Qtum Price Surges 27%: A Private Ethereum in the Making

Qtum (QTUM), ranked among the top 30 cryptocurrencies by market cap, gained 27% in a sustained surge on Tuesday.

The China-based smart contract platform has been the subject of some interesting developments of late. The QTUM coin was recently added to the Binance-owned Trust Wallet; while in a recent AMA it was revealed the project would be making a push towards privacy – a first, according to Qtum, in the blockchain platform world.

Privacy and Smart Contracts…

A recent Telegram AMA with the CEO and developers revealed that after the Qtum 2.0 update in September, work would begin on making private smart contracts, or “confidential assets”. From the AMA transcript:

“After we release Qtum2.0 in September, we will working on QIP19, it will enable use Mimble Wimble Technology to release confidential assets on Qtum, we did huge research on all privacy solutions, and we think the MW Technology is one of the best. So After QIP 19, you can release confidential assets and confidential token on Qtum network.”

The big pitch for Qtum here is its attempt to bridge the gap between privacy and platforms. Useful tools like Etherscan allow us to dig into the deep, but transparent blockchain. Blockchain explorers exist for most other serious blockchains. Here we have the concept of private “assets”:

“For privacy coin like Zcash and XMR or DASH, it’s purely a coin, but no smart contract platform. For Platform like ETH and EOS, have smart contact, but no Privacy. So Qtum want be the First Smart Contract Platform with Privacy. We also think to Airdrop some Privacy Asset later, but this not decided yet.”

Trust Wallet, Carving a Niche

Concerning tokenized assets, a big mover in this category in recent times has been Ravencoin (RVN). However, as of yet there appear to be no plans underway to introduce privacy to Ravencoin – which isn’t a smart contract platform anyway.

Off the top of my head, Komodo (KMD) is a blockchain platform which was born of a Zcash (ZEC) fork. The tools exist for private KMD transactions, but will the applications building on top of it benefit from the same privacy options?

If not, then perhaps Qtum has landed on a niche concept. We’ll see more on this front after the v2.0 update in September.

Qtum was recently added to the Binance-owned Trust Wallet, and CEO Patrick Dai confirmed that work was afoot to bring the coin’s staking mechanism to the mobile wallet. Since Qtum stakers are required to run a full node, it makes staking from a phone difficult. Dai proposed a new consensus algorithm which would see smart contracts used to manage a delegated staking mechanism. Dai labelled the concept ‘Contract Proof-of-Stake’ and said work continues on implementing it.

Qtum Price – QTUM/USD

From the daily low of $4.13, the coin price climbed to $5.26 on Tuesday – a 27% surge which was still rising at time of writing.

Trade volume more than doubled according to CoinMarketCap – rising from $260 million to $550 million. An alternative source, OpenMarketCap, places true volume at $41 million, making it the 17th most traded cryptocurrency on the day.

Disclaimer: The author owns Bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.

Featured image courtesy of Shutterstock. Chart via CoinMarketCap. 

Greg Thomson is a freelance writer who contributes to leading cryptocurrency and blockchain publications like CCN, Hacked, and others.