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Is Qubic a Game-changing PoW L1 Project in the Market?

2024-06-28 06:18:24

Introduction

Proof of Work (PoW) is a concept that was first introduced by the pioneering cryptocurrency, Bitcoin. It works on the principle of incentivizing miners to mine BTCs using computers or ASICs in order to validate transactions performed on the Bitcoin blockchain.

Qubic is a new project that introduces an innovative and novel consensus mechanism named Useful Proof of Work (UPoW), which enables the utilization of underused computational resources to perform AI tasks, ultimately saving miners' energy.

What is Qubic?

We all know about the massive amount of energy mining computers consume to mine Bitcoins or other PoW-based cryptocurrencies to power the blockchain network. This is an inefficient approach, as it makes it very costly for miners to operate effectively and stay profitable, considering that the BTC mining reward gets halved every four years.

This is where Qubic comes in as the first-ever Useful Proof of Work (UPoW) Layer-1 blockchain in the crypto market. Launched on August 9, 2024, Qubic runs on the principle of employing the energy of unused miners or computing resources to train AI models such as Artificial Neural Networks (ANNs).

Not only this, but it also utilizes this consensus mechanism to power smart contracts, support efficient micropayments, and allow real-time tracking and automation of supply chains and logistics.

Background and History of Qubic

According to experts, the last BTC will be mined by 2140, as roughly 1.5 million Bitcoins are left to be mined. Until then, the mining reward will keep halving every four years until it reaches zero once all Bitcoins are mined.

To push the boundaries of this traditional PoW concept, ​​the Qubic ecosystem employs AI training tasks in its consensus mechanism. Here, validators, known as “Computors,” backed by the same miners, called "AI miners," utilize AI models to solve complex training tasks instead of those conventional mathematical puzzles solved in the traditional PoW mechanism of Bitcoin and other similar networks.

Tokenomics

The coin driving the Qubic ecosystem is not a mere cryptocurrency but an “energy” unit known as the Qubic Unit (QU). These QUs get burned every time they are used, as they act as the fuel for powering real-time decentralized applications (dApps), executing smart contracts, and accessing other services offered on the Qubic platform. That is the reason QUBIC has a massive supply of 1,000 trillion.

The Qubic ecosystem runs on 451 powerful “Computors,” which also determine the size of the commission for executing smart contracts. This commission does not go towards the miners but instead gets burned to adjust the inflation or deflation of QUs in the ecosystem.

The Price Change of QUBIC on CoinEx

QUBIC listed on CoinEx on June 24, 2024, with a current price of approximately $0.0000029, 24-hour trading volume of $24.05K, a 2.04% price decline, and a circulating market cap exceeding $290 million.

QUBIC was listed on CoinEx on June 24, 2024. As of June 26, the current price of QUBIC trades around $0.0000029, with a 24-hour trading volume of $24.05K. The chart shows a roughly 2.04% decline in the price of QUBIC in the last 24 hours. The circulating market cap of the coin exceeded $290 million at press time.

If you want to trade cryptocurrencies, CoinEx is a good place to find outstanding volatility and prices.

Overview:

*This information is not investment advice.

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