Quantstamp is a Y Combinator backed safety firm that is growing a new protocol for smart contract verification that aims to help blockchain builders and projects around the globe use its technology to perform price-efficient safety audits on their contracts.
They also carry out manual smart contract audits, security consultations, and build safety tools for the blockchain space.
Quantstamp was founded in June 2017 by Steven Stewart and Richard Ma. After experiencing his funds being stolen from the DAO hack, Ma was motivated to create a tool (Quantstamp) to improve the safety of smart contracts.
They boast a formidable customer resume together with Binance, OmiseGO, Wanchain, and Quoine.
Smart Contracts, Security Issues, and Quantstamp
In order to understand the vision of Quantstamp, we first should have a basic understanding of smart contracts.
Smart contracts enable the exchange of value in an open, clear, trustless atmosphere that removes the need for a fee-seeking middleman. This is achieved through code that performs predetermined actions primarily based on assumptions. If X situations are met, then Y transactions are performed.
What Problem is Quantstamp Making an attempt to Resolve?
The two biggest roadblocks preventing the proliferation of smart contracts are the “oracle problem” and maintaining security of smart contracts.
Quantstamp goals to unravel the smart contract security problem. So far, over $250 million value of ETH has been stolen from the Ethereum networks attributable to vulnerabilities present in smart contracts. At the moment, the only option to safe smart contracts is thru a guide audit process which has proven to be ineffective in its current form.
To understand the contrarian perspective, I highly recommend reading Jimmy Song’s critique: The Truth about Smart Contracts which addresses the “oracle problem” and why ensuring the safety of smart contracts is hard.
The larger smart contracts industry will finally find ways to overcome the “oracle problem” and companies like Quantstamp will assist improve the safety problem.
Investing in Quantstamp (QSP)
Make no errors about it, investing in Quantstamp is risky. This is a protracted shot with potentially huge upside which lends itself properly to a small position dimension that’s held lengthy term.
In a recent situation of the Palm Beach Analysis Group Newsletter, Teeka Tiwari picked Quantstamp as a smart investment. Whether or not you trust Tiwari or the Palm Beach crew is a totally completely different query…
Below we’ll cover 5 reasons to consider investing in Quantstamp.
Nevertheless, as with most projects, there are some considerations that needs to be examined before considering investing. Let’s start with the FUD.
Does the Recent FUD Surrounding Quantstamp Have Merit?
There has been some current considerations with Quanstamp which are worth mentioning.
Concern 1: Is Quantstamp following the unique plan?
Apparently the company has been accepting ETH and USD for handbook safety audits instead of the QSP token, which many community members assumed to be the unique plan.
This raises potential issues over the alignment of incentives shared between the company and the token holders. In different words, can the Quantstamp company succeed financially with out the QSP token accumulating value?
Then again, these manual audits are revenues for the company which theoretically will be used to create a thriving ecosystem surrounding the QSP token. Not many tokenized projects have revenues, let alone a product-market fit.
Concern 2: Quantstamp is leveraging open source software; what happened to the QSP protocol?
Most traders believed the crew was creating a decentralized platform (Quantstamp protocol) that facilitated the audit of smart contracts. Yet the group has reportedly been utilizing open source software to carry out audits. This raises the concern of what competitive technological advantage does the staff have, if any?
It’s necessary to differentiate between Quantstamp’s present web companies and the Quanstamp protocol. The present providers are higher considered as a test atmosphere for the longer term decentralized protocol. The Quantstamp team definitely benefits by “seeing smart contracts within the wild,” as Co-Founder Steven Stewart said.
I’m not stunned the workforce has delayed the launch date of the Quantstamp protocol. Smart contracts are of their infancy, to not mention creating decentralized communities with aligned incentives is incredibly challenging.
The staff launched an MVP model of the QSP protocol on testnet you can examine here. Currently they’re creating a more robust version of the protocol, and it will be released on the Ethereum majornet. Nevertheless, at this level, the crew is still uncertain if the QSP protocol will keep an ERC-20 token or migrate to their own blockchain.
Concern 3: What’s the purpose of the QSP token?
Associated to the above level, there are some considerations regarding the QSP token—is it really wanted?
With out truly understanding the proposed Quantstamp protocol, discerning whether the QSP token is really required is challenging. On paper it sounds reasonable. Nonetheless, as a group we positively need to be more vigilant with the question: “Why does your project want a token?”
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