QuarkChain Review: Is It Worth Investing in This Project?
Out of so many ICOs out there, one of them is worth mentioning – QuarkChain. Quarkchain platform has been developed as a solution for some of the issues that both Bitcoin and Ethereum are facing at the time of writing, namely scalability, security issues and etc. If one asks if it is worth investing in this ICO, read on to find out.
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QuarkChain Review: Is It Worth Investing in This Project?
Scalability and security do not go always hand-in-hand when it comes to blockchain technology. Decentralized blockchain technology has been completely revolutionizing every aspect of the economy and taking on new areas of industry and have been progressing further.
Cryptocurrencies are becoming more and more mainstream. The graph below shows the number of daily bitcoin transactions tracked over the years. The initial design of cryptocurrencies was not meant for widespread use and adaptation. While it was manageable when the number of transactions was less, as they have gotten more popular a host of issues have come up.
Along with this popularity, however, several side-effects rose to the surface, the most significant being their inability to scale. The blockchain currently uses a proof-of-work consensus algorithm which requires large amounts of computing power to perform. The network is able to handle around 10 transactions per second (TPS). This is quite low compared to Visa’s network which averages around 2,000 TPS and can handle a peak of 50,000 transactions.
QuarkChain, a decentralized and highly scalable blockchain solution, is aiming to become a high-capacity peer-to-peer transactional system that can achieve millions of transactions per second (TPS), thus solving the scalability problems of current main blockchains.
Scalability has been integrated into the design of QuarkChain from the get-go and with this in mind, they’ve set out to build a platform capable of supporting industries ranging from FinTech to gaming and social media.
How Does QuarkChain Work?
Reshardable two-layered blockchain
QuarkChain will utilize sharding to provide a high-capacity peer-to-peer transactional system. It will consist of a sharding layer, which allows for high throughput by effectively distributing data, and a root layer, which serves to confirm the blocks of the first.
Quarkchain consists of two layers of blockchains. The first layer contains all minor blockchains, or shards, which process a sub-set of all transactions independently. As the number of shards increase, so does the number of transactions which can be processed concurrently.
The second layer of QuarkChain is the root chain. The primary function of the root chain is to confirm all blocks from the sharded chains but does not process transactions itself.
QuarkChain allows for two types of transactions- in-shard and cross-shard. In-shard transactions occur between addresses on the same shard.
Decentralization and Security
Guaranteed security by market-driven collaborative mining
Bitcoin and other blockchains were designed to be totally decentralized, with every node having one vote, and nobody controlling all the nodes. Due to this, the formation of mining pools and other collective groups to happen. In case of traditional blockchains, each miner has to mine the full block to earn the block reward. Since the mining difficulty of a complete block is extremely high, it’s extremely unlikely that a lone miner without substantial mining power would ever earn any block reward on his own.
At the time of writing, there are six (6) major mining groups (F2, Ant, BW, BTCC, Bit Fury, Bit Club, Slush) control over 75% of the mining power for BTC. This has made it uneconomical for small miners to make a profit as the costs are too high and the large miners are able to complete the transactions much faster.
Quarkchain has several shards (or mini-blockchains), each with their own mining difficulty and associated mining power required. A miner could choose a block depending on his mining or hash power. Of course, an easier block would offer fewer rewards, but the miner is more likely to earn the reward. This also reduces the tendency to form mining pools, thus preserving the decentralized nature of the blockchain.
QuarkChain’s mining difficulty algorithms are designed so there is at least 50% of total hash power allocated to the root blockchain at all times with the remaining 50% being evenly distributed among sharded blockchains. This will ensure that all shards are mined evenly and thus output will increase as the number of shards (miners) increases. This is the basis of a truly decentralized blockchain, many nodes working together to accomplish a task.
In short, miners can choose any Blockchain at an optimal price for their hash power. This creates an open market model. QuarkChain wants to design a marketing model, that could benefit all participants.
The root chain has more than 50% of the hashing power of the entire network. A double-spend attack on the root chain would require the attacker to have more than 25% of the network’s hash power. This is smaller than the 51% required for Bitcoin, but since Quarkchain is more decentralized, it would be difficult for any miner to collect more than 25% of the entire network’s hash power.
Moreover, this 50% allocation of the hash power to the root chain can be changed if required. That simply means if it is made 100%, then Quarkchain turns into a traditional blockchain – slow but more secure. If it is reduced to 0%, then Quarkchain becomes a set of independent blockchains – faster, but much more insecure, since a miner can now take over an entire shard in the absence of the root chain to verify the blocks. By adjusting this hash power, the processing speed of the network can be improved at the cost of security. This provides Quarkchain with a measure of flexibility that is absent in other blockchains.
Other Selling Points of QuarkChain
QuarkChain will support smart contracts via the Ethereum virtual machine (EVM). Most of the existing DApps built on top of EVM can be directly deployed on the QuarkChain platform. Sharded blockchains, therefore, run their own smart contracts local to their blockchain via EVM. Sharded blockchains can be thought of as mini-Ethereum’s or clones of Ethereum running simultaneously and parallel to one another with unique individual wallets associated to them.
The QuarkChain smart wallet will simplify account management. The user does not need to be aware of QuarkChain’s underlying primary account (Address in default shard) and secondary account (all other shards). Most transactions will be initiated from the user’s primary account.
The Primary Account is combined with a “Smart Wallet” to automatically handle “cross”-shard transactions, these “cross”-shared transactions can be made anytime and are confirmed within minutes.
Only if the user executes a smart contract by sending a cross-shard transaction, the balance gets transferred from the primary to the secondary account where the cross-shard transaction takes place. Should there be any leftover tokens in the second account, they will be automatically transferred to the user’s primary account. All shards in the smart wallet are managed by one private key.
Mobile Decentralized Applications (DApps2go)
Mobile-based DApps are very limited today due to the low capacity of mobile networks which cannot handle Blockchain data flow. QuarkChain’s infrastructure supports mobile DApps and its infrastructure is mobile oriented. QuarkChain will provide on-chain developer tools to create Android-friendly environment, making mobile DApp development as simple as possible.
QuarkChain only brings real business into the Blockchain world. Such businesses must have strong needs for a high throughput blockchain. Social networks, online storage, high-frequency trading, financial payments, gaming or sharing economy platforms will find a perfectly designed environment to full fill their needs. QuarkChain can also be used for IoT, Big Data or AI.
Is It Worth Investing in This Project?
QuarkChain is currently already running the first version of their Testnet ahead of schedule. QuarkChain launched its alpha-0.1 Wallet on the 0.1 Testnet in March. It is a completely working product which shows around 2000 TPS. Quarkchain’s impressive progress on the development front could lead to a viable sharding solution before Ethereum.
Moreover, as mentioned above, QuarkChain is also EVM compatible- dApps that benefit from a high-throughput solution will have the option to switch over to QuarkChain at any point. This leaves a crucial door open for adoption of the network.
The team comes with a solid academic background and has worked for big companies such as: Facebook, Google, LinkedIn, and Dell. Their advisory team could may be a bit stronger, but includes professors, successful entrepreneurs and investment firms.
QuarkChain has partnered up with various projects such as: Primas (a blockchain platform for premium quality content based on Distributed Trusted Content Protocol), SegmentFault (a Q&A website that enables programmers to solve problems in the IT field) and TPhone.
All in all, QuarkChain does look like the one in the million ICOs out there that is worth paying attention. However, always do your own research before putting all eggs in one basket.