To truly ignite the blockchain revolution, how many steps does Quantum Chain need to take to reach C-end users?

Author: Fu Bixiao

Quantum Chain wants to go further than the second-generation blockchain Ethereum - from the B-end to the C-end, to truly realize the popularization of blockchain applications.

Blockchain is no longer just a topic for small circles to get excited about. People are talking about it excitedly and are looking forward to witnessing the next Internet revolution that will subvert everything - even though most people don't even know what blockchain is.

Blockchain is still very far away from ordinary C-end users. A big reason for this is that the existing blockchain infrastructure platform is not applicable.

Qtum is trying to provide a new possibility.

The problem of the first two generations of blockchain: it is difficult to connect with real business

Since the Bitcoin code was open sourced in 2009, various blockchain projects have emerged one after another, but the truly representative one is Ethereum, which was officially launched in 2015.

Ethereum uses some Bitcoin script functions and breaks through the limitations of these functions. It creates a Turing-complete computing environment, including a full-featured programming language, which provides a foundation for smart contracts. Smart contracts run more streamlined and conveniently on Ethereum, which is unmatched by the Bitcoin blockchain.

On the Ethereum platform, developers can build and publish their own distributed applications that can program, decentralize, secure and trade anything.

However, Ethereum is not perfect.

First, different participants have different requirements for the consensus mechanism, and the Ethereum platform based on Proof of Stake is difficult to achieve large-scale deployment.

Second, the blockchains of Bitcoin and Ethereum are both based on mining, but in specific commercial applications, companies do not need mining, and to add nodes they have to buy mining machines, and the cost paid for this is unnecessary.

The third, and most fatal, point is that a completely decentralized blockchain is not conducive to regulation.

The DAO incident some time ago has caused Ethereum to face the most serious doubts. Hackers attacked the smart contract, and people could only watch the funds being stolen without being able to stop it, and there was no way for regulators to intervene.

The Bitcoin blockchain is naturally endowed with anarchist genes, and Ethereum has added the function of smart contracts on this basis. The underlying design ideas are consistent, and both are naturally opposed to centralized supervision. Ethereum's system is also relatively closed, and smart contracts rarely interact with the outside world.

This network architecture perfectly carries the ideals of digital currency enthusiasts, but the real business does not follow the geeks’ creed. Especially for the financial industry, the role of supervision is indispensable. For example, in the bank’s service system, identity authentication (KYC) is required to prevent money laundering, which is something that the existing public chain system cannot provide.

Finally, the two blockchains of Bitcoin and Ethereum have become increasingly separate. The Bitcoin ecosystem based on the UTXO model and the Ethereum ecosystem based on the Account model are difficult to be compatible with each other, which is a big obstacle for developers.

Vitalik Beturin, the founder of Ethereum, also thinks so:

“It is necessary to build a platform that is friendly to application developers so that many applications can be better integrated and used at the same time.”

So, can there be a third blockchain ecosystem?

Qtum wants to go further than Ethereum

Just from the name, one can sense Quantum Chain’s ambition to rival Ethereum.

Ether is a basic substance in the universe envisioned by Aristotle. Until Einstein's special theory of relativity was established, ether was one of the most important basic concepts in physics. The significance of quantum in modern physics is equally important. As the smallest indivisible individual, quantum is the basic unit that constitutes the world.

The Qtum project was launched in March 2016 and is currently being developed by an open source community led by Shuai Chu, which has nearly 20 development members, most of whom previously worked for first-tier Internet companies such as BAT.

Qtum Chain uses the Value Transfer Protocol to achieve peer-to-peer value transfer, and based on this protocol, builds a decentralized application development platform (DAPP Platform) that supports multiple industries (finance, Internet of Things, supply chain, social games, etc.).

At the "Second Blockchain Global Summit Demo Day", Quantum Chain won the "Best Creativity Award" and is the only blockchain project from China to win this award.

“The Quantum Chain open source community is a third blockchain ecosystem that is different from Bitcoin and Ethereum and can solve some problems encountered by existing blockchain systems in commercial applications.”

Shuai Chu compared the Quantum Chain to an Android operating system in the blockchain field. Through the mobile DAPP development strategy, blockchain technology can benefit users in various industries and ordinary Internet users.

Quantum Chain wants to go further than the second-generation blockchain Ethereum - from the B-end to the C-end, to truly realize the popularization of blockchain applications.

Qtum Chain, truly connecting with the business world

Quantum Chain draws on the underlying architecture of Bitcoin and Ethereum blockchains, but has made some improvements.

First, on top of the Qtum chain, there are different consensus protocols for public chains and consortium chains. Moreover, its consensus mechanism is designed to be modular and can be plugged in and out like a plug-in, suitable for different application scenarios of public and private chains, and integrated with the company's existing ERP system and IT system.

Secondly, Qtum has modified the underlying algorithms such as proof-of-state and adopted the incentive mechanism of proof-of-stake to establish consensus. Therefore, there is no need to achieve the consensus mechanism through mining, which saves the cost of the enterprise.

Third, in order to better express the logic of finance on the blockchain and meet the regulatory needs of the financial industry, Qtum has innovated in identity recognition and privacy protection. The separation of transaction ledgers and smart contract ledgers facilitates the entry of external regulatory data sources and achieves better connection with the real world.

Identity recognition is the premise for the blockchain system to connect to the financial system. Qtum manages users through smart contracts, and the system provides an optional identity recognition module. With the introduction of a third-party credit reporting agency, customers who have passed the Identity smart contract verification will have more priority.

Finally, Quantum Chain can also solve the compatibility problem well. It is compatible with both Ethereum and Bitcoin systems.

Applications based on quantum chain

In the actual application of Quantum Chain, it can support decentralized applications in multiple industries and on mobile terminals.

The consensus mechanism provided by Qtum can meet the requirements of some industries for blockchain speed and capacity, and through the design of Identity and Privacy, it can also meet the regulatory requirements of the financial industry. Qtum can support the application needs of multiple industries such as finance, Internet of Things, supply chain, social and gaming, charity, digital assets and equity.

By introducing mobile strategies, Qtum has productized different DAPP ideas and finally reached ordinary Internet users. The introduction of incentive mechanisms and their combination with the concept of sharing economy will change the existing APP market structure.