Quant (QNT) is a cryptocurrency associated with the Quant Network.
Quant Network is known for developing the Overledger platform, which seeks to interconnect blockchains and legacy systems, enabling them to communicate and interoperate.
This article will explore some key aspects of Quant and the Overledger platform.
DISCLAIMER: I am not a licensed financial advisor. Investing in cryptocurrency carries inherent risks. The content of this article reflects my analysis and opinions about the project and should not be considered financial advice. Always conduct your own research before making investment decisions.
What makes Quant unique?
One of the significant challenges in the Blockchain and cryptocurrency space is the lack of interoperability between different blockchains.
Broadly speaking, interoperability refers to the ability of different technological platforms and protocols to communicate and share information.
In crypto, it may encompass the ability to transfer assets between blockchains, facilitate communication between smart contracts, and share data.
The Overledger platform, developed by Quant, attempts to address the challenge of blockchain interoperability uniquely and powerfully. Instead of being a blockchain, Overledger acts as an "operating system" positioned above various blockchains, ensuring seamless interaction.
Many existing interoperability strategies often falter due to their attempts at linking at the transaction layer, typically involving a third blockchain that sits in the middle.
However, the existing approach poses challenges.
It can limit what connected blockchains can do and potentially force blockchains to change how they operate by making them adopt specific ways of reaching agreement, known as consensus mechanisms. This can be compared to asking two people who speak different languages to communicate by making them both use a language they aren't familiar with.
For transactions to pass through or be verified by this middle blockchain, the transferred data or assets must comply with the rules and standards set by the interoperability solution. This doesn't change the consensus mechanism of the original blockchains, but it does introduce an additional layer of processing, which can potentially slow down transactions and add complexity.
The middle blockchain has to constantly play catch up with any updates to the chains it interacts with.
So, as you might imagine, such solutions don't scale efficiently, and as the blockchain universe expands with diverse offerings, these limitations will become ever more apparent.
What the Overledger is trying to achieve reminds me of the TCP/IP protocol in the internet space.
TCP/IP makes the internet work and comprises four layers that manage communication between machines: information transfer, routing (IP), and connection (ethernet).
The brilliance of TCP/IP and its longevity is that it keeps each layer isolated. This compartmentalized design allows each layer to evolve independently, ensuring the entire system's resilience and adaptability.
Similarly, Quant's Overledger, by positioning itself above the blockchain layer, promotes adaptability, letting individual blockchains change and grow without compromising their ability to work together.
Since its launch, the Overledger has developed the capability to connect with a wide array of Distributed Ledger Technologies (DLTs), from eminent Enterprise Permissioned blockchains like Hyperledger, R3's Corda, and JP Morgan's Quorum to popular Public Permissionless blockchains/DAGs like Bitcoin, Stellar, Ethereum, IOTA and EOS, Binance Chain and Constellation.
It also attempts to bridge the gap between these blockchains and the traditional digital realm, interfacing seamlessly with established databases, enterprise systems, payment networks, and cloud services. Its goal is to be a "network of networks."
The Overledger will let various online services, such as task automation tools, payment systems, or the Internet of Things, interact effortlessly with different blockchains. In simple terms, the Overledger will attempt to bring together nearly any technology and online service.
Overledger uniquely facilitates the development of MAPPs (multi-blockchain applications).
Few projects, if any, match this capability in the current landscape.
Given that the nascent blockchain space is rapidly evolving, it isn't clear which projects will have the best platforms or will stand the test of time. Enterprise clients, in particular, are weary of fully committing to a single blockchain for their projects.
MAPPS are applications designed to operate across multiple blockchain platforms simultaneously, allowing users or businesses to leverage the unique features and advantages of various blockchains within a single application or solution.
By embracing multiple blockchains, enterprises gain cost-efficiency and enhanced security, i.e., if one Blockchain faces an issue or is compromised, processes can still continue on another.
MAPPS may also enable enterprises to stay at the forefront of innovation. As new features or improvements are made in one Blockchain, enterprises can readily take advantage without waiting for their primary Blockchain to catch up.
As the blockchain industry evolves, there will inevitably be winners and losers. By not putting all their eggs in one basket, enterprises can more easily pivot as the industry matures, ensuring they're always on the most robust and capable platform.
The Quant Network is particularly focused on making its technological offerings attractive and valuable for institutional users.
At present, most blockchain projects are experimental, with limited real-world use. This is because these blockchains, often termed "permissionless," face challenges like handling a large number of transactions, ensuring user privacy, and aligning with laws and regulations. However, big businesses, banks, and even governments have a lot of interest in another kind of blockchain, the "permission" kind, which doesn't have these issues.
- Permissioned: Only specific, pre-approved entities can participate in the network. It's like a private club where only members can enter.
- Permissionless: Anyone can join and participate in the network. It's open to the public, similar to a public park. Bitcoin, Ethereum and many other cryptocurrencies are of the permissionless kind.
Specific business applications fit better with permissioned blockchains, especially those handling sensitive information. On the other hand, permissionless blockchains are excellent when you need to ensure that data remains unchanged. So, the ideal situation is a mix – combining both types of blockchains and even other traditional systems.
Think about it like the early days of cloud computing. Not everything instantly moved to the cloud; even today, many companies use a blend of cloud and traditional systems. Likewise, big institutions are now looking at shifting more essential functions to public cloud services.
Institutions from private enterprises, banks, central banks, trading venues, etc., will be able to host their own secure dedicated gateways and enable secure connectivity to permissioned networks, permissionless networks, ecosystems, consortia, and other distributed technologies, and all without needing them to commit to a one particular blockchain.
Regulation and Compliance
In line with its focus on Enterprise, one of the standout features of the Quant Network has been its emphasis on regulatory and compliance considerations. This has informed the design and features of the Overledger to adhere to regulatory guidelines, such as data protection regulations, ensuring transactions are transparent, verifiable, and in line with legal stipulations.
Quant Token (QNT)
QNT is the native utility token of the Overledger platform. It is used to access the network and to pay for various services on the platform. The QNT token also plays a role in the platform's security and is used to validate certain operations.
International standards are vital for tech interoperability and compliance. Quant's Overledger technology aids in ensuring financial regulation compliance. For instance, it can report to the BoE's Prudential Regulation Authority. UCL's Project BARAC studies how blockchain can automate regulation for governments, with notable involvement from the FCA and R3.
Gilbert Verdian. Verdian, the founder and CEO of Quant, boasts an impressive professional history. He has:
- Served in digital security at BP.
- Been a security lead at the UK's Ministry of Justice.
- Acted as the Chief Information Security Officer for Vocalink (Mastercard), where he was in charge of security for the entire payments infrastructure in the UK (£6 Trillion per year).
- Held roles in cybersecurity at the Bank of England.
- Worked with the Federal Reserve's Secure Payments Task Force.
- Founded the ISO Standard TC307, which guides blockchain development in over 60 countries.
Here's a link to Verdian's resume: https://www.gilbertverdian.com/cv/
His inspiration for creating Quant and the Overledger system emerged from his experience in healthcare. Recognizing the challenges of scattered patient data across various hospitals, he saw the potential of interoperability to seamlessly connect this information. He then envisioned how this immense utility could be applied to blockchain technology, leading to the inception of Quant.
Two other prominent people on the board of directors are Guy Dietrich and Neil Smit.
Guy Dietrich is linked with Rockefeller Capital Management, where he served as Managing Director. He has also been associated with various ventures and entities over his career.
Neil Smit has had a notable career in the corporate world, especially in the telecommunications and media sectors. He served as the CEO of Comcast Cable and was also the Vice Chairman of Comcast Corporation. Before joining Comcast, Smit worked with Charter Communications and was a former president of Time Warner's America Online Access business. Before his corporate roles, Smit had a career as a Navy SEAL. His leadership in the telecommunications sector has been instrumental and associated with the growth and strategic decisions of the companies he has been part of.
- SIAnet and SIAChain: These entities are financial infrastructures already linked with over 570 banks and financial institutions. Through their partnership with Quant, they gain access to the Overledger. This isn't just about facilitating inter-blockchain communication; it's about creating a communication hub encompassing everything – from distributed ledgers to other blockchains and banks.
NaNundefinedHyperledger: Perhaps even more significant is Quant's collaboration with Hyperledger. Hosted by the Linux Foundation, Hyperledger is an open-source initiative dedicated to crafting enterprise-level blockchain tools and frameworks. It's worth noting that half of the companies featured in the 'Forbes Blockchain 50' utilize Hyperledger, showcasing its wide acceptance in the enterprise realm.
Oracle: Has over 430,000 customers and provides software solutions for the likes of McDonald's, Boeing, Pepsi, and Starbucks. At some point, these customers may want their software solutions to interact with blockchain ledgers.
Quant is a guarantor for Pay.UK. Pay.UK is the United Kingdom's leading retail payments authority, overseeing the country's payment systems and ensuring their smooth, secure, and efficient operation. This is significant as Pay.UK moves more than £6.7 trillion every year, through Bacs Direct Credit, Direct Debit, Faster Payments, and cheques. There are only around 20 guarantors, and other guarantors include the global worldwide banks.
Quant landed SIA (the Italian financial services tech company) and will form part of the tech stack for their blockchain products - through which trillions of transactions pass.
What stands out about the project are its concept, operational product, comprehensive whitepaper, strategic partnerships, and an exemplary CEO. If the promises made by the CEO materialize, I foresee Quant ranking among the top 20 cryptocurrencies.
In terms of its technology, it's not something a large enterprise can simply duplicate. Core components are patented, and while elements like the connectors and Overledger SDK are open-source, the heart of the technology remains exclusive.
The Institutional Edge
Serving institutional users can be a game-changer for businesses. With their vast budgets, institutions often lead to increased revenue and consistent, extended contracts, ensuring business stability. Furthermore, collaborating with renowned institutions enhances a company's standing, attracting further clientele. The insights gained from these institutional partnerships can drive product enhancement and innovation. Such engagements can further lead to extensive networking and collaborative opportunities.
It's high time we move beyond the petty tribalism that has long overshadowed this domain and focus on the grander vision. Instead of factions quarreling over minor territories, there's an expansive world waiting to be harnessed if they collaborate. As the saying goes, "A rising tide lifts all boats." With the emergence of the Network of Networks, all interconnected initiatives stand to gain from mutual efforts, paving the way for widespread adoption of Blockchain.
Each Blockchain has its unique strengths and weaknesses. The true potential of blockchain technology will be realized through interoperability, with profound impacts across sectors. I believe this will forge a world characterized by security, trust, and hyper-connectivity.
Transparency Issues: While a minimal GitHub presence is understandable, the lack of team information raises concerns.
Promises vs. Delivery: While many promises have been made, tangible results are sparse. Quant still needs deliver on their claims - and the role of the Overledger is still theoretical, it requires a supposed growth in the Blockchain space.
Challenges with Institutional Focus: Focusing on institutional clients is demanding. The high standards and expectations can strain a company if there are service disruptions. Addressing unique institutional needs requires substantial resources and can stretch a company's capabilities. Navigating bureaucratic decision-making in institutions can be slow and challenging. Over-reliance on a few institutional clients is risky; losing one can significantly impact finances. Lastly, customizing solutions for specific clients may limit the company's adaptability to broader market changes.
Quant last achieved an all-time high of $428 on September 11, 2021.
In contrast to coins like DOGE, which inflates by 14 million coins daily, Quant maintains a stable fixed token supply of around 14.8 million. For context, Bitcoin has just over 19 million coins in circulation.
The predictability of Quant's price is somewhat simplified due to its fixed supply.
Out of its max supply, 12 million tokens are in circulation, leaving about 2 million unaccounted for. Research indicates these tokens are held by the company and could be sold anytime, although this hasn't happened for some time. They could potentially liquidate these, though there's no recent precedent for this. Interestingly, only 37.8% of Quant's supply is owned by the top 100 holders, a contrast to coins like MATIC, where the top 100 account for 85.8%.
From a supply perspective, Quant's limited number makes it a potential candidate for significant price appreciation. If Quant had the same market cap as Bitcoin (around $521 billion at time of writing), each Quant would be worth an impressive $37,000.
However, it's important to stay level headed.
When Quant hit its $428 high, its market cap was nearly $4.8 billion. Its future price is tethered predominantly to market cap fluctuations. For example, a $10 billion market cap could set Quant's price at about $828. Three times its previous market cap might propel it to roughly $1,150.
Given Quant's promising utility in the blockchain domain, particularly in streamlining global payment systems and its partnerships like the one with the Bank of England, a bullish forecast is warranted. A valuation ranging between $1,500 to $1,650 is plausible, corresponding to a market cap nearing $19.9 billion.