Cryptocurrencies have revolutionized the financial world and our concept of money. Qtum (QTUM) is at the forefront of the new cryptocurrencies and boasts a revolutionary model that combines the properties of 2 of the most successful cryptos: Bitcoin and Ethereum (ETH).
The Best Qtum Exchanges:
- Best Overall: Kraken
Overview: What’s QTUM?
Qtum is an open-source blockchain value transfer application platform that focuses on mobile decentralized apps. Qtum is a cryptocurrency that combines the security of the Bitcoin blockchain with the increasingly popular functionality of Ethereum’s smart contracts.
The Qtum platform enables multiple virtual machines (VMs) that include the Ethereum Virtual Machine (EVM) and Qtum’s new x86 VM. Qtum uses the Unspent Transaction Output (UTXO) record-keeping model that is also used by Bitcoin.
In the UTXO model, your wallet tracks unspent transactions that are associated with all of your addresses. The balance of the wallet is subsequently determined by the amount of unspent transactions. The model is similar to having a stash of bills where your balance is determined by the amount of bills (UTXO) left after the transaction.
The other major cryptocurrency record-keeping model Ethereum uses is called the account/balance model. With the account/balance method, the balance of the account is kept as a global state with transactions conducted much like an ATM bank card transaction. Your account is adjusted with each transaction depending on the amount of the balance.
While using Bitcoin’s UTXO-based core code, the Qtum host machine is running an Ethereum VM that uses the account/balance model. The models communicate with each other via an account abstraction layer (AAL) that keeps the transacting parties anonymous. Qtum combines the scalability of UTXO with the efficiency of Ethereum’s smart contracts.
Qtum uses a proof of stake (POS) algorithm to…