Quantstamp is a Y Combinator backed security company that is growing a new protocol for smart contract verification that aims to help blockchain builders and projects around the world use its technology to perform price-efficient safety audits on their contracts.
Additionally they perform guide smart contract audits, safety consultations, and build security tools for the blockchain space.
Quantstamp was based 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 software (Quantstamp) to improve the security of smart contracts.
They boast an impressive customer resume including Binance, OmiseGO, Wanchain, and Quoine.
Smart Contracts, Security Considerations, and Quantstamp
With a purpose to understand the vision of Quantstamp, we first must have a primary understanding of smart contracts.
Smart contracts enable the exchange of value in an open, clear, trustless environment that removes the necessity for a price-seeking middleman. This is achieved by code that performs predetermined actions based mostly on assumptions. If X situations are met, then Y transactions are performed.
What Problem is Quantstamp Trying to Clear up?
The two biggest roadblocks preventing the proliferation of smart contracts are the «oracle problem» and sustaining safety of smart contracts.
Quantstamp goals to resolve the smart contract security problem. So far, over $250 million price 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 advocate reading Jimmy Song’s critique: The Reality about Smart Contracts which addresses the «oracle problem» and why making certain the security of smart contracts is hard.
The greater smart contracts industry will eventually find ways to overcome the «oracle problem» and firms like Quantstamp will assist improve the security problem.
Investing in Quantstamp (QSP)
Make no errors about it, investing in Quantstamp is risky. This is an extended shot with probably massive upside which lends itself nicely to a small position dimension that’s held lengthy term.
In a current issue of the Palm Beach Research Group Newsletter, Teeka Tiwari picked Quantstamp as a smart investment. Whether or not you trust Tiwari or the Palm Beach crew is a totally different question…
Beneath we’ll cover 5 reasons to consider investing in Quantstamp.
Nonetheless, as with most projects, there are some considerations that needs to be examined before considering investing. Let’s begin with the FUD.
Does the Recent FUD Surrounding Quantstamp Have Merit?
There has been some latest concerns with Quanstamp which are value mentioning.
Concern 1: Is Quantstamp following the unique plan?
Apparently the corporate has been accepting ETH and USD for manual safety audits instead of the QSP token, which many group members assumed to be the original plan.
This raises potential considerations over the alignment of incentives shared between the corporate and the token holders. In different words, can the Quantstamp firm succeed financially without the QSP token accumulating worth?
Then again, these manual audits are revenues for the company which theoretically will likely be used to create a thriving ecosystem surrounding the QSP token. Not many tokenized projects have revenues, not to mention a product-market fit.
Concern 2: Quantstamp is leveraging open supply software; what occurred to the QSP protocol?
Most buyers believed the crew was making a decentralized platform (Quantstamp protocol) that facilitated the audit of smart contracts. Yet the workforce has reportedly been using open supply software to carry out audits. This raises the priority of what competitive technological advantage does the crew have, if any?
It’s important to tell apart between Quantstamp’s present web services and the Quanstamp protocol. The current companies are better considered as a test surroundings for the future decentralized protocol. The Quantstamp workforce undoubtedly benefits by «seeing smart contracts in the wild,» as Co-Founder Steven Stewart said.
I’m not shocked the crew has delayed the launch date of the Quantstamp protocol. Smart contracts are of their infancy, not to point out creating decentralized communities with aligned incentives is incredibly challenging.
The staff launched an MVP model of the QSP protocol on testnet that you may examine here. At the moment they’re growing a more robust version of the protocol, and it will likely be released on the Ethereum primarynet. However, at this point, the team is still uncertain if the QSP protocol will keep an ERC-20 token or migrate to their own blockchain.
Concern 3: What is the goal of the QSP token?
Related to the above point, there are some issues relating to the QSP token—is it truly wanted?
With out actually understanding the proposed Quantstamp protocol, discerning whether the QSP token is truly required is challenging. On paper it sounds reasonable. However, as a group we positively need to be more vigilant with the query: «Why does your project want a token?»