The revolution of crypto is often compared to the revolution of the internet. This development also took several years before we could contact each other worldwide without any problems. Quant Network is a unique project that brings universal interoperability to crypto and thus forms an indispensable link in the further development of crypto.
What is Quant Network?
Problems of crypto
To understand exactly what Quant is, we need to look at the current issues of crypto. It is still a very young market that is in full development, but we now see that we are mainly dealing with scalability on the one hand, but also with the problem of interoperability between different networks. Let’s explain this with an example, during the birth of the internet:
Marieke is in Amsterdam on her iPhone and is connected to a Wifi router of the brand A. She is at work and sends an email, via Gmail in her IOS application, to Henk. Henk is a colleague who works in Belgium. Henk uses Yahoo Mail and does not work via an iPhone but via a Chrome browser, which is connected to an internet cable. Without interoperability of the system, Marieke and Henk would not be able to communicate with each other over the internet, because they work via different devices from a different network.
In crypto, this interoperability is equally necessary to exchange and use information. There is therefore a need for an overarching and universal interoperability that connects all the different networks. Suppose you have Bitcoin and you want to send it to a decentralized application (dApp) built on the Ethereum network . For this you first have to manually swap your Bitcoin to Ethereum or use a wrapped Bitcoin, before you can start using it. These are just simple examples in crypto. If we start to apply the technology in everyday scenarios such as car insurance, for example, it will be an impossible task to bring this to a successful conclusion.
Currently there is no easy way to do this. Each blockchain can have different structures and algorithms. This becomes an even more complex problem if you try to connect multiple blockchains and non-blockchain databases, you get the issue of different rights that each individual has on the blockchain. This is very technical and that is why many dApps are built on only 1 or a maximum of two blockchains. But you’re probably wondering: why is so much work being done on interoperability and what about Polkadot?
How does Quant Network work?
This interoperability is essential to gain general acceptance from the general public. People want to see use cases before they believe in the power of this new technology. Quant is unique because it is not a blockchain, but a blockchain operating system. This technology is being used for the first time and is therefore very promising. This is also known as overledger. With this overledger you can build multiple blockchain and multichain applications (mApps). It not only connects the blockchains, but also the database systems. This is achieved by establishing common rules in the source code, which are located above the transaction layer of all connected networks. This allows flexibility and if we look at the technology, we see a similarity with the development of the Internet.
Another advantage is that it enables interoperability of smart contracts . Currently, Quant is the only project that actually tackles this. Currently, most blockchains have been created to realize transactions in their own network. That is why it is good to look at the development where you can use a smart contract to make a transaction from network A to network B. This is still very difficult to date. Why? Because blockchains generally don’t know what is happening on another blockchain. With Quant this information transfer takes place and it therefore makes a very big step in the process of interoperability.
The application layer is made possible through the use of nodes in the network. Although this overledger is not a blockchain, several nodes in different blockchains are used to enable it to function. But these nodes can be managed by anyone. You can compare it to running a large server. The number of nodes is important here. The problem with crypto is that it is becoming more and more centralized. Therefore, people prefer to run their own node. The more nodes there are, the more decentralized the blockchain becomes. Own nodes are therefore often set up in the interest of decentralization. But at Quant you can use their existing nodes to process transactions. In this way, this overledger is also seen as a nodes service provider.
How does Quant Overledger work?
Overledger’s technology requires a whole new angle of communication between existing blockchains. This new architecture is necessary for both interoperability and scalability. The team looked at the early days of the internet and came up with the idea that working with different layers is the best method.
This layer allows for the bundling of transactions based on the consensus algorithm in different blockchain domains. All related processes are placed in a layer. This only concerns the bundling of these transactions and does not relate to their content information.
This layer takes all the information from these ledgers that are relevant. This includes information that comes from smart contracts, metadata and transaction data. This layer is also used to store all the information resulting from the transaction, as well as the necessary information from the communication between multiple applications.
Filtering and Ordering Layer
This layer will actively process all messages. Messages sent via a hash, to another blockchain, are organized and filtered. As a result, it establishes the connection between messages that come from the messaging layer. In addition, it also validates out-of-chain messages.
This layer checks whether messages or commands are considered valid. If this is the case, they require a digital signature to be able to execute this command. Different mApps, multichain applications, can refer to messages related to other applications and use a certain hash for this. These refer back to the storage location of a cryptographic hash. They also act as an identifier that can be used to consult a transaction from the database and confirm or check its status.
Two different tokens are used during a transaction. First, the tokens of the actual blockchain. For example, the interoperability between Bitcoin or Ethereum. The other tokens are Quant’s own. These are needed to validate each transaction in the general ledger. This is essential for security and also helps maintain the order of the layering. These tokens also give you access to the network, the overledger. You can compare it to a subscription cost. For example, you pay an annual fee to Adobe to be able to use all programs.
QNT is an ERC20 token that is used in the Quant network as a means of payment for, among other things, license costs. There are only 14.6 million QNT tokens available in total. If we compare this to Bitcoin with a total of 21 million, we immediately see how scarce these tokens are. Initially 24 million were available, but during the ICO in 2018 they decided that almost 4.7 million tokens were allocated to the team. This part is used for further developments of the protocol.
The remaining 19.3 million was made available during the Initial Coin Offering of 2018. Only 9.9% was effectively sold. The remaining 9.4% was burned, bringing us to a total inventory of 14.6 million.
There are currently 12 million tokens in circulation. The remaining 2.6 million is still in the hands of the company. Because no new tokens are added, Quant is deflationary. This means that the price will rise in the coming years. The team wants to release the same number of tokens annually until 2030. This means an annual inflation rate of 2.2%.
Amazon Web Services
Amazon Web Service provides a reliable and scalable way of cloud computing. This is the provision of all kinds of services such as servers, storage, software and the like. The overledger, the core product of Quant Network, enables the global connection in blockchain technology. A good way to make this distribution possible is through an excellent web server. Amazon Web Service (AWS) serves businesses in more than 190 countries in Europe, the Americas, and Asia. Quant is a technology partner in a worldwide partner program. This partnership allows Quant to offer flexibility and scalability.
Quant Network’s mission is to be the world’s first DLT gateway. This Distributed Ledger Technology (DLT), or overledger, must be the link with the rest of the world. Both on-chain and off-chain. Oracle is a database company that offers business software products. This partner is a very good thing for Quant Network as it allows them to leverage Oracle’s expertise and connect with their global network.
Since Quant is one of a kind, there is little competition and we are now going to tell you why. We currently use third parties or DEXs to facilitate transactions between different blockchains. Central exchanges such as Binance and Coinbase are also important players, but we will not discuss them further because of their central character.
When looking at blockchains, there must be side chains that can interact with these main chains. They are essentially proprietary blockchains with their own consensus mechanism. So it may be necessary to have multiple side chains. If we look at Ethereum 2.0 , Cardano , Polkadot or Solana , they enable interoperability because they are built in the same way. But if you wanted to collaborate with say EOS , you would still need to build a side chain to enable this connection. You can now realize this through a bridge, but that is complex, time-consuming and certainly not scalable.
We see many blockchain ecosystems competing with each other when it comes to interoperability and scalability. That is why it is difficult to decide on which blockchain you are going to build something. Over time you will therefore have to build side chains if you want to collaborate with, for example, private blockchains. A solution to this is Quant, which uses overledger. This way they can connect to any blockchain. It is not necessary to know how the underlying blockchain works, but it does make it possible to guarantee interoperability and scalability.
There is no official roadmap available for Quant to date. Some argue that this is due to the 2018 ICO not bringing in enough funds to make serious developments. In July of 2021, it was announced that Quant received a donation from Alpha Sigma Capital, a pioneering asset fund in the world of crypto. So it’s clear that major investors believe in the power of Quant! Since then, Quant Network has been in the beta testing phase of various developments.
Quant’s long-term vision is to be the Apple or Microsoft of blockchain, realizing a breakthrough technology in the still very young world of crypto. Looking at Quant’s price in 2021, we see that these recent developments have been very positive for the token price.
With offices in both England and Switzerland, Quant Network has a diverse team, with experienced people on board. Here we discuss two team members who are an indispensable link in Quant Network. This starts right away with the CEO, namely Gilbert Verdian.
Where safety comes first, Quant Network has the right person in their midst. CEO Gilbert Verdian has more than 20 years of experience in cybersecurity as well as working experience at the most prestigious organizations in the world. In addition to the groundbreaking technology that Quant Network realizes, they also pay the necessary attention to safety.
With a degree in computer science, Peter has gained a lot of knowledge and experience. Since 1999, he has also been founder and director of his own company Bear Essential Computer Services, which focuses on the latest technological developments in the computer industry. The technology of Quant Network is more often compared with the advent of the internet and none other than Peter is a suitable person to realize these developments.
Where can I buy Quant?
We can no longer imagine life without the Internet. Without realizing it, we effortlessly pay digitally everywhere, regardless of which country we are in or which product we want to purchase. The early years of the internet were characterized by different networks where you could not call from one network to another. With the development of crypto, we see similar problems in terms of transaction and communication.
More and more different blockchains are being added with the associated functionalities. But with this growth, interoperability is also becoming increasingly important. And the further this development is, the more difficult it is to create an overledger where the entire cryptosphere can communicate with each other. With this Distributed Ledger Technology, Quant Network wants to bring the entire technology together in one multichain network, where interoperability is central. With this, they connect the entire crypto ecosystem by using a DLT network.
Thanh Lanh Tran(1989) is Chief Editor from BitcoinUSD.com