Most Cryptocurrencies are tied to bitcoin, they have an inherent value linked to the most dominant coin of them all, mainly because they are currencies and are meant to be spent. They are a mostly designed as a medium of exchange between two parties, in this regard Quant is different.
Quant tokens operate as licences. Not as currency, it may not seem like a large difference, but it is.
In order to understand what Quant tokens do, we must first take a look at the business model being developed by Quant Network & the technology they have developed. There are much more accurate guides to Quant Network Tech and its business model but this is meant to give a quick and easy insight into the fundamentals of the business and what will eventually drive the price.
The key component of Quant Network is Overledger. This tech has been designed to allow clients to create applications interact with multiple blockchains or DLT. The easiest way to understand Overledger is to think of it as being an Operating System for accessing Blockchain. It enables programs to interact with multiple blockchains simultaneously, regardless of speed, size & security of that chain.
The Business Model
In order to use Quant Network you must have a licence, much like Office 365. Businesses acquire licences with a purchase from Quant Treasury with FIAT currency. Quant Tokens are required for this licence, so the treasury takes this FIAT and purchases tokens from the exchanges. By doing this the treasury eliminates the exchange process from the client, making it a much simpler proposition from their perspective.
Quant Treasury facilitates all the business arrangements and now holds tokens for the clients licence. These are then locked away until the licence expires, upon which they are sold back to the exchanges. As you will see, tokens are not created nor destroyed, they are simpler part of the profit share for the business. This should mean that the value of the tokens rises as they on-board more clients.
QNT tokens are used for:
- Access to the Overledger System
- For Gateways (verify transactions)
- As payment for number of transactions
- Minimum wallet requirements
The system is designed so that tokens are integrated into the use of Overledger so cannot be removed from process. Exact details of how many Tokens will be locked away per client are still being finalised, but the more users the more scarce QNT will become. Supply and Demand would therefore dictate a price increase per client using the system.
ETH/ QNT Donation Address: 0x7a93830eE65ae1a161C8760993D06A24721A193