Unlike most cryptocurrency ratings published online, the Wise Crypto ratings have nothing to do with the current or future price of the currency. Whether or not a crypto is over or undervalued or priced today is completely irrelevant. Our research focuses on the sustainability of each project, the security, the use case, decentralisation, environmental impact, the technology, the scalability and the developers and teams behind the projects.
Qtum Rating = 330/1000
Technology (0 to 300) = 170
- Speed (0 to 50) = 5
Qtum claims a high transaction speed that is said to be brought by a specialized and highly scalable consensus algorithm called SCAR. This algorithm lets the network achieve up to 10,000 transactions per second. That is quite fast.
Kraken on the other hand claims average deposit times of 60 minutes and 24 confirmations.
- Cost (0 to 50) = 15
Qtum’s gas model is very similar to Ethereum, along with one of its supported virtual machines; the Ethereum Virtual Machine (EVM). Effectively, gas is the ‘cost’ of the computational resources required to execute a Smart Contract. On the platform, it costs an average of $0.9572 or .001 Qtum to deploy a 1kb Smart Contract.
Therefore, the platform charges an average network transaction fee of .001 Qtum per KB. This ‘cost’ is based in Qtum Satoshis, which is the lowest unit of a Qtum Token, broken down to 8 decimal points, or .00000001 Qtum. This cost seems low, but it may get quite expensive to deploy smart contracts when vast storage space is required.
- Scalability (0 to 50) = 25
Qtum is indeed scalable thanks to the SCAR, its consensus algorithm. The SCAR algorithm can scale up to 10,000 transactions per second, which makes it ideal for large scale enterprise environments.
- Environmental Impact (0 to 50) = 50
Unlike Bitcoin, which uses PoW (wastes enormous electrical resources), Qtum employs Proof-of-Stake 3.0, which does not support mining. It’s, therefore, not a danger to the environment.
- Reliability (0 to 50) = 30
Qtum brings two of the most successful blockchains in the crypto space-Bitcoin and Ethereum together and incorporates features from both of them. Since Qtum is backward compatible, it can take advantage of, and absorb improvements from both Bitcoin and Ethereum blockchains. Qtum has managed to grow it’s use cases by integrating the dApp ability and Proof of Stake consensus of Ethereum with bitcoin’s Unspent Transaction Output model. The interoperability between the two platforms has been instrumental for the project’s growth.
- Decentralization (0 to 50) = 45
Qtum was designed to be as decentralized as possible such that the projects belong to the community, and no central authority can govern it. In fact, the Qtum project does not have masternodes or other centralized liabilities. The gas price can be adjusted through community consensus. Anyone can host a node as long as they have a computing unit and an internet connection attributed to the Decentralized Governance Protocol (DGP). It’s, therefore, one of the most decentralized platforms.
Security (-250 to 0) = -190
- “Fake Stake” Attacks/ “Spent Stake” Attacks (-100 to 0) = -90
A team of researchers called Decentralized Systems Lab from UIUC released a study that identifies significant weaknesses in certain PoS networks, including Qtum. According to the research, hackers could easily launch the attack by causing a victim node to crash by filling up its disk or RAM with bogus data. The researchers are convinced that all PoS currencies based on the UTXO of Bitcoin and the longest chain model are vulnerable to these attacks. Additionally, Qtum is vulnerable to the “Spent Stake” attack, which allows malicious actors to abuse the validation of apparent stake through a method referred to as “stake amplification.”
- Potential for being banned (-100 to 0) = -80
Qtum is another crypto that might be crippled by China’s wrath on crypto operations. The project is based in China who unfortunately has imposed a burn on all ICOs. China is very crypto-unfriendly, and there could be a possibility that Qtum’s future could be caught up amid the fogging ban. Certain blockchains have already been banned in China, and although its community may soon be jumping to Qtum, they are still wary. Additionally, the company has not yet released an official statement detailing its compliance with China’s cryptocurrency regulation.
- Network Vulnerabilities (-50 to 0) = -50
Qtum suffers from some network vulnerabilities grouped from critical vulnerabilities, high-risk vulnerabilities, medium, and low-risk vulnerabilities. These vulnerabilities hinder the harmony of the network’s functionality since it is rendered highly susceptible to attacks.
Use Case (0 to 500) = 250
- Initial Main Use Case (0 to 100) = 50
The main goal behind Qtum was to provide a blockchain that is optimized for business use. The developers intended to combine Ethereum’s dApp ability and its Proof of Stake consensus with bitcoin’s Unspent Transaction Output model. More, the platform has also integrated the Ethereum Virtual Machine (EVM) with bitcoin’s core chain fork. This makes QTUM the ideal crypto project for enterprises that need to build and deploy decentralized applications(dApps).
- Mainnet (0 to 200) = 200
Qtum project was announced in March 2017, and the mainnet went live six months later in September 2017. The QTUM ICO raised $15.7 million in five days, from March 12-17, 2017. The investment came in the form of 11,156.766 BTC and 77,081.031 ETH. During the ICO, 51,000,000 QTUM (51 percent of the total supply) were distributed to the public. Twenty-nine million was allocated to community incentives, and the founders and development team withheld 20 percent.
- Additional Use Cases (0 to 100) = 0
Apart from facilitating interoperability between the two biggest cryptocurrency-Bitcoin and Ethereum, Qtum has other additional use cases. The QTUM token can be exchanged with other cryptocurrencies such as BTC, ETH in exchanges, notably Binance and Huobi. Qtum can also be used by a third party to pay the fees for a transaction that they would want to broadcast to the chain. There is nothing unique about these use cases though and no additional points can be credited.
- Additional Working Products (0 to 100) = 0
Qtum development team has a wallet that is available for download on the official website of the project in versions for Windows, MacOS, and Linux. Users can store their QTUM tokens in this wallet.
Core Team, Partnerships, and Developers (0 to 200) = 100
- Core Team & Developers (0 to 100) = 50
The Qtum Foundation is made up of veterans of some of the tech world’s biggest companies and includes a broad array of experience in different sectors. The company was founded by Patrick Dai, a former Alibaba employee who became a blockchain enthusiast early on. The team is rounded out by an international group of tech veterans. Their expertise doesn’t revolve around solely on crypto experience. Some are aficionados in technological sectors such as full-stack server development, telecommunications, and cybersecurity. The Qtum foundation’s backers are a variety of venture capital veterans, angel investors, and other large blockchain companies who are intrigued by the company’s vision. Qtum also employs Jeffrey Wernick, a veteran with decades of experience in financial services and investment, as an advisor.
- Partnerships (0 to 100) = 50
Since its inception, Qtum has been aggressively seeking partnerships with major companies both inside and outside the blockchain sector. Among the most notable partnership is its partnership with the Chinese division of the world’s largest online retailer, Amazon, to launch Amazon Web Services through Amazon Machine Image. Qtum has also partnered with numerous companies, including Qihu 360, China’s largest public software company, Baofeng software company, Celer Network, and Energo Foundation, among others though it remains to be seen how close these partnerships in reality are. More partnerships are expected in the coming days.
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