Quantstamp is a security verification protocol for smart contracts that improves the security of Ethereum.
Full report by Crush Crypto: https://crushcrypto.com/analysis-of-quantstamp/
Download the free ICO Guide which contains 6 simple steps for analyzing any ICOs to find the winning projects: https://crushcrypto.com/youtube/
Note: This is not a paid review. We do not offer promotional or advertising services. Our content is based on our own research, analysis and personal opinion.
What does the company/project do?
Quantstamp is a security verification protocol for smart contracts that improves the security of Ethereum. The advantages of the security protocol include automation, trust, governance, and ability to compute hard problems over a distributed network.
Currently, smart contract auditing cost starts from $5,000 and takes at least a week to complete. Quantstamp’s goal is to lower the cost to as low as $10 per audit, delivered within minutes after submitting the smart contract for audit.
What are the tokens used for and how can token holders make money?
QSP tokens are used to pay for, receive, or improve upon verification services. Below are the participants and how they interact with QSP tokens:
- Contributors receive QSP tokens as an invoice for contributing software for verifying Solidity programs. Most Contributors will be security experts. Contributions are voted in via the governance mechanism.
- Validators receive QSP tokens for running the Quantstamp validation node in the Ethereum network. Validators only need to contribute computing resources and do not need security expertise.
- Bug Finders receive QSP tokens as a bounty for submitting bugs which break smart contracts.
- Contract Creators pay QSP tokens to get their smart contract verified.
- Contract Users will have access to results of the smart contract security audits.
- Quantstamp had a successful audit with Request, which was a smoothly-run ICO. This speaks to the team’s capability in blockchain development/audit.
- This is one of the projects that can help drive blockchain adoption and the potential is huge. Right now, smart contracts are unsecured by default. Smart contracts need to go through expensive and prolonged audit process, which is hindering the adoption and usage of smart contracts. This needs to change and Quantstamp is a good candidate to tackle the problem.
- Even if the software only has limited functionalities in the beginning, it can be a good first step in a manual audit because it can potentially save a lot of time for the auditor.
- In their Telegram, Quantstamp has indicated that they will buyback if token prices drop below ICO price (tokens will be put into a reserve which the team can release in the future), indicating that the team is confident in the project.
- The project is still at an early stage. According to the white paper, mainnet release won’t be until August 2018, which is 9 months after the end of ICO and pretty far away.
- Presale participants receive up to 100% bonus, which leaves a bad taste in some potential participants’ mouth. People are now more concerned about ICOs with large presale discount/bonus because those participants are willing to sell their tokens at a much lower price than crowdsale participants. For example, even if QSP tokens drop to 25% below ICO price, those who received 100% bonus can still generate a 50% return.
- We believe that smart contract audits cannot be fully automated because human judgment is required to understand the logic and intent of the smart contract. Software can spot bugs that cause the contract to not function, but it cannot detect errors that cause coins/tokens to be sent to the wrong person, or wrong formula being used to calculate payoff in a smart contract, etc.
- Since the problem that Quantstamp is trying to solve is large, there are other competitors – Etherparty, BlockCat, ZeeplinOS, and Agrello. All of these projects aim to lower the cost of smart contract development. Quantstamp may not be the winner in this space.
The information in this video is for educational purposes only and is not investment advice. Please do your own research before making any investment decisions. Cryptocurrency investments are volatile and high risk in nature. Don't invest more than what you can afford to lose. Crush Crypto makes no representations, warranties, or assurances as to the accuracy, currency or completeness of the content contained in this video or any sites linked to or from this video.