6 min read
Qtum is a China based blockchain project offering a smart contract platform which can be used to develop Decentralized applications. The Qtum Foundation is registered in Singapore and is a global project with a team located in Asia, the Americas, Africa, and Europe. The reason for its popularity is its USP – providing Ethereum’s EVM with Bitcoin’s secure UTXO model. On top of that, they secure consensus with the Proof of Stake 3.0 (POS 3.0) algorithm.
What is Qtum coin
The main idea of Qtum coin is to make smart contracts easier and more secure while offering the ability to exchange information with major cryptocurrencies such as Bitcoin and Ethereum.
The Qtum codebase is the Bitcoin blockchain, but the Qtum developers have added layers to the Blockchain that allow an Ethereum virtual machine to run Bitcoin smart contracts. Qtum benefits from all the new developments in both the Ethereum and Bitcoin communities and smart contracts, it can be said that it has the best of both worlds.
What is Qtum staking
The proof-of-stake system used on Qtum, works on a principle of validators of a block being chosen randomly. The validators can higher their chances by having the largest stake in each validation. The higher the money deposit in the block (or stake), the higher the chance of validating the block and later on receiving the transaction fees.
Qtum is a PoS (Proof of Stake) consensus mechanism, which is different from Bitcoin’s PoW (Proof of Work). The mining process in the PoS system is called staking. The block producer will get Qtum, as well as the transaction fees and gases as block reward. So, the real reward is usually more than Qtum in total.
POSv3 has a kernel hash, which is composed of several pieces of data that are not readily modifiable in the current block. Here are some more features that must be kept in mind about Qtum’s POS system:
The second transaction in every block is called a “coinstake transaction,” while the first transaction is an empty coinbase transaction.
Each block must have at least one staking transaction.
The block timestamp must have the bottom four bits set to 0 so the blocktime can only be represented in 16-second intervals.
Only once every 500 blocks (about 18 hours) can a UTXO be used to produce a staking transaction.
Now let’s look into what a POSv3’s Kernel Hash is built from:
The previous block’s stake modifier which is a hash of the previous transaction in PoS blocks and previous block’s stake modifier.
The timestamp from the prevout transaction.
The hash of the prevout transaction.
The output number of the prevout (this is the output of the transaction is spent by the staking transaction).
The current block time where the bottom four bits are set to 0. This particular feature changes during the staking process.
This particular system is more considerate to the environment as it doesn’t require large amounts of energy and hardware.
How to stake Qtum
There are some prerequisites before you can stake Qtum, but they are not like those of other cryptocurrencies that you need to have a good CPU or GPU, not for Staking Qtum, it is something very simple.
So, what do you need to do for staking Qtum：
First you need to run a Qtum fullnode, and keep online (Since Qtum is using PoS, we don’t need any mining machine, just PC or even Raspberry Pi can run a fullnode);
And then you need to have some Qtum in the wallet (fullnode)（Any amount of Qtum can be used for staking, more Qtum means higher possibility to stake).
If you still don’t have Qtum you can buy it on our page and start staking
Currently, Qtum Core wallet is the only wallet that supports Qtum PoS staking. Note that other wallets like mobile wallet and Qtum Electrum are not able to stake for the time being.
There are two ways to stake:
Staking with qtumd, using command line, suitable for Linux/OSX/Windows/Raspberry Pi users who are familiar with command line tools.
Staking with a qtum-qt wallet, with GUI, suitable for common users.
Either way works in the same way for staking, so you can choose either method you like.
Qtum is known to be an innovative platform with exciting features in future. It is unique and has potential to reach a significant number of clients in the coming days. Being the world’s first proof-of-stake smart contract platform, it will be a worthy investment for the future.
Not only for this but also for its combination of the best of both worlds with the best of Bitcoin and the best of Ethereum, transforming it into a platform that gives much to look forward to. What will be your next step? Which new technology will you add? Will it create a new one on your own or choose one of the most acclaimed of your competitors to apply in your program?