Qtum (QTUM) operates as a decentralized blockchain that enables smart contracts via the Ethereum Virtual Machine. While its underlying structure relies on Bitcoin’s UTXO model, it employs proof-of-stake for consensus. This hybrid design allows Qtum to combine strengths from both Bitcoin and Ethereum, integrating their future updates alongside the team’s proprietary innovations.

The network maintains true decentralization without relying on “delegated” Proof of Stake or masternodes to simulate speed. Any individual with an internet connection and a device capable of running a node can validate transactions, eliminating the need to hold coins or vote for centralized validators. Blocks target an average time of 32 seconds and can store up to 8000kb of data. With SegWit included, the system can reach 1100 transactions per second. Since it is built on Bitcoin, a Layer2 solution like Lightning could theoretically increase this throughput to “millions or billions” of transactions per second if needed.

Qtum supports various token standards, featuring its own version of Ethereum’s ERC-20 called QRC-20. It has also adopted the BRC-20 standard from Bitcoin, naming it qBRC-20. By offering NFT support and these additional features, Qtum provides developers with capabilities that exceed what Bitcoin or Ethereum offer on their own.

Qtum is a general-purpose blockchain designed to tackle four key challenges its founders identified in Bitcoin and Ethereum: interoperability, governance, the rigidity and high cost of proof-of-work, and the difficulty of linking smart contracts to real-world applications. To address these, Qtum employs two distinct technologies: the Account Abstraction Layer (AAL) and the Decentralized Governance Protocol (DGP).

The AAL merges Bitcoin’s UTXO (Unspent Transaction Output) account model with an Ethereum-inspired smart contract layer. Meanwhile, the DGP enables smart contracts to adjust core network settings, such as block size and gas fees, without requiring a hard fork, potentially easing evolution. This system involves miners (stakers), developers, and QTUM holders in voting-based governance, allowing the blockchain to achieve self-management, upgrades, and iteration.

The Qtum whitepaper states that the project began with an initial supply of 100 million QTUM coins, all created immediately prior to launch. In March 2017, 51 million of these tokens were distributed to the public via an ICO. Additionally, 8 million coins were assigned to early private investors, while 12 million were reserved for the project team subject to a four-year lock-up period. The remaining balance is managed by the Qtum Chain Foundation, a Singapore-registered non-profit, which is scheduled to receive its share in four installments by March-2021. This portion includes 20 million coins designated for business development and 9% set aside for academic research and promotion.

QTUM does not have a fixed supply, as new tokens are generated through mining. The block reward subsidy started at 4.0 QTUM per block and undergoes halving every four years. This process will occur seven times until the reward drops to zero in 2045, at which point the maximum supply is projected to reach 107,822,406 QTUM.

Qtum does not rely on the same technical security methods currently employed by Bitcoin and Ethereum. Instead, the network utilizes MPoS (mutualized proof-of-stake), which is an adapted form of Proof-of-Stake 3.0.

This system encourages participants to lock their holdings to help secure and facilitate block validation, a process known as staking. Block confirmation involves a contest among coin holders, where the right to validate is determined by network connectivity and random probability. In contrast to earlier PoS designs, the block reward here remains constant and is not influenced by coin age when calculating the likelihood of receiving it. Rewards are distributed in proportion to the amount staked, meaning users with more coins at stake receive higher rewards. Additionally, the MPoS protocol defends against “junk contract” attacks by allocating 10% of the block reward to the current block producer and the nine preceding miners, while deferring the remaining 90% for 500 blocks into the future.

Compared to the proof-of-work model used by Bitcoin, proof-of-stake algorithms are much cheaper to maintain, offer greater environmental friendliness, and support significant decentralization, which serves as a fundamental pillar of blockchain security.

QTUM is a token that can be traded freely and is listed on the majority of exchanges. Trading pairs include Bitcoin, other altcoins, stablecoins, and fiat currencies.

At present, the leading platforms for trading Qtum are Binance, Huobi Global, OKEx, HBTC, and Hydax Exchange.

The project was first announced in March 2016. Its Initial Coin Offering took place one year later, in March 2017, raising $15 million USD for the founders. The Qtum main chain went live on Sept.13, 2017. At the start, the Qtum coin existed as an ETH-20 token, but it migrated to its native blockchain upon the mainnet launch.

It is confirmed that Qtum has support from several notable figures, such as Roger Ver of Bitcoin.com and Jeremy Gardner. Gardner is an early crypto investor who later became a skincare professional, and he is also the co-founder of Augur and an EIR in Blockchain Capital.