Here at Qtum, we’re constantly seeking to improve upon our existing infrastructure to provide a better experience for our users. In October 2018, we created the Qtum Improvement Proposal (QIP) format with the sole intention of putting the voices of our community to action and, since then, we have been overjoyed by the positive response that we’ve received in return. Your feedback has not only helped us improve our existing network, but it has also helped us to think critically about how we can strengthen the Qtum project in the future. Like all great things, however, our work is never done. Below, we’d like to provide an overview of the three new QIPs (16, 17, 18) that we believe will positively impact the Qtum ecosystem for years to come.

Please be aware that all of these currently stand as proposals and your feedback helps us and the community bring the technology together to make them happen if valued. So, take a look below, and feel free to comment on the pros and cons of each.

QIP #16: Coin-locking Incentives

A decent portion of stakers in the community, particularly exchange hot wallets and centralized wallets, function by allowing these entities to “stake” coins that don’t technically belong to them. Due to the time-sensitive nature of how many of these platforms function, users are often disincentivized from staking, or locking, their own currency for prolonged periods of time. Processes like these are not necessarily harmful to the overall functionality of a given platform, however, they do make incentives for personal staking very small, requiring users to “relock” their coins on a regular basis.

Through this QIP, we aim to create long-term staking setup that offers a variety of incentives to promote small-scale staking. For example, the “lock benefit” could effectively multiply the wallet’s staking weight for various lock periods. In an effort to encourage a continued commitment to the network, QIP #16 lock benefits hold no compound interest, meaning that users would lose their rewards if coins are removed from the staking process. While admittedly restricting the ability to withdraw coins, coin-locking incentives like these encourage small-scale staking by providing users with increased rewards for their participation in the network.

Read more about QIP #16 →

QIP #17: Storage Rent

Storage has been and continues to be, a significant problem facing the blockchain ecosystem. In fact, there is a real concern that as early as a decade from now, any blockchain, especially those that employ smart contracts, will inevitably inflate beyond their storage capabilities, limiting the availability of full nodes to those capable of affording high-volume servers.

Through this QIP, we aim to implement a rent mechanism for all storage consumed on Qtum-x86. The design would put a cap on the total amount of data that a node would need to store, while also putting a cap on the total search space for lightweight Simplified Payment Verification (SPV) nodes. Thankfully, these upgrades wouldn’t require specific changes to special contract logic, nor would they require explicit rent payments on consumed storage. Rather, the QIP would institute three minor design changes that can be easily broken down into these parts: 1) DeltaDB database re-propagation and rent behavior, 2) smart contract behavior for the “sleeping” state, and 3) a method of “waking” the sleeping state.

Read more about QIP #17 →

QIP #18: Schnorr Signature

The term Schnorr signature was first coined by German mathematician Claus P. Schnorr to describe a small, easy-to-use digital signature that can verify the authenticity of a given interaction. Since its creation, Schnorr signatures have been successfully used in blockchain projects like Grin, Beam, and BCH — even garnering such high-profile attention that they’ve recently become the subject of a Bitcoin Improvement Proposal (BIP).

Through this QIP, we aim to implement the Schnorr signature onto the Qtum blockchain, creating a broader menu of options for users with regard to transaction functionality. If implemented, Qtum’s Schnorr signatures would be easily distinguishable and compatible with Elliptic Curve Digital Signature Algorithm, ensuring that funds can only be spent by their rightful owners.

Read more about QIP #18 →

Road Ahead

As you can see from the above, we have an exciting road ahead. We feel honored to serve the Qtum community and are actively researching and experimenting with new and innovative ways to help support their success.

With QIP 16, 17, and 18 on the horizon, we feel more confident than ever before that the sky’s the limit with regard to the future of our platform. We believe that these QIPs have the ability to add benefits to our consensus algorithm with respect to smaller stakers, reduce smart contract costs, waste, transaction sizes, and add privacy.