The cryptocurrency market, as a whole, is down about 9% from its net worth 24 hours ago. Popular coins like Ethereum (ETH), Bitcoin (BTC) and Cardano (ADA) are all in the red today. In fact, the top 10 most valuable digital currencies are trading down today – including the QTUM coin.
But it’s only down 7%, and it could very well be a temporary pullback – even a chance to buy in now. This particular cryptocurrency has been climbing the ranks in recent months, currently worth about $3.1 billion. That makes the QTUM coin the 17th most valuable digital currency on the global market.
So, what is this cryptocurrency all about?
This cryptocurrency is the native token of QTUM, a blockchain-based platform that’s headquartered in Singapore. This technology’s main draw is that it bridges the gap between popular blockchain networks in some pretty useful ways.
Like Bitcoin (BTC), the QTUM coin is a tradeable currency whose transactions are logged on a decentralized ledger. Like Ethereum (ETH), QTUM is all about smart contract technology – and it also supports the launch of new tokens on top of the its network.
— QtumOfficial (@QtumOfficial) January 19, 2018
But QTUM takes things a step further by being compatible with Bitcoin gateways, while simultaneously being compatible with Ethereum contracts as they are. In fact, this blockchain technology enables smart contracts that are intercompatible among several cryptocurrency networks.
Smart Contracts for Everyone, but Designed for Corporations
Sure, anyone can use the QTUM technology to build a new token. But the QTUM foundation is primarily geared toward institutional and business applications of smart contracts. The idea is that companies can cut costs and boost automation by switching from legacy systems to the blockchain, and this platform makes that simple to do.
It does this by enabling easy-to-use tools, templates, and other types of plug-and-pay smart contract possibilities. And, with QTUM, businesses and institutions can develop smart contracts that are interoperable between Bitcoin and Ethereum.
How does QTUM connect Bitcoin and Ethereum?
Because of how Bitcoin is built, smart contracts can’t be created directly on the blockchain. It’s all about how Bitcoin and Ethereum store data in different ways. The ETH blockchain uses account balances, which are easier to write code around. Bitcoin uses something called unspent transaction outputs (UTXOs) as markers of value on its ledger – which are more scalable and secure.
Because of these two systems that don’t comply, there was a serious obstacle in linking them. The technology behind the QTUM coin has figured out a work-around:
It’s called an Account Abstraction Layer. It essentially converts the blockchain’s outputs into account balances. It enables the successful conversion of information between the Ethereum Virtual Machine (EVM) and Bitcoin’s UTXO-based blockchain.
How has the QTUM coin been performing?
The QTUM coin, like most cryptocurrencies, is in the red today. The cryptocurrency market, as a whole, is down about 8% from its net worth 24 hours ago. That’s 1% worse than QTUM’s performance today.
This coin has, for the most part, been trading between $40.00 and $60.00 for the past 30 days. At the end of the first week of January, it briefly soared into the $90.00 to $100.00 range. But, it quickly fell back down to the $60s after about three days.
Still, considering the fact that this coin was trading below $13.00 in the first week of December, this growth story has been quite impressive. QTUM certainly has the powerful, useful technology to back it up – but will there be another surge toward the $100.00 mark soon?
Disclaimer: This article should not be taken as, and is not intended to provide, investment advice. Please conduct your own thorough research before investing in any cryptocurrency.