Qtum coin review: Better than Bitcoin and Ethereum put together?
When the price of a cryptocurrency quadruples in less than eight months, you know something exciting is brewing. In the case of qtum coin, it’s all thanks to the protocol’s special three-layer technology and business-friendly approach. Let’s take a look at how it’s combining the best of Bitcoin and Ethereum.
After briefly hitting the $100 mark in early 2018, qtum coin has crashed back to earth, never scaling the heights since. But it’s not all bad news. In 2021, the price has quadrupled since the beginning of the year—even after falling victim to the crypto flash crash in May.
Is this swift increase a sign that the good times are about to roll back in? That’s for you to decide, but we’ll help you make an assessment by outlining its price history, features, and more.
Qtum coin price
After a three-year slump, qtum coin is starting to bounce back. Its value rose above $10.50 in August 2021—that might not sound like much, but it’s almost four times higher than it was worth at the start of the year (around $2.80).
Like most other cryptocurrencies, qtum benefitted from the crypto boom in May, when it reached $26.50 at its peak (an 846% increase from early 2021).
Still, although this was a much higher value than qtum had achieved in years, it’s still a far cry from the all-time high the coin reached once. In January 2018, qtum was worth a whopping $100. Unfortunately, the price crashed to sub-$5 territory by August that year, and remained at the same level all the way until 2021.
While the chances of it reaching this point again seem slim right now, anyone can see that qtum’s value has been steadily increasing throughout July and August 2021 — it doubled in a matter of weeks, from $5 in mid-July to over $10 in mid-August.
Who knows what could happen next? But before you get any ideas, make sure you understand what qtum coin is and how the protocol behind it works.
Qtum coin explained
Ethereum and Bitcoin might be the two most popular cryptocurrencies, but that doesn’t mean they’re perfect. Some coins were built to be a new and improved version of Bitcoin (such as Ravencoin), while others aimed to beat Ethereum (like Harmony)—but qtum coin’s founders decided to do both.
The Qtum protocol offers the best of both worlds by combining a Bitcoin fork for security with Ethereum’s top-tier environment for decentralized applications (dApps). As for qtum coin itself, you can use it for paying fees on the network, executing contracts, and staking it to vote.
If these technologies are new to you, let’s have a quick look at them in beginner-friendly terms.
Ethereum’s Virtual Machine
Ethereum is known for providing an excellent environment for dApps, and it achieves this primarily through its Ethereum Virtual Machine (EVM). The EVM is a decentralized computer that enables smart contracts and ensures everyone on the Ethereum network is connected and in consensus, allowing a wide variety of tasks to be completed. This makes it the perfect environment for applications.
By using the EVM, Qtum can also implement a Proof-of-Stake (PoS) model instead of the Proof-of-Work used by Bitcoin, making it quicker and more energy-efficient than the world’s most popular cryptocurrency.
However, given that many have complained about the security of Ethereum, something extra was needed: a few features from Bitcoin.
Bitcoin’s Unspent Transaction Output
The Unsent Transaction Output (UTXO) feature on Bitcoin prevents fraud from taking place on the protocol (or rather, reduces it as much as possible). UTXO is exactly what it sounds like: the Bitcoin that is left unsent after you make a transaction with some of your Bitcoin.
By recording this continuously, the system ensures that you can’t use the same Bitcoin for two different transactions, keeping everything legitimate.
Qtum’s Account Abstraction Layers
To combine these two blockchains together, Qtum had to create something called the Account Abstraction Layer. This joins data from Bitcoin’s UTXO with the smart contracts of Ethereum, therefore maximizing opportunities for developers.
It also uses Ethereum’s “account balance” system to record transactions, which is made safer to use by the UTXO.
How it helps businesses
Although Qtum has “copied” a few features from Ethereum and Bitcoin, that doesn’t mean it offers nothing new. On the contrary, the protocol has something that practically no other cryptocurrency provides: support for businesses that want to scale.
The main features of interest are:
- Oracles: Services that allow third-parties to supply data, and which monitor smart contracts for greater security.
- Mobile applications: Smart contracts can also be managed from mobiles.
- Unita: A consensus mechanism that makes transactions faster.
These all make it easier and quicker for businesses to operate and store their data on Qtum, making it a great environment on which to build applications.
The future of qtum coin
There’s been a fair amount of intrigue surrounding qtum coin for a while now, and that’s likely to increase thanks to its recent price gains.
As we’ve seen, the combined use of Bitcoin and Ethereum offers some incredible development potential. We’re not just talking hypothetically—Qtum already has integrations with Amazon Web Services in China and the Google Cloud Platform, and there have also been past rumors of a partnership with Starbucks.
If more tech platforms become interested in adding blockchain solutions, qtum coin is likely to be on their radar. But will it “define the blockchain economy,” like the website promises?
There are reasons to be skeptical about the coin’s future. It has plenty of competition—not just Bitcoin and Ethereum (and Ethereum 2.0) but the forks and blockchains that have been built to compete with them.
It’s certainly worth keeping an eye on qtum, but whether you decide to take things any further is up to you.
Where to buy qtum coin
Wondering how to buy qtum cryptocurrency? The coin is available from a wide range of exchanges, such as Kraken.
Then, you should transfer it to a qtum wallet for maximum security — Qtum’s native wallet can be downloaded from the site, and there’s even a mobile version available. But why leave things there? You can do more with your crypto than leave it in a wallet or sell it.
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