When deciding on attention-grabbing blockchain/crypto projects to observe, I always comply with my mantra “Concentrate on projects that convey value to society”. Simple sufficient, right? Judging by the amount of effort many traders have spent making an attempt to quantify this, clearly it’s a very difficult statement to evaluate. It’s a obscure sentence, and can be interpreted many ways. What’s value and how can we measure it? This might be an article in and of itself, however I like to simply define a value adding product or project as something that solves a problem for society.
In my inaugural medium put up I want to focus on one of my favorite projects, Quantstamp. I’ve been an active group member and token holder since shortly after their ICO, so subsequently a whole lot of this put up will merely be compiled information from their whitepaper, website, blogposts, and AMA’s along with my analysis and opinion. I’ll attempt to maintain this article as non-technical as attainable, nevertheless it does assume you’ve not less than somewhat background data of the blockchain space.
Why Quantstamp? Compared to a few of my other favorites, Quantstamp isn’t mentioned much locally and when it’s, there are lots of questions and FUD. In this post I’ll focus on: a quick history of relevant occasions, problems with smart contracts, proposed options from Quantstamp, the value mannequin of the QSP token, Quantstamp’s enterprise strategy, and eventually criticism the team has received. The purpose of this article is to present an summary of Quantstamp and demonstrate why I think it’s a sleeping big in a space the place safety is more essential than ever.
One of many first major smart contract hacks happenred in 2016; the infamous “DAO Hack”. There are lots of nice articles describing this hack, (see right here for an example), so I won’t go into element here. This was the occasion that may encourage Quantstamp co-founders Richard Ma and Steven Stewart to start creating multiple decentralized protocols to help safe smart contracts on a blockchain. Richard himself misplaced money in the hack, making it a really personal sore spot in his crypto experience. Presenting at Hong Kong Blockchain week in March 2019, Richard Ma reported that there was an estimated $334 million dollars price of smart contract hacks to that date.
For the reason that DAO hack, the event has constantly been used as an argument against the usefulness of smart contracts; from bitcoin “maximalists” to blockchain skeptics. But no system is totally safe and flawless; not smart contracts, centralized applications, bitcoin, or probably the most sturdy cryptography. We just make trade-offs by altering totally different parameters while hopefully reducing the magnitude of these trade-offs as technology evolves. It then stands to reason that we must always capable of accelerating the security of smart contracts while working to reduce the impact to decentralization. Enter Quantstamp.
The more decentralized auditing protocol will allow users to simply submit code, or a contract’s address, pay in QSP tokens (with worth set by the audit nodes), and have a scan executed by as many audit nodes as desired. The results of this scan can then be stored within the blockchain as bytecode for anyone to verify, or kept private to the team. The key here is that the audit is accomplished in a decentralized manner, and the code could be submitted by anybody (given the code is open sourced to the public). The crew can also be working extensively on making the UI/UX intuitive and easy for anybody to use and interpret; the importance of this can’t be understated.
I think an necessary result of this is that any regular consumer can use this protocol to simply check if a smart contract is secure as an initial check. For instance, Bob isn’t a super technical programmer, and is utilizing a dapp for the primary time. Maybe the dapp is from somebody who set up a simple shop on the Ethereum blockchain, and the code is open sourced. Bob can then receive that code, or submit its contract address, to see if the scan ends in quite a lot of red flags. In that case, it could be higher to wait until the problems are addressed. If there aren’t numerous red flags, Bob feels a little safer and has completed just one a part of the entire due diligence process to verify the contract is safe.