Qtum Blockchain Technology and History

History

Qtum was founded in 2016 by Patrick Dai, Neil Mahi, and Jordan Earls, and its initial coin offering (ICO) took place in March 2017. Qtum aims to combine the finest aspects of the Ethereum and Bitcoin blockchains to build an intelligent contracting platform. For security and stability, the protocol is built on the Bitcoin core code. Qtum merged Ethereum's virtual engine into Bitcoin, allowing the network to execute decentralised apps (dApps). It intends to introduce more virtual machines to the network, including the X86 VM, to accommodate smart contract programming languages other than Solidity.

Combining Ethereum and Bitcoin features may result in compatibility difficulties. The UTXO system is used by Bitcoin to track coin ownership. Ethereum, like most protocols that utilise virtual machines, employs an account-based paradigm. The account abstraction layer (AAL) in Qtum's tech stack transforms Bitcoin code to the EVM. This enables virtual machine compatibility with UTXO.

Qtum chose a modified proof-of-stake (PoS) paradigm from Blackcoin as its consensus method. According to the Qtum team, proof-of-work blockchain technologies suffer from categorial scaling restrictions that PoS could ease. Qtum has an on-chain governance framework (also known as the Decentralized Governance Protocol or DGP) that allows token holders to take control of decision-making. Block size and base gas prices are two network factors to consider. The Qtum Foundation is a crucial actor in the development and promotion of the Qtum blockchain.

Technology

Qtum is the first version of a proof-of-stake consensus mechanism, incentive proof-of-stake (IPoS), that is compatible with UTXO-based blockchains like Bitcoin. Qtum's UTXO mechanism was chosen to enable consistent, traceable transactions on-chain. The IPoS model extends conventional PoS models by introducing reward mechanisms based on online node number estimates. Qtum will begin with a proof-of-stake (PoS) paradigm but hopes to transition to an IPoS model later on.

The Ethereum Virtual Machine, like the Ethereum blockchain, is used by Qtum users and developers. The Qtum EVM, on the other hand, is always backward compatible with Ethereum's EVM and supports an Account Abstraction layer (AAL), which allows the EVM to run existing Ethereum smart contracts on Qtum with little adjustments. Qtum's Contract Ledger stores smart contract language, data feeds, and oracles used to execute contracts.

Qtum must prioritise transaction confirmation in order to focus on two unique properties as a Bitcoin-Ethereum hybrid network. The transaction size should be equal to the fee, which is identical to a typical proof-of-work (PoW) and on-chain transaction charge. Furthermore, the gas fee should be proportionate to the available and expected finances.

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