What is Qtum and How Does it Work?
Qtum cryptocurrency is a combination of the best parts of two pioneering blockchain networks, Bitcoin and Ethereum. Qtum crypto (pronounced as Quantum) is a blend of Ethereum’s smart contract component and Bitcoin’s unspent transaction output model (UTXO). Bitcoin’s UTXO element offers formidable transactional security whereas Ethereum’s smart contract functionality verifies the self-executing code on the blockchain and carries out the terms of the deal, making the contract irrevocable.
Founded in 2016 by Patrick Dai, Neil Mahl, and Jordan Earls, the trio’s aimed at creating a secure exchange for business-oriented decentralized applications (dApps). With its revolutionary network, Qtum hopes to position itself at the core of industries such as social networking and finance by disrupting the online transactions market.
Connecting your Qtum Crypto Address to ZenLedger For Your Crypto Tax Forms
- To import your Qtum Crypto transactions into ZenLedger for your crypto tax forms, all we need is your public address.
- Select the proper blockchain or wallet from the dropdown list.
- Paste your address into the address field in ZenLedger.
- Select if the wallet is based in the USA or not.
- Then hit the ADD COIN button.
How Does Qtum Work?
Combining the best parts of Bitcoin and Ethereum is done through the Account Abstraction Layer (AAL), which splits the applications from their fundamental protocol. The AAL pulls independent UTXO transactions and offers a single account balance for seamless smart contract operation based on Ethereum’s virtual machine. After processing the smart contracts, AAL updates the ledger and adds each transaction to new blocks. With the help of Qtum’s Decentralized Governance protocol, smart contracts can be leveraged to alter particular blockchain settings without disrupting the network’s ecosystem.
Qtum keeps the network in sync with a variation of proof-of-stake (PoS) consensus mechanism known as mutualized proof-of-stake (MPoS). Unlike Bitcoin’s proof-of-work (PoW) consensus mechanism, which is resource-intensive, Qtum’s MPoS consumes less power and is much simpler. Nodes can process and validate the transactions by staking Qtum in a wallet and for their efforts, they are rewarded with newly minted Qtum crypto. Validators are chosen to verify blocks depending on their stakes. The bigger the sake, the greater the chance of getting selected to validate the transactions.
What Gives Qtum Value?
Qtum blockchain provides a valuable ecosystem for developers via the amalgamation of security, efficiency, and functionality. It is highly compatible with Ethereum, Bitcoin, developer resources, and supports a wide range of programming languages making it a suitable platform for the development of a myriad of applications.
On the other hand, Qtum crypto extracts value from its utility. Qtum tokens are paid as fees for smart contract execution and QRC-20 transactions and they are always in demand from developers. And as we already know Qtum works on an MPoS mechanism—which allows validators to earn rewards by verifying transactions—those who stake Qtum can vote in protocol governance and network upgrades.
How to Buy Qtum Crypto?
Staking is a great way to earn more Qtum, but staking is the second step. The first step is buying the token and it is a simple process. Just follow these steps to buy Qtum:
Step 1: Open an Online Account
Coinbase and Gemini are well-known crypto exchanges and opening an account on these platforms is a breeze, but Qtum isn’t listed on them. To buy Qtum, you need to open an account on exchanges such as Kraken, Binance.US, and crypto.com and these are ideal for US-based traders.
Step 2: Account Verification
Once you’ve chosen your exchange, you need to provide information such as name, DOB, phone number, and country of residence. However, if you want to buy Qtum with fiat currency, you need to provide additional supporting documents such as government-issued IDs.
Step 3: Make Your Purchase
Once your account is open and the verification process is complete, you can add funds to your account and buy Qtum.
Where to keep your QTUM?
After buying Qtum, you need a safe and secure place to store your tokens. Crypto exchanges are a great place to buy cryptocurrency but leaving them on the platform is risky. In case of a hack, you can lose your coins.
The safest place to store your crypto is in a wallet, hardware, or software wallet. Hardware wallets are ideal for secure, long-term storage whereas mobile and desktop wallets make transactions easier.
How To Use Qtum?
As Qtum is compatible with Ethereum, dApps are easily deployable on the blockchain network. Moreover, developers can use the project’s technology stack as it supports mainstream programming languages. The blockchain was aimed at large-scale organizations and its interoperability is perfect for supporting their operations such as logistics, production, planning, and more. On the other hand, Qtum crypto is utilized for staking, transferring value, and paying fees for QRC-20 transactions and smart contract execution.
Qtum is a one-of-a-kind token that harnesses the best attributes of Bitcoin and Ethereum. This makes Qtum an excellent smart contract platform. The decentralized applications developed on Qtum connect blockchain with the real world. Moreover, Qtum aims to provide a business-friendly development environment to organizations.