. The all-time high was $86.3 in January 2018. Now the token, like the entire market, is under the influence of the crypto winter and is traded at $2 on the exchanges:
The Qtum Core wallet has been developed in three versions for Windows, Mac, and Linux to store Qtum utility tokens.
What is known about the founder of Qtum?
In the crypto world, there is a distinct attitude toward the Qtum project that can be described as a wary curiosity. The project's founder even changed his name from Steven Dai to Patrick Dai so that he would not be associated with the fraudulent BitBay, where he served as CTO and co-founder. He was accused of leaving the project and taking all the money from the developers and the money raised after the ICO. The fact that Roger Ver was the primary investor in Qtum also gives the crypto community little confidence.
Even though Patrick-Steven Dai claims to be innocent, rumors of him being a shady businessman have been swirling around for a long time. Naturally, this harms the project's reputation and promotion.
Therefore, if you decide to invest in the Qtum token, we recommend that you be cautious and do not invest large sums of money.