Smart contracts are a powerful tool for the automation of business processes, while laying the foundations for a new age of decentralized computation. However, until now, smart contracts could only be executed on machines equipped with heavy, specialized software, carrying a copy of the entire blockchain which can be dozens of gigabytes large. This, up until now, has rendered the mobile use of smart contracts and decentralized applications unfeasible, hindering blockchain technology from achieving its full potential.
Building on Bitcoin’s UTXO architecture, Qtum allows smart contracts to Go Mobile
One of the main advantages of Bitcoin’s unspent transaction output (UTXO) model is its ability to sustain lite wallets. Lite wallets, utilizing the SPV protocol, allow users to interact with the bitcoin network and validate their own transactions, without having to download and sync with the entire blockchain.
Bitcoin wallets use this feature to enable users to send and receive payments on their smartphones, requiring nothing more than a lightweight app. Qtum extends this capability, allowing lite wallets for the first time to engage with smart contracts and decentralized applications. With about half of all internet traffic being generated by mobile devices, this ability is absolutely necessary for business oriented use-cases of blockchain technology.
Lite wallet access also allows for the syncing of a variety of appliances and smart devices to the Qtum blockchain, operating them according to pre-determent smart contracts. With this, a blockchain-secured IoT can be established, allowing for the automation of different businesses and production workflows, alongside a trustless, decentralized Sharing Economy.
Instead of forcing each and every device, connected to the IoT, to act as a full blockchain node, Qtum’s SVP compatibility allows smart devices to easily sync with the network on a low bandwidth/storage basis, moving the Blockchain powered Internet of Things from theory to practice.