What is QUBIC (QUBIC) currency? How QUBIC currency works and token economics at a glance

Introduction

QUBIC (Quorum-Based Computation) is a cryptocurrency platform that attempts to innovate blockchain technology through a new mining method and consensus mechanism, and integrates transaction verification into The field of artificial intelligence (AI). Unlike the traditional Proof-of-Work (PoW) system used by many cryptocurrency protocols, QUBIC applies a concept called Useful Proof-of-Work (uPoW), which works by leveraging the computation used in mining. The ability to achieve another purpose: training artificial intelligence models. This dual function can both protect network security and promote the advancement of artificial intelligence research.

QUBIC was founded by Sergey Ivancheglo, a well-known figure in the cryptocurrency field, who is also the co-founder of IOTA and NXT. His work on IOTA (known for its Tangle technology) and NXT (one of the first proof-of-stake blockchains) has laid a solid foundation for QUBIC’s approach.

What is QUBIC (QUBIC)?

Qubic is a layer 1 blockchain that introduces a new variant of the Proof of Work (PoW) consensus mechanism into the blockchain called "Proof of Useful Work" "(UPoW).

In traditional PoW blockchains, miners compete to solve complex mathematical puzzles to verify transactions, thereby providing a more secure network for all participants in the entire ecosystem. UPoW, however, takes a different approach to mining, using miners’ computing power for a very specific purpose: to advance the advancement of artificial intelligence (AI) research through tasks that help train the platform’s AI models.

What is Qubic’s “Proof of Useful Work” protocol?

As mentioned before, QUBIC introduces a variant of the Proof-of-Work (PoW) consensus mechanism called “Useful Proof-of-Work” (UPoW). It puts miners’ computing power to work promoting artificial intelligence (AI) research.

An important part of achieving this is using Aigarth, an artificial intelligence program within the Qubic blockchain. To validate transactions and earn rewards, miners on the network no longer need to solve complex cryptographic puzzles, but are instead required to perform a series of computational challenges designed to train and grow Aigarth. These challenges may involve a variety of tasks such as pattern recognition, data analysis, or complex problem solving, all of which will help advance Aigarth's capabilities and ultimately benefit the protocol.

By solving these tasks, miners can achieve two goals at the same time: protect the network by validating transactions, and directly contribute to the advancement of artificial intelligence programs. This in turn creates a symbiotic relationship between blockchain technology and artificial intelligence research.

The technical aspect of UPoW involves a designated workload distribution mechanism. Through this mechanism, QUBIC allocates artificial intelligence-related computing tasks to miners to optimize the overall training process of Aigarth. This may involve dividing tasks into smaller, more manageable units, or prioritizing tasks based on Aigarth's current learning needs.

UPoW model can be considered as a potential improvement over traditional PoW as it transforms the mining process into a more targeted and impactful activity. Miners not only contribute to network security, but also to the development of a potentially powerful AI program.

However, it is important to recognize that UPoW is a relatively new concept and its long-term effectiveness in ensuring cybersecurity and advancing artificial intelligence research remains to be seen. The efficiency of workload distribution, the effectiveness of the verification system, and the overall impact on Aigarth development require further evaluation and real-world testing.

Qubic’s main features

Quarter-Based Computing (QBC)

QUBIC uses the Quotation-Based Computing (QBC) system to ensure the integrity of its network and efficiently execute smart contracts. By applying QBC, there are a total of 676 validators (called computers) in the network, responsible for performing tasks, maintaining network integrity, and protecting the blockchain by validating transactions. These verifications include checking the authenticity of the transaction, confirming that the sender has sufficient funds, and ensuring that the transaction complies with network rules.

Consensus Mechanism

In order for QUBIC to function properly, it needs a way for its computers to reach consensus on which transactions are valid, and which transactions may pose risks to the blockchain. It does this through the following steps:

• Transaction Proposal

A new transaction is proposed and sent to all computers in the network.

• INDEPENDENT VERIFICATION

Each computer checks transactions independently. They verify the authenticity of the transaction, whether the sender has sufficient funds, and whether the transaction complies with network rules.

• Person authentication achieved

In order to confirm a transaction, at least 676 Taichung 451 computers need to agree that the transaction is valid. This consistency is called a quorum (or 'quorum' in some translations).

• Finalization

Once the number of people has been verified, the transaction is finalized and added to the blockchain. This method ensures the reliability and security of transactions, since any malicious party that wants to manipulate the network would have to take control of many computers, which would be very difficult.

QUBIC continuously monitors and ranks computers based on performance. They are evaluated based on their ability to process transactions and keep pace with the network. If a computer performs poorly, it will be replaced by a more efficient node. This system ensures that only the best-performing computers are constantly involved in transaction verification, making the network faster and more reliable.

High-speed transactions

QUBIC’s smart contracts are written in C++ and executed directly on the hardware. This method is called bare-metal execution. This approach eliminates the need for a virtual machine, which can slow down execution. It maximizes computational efficiency and speeds up transaction processing.

QBC also ensures fast transactions by only requiring 451 computers in 676 Taichung to achieve human authentication for the validity of the transaction. This process reduces the time required to reach consensus, allowing transactions to be confirmed faster.

QUBIC can also handle up to 40 million transfers per second, providing high throughput, the ability to handle large numbers of transactions simultaneously, and ensuring the network can support high levels of activity without latency.

Currently, QUBIC’s average block time is approximately 7 seconds. The network plans to reduce this time to less than 1 second through regular upgrades of compute nodes. Shorter block times mean new blocks can be added to the blockchain more frequently, further increasing transaction speeds and reducing latency.

Oracles

Oracles are an important component in the QUBIC architecture, they act as a bridge between the blockchain and real-world data, acting as a middleman to obtain external data and feed it to the network. Oracles interact with the Qubic Protocol Interface (QPI) to bring in different types of real-world information, such as stock prices, sports scores, weather conditions, and sensor readings, providing vital data to smart contracts that rely on accurate and timely information.

For example, a smart contract might use stock price data to execute financial transactions based on market conditions, or use weather data to trigger insurance payouts in the event of severe weather. By providing this external data, oracles enable smart contracts to dynamically respond to real-world events.

The QUBIC protocol includes mechanisms to ensure that the data provided by the oracle is trustworthy. This is similar to how transactions are verified on the network, where the validity of the data is agreed upon through consensus based on headcount authentication. By requiring consent from multiple sources, the protocol minimizes the risk of inaccurate data affecting smart contract operation.

Integration of artificial intelligence (AI) and smart contracts

Oracles can play a particularly important role in integrating artificial intelligence and smart contracts. They provide the necessary data input to Aigarth, QUBIC’s artificial intelligence component, allowing it to observe and respond to real-world situations. This integration helps develop advanced AI capabilities that can interact with and influence decisions.

This is especially useful in real life situations, such as:

• Financial markets: Oracles can provide stock price data, enabling smart contracts to execute transactions or manage investment portfolios based on market trends.
• Insurance: When specific weather conditions are met, weather data from the oracle can trigger agricultural insurance claims.
• Supply Chain: Sensor data can monitor and manage logistics and supply chain operations in real time.

Oracles are the basis for making QUBIC’s smart contracts feasible and suitable for offline scenarios. By providing reliable, real-time data, they can create advanced, responsive smart contracts that interact effectively with the outside world.

Smart Contracts

As this article shows, QUBIC’s smart contracts are different from those of other blockchains. Every smart contract on the QUBIC platform must go through a quorum-certified proposal and voting process. This helps ensure that only useful and legitimate smart contracts are executed, preventing the network from being flooded with unnecessary malicious contracts.

Once the smart contract is approved, it will issue 676 shares through an initial public offering (IPO). The QUBIC tokens used to purchase these shares will be locked in the smart contract, effectively reducing the supply of QUBIC tokens in circulation. This mechanism also funds smart contract execution, as locked tokens are used to pay for computing resources.

This approach brings some additional advantages:

• High-speed execution: QUBIC’s smart contracts can handle up to 40 million transfers per second due to efficient code execution and powerful consensus mechanism.

• Fees-free transactions: The platform supports fee-free transactions, making it more economical and affordable for users.

• Decentralized decision-making: The crowd-certified proposal and voting process ensures decentralized and democratic decision-making about which smart contracts to execute. .

• Sustainability: Smart contracts are ensured to remain sustainable over time through the financing mechanism of an initial public offering (IPO) and ongoing fees.

Fee-free transactions

One of the most exciting features of QUBIC is its support for fee-free value transfers. Transactions are verified through a consensus mechanism involving computer voting, thus eliminating transaction fees and enabling offline payment verification.

Qubic Token (QUBIC)

The native cryptocurrency of the QUBIC network is the Qubic Token ($QUBIC). It is designed to facilitate operations within the ecosystem and play a variety of roles within the network, such as paying for smart contract execution, serving as a medium of exchange, and providing a means for users to participate in the network’s consensus mechanism.

$QUBIC is the only currency used to pay for smart contract execution on the network. When a smart contract is launched, it conducts an initial public offering (IPO) and users can purchase shares with $QUBIC. Tokens spent will be locked in the contract and used to fund its execution.

The platform supports no-handling transactions, which means users do not need to pay fees when transferring $QUBIC. However, executing smart contracts burns $QUBIC tokens to maintain network and contract operations and prevent inflation issues.

The oracle consumes $QUBIC during operation to ensure that the data fed to the network is reliable and timely. Finally, as the artificial intelligence component of QUBIC, the development and use of Aigarth will also consume $QUBIC, which contributes to its continuous improvement.

How QUBIC works

1 trillion $QUBIC will be produced every seven-day cycle. The maximum supply is set at 1,000 trillion coins and is expected to be reached in 2041.

While this may seem like an overly large token supply, the high cap eliminates the need for decimal points, which in turn simplifies calculations and improves performance, providing a better experience for users.

Token Economics

QUBIC’s token economics aims to balance supply and demand through multiple mechanisms:

Issuance

New $QUBIC tokens will be generated every block cycle (epoch), increasing the circulating supply . The network issues 1 trillion $QUBIC every week, with an ultimate maximum supply of 1,000 trillion.

Burning Mechanism

In the QUBIC ecosystem, the $QUBIC token functions more like an energy unit than a currency in the traditional sense. This usage model is designed to keep the network sustainable and efficient.

In order to reduce the number of $QUBIC tokens in circulation, there are several burning mechanisms in the system. This includes burning tokens for smart contract initial public offerings (IPOs), as well as fees associated with smart contract execution.

Main advantages for users

• Fees-free transactions: Users can enjoy fee-free transactions, which makes the Qubic platform very economical in terms of value transfer.
• Passive income: Shareholders of smart contract initial public offerings (IPOs) can earn passive income through fees generated by smart contracts.
• Sustainability: The burning mechanism ensures that the supply of $QUBIC is regulated, contributing to its long-term sustainability and potentially increasing the value of the token over time.
• Real-World Integration: The integration of oracles and artificial intelligence enables QUBIC to be used in a variety of real-world applications, increasing its utility and relevance.

Conclusion

QUBIC (number-based authentication calculation) combines blockchain technology with artificial intelligence. It enhances its AI component, Aigarth, by using a system called Useful Proof of Work (uPoW) to dedicate mining computing power to training AI. The network uses 676 computers to verify transactions and execute smart contracts using a consensus mechanism based on human authentication. QUBIC can process up to 40 million transfers per second and uses oracles to provide real-time data, allowing smart contracts to respond to external events. The QUBIC token ($QUBIC) is used to fund smart contracts, facilitate transactions, and support network consensus, and its controlled issuance and burning mechanism ensures the token’s sustainable utility.

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