August 18, 2020
Qtum, a blockchain smart contract network, has become the latest ecosystem to persuade Ethereum developers. Different from its rivals, however, Qtum can be proud of its compatibility with Ethereum’s EVM. This means developers can harbor projects directly over. Recently, the Qtum Foundation announced a $1 million DeFi development fund that will be allocated to solo devs and teams seeking to make scalable DeFi dApps.
Qtum is not the first blockchain platform to establish the red carpet to DeFi devs; Matic Network lately issued the same call, with a lavish grant program to kickstart acceptance. Patrick Dai, the Qtum founder, is strong-minded to make Qtum the chain of choice for frustrated Ethereum devs, priced out of organizing smart contracts on ETH’s mainnet and has promised a total of up to $5 million to bootstrap DeFi acceptance.
DeFi Ride gathers Pace
While “ICO” was 2017’s catchphrase, “blockchain” 2018’s and “interoperability” 2019’s in 2020, DeFi is the only trend in town. Blockchains extending from TRON to EOS have made overtures to DeFi developers, setting their system as being more suited to presenting dApps that rely on high transaction volume. Qtum has laid out its case for Qtum chain being the next home of DeFi innovation in a blog post that fleshes out the rewards it grasps.
“On-chain privacy is a relatively lacking but a crucial feature for the current DeFi ecosystem,” it clarifies before hyping Phantom Protocol, a zk-SNARKs-based on-chain privacy protocol established by Qtum. The existence of stablecoins on Qtum – a vital constituent of distributed finance – has also been cited as another cause why the blockchain is ready to host DeFi in its entire splendor.
Qtum even has its stablecoin, QCash, which was introduced in 2017. Instead of being attached to the US dollar, it’s priced against the RMB, making Qtum Chain an ideal launchpad for Asian crypto projects.
The Best Parts of Bitcoin and Ethereum
Qtum’s value proposition can be refined into offering the best rudiments of Bitcoin and Ethereum, combining the former’s vigorous security with the world computer concept founded by the latter. Another big problem of Ethereum is that interacting with numerous smart contracts, such as when pooling assets or liquidity mining, uses up an unusual amount of gas, which quickly gets costly.
Because Qtum uses Bitcoin’s UTXO model, each transaction can have multiple inputs and multiple outputs. When used in conjunction with the OP_SENDER opcode, multiple contracts can be called in parallel for a single transaction, with a different caller for each output. In plain English, this means users can interact with multiple DeFi contracts efficiently, dramatically lowering costs.
Since Qtum uses Bitcoin’s UTXO model, each transaction can have multiple inputs and outputs. When used in conjunction with the OP_SENDER opcode, multiple contracts can be named equivalent for a single transaction, with a different caller for each output. In other words, it means users can interact with multiple DeFi contracts professionally, intensely lowering costs.
Ethereum’s change to ETH 2.0, scheduled for early 2021, should bring down on-chain charges. In the meantime, though, DeFi developers face a dilemma: to keep building on a blockchain that’s packed to swarming, and where block space is at a finest, or to entrust their project to a substitute chain that’s more mountable. When FTX recently broadcasted that it was producing Serum, an interoperable DEX, it chose Solana for this reason. If Qtum can find similar competences on its blockchain, it should hustle the exodus of Ethereum developers tired of being controlled by high fees.