One of the bigger winners of the last week was Quant Network. This is largely attributed to the January 30th announcement they would be listed on Bittrex. This is essentially the first “real” exchange they have been listed on, so they naturally experienced a large spike (26.65% over the course of the last 7 days).
The important thing to address is whether there is still an upside to get out of this coin, or if the spike neutralized it. Quant did 24-hour volume $1.3 million which indicates strong interest for what is still an altcoin.
The Missing Network
Quant Network was conceived to face the large scale issue of communication between blockchains. Right now it is very limited, and that puts upper limits on the utility of blockchain technology as a whole in many industries.
The keystone project of Quant Network is OverLedger, which operates as a ledger of ledgers (thus the name). Its function as a meta-gateway will create a connected network of blockchains, and is the “operating system” of Quant Network. It strikes outsiders as rather absurd that a smart contract on one platform isn’t recognized by another blockchain platform, and developing decentralized multi-chains at an internet-scale will solve this and help Quant Network move towards its goals.
The 3 top goals of the company all work hand-in-hand to further the mission of a strongly connected network. The network’s first goal is to develop an interface to connect blockchains and networks. Then, they would like to bridge existing networks in industries like financial services to blockchains. Finally, they plan on having OverLedger allows developer to create multi-chain applications (similar to Ethereum’s development arc).
A Strong Business Case
The idea of a multi-chain development platform is not new. There are numerous companies in this space, some of which we’ve written about before. There are two interesting things about Quant Network in a competitive sense: the revenue streams and utility of the token.
The company projects 4 major revenue streams in the course of its development. First, they will have the Quant App Store where devs will be able to build MApps (Multi chain Dapps) and sell them. This doubly helps Quant’s progression, because even if an application is promoted as free by its developer, users will require a certain inventory of QNT tokens to be able to use it.
The next revenue stream is SaaS products that are targeted towards certain industries, such as financial services, supply chain management, government services, and healthcare. These are all areas where interchain operability will be a neccessity due to the legacy systems, and you can therefore expect there to be a monetizable demand.
Then you have enterprise and middleware products that would target certain industries that have a higher need for connectivity and bridging between networks. Fianlly, Quant Network aims to license a lot of its intellectual property (IP) to blockchain companies and Internet providers.
And the Future?
The utility of the proprietary token QNT, is strong. They are required for access to the platform for both developers and clients. Additionally, a certain number of QNT tokens will need to be “staked” in order to utilize certain free applications. This use case creates a natural demand within the ecosystem. Assuming there is a strong demand for multi-chain applications, the future of QNT should be bright.
Ranked 125th in terms of market capitalization, QNT is much more of a mid-cap coin than altcoin now. With the January 30th announcement, they’ve experienced a spike, but it seems like there is a lot of juice left to squeeze based on their revenue generation plans.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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