The cryptocurrency market is estimated to have a market cap of $17.7 bn with the aggregate value of approximately 1,400 cryptocurrencies estimated to be at $654 bn, as of Dec 21. The cryptocurrencies have witnessed a surge of 3,600% in aggregate value.
The surge is attributable to the acceptance of digital currencies as a viable means of buying goods and services, and the emergence of Blockchain as a digital and decentralised ledge which forms the bedrock of digital currencies.
The Blockchain provides for the recording of all transactions sans the need for a third party. Bitcoin has been acknowledged as the most accepted form of digital currency by merchants, given its first-to-market advantage, and consistently gaining merchants since 2014.
A new cryptocurrency, Qtum has emerged which combines the Bitcoin’s core infrastructure with a version of Ethereum’s Virtual Machine to result in a Blockchain with smart contracts capabilities with applications spanning Blockchain ID (replacing passports, for example) and proof-of-existence services (replacing notaries for example).
More importantly, Qtum’s support for mobile applications through its Simple Payment Verification Protocol allows for smart contracts to be executed in lite wallets via mobile applications.
This is a significant feature with exciting possibilities as close to half of Internet traffic is generated from mobile devices and tablets, and Qtum’s features would allow for Blockchain based applications to be accessible over mobile phones, and be decentralised and secure. Qtum also has a proprietary Account Abstraction layer which enable greater accessibility of Blockchain apps.
Qtum has been designed to be backward compatible to earlier Blockchain, especially with Bitcoin gateways and pre-existing Ethereum contracts, paving way for businesses that already honour Ethereum’s smart contracts to accept the Qtum platform.
However, one must be aware of the risks involved in being an investor in Qtum – need for fine-tuning of Qtum’s Blockchain technology, lack of first big partner, emergence of attractive newer cryptocurrencies, exposure to bubbles, the wait for Blockchain to be accepted as mainstream at enterprise level, and volatility.
Qtum holds the promise of combining the best of both worlds of Bitcoin and Ethereum and offer it as a platform for seamless Blockchain which is anticipated to generate interest amongst big businesses.
