Qtum, a decentralized open-source smart contract and value transfer protocol, announced a new development fund for the DeFi sector ranging up to $5 million. The Quantum Foundation plans to invest $1 million at the very beginning. However, founder Patrick Dai tweeted that the fund could reach $5 million if the community and Qtum DeFi needed it.
The fund will help third-party developers engage and create DeFi applications within the Quantum blockchain. Qtum has a chance to attract a broad base of new developers. The protocol utilizes Ethereum Virtual Machines (EVM) and is based on the Solidity programming language.
Easier chance to attract Devs with Ethereum background
While EVMs and Solidity bring a familiar terrain to DeFi dev enthusiasts, newcomers can also be delighted by the fact that Qtum places great attention on privacy. The project’s flagship Phantom Protocol enables private transactions through the use of QRC20 tokens. The process hides the financial value and addresses of both senders and receivers.
Privacy is one of the core and original features of blockchain projects. Despite this, it gained traction only in the past few years following the swift rise and decline of cryptocurrencies. Many developers have sought to implement the feature in their platforms, but few had the chance to offer an ideal balance of transaction speed, privacy, and value. At the moment, a majority of these blockchain protocols deal with severe on-chain fees.
Qtum asserts itself as ‘more suitable’ for DeFi projects
Patrick Dai believes that balance and bottlenecks are not an issue for Qtum. Published on August 17, a blog post from the company made a case for why developers should switch. Titled “Why Qtum is Better for Building DeFi,” the post argues that most blockchain infrastructures are incapable of supporting complex DeFi applications.
The project claims that their protocol has no bottlenecks and that it reached a ‘suitable” level for building DeFi projects after three years of development.
“After 3 years of technological iteration, Qtum has gradually developed a variety of unique technical and environmental characteristics, which are entirely suitable for building DeFi projects.”
One of the cases for an easier time with DeFi includes the project’s Neutron middleware compatibility with virtual machines. Created for Ethereum, EVMs are virtual machines designed specifically for smart contracts. Their negative aspects are that they are not compatible with most programming languages, and their capacity is not robust.
The Neutron middleware protocol solves this problem by bringing a layer of compatibility between numerous kinds of virtual machines. It supports EVM, Qtum x86, RISC-V, and WASM virtual machines.
Therefore, the DeFi space of smart contracts enjoys a higher degree of autonomy and compatibility. Developers will be capable of not only adopting EVMs but other virtual machines as well. This means that applications made in different programming languages will easily interact with each other if they leverage Qtum’s ecosystem.