What is Quantstamp and Should you invest?
Before going into my review of what Quantstamp or (QSP) is i would like to discuss with you a few key things that I look for when considering an investment. When searching for an investment that could potentially bring you 10-100x returns you need to do you due diligence and have a strategy in place. With that being said, I will only invest in blockchains or infrastructure projects for the most part because i have noticed through my analysis that they bring the highest returns on average. Not only do they give you the highest average returns, but they get dumped the least as opposed to Dapps. Sure, there are some great Dapps out there that have given investors some seriously impressive returns, but I tend to stay away from them unless it really catches my eye.
Some other key things to look for are:
- Does the project already have a working product?
- Does the project have a great team?
- How big is the community surrounding the project? (Twitter, Telegram, Reddit, etc)
- How much has the project's price increased since its ICO and since it was listed on exchanges?
- And finally, always BTFD! (that's "Buy the F***ing Dips" for those of you who don't know)
Now that we have our strategy in place let's take a closer look at what Quantstamp actually is. Below are some key metrics about Quantstamp at the time of writing:
market cap: $278,615,491
Circulating supply: 617,314,171
total supply: 976,442,388
Quantstamp is calling itself Security 3.0. It is the first smart contract security-auditing protocol. If your new to blockchain and cryptocurrency that sentence can seem a bit confusing and intimidating. But all that really means is that they want to automate the smart contract process which will make it more secure, scalable, and cost efficient. This is an infrastructure project for developers that is built to be an Ethereum extension. What does this mean? This means that Quantstamp is not its own blockchain per se and is built to help solve some of the security issues that Ethereum is currently having with its smart contracts.
What is the need for Quantstamp?
Currently blockchain networks, such as Ethereum are secure, however, their smart contracts are not. Just last summer a hacker stole $30MM Ether due to one little bug in a smart contract and this has not been the only case. With the growing demand of the blockchain and expansion of the market the need for smart contracts is expected to grow from 500,000 to 2MM in less than 1 year. With that growth will also come the growth of more and more smart contract bugs and errors. Currently all smart contract auditing has to be contracted out to auditing companies which produces a whole other bag of issues. These consulting companies are not practical, as they are expensive because they employ human auditors that require salaries to audit each and every smart contract. Employing security auditing companies also requires the blockchain to put its trust in one company. And of course, we must allow for the unavoidable human error that will cause more and more money to be stolen from smart contracts.
Quantstamp seeks to solve all of those problems by completely automating the process, thus eventually eliminating the need for human security audits all together. This will make security audits much cheaper, more scalable, and of course nearly impenetrable.
Infastructure Network: Every infrastructure project is made up of different participants that have different functions within the ecosystem. The Qsp tokens will be used to pay for, receive, and/or improve upon verification services. All this means is that the tokens will be used to pay for verification services for the auditing of the smart contracts.
- Contributors- are paid QSP for contributing verification services
- Validators- receive QSP tokens for running validation nodes and contributing computing power to the network.
- Bug Finders- receive QSP for finding bugs in smart contracts
- Contract Creators- Pay QSP to get smart contracts verified
- Contract Users- have access to results of smart contract security audits.
- Voters- Quantstamp was built to be modular and upgradeable. What this means is the voters self govern quanstamp in order to reduce the chance of forks and to decentralize influence of the Quantstamp team over time.
Should you Invest in Quantstamp?
I am not a financial Advisor. Invest at your own risk and DYOR. With that being said, i think Quantstamp is a great project with a HUGE idea that could see some nice returns in 2018. They have a proven product which is one of the most important things to look for in my opinion. They have successfully audited the Request Network smart contracts and popular YouTube star, Ian Balina's, smart contract for pooling. Currently, at $.44 QSP is only up 6x since its ICO price of $.07. QSP current market cap is around $275,000,000. If it can reach the top 20 by market cap this year that would give it a market cap of around $2BB. ($2BB/$275MM=7X). That's a 7 times return on your money, not bad. Furthermore, Quantstamp is trying to solve a real problem that is expected to only get worse in the future. As the market expands, more and more businesses and services will move in the direction of the blockchain. With that influx will come the rapid increase in the number of smart contracts all over the world. Security should be of the upmost importance.
Thank you for reading one of my first article's on Steemit. I hope I did a good job informing and educating those of you not yet familiar with Quantstamp. I am eager to hear your feedback. Again, I am not a financial advisor, just a crypto enthusiast who has made a bunch of money sitting in front of his computer! Thanks for the read, until next time.
Cryptorayrv