Cryptocurrency

Qtum – The Proof-of- Stake based Mechanism

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Qtum pronounced ‘Quantum’ is a Singapore-based blockchain which is focused on the mobile dApp (decentralized application) market. Reportedly the public blockchain platform ‘leverages the security and simplicity” of Bitcoin’s UTXO protocol which is the unspent transaction output protocol. Just like other commonly known crypto platforms, such as Ethereum and NEO, users are allowed to issue smart contracts through the Qtum platform.

A video on Qtum’s official website goes on to explain that Qtum uses an “account abstraction layer” to “decouple applications” from a blockchain’s base protocol. Reportedly, the developers of the crypto platform claim that the performance of the blockchain is maintained as a result of the separation of the application processing from the underlying protocol.

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The Qtum team even went on to state that developers can add more smart contract capabilities in the future owing to the decoupling software programs from the underlying protocol on which apps are built.

To implement a governance protocol which is decentralized, the blockchain developers use the proof-of-stake (PoS) consensus mechanism. As a result, it enables its community members to collectively make decisions on whether block sizes need to be modified, or how much must be charged in gas fees and various other decision about the management of the network.

It’s a known fact that most proof-of-work (PoW) – based blockchain permit its user to make ongoing developmental decisions. However, it must be noted that the developers of the Qtumblockchain ensure that matters about governance are settled without disrupting the ecosystem. A recent upgradation in the PoW related Bitcoin Cash (BCH) on November 15, 2018, resulted in two separate blockchains and coins.

Subsequently, there was much confusion about which chain must be assigned the Bitcoin Cash ticker. Many media reports spoke of serious security-related issues relating to the Bitcoin (Satoshi Vision) chain. The reports claimed that the blockchain users were allowed to engage in double spending. Some critical issues with the PoW based consensus protocol are the main reason why the PoS consensus protocol has been adopted by most second and third generation crypto platforms including Qtum.

PoW Or PoS – Which is More Secure?

Many developers, prefer PoS over PoW. The reason behind the same is that PoS is believed to be a more secure and better approach for achieving a distributed consensus on a blockchain. At the moment, the Qtum protocol is being used by more than 5000 active nodes online. The Qtum platform’s development team is also proud of the fact that the Qtum network has been operational for more than a year without any downtime.

In spite of the crypto market facing a downside for a prolonged period, the blockchain industry continues to grow because of the regular improvements being made in the crypto industry’s infrastructure. Newer products and platforms are also being regularly developed thus ensuring better services to its retail and institutional investors.

Roxanne Williams

Roxanne Williams has recently joined as a market reporter for CryptoNewsZ - the 24/7 crypto news site, where she produces recent stories, technical analysis and price updates on world's leading cryptocurrencies.

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