Quantstamp ($QSP) is all about smart contract security. It is a protocol that runs on the Ethereum network and provides a cost-effective system to audit and identify vulnerabilities in Ethereum smart contracts. Faulty smart contracts have been responsible for the loss of millions of dollars. Project leader Richard Ma and his team are solving this problem by applying a software audit system that checks the contract programs, especially on new coin offerings. In addition, Quantstamp also rewards verifiers who identify errors in the smart contracts. The QSP token is an ERC-20 token used to invest in the company, as well as compensate the audit services and independent bounty hunters who identify bugs. It initially provided additional incentives to contributing members through airdrops of the coins it audited, but this has been recently discontinued until further notice (4). Quantstamp’s long-term goal is to be able to audit all types of smart contracts and become a “stamp of approval” in order to enable the blockchain to achieve its full potential (5, 6).

PROS

  • Designed for all smart contract platforms
  • Aims to identify and fix very serious issues with smart contracts
  • Prequalifies ICOs
  • Big vision of the founders
  • Respected and impressive team
  • Successful audit history
  • Achievement will positively affect the blockchain

CONS

  • Vulnerability of token value if a QSP audit fails
  • Long timeline to prove efficacy
  • Expansion is needed – currently tied to Ethereum protocol only
  • Faced with the challenge of developing a blockchain application that is the first of its kind

Deeper Dive

Quantstamp is a scalable and cost-effective audit service developed specifically to identify and target faults and flaws in Ethereum smart contracts (1). Millions of dollars have been lost in events like the $55 million DAO hack and the $30 million Parity wallet flaw as a result of faulty smart contracts. Quantsatmp is already in use and is providing a way to audit and secure these contracts prior to being deployed (5).

CEO Richard Ma and CTO Steven Stuart assembled the impressive team (credited with over 500 Google Scholar citations) in June of 2017. Ma, a Cornell graduate, started Quantstamp with Y Combinator, a venture capital company that also funded Coinbase, Airbnb, Dropbox, and others. He also built testing software at Bitcoin HFT Fund. Steven Stuart worked for Canada’s Department of National Defense and also founded Many Trees, a start-up incorporating Big Data and machine learning (5).

The Quantstamp protocol uses the SAT solver software to verify the program’s solidity code (5). The QSP token is used to reward a distributed network of participants who contribute to the continued development of the software and run the specialized Quantstamp Validation program to find bugs in the smart contracts (5).

Governance protocols are put in place to ensure the integrity of the Contributors and Validators who run Validation nodes. To discourage bad actors, Contributors must be voted in by the community and Validators must stake their QSP tokens to earn their rewards (6). The reward system used by Quantstamp is called Proof-of-Caring (PoC), which requires members to make contributions to Quantstamp on social media and github, and by translating website copy and other forms of community activity. However, PoC has ceased with the recent discontinuation of the airdrop reward distribution system that previously excluded U.S., Canadian, and Chinese citizens (4, 6).

Quantstamp has completed successful audits for Binance and Request Network with an additional 40 more in the pipeline for this year. Additional supporters include the likes of Blockfolio, Quoine, Luna Capital, and several others (7). Quantstamp also recently announced an important partnership with Wanchain Partnership (8).

A successful ICO was held in November 2017, raising over $30 million dollars. Of the 1 billion QSP created, 650 million tokens were distributed to ICO participants at $0.072 per token. Quantstamp can be stored on any ECR-20 wallet, including MyEtherWallet and hardware wallet Ledger Nano S (5).

Key Terms in the Whitepaper include:

  • Software verification system
  • Automated bounty payout system
  • Contributors
  • Validators
  • Bug Finders
  • Contract Creators
  • Contract Users
  • Voters
  • SAT solver
  • Solidity vulnerabilities

Key items from their Roadmap include:

  • Smart contract insurance
  • Release Mainnet v1
  • Distributed SAT consensus
  • Mainnet v2

Paul Payam Almasi of Hackernoon called Quantstamp the Verisign of Blockchain, an apt description, considering what the team is working to accomplish. Quantstamp is developing the protocol to perform on any DApp platform in the future, which could push smart contract and blockchain security far ahead in a short period of time (7).

 

QSP on social media and communication:
https://www.reddit.com/r/Quantstamp/
http://www.facebook.com/quantstamp
https://bitcointalk.org/
https://t.me/quantstamp
https://www.youtube.com/channel/UCXP3YLX4JdI0gGb9UKSunMg
https://www.linkedin.com/company/quantstamp/

Additional QSP Resources:
https://medium.com/quantstamp
https://github.com/quantstamp

Sources:
(1) https://www.quantstamp.com
(2) white paper: https://docsend.com/view/shcsmhe
(3) roadmap: https://docsend.com/view/shcsmhe
(4) https://medium.com/quantstamp/airdrops-discontinued-dfc3fb672c5a
(5) https://coincentral.com/quantstamp-beginner-guide/
(6) https://caring.quantstamp.com/
(7) https://hackernoon.com/quantstamp-verisign-of-blockchain-d7aff5d6cd57
(8) https://www.youtube.com/watch?v=y72h8RTWXIs

 

If you would like to talk about Quantstamp, or any other cryptocurrencies, join us on our discord! https://discord.gg/Hr3EUH9

 

Contributed by Richard Houser.

You can find Richard on our Discord at @Richouser#4276