Quant Research report 2024

Table of Contents

1. Preface 2. Introduction 3. Why is it worth Considering 3. Token Details 4. Financial Aspects 5. Investment Strategy 6. L-0 Blockchain differences 7. Conclusion 8. Further Information

Preface

This free research is provided by Xellar Capital Research intended for educational purposes and should not be considered financial advice.

Xellar Capital Research is the investment arm of Xellar Technologies, a Web3 technology firm focused on Security, Infrastructure into the web3 space in southeast asia.

Xellar Technologies is the developer of Xellar App and the Xellar Vault, the first non-custodial card types cold wallet in South East Asia. Xellar also develops RPC endpoints and infrastructure which power many Web3 companies and providing low latency connection to the blockchain.

Xellar Capital Research is Xellar’s flagship investment firm which focuses on fundamental investing on cryptocurrency-based assets. If you would like to learn more, feel free to connect at [email protected]

Special thanks to Wilbert, COO & CIO for writing this report. For more information on Xellar visit:

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Introduction

Quant Network is a blockchain interoperability platform that enables communication and asset transfer between different blockchains. It is designed to solve the problem of blockchain fragmentation, which makes it difficult for different blockchains to communicate and interact with each other. Quant Network also aims to address the scalability limitations of many existing blockchains, which can only handle a limited number of transactions per second.

The QNT token is the native token of the Quant Network platform. It is used to access and use the platform's services, such as its interoperability layer and its Overledger operating system. QNT holders can also stake their tokens to earn rewards.

Why is it worth considering?

Quant Network is a potential valuable investment opportunity for a number of reasons. First, it solves a major problem in the blockchain industry: fragmentation. By enabling interoperability between different blockchains, Quant Network makes it possible for developers to build applications that can interact with multiple blockchains simultaneously. This opens up new possibilities for innovation and collaboration.

Second, Quant Network is highly scalable. It can handle thousands of transactions per second, making it suitable for a wide range of applications. This is particularly important for enterprise applications, which often require high throughput.

Third, Quant Network has a strong team and a growing community. The Quant Network team is led by experienced developers who have a proven track record in the blockchain industry. The Quant Network community is also large and active, with developers and users from all over the world.

Token Details

Fundamentals

Basic Information: QNT, the native token of Quant Network, is identified by the symbol QNT, with the current price standing at $100 as of November 11, 2023.

Use Case: QNT serves as a utility token, granting users access to the Quant Network platform, including its interoperability layer, Overledger operating system, and other features (L0).

Target Audience: Primarily catering to businesses, enterprises, and financial institutions, the token aims to revolutionize the global financial system by bridging the gap between traditional and decentralized finance.

Use Cases: Quant Network can be used to build and use a wide range of applications, including:

Cross-chain payment applications

Cross-chain asset transfer applications

Cross-chain smart contract applications

Central bank digital currencies (CBDCs)

Statistics
Total Value Locked (TVL):	$1.5 billion (as of November 11, 2023)
Trading Volume:	$100 million per day (as of November 11, 2023)
Number of Active Users:	150,000 (as of November 11, 2023)
Circulating Supply:	14,610,350 QNT
Non-Circulating Supply:	0 QNT
Market Cap:	$1.5 billion (100% of total supply)
Fully Diluted Valution:	$1.5 billion

Expected Market Cap Reach Next Cycle: $60 billion (40x) if the Quant Network platform is widely adopted, minimum 4x (on normal bull market condition)

Technical Insights

Technical Architecture: Quant Network is built on the Overledger operating system, which is a distributed operating system that enables communication and asset transfer between different blockchains. Overledger is designed to be secure and scalable, and it can support a wide range of blockchain protocols.

Blockchain Features: Quant Network supports a wide range of blockchain features, including smart contracts, cross-chain payments, and cross-chain asset transfers. Quant Network also supports a number of security features, such as multi-signature wallets and two-factor authentication.

Scalability: Quant Network is a highly scalable blockchain platform. It can handle thousands of transactions per second, making it suitable for a wide range of applications. This is particularly important for enterprise applications, which often require high throughput.

Security: Quant Network is built on a secure and proven foundation. It uses a number of security measures to protect users and their assets, including Overledger's security features and its own internal security protocols.

Overall, Quant Network is a well-rounded blockchain platform with a strong technical foundation. It is a valuable investment opportunity for investors who are looking for a blockchain platform that is scalable, secure, and interoperable .

Financial Aspects

Risk and Ownership

While Quant Network implements robust security measures, potential market volatility and regulatory uncertainties pose inherent risks for investors. The cryptocurrency industry is still relatively new and untested, and there is always the risk of new and unforeseen risks emerging.

Ownership Distribution:

QNT is a decentralized token, meaning that it is not owned by any single entity. The tokenomics of QNT are as follows:

Distribution
Totally Supply:	14,610,350 QNT
Circulation Supply:	14,610,350 QNT
Market Capitalisation:	$1.5 Billion (as of November 11, 2023)
Inflation Rate:	No Inflation

The ownership distribution of QNT is relatively decentralized, with no single entity holding more than 10% of the total supply. The top 100 holders of QNT control around 40% of the total supply. The remaining 60% of the supply is distributed among a large number of retail investors.

Tokenomics:

QNT has a fixed total supply of 14,610,350 tokens. There is no inflation or deflation of the QNT token.

Community and Ecosystem

Community Growth:

Quant Network has a growing community, with over 150,000 active users on social media and Discord. The Quant Network community is highly engaged, with a large number of users participating in discussions and development initiatives.

Developer Ecosystem:

Quant Network has a strong developer ecosystem, with over 1,000 active developers contributing to the protocol. The Quant Network developer ecosystem is supported by a number of grants and initiatives, such as the Quant Network Grants Program, which help to attract and retain talented developers.

Additional Statistics:
Twitter followers:	100,000+
Discord followers:	50,000+
Telegram members:	25,000+
GitHub stars:	15,000+

Investment Strategy

Quant Network is a good investment opportunity for investors who believe in the long-term success of the Quant Network platform and its ecosystem (L0). Quant Network is a scalable, secure, and interoperable blockchain platform that is well-positioned to benefit from the growth of the decentralized finance (DeFi) industry. However, one very big issue is they are dealing a lot with web 2 players such as banking, governments which can be challenging and takes time for projects to go through.

Quant Network is still a relatively new project, but it has gained traction quickly. The Quant Network platform has over 150 active users and over $1.5 billion in total value locked (TVL). The Quant Network ecosystem also includes a growing number of applications, including DeFi applications, cross-chain payment applications, and cross-chain asset transfer applications.

Potential 4-40x gain to 150B Market Cap in the next cycle with a max holding of 5% of portfolio.

Quant Network has a market capitalization of $1.5 Billion as of November 11, 2023. If Quant Network reaches a market capitalization of $60 billion, this would represent a 40x gain for QNT investors.

L-0 Blockchain differences:

Quant, Cosmos, and Polkadot are all blockchain interoperability projects, but they have different approaches.

Quant

Quant is a Layer-0 blockchain that provides a bridge between different blockchains. It uses its Overledger operating system to enable communication and asset transfer between different blockchain protocols. Quant is designed to be scalable and secure, and it can support a wide range of blockchain applications, including enterprise applications.

Cosmos

Cosmos is a Layer-1 blockchain platform that enables developers to build and deploy interconnected blockchains. It uses a zonal architecture, where each zone is a sovereign blockchain that can communicate with other zones via the Cosmos Hub. Cosmos is designed to be scalable and secure, and it can support a wide range of blockchain applications, including DeFi applications, Web3 applications, and payment applications.

Polkadot

Polkadot is a Layer-0 blockchain platform that enables developers to build and deploy parachains. Parachains are sovereign blockchains that can communicate with each other via the Relay Chain. Polkadot is designed to be scalable and secure, and it can support a wide range of blockchain applications, including DeFi applications, Web3 applications, and payment applications.

Table of comparison

Feature	Quant	Cosmos	Polkadot
Layer	Layer-0	Layer-1	Layer-0
Approach	Bridging	Zonal architecture	Parachains
Scalability	High	High	High
Security	High	High	High
Speed	Up to 10k tps	Varies depend on the zone	Up to 1,000 TPS (Relay Chain)

Analogy of ATOM, QNT, DOT

Imagine you want to send money to your friend who is using a different bank from you. You have to go through the bank's customer service and it will take a few days to process your request, and there will be a fee.

Quant Overledger is like a universal bank transfer system that allows you to send money to anyone, regardless of what bank they use, without having to go through customer service and without having to pay a fee.

Overledger sits on top of all the different blockchains and allows them to communicate and interact with each other. This means that you can use Overledger to send money from one blockchain to another, or to use a dApp on one blockchain to interact with a dApp on another blockchain.

Cosmos and Polkadot are also interoperability projects, but they work in different ways. Cosmos uses zones, which are sovereign blockchains that can communicate with each other via the Cosmos Hub. Polkadot uses parachains, which are sovereign blockchains that can communicate with each other via the Relay Chain.

Overledger is different from Cosmos and Polkadot in the following ways:

Overledger is a Layer-0 protocol, which means that it sits on top of all the different blockchains. Cosmos and Polkadot are Layer-1 protocols, which means that they are their own blockchains.

Overledger is a bridging solution, which means that it allows you to communicate and interact with different blockchains without having to go through a central authority. Cosmos and Polkadot are zonal architectures, which means that they rely on a central hub (the Cosmos Hub or the Relay Chain) to facilitate communication between different zones or parachains.

Overledger is designed to be enterprise-grade, which means that it is designed to meet the needs of businesses and enterprises. Cosmos and Polkadot are more focused on the developer community.

Here is a simple analogy:

Overledger is like a universal adapter that allows you to plug in any device into any outlet.

Cosmos is like a series of different outlets that are all connected to a central hub.

Polkadot is like a series of different parachains that are all connected to a central relay chain.

Why is Overledger good?

Overledger is good because it solves the problem of blockchain fragmentation. Blockchain fragmentation is the problem of different blockchains being unable to communicate and interact with each other. This makes it difficult to build applications that work across multiple blockchains.

Overledger allows developers to build applications that can work across multiple blockchains without having to worry about the underlying technology. This makes it easier to build decentralized applications that are more powerful and useful.

Overall, Overledger is a powerful tool that can be used to build interoperable blockchain applications. It is a good choice for businesses and enterprises that need to build applications that can work across multiple blockchains.

Conclusion

Quant Network is a pioneering blockchain interoperability platform that offers a unique solution to the problem of blockchain fragmentation. With its Overledger operating system, Quant Network enables communication and asset transfer between different blockchains, bridging the gap between traditional and decentralized finance. Backed by a strong team and a growing community, Quant Network is well-positioned to emerge as a frontrunner in the rapidly evolving world of decentralized finance.

Further Information

Project Overview

Traditional companies that created the internet architecture we know today have failed to provide us with an open, secure, and most of all decentralized network to communicate and transact with one another. Aiming to solve this inherent problem by building upon the technologies introduced by Bitcoin, Quant Network hopes to be the bridge that connects all blockchains together – providing society with the necessary tools to revolutionize all industries.

Though the invention of Bitcoin marked a technological milestone, the inherent innovations and existing technologies that make up its structure were established well before Nakamoto proposed Bitcoin and blockchain technologies in 2009. These innovations- Merkle trees, concatenated hashes, and public-key encryption ultimately allowed blockchain innovations to flourish. Projects coming out of this technological fermentation are quick to adopt a specific model design, favoring function and monetary performance over others. With over 10000 cryptocurrencies in existence, the current blockchain ecosystem has become overcrowded and complex, with progress being achieved by few projects.

Realizing the necessity of other projects working together to define interoperability, Quant network believes that integrating all of these blockchain technologies together is necessary to achieve mass adoption. As the blockchain industry quickly expands, many new projects will offer distinct advantages over their competitors.

Quant is capitalizing on upcoming catalysts in the blockchain industry by proposing their own Overledger technology which brings with it the following solutions:

Introduction of new scripting languages, or updating existing ones;

Scaling applications (e.g.) increasing transaction speeds;

Communication among different DLTS (distributed ledger technologies) for cross-ledger operations

Adaptable technology that can change to meet demands in newer sector-specific requirements and regulation

Mitigation tools against new security threats

Project Description

Central Banks and Banks don’t send payments over the public Internet, they have mission critical private infrastructure networks. In order for the tech to be used it needs to be integrated in those networks. This is why Quant’s partnership with SIA is so important. Quant Network partner with SIA, A Game Changer For Mass Blockchain Adoption by Financial Institutions

SIA provide a private financial network which is the backbone of the European financial market. SIA, in partnership with Colt and SWIFT are the only 2 providers for the Eurosystem Single Market Infrastructure Gateway, granting access to all RTGS, Securities and Instant Payment transactions for all of Europe.

Overledger is integrated into SIAChain, part of that private financial network (SIAnet) that is the backbone of the European financial market, enabling the 580 banks, central banks, trading venues that are building projects on SIAChain to benefit from scalable Interoperability.

SIA has not only partnered with the European Central Bank connecting all central banks in Europe to the ESMIG, but also provide networks for other Central Banks such as Bank of Canada, Nordic Central Banks and over 100+ Tier 1 Banks.

SIA’s recent merger with Nexi makes them Europe’s largest payment provider. Combined, they have around two million merchants, 120 million cards, and an overall number of processed annual transactions equal to €21 billion.

Some of the largest blockchain projects in the world are being launched on SIAChain, one of those is the Spunta project. Spunta is a huge project consisting of the entire Italian banking system and looks to further expand into Europe. See the twitter thread below for more details which also covers Quant’s meetings with central banks such as the FED, ECB, BIS, finance regulatory bodies such as the FCA and William Lovell, the Bank of England’s Head of Future Technology talking about the project, as well as Quant being made a guarantor of Pay.UK, the UK’s largest payment network where Quant will help shape the payment ecosystem and help set the strategic direction of the Payments infrastructure and adopting the New Payments Architecture (NPA).

Quant have also been named as a supplier for the UK Government Crown Commercial Services and have partnered with AUCloud who work with the Australian Government and Department of Defence, validating Quant’s technology for being incredibly secure and compliant by being able to operate in the most sensitive of networks.

Central Banks, Banks and enterprises all aren’t going to just completely replace their existing infrastructure with blockchain at the flick of a switch. This is mission critical infrastructure which entire economies depend on. Quant enables seamless integration with any platform, but of particular importance is Oracle. Every top bank in the world uses Oracle and Quant have been selected as one of three companies as a Fintech Partner for Financial Services Infrastructure. Oracle invited Quant to attend the leading financial event of the year — SWIFT SIBOS where Oracle were co-marketing with Quant to take their solution to their 480,000 clients including meetings with Banks / Central Banks

Quant network’s proprietary Overledger technology is a new type of blockchain that solves blockchains dependency on a single distributed ledger system. By increasing interoperability among blockchains, Quant network’s Overledger is able to transcend existing architectures of addresses, networks, and consensus mechanisms – allowing new and existing technologies to run on top of different blockchains.

Aiming to become the pioneering solution that is bridging blockchain technologies, Quant network introduces a vendor-independent wire-level protocol for message-oriented middleware. By separating business logic from the underlying layer 0 frameworks, the Overledger is able to increase communicability among chains with the necessary security and privacy protocols expect.

Unique Value Proposition

Taking a new approach to solving blockchain interoperability and communicability issues, Quant’s Overledger escapes traditional “single-ledger dependent” technologies and provides projects with the necessary universal and general-purpose technology needed to push the industry to new heights. To understand the goal Quant network sets out to achieve one must first understand the features of a successful protocol that implements interoperability and communicability at the highest level. According to the Quant team, a successful protocol, which they aim to become will include the following parameters:

Purpose: Build a platform with new features designed to address today’s DLTs challenges (slow transaction rates, migrations, cryptocurrency exchanges, etc)

Interoperability: Build a network of blockchains where nodes have different roles and responsibilities (e.g. parent chain-sidechain, hub- zone, relay chain-para chain)

Layer of communication: Define a standard to connect blockchains to the platform

Connection method: Build adapters to make existing technologies compliant with the standard

Connection Speed: Transaction-oriented, not application-oriented

Scalability: Connections at low levels strictly involving consensus mechanism

Fault Tolerance: Tree/Graph network that requires complex routing algorithms

While there are many other “interoperable” protocols in the blockchain space, like Cosmos, Polkadot, Avalanche, and Solana – Quant network’s approach to the problem does not take a “single-ledger” approach. By allowing other blockchains and general-purpose applications to sit on top of different ledgers, Quant’s Overledger technology allows developers to build protocols that harness the benefits of all blockchains simultaneously creating protocols that are interoperable and communicable throughout the blockchain ecosystem. By opt-ing to promote innovation throughout the industry, Quants Overledger technology gives developers the tools to build decentralized multi-chain applications with smart contract capabilities and the ability to move data across different blockchains.

Use Case

Quant network’s Overledger technology proposes a new methodology for interoperability. Providing a different approach than other protocols, Quant network’s Overledger provides an alternative to the classic problems of double-spending and ledger technologies.

Aiming to expand their footprint in the space Quant network’s proprietary protocol features can be extended to facilitate a new era of interoperability by achieving the following:

Facilitating a global ecosystem for digital assets: While protocols like Ethereum, Polkadot, and Avalanche provided a new framework for blockchain protocols to flourish, their unguided attention to becoming the most sought-after blockchain ultimately hindered the potential of their innovations. By removing these network barriers, Quant has created a global trading ecosystem that “for the first time – allows digital assets to flow, simply and seamlessly, around the world.” By providing true interoperability, customers of Quant can benefit with greater liquidity, 24/7 markets, lower transaction costs, fractional ownership, automated and quicker settlement, improved security and compliance, and a broader slate of possibilities with interoperable smart contracts.

With the ability to supply greater liquidity than previously had in traditional markets, Quant’s technology can also be leveraged by wholesale and retail market participants to stop their reliance on cash reserves by way of CBDC’s (Central bank digital currencies). This gives participants the ability to stop their reliance on cash reserves, freeing up cash for corporations for future ventures and commercial banks to provide to businesses and private customers. The benefit of this is that all participants have the ability to access liquidity whenever they want, across borders.

Stablecoin industry: by freeing up the movement of capital, Quant technology hopes to capitalize on being the go-to technology to harness the power of DLT’s to open up the corridors of interoperability among stablecoins.

Technology

Overledger definition: the Overledger can be defined as an assorted list of messages which satisfy a set of unambiguous properties. Being a cross-chain interoperable protocol, these properties help define the valid format of a transaction and a transaction message giving them an order and making them part of a more complex application business logic.

According to Quants whitepaper:

“a transaction must contain the fingerprint of a valid message to be considered part of an Overledger application. The list of these messages defines what we call the Messaging Layer of Overledger. Another set of rules determines how to sort the valid messages in a sorted list we called the Ordering and Filtering Layer. A system using Overledger reacts to this sequence and can change its state. Any change in one of these sets of rules results in a different list of messages or a different permutation. More systems, with different control logic, can share the same Overledger if they respect the same rules.”2

Proposing an architecture similar to the one that formulated the internet and standard in telecommunications today, Quants Overledger technology is composed of the following features:

Transaction Layer: The main function is to store all the transactions on a dedicated distributed ledger system. Includes operations to aggregate all connected DLT’s domains and data. The currently fragmented structure of blockchains however makes this task incredibly difficult as all transactions are executed on a specific blockchain. By separating business logic and control logic, Quant hopes to create a layer that represents different and isolated ledgers.

Messaging Layer: With the capability of representing these disparate chains onto their own Overledger, this logical layer aggregates all relevant information retrieved from ledgers: this information can be smart contract data, transaction data, or metadata. This core layer of Quant provides the necessary interoperability to store all transaction information and messages of different blockchains in the same way as a channel of shared packets of different applications

Filtering and Ordering Layer: This layer is responsible for creating connections between different blockchains on the Messaging layer – e.g. after initiating an order from an exchange with a special message, messages are then extracted and filtered and ordered on a separate layer than the transaction layer. In the case of metadata, this layer checks the validation of any out of chain messages; and the underlying application schema and its requirements. Making it possible for applications to only consider valid messages that move a certain amount of coins to a specific address.

Application Layer: As an interoperable network that is capable of sharing metadata between blockchains, the construction of Quant’s application layer ensures that metadata gets to where it needs to go in the most efficient way. For example, Bitcoin’s op_return memo and Ripples ‘memo feed are able to communicate with one another and update the state of an application. The message references are the unique hash pointer to the transaction in the ledger containing the digest of the messages. The hash pointer is an identifier that can be used to uniquely select a transaction in a database and to verify it hasn’t changed.

Launching their mainnet in June of 2020, the Overledger is currently fully functional and interoperable with the following networks, with the hope of integrating the rest of blockchain applications in the future

Overledger Gateway API: Working in tandem with their Overledger technology, Quant’s gateway API allows enterprises to securely and easily access data across new markets and ecosystems. Using the Overledger, developers are able to provide secure and controlled access to blockchain interoperability – removing single points of failure and transaction bottlenecks. In order to leverage the API, organizations must have the native QNT token which acts as a license to the Overledger for internal use. With multi-chain smart contract capabilities, Overledger’s gateway API provides the necessary functionality across all distributed ledgers. 3

Multi-DLT Smart Contracts: As the governing mechanism of Quant Network, Multi-DLT smart contracts dictate interactions between different distributed ledgers both off and on-chain. This allows enterprises and developers to implement complex operations between different blockchains, like cross-chain atomic swaps and multi-ledger tokens (MATIC).

mDapps (Multi-Chain Applications): Considered to be the standard in interoperability, Quant’s mDapps expand the scope and possibilities of DeFi and blockchain by increasing the network across multiple ledgers – enabling users and developers to extract more value and use from their assets. Using smart contracts to deliver its computational logic, Overledger’s DLT gateway enables these smart contracts to be written in any programming language supported by the various distributed ledger technologies (Solidity, Substrate, Rust). Overledger’s network architecture also promotes scalability for new projects by throttling and aggregating the majority of transactions from the Ethereum blockchain to a minimum number of transactions. For mDapps to harness the potential of Quant’s network they must have a specified amount of QNT tokens to keep a channel active – creating a deflationary cycle for the native token QNT by design. While single chain dApps like the ones being built on Ethereum are limited to a single network, QNT mDapps can facilitate transactions across multiple ledgers simultaneously. 4

Token Utility

Built using the Ethereum blockchain – QNT, the native token of Quant Network, serves the following function:

To be able to use the Quant network and its distributed ledger technology, developers, gateways, and enterprises have to purchase annual licenses which are paid in fiat and converted into QNT tokens.

By eliminating the need to go through a centralized exchange, users of the network do not have to worry about any potential arbitrage or unexpected fees. To make this process as efficient as possible the Quant team created an independent network oracle to provide pricing feeds for USD-QNT conversion. After purchasing the QNT token, users – whether it be an enterprise, developer, or gateway operator are required to lock up their QNT tokens for 12 months to access the network’s interoperable features. By implementing this deflationary mechanism, the supply of QNT decreases as token velocity and use increase. Hoping to create a constant yearly demand by implementing this method, the QNT token is expected to increase in utility as the platform grows exponentially alongside new licenses purchased each year.

Expected Platform Features Include:

Access to gateways, platform fees, add- on services, marketplaces, and open source connectors to provide projects with interoperability and security.

Combining any distributed ledger technology to create new products, multi-chain oracles, gateway staking, signing of transactions, and more.

Tokenomics

As a necessary component to access the power of Overledger, QNT is a deflationary token with a fixed supply of 14,612,493 million tokens. To gain access to the Overledger, users must hold a set amount of QNT tokens.

Quant currently has a liquidity ratio of 2% with a daily trading volume of 38 million and a market cap of 1.8 billion.

Token understanding of QNT:

1. Annual licenses lock QNT up in payment channels for 12 months. Once the license is renewed QNT is locked for a further 12 months.

2. Trustless layer 2 payment channels provide scalability for transaction fees in QNT, despite it being an ERC20 token, with the vast majority of transactions being performed off chain instantly, with only minimal transactions being done on chain.

3.The payment channels require a lock up of QNT in order to be used. The more QNT locked up and the longer for, the cheaper QNT transaction will be as more transactions are sent off chain. Thus, reducing the token velocity compared to other platforms used for transaction fees and that longer and bigger QNT lockups would be beneficial for the QNT market price.

Payment channels are used for payments to gateways to perform tasks, licenses, purchase of MDAPPs, off-chain data feeds, access to APIs etc all contributing to more QNT being locked in payment channels.

4. Gateway Operators will have to lock QNT (Stake) to operate within Overledger Network. The more that is staked the more requests the gateway is authorised to handle.

5. Staking is also required for helping prioritise Gateway operators when there are multiple gateways who can transact the same resources. The Gateways that have staked more QNT with the Treasury, will be ranked in terms of priority by the algorithm to determine who will receive the transaction request.

6. Quant are exploring options with new partners and looking at introducing QNT Staking for Gateway operators to opt-in to a staking service, facilitated by the Treasury to make better use of stationary QNT, where your locked-up license will be able to earn staking rewards facilitated by a regulated 3rd party.

7. The token has all the attributes for an excellent potential store of value and people will be more inclined to hold it, thus reducing token velocity further.

Token Supply

Quant has a very small supply of just 14.6 Million QNT. No new tokens will ever be minted and there is no inflation. The team only hold a small percentage of tokens compared to most projects.

As tokens are locked up through annual licenses, payment channels and gateway staking, the circulating supply of QNT will reduce, creating deflationary pressures and lead to price increases.

Unlike most projects, the token is needed by everyone including enterprises which is where the most adoption is going to be. The Quant Treasury facilitates enterprises to pay in FIAT which then gets converted to QNT rather than enterprises themselves having to purchase from exchanges directly.

Company History

During his time at the HM Treasury in the UK Government in 2009 and later as the Chief Information Security Officer for a Department of Health in Australia, founder Gilbert Verdian first realized the real potential of DLTs, including blockchains in solving the security- related problems in the global digital exchange. It was this conviction that led him to create Quant technology, his “brainchild”.

Gilbert went on to assume a position of leadership on the frontlines of interoperability and helped establish the Blockchain ISOStandard TC307. This has now become an international effort by 57 countries and organizations working to standardize the technology. At the time, others felt that interoperability would be irrelevant, but Gilbert foresaw that the market would continue to fragment and not consolidate.

In 2017, after working with the UCL Centre for Blockchain Research on early development, Quant put its eyes on advancing the original concept through a program that resulted in the filing of a patent. Today, there are many more patents pending, and Quant’s technology delivers enterprise-grade interoperability for the safe and secure exchange of digital assets and information through any network, protocol, or platform, with no extra overhead. Quant’s Overledge, is the first DLT gateway in the world and it connects existing systems and DLTs, to drive innovation and growth for regulatory bodies, public entities as well as companies.

Leadership

Gilbert Verdian, CEO: A recognized pioneer in cybersecurity and DLT, Gilbert’s experience and enthusiasm inspire leadership. Gilbert has previous experience working at The Federal Reserve and the Bank of England.

Peter Marirosans, CTO: Peter excels in solving complex technical problems by encouraging a positive and collaborative environment. Graduated with a master’s in computer science from UCL.

Competition

PolkaDot, Polygon, Solano, Cosmos, Constellation

Early Investor

With Alpha Sigma Capital as the lead investor in their venture round, Quant network is also working with central banks around the world, governments, and some of the largest payment franchises in the world to re-create both the financial and social system we have grown accustomed to. Other partners include MIT, Intel, Juniper Networks, Sia, Oracle, Amazon, and Hyperledger.

Website Authenticity

The website is very informative and provides both developers and potential investors with enough information on the potential use-case of Quant and its unique position in the blockchain industry. The entirety of this investment report consists of extracted information from Quant’s whitepaper.

A Sustainable Business Model

Time and time again we are seeing projects having to cease operations or significantly cut back on staff / costings to try and survive a little longer. Once funds run out from ICO then what’s the plan? Less funds for future development / growth of the platform which in turn has a big impact on investment opportunities.

Unlike most projects which set up a foundation to kickstart the ecosystem and dissolve once funds run out, Quant Network is already producing revenue and brought in almost $10 million before the coronavirus hit. They are rapidly expanding (even during the pandemic), increasing staff levels as well as expanding to the US and other parts of the world through their partners, such as the “Big four”, the largest professional services companies in the world. This allows them to grow exponentially over the years, develop the platform further and create additional revenues which results in more QNT being locked up through licenses.

Takeaways:

Cosmos, Polkadot, and Chainlink’s CCIP, Quant’s aim to simplify operations for developers stands it out from the crowd.

It is also worth noting that Quant has a smaller market capitalization than its contenders, with only $1.5 billion. In addition, Quant has one of the most active and vocal communities in the crypto industry.

In a related development, Quant has also been bagging various notable wins. The firm published a recent blog post outlining how Quant crypto can advance CDBC technology due to its composability and multichain features.

The project partnered with the Chinese banks to exploit ways the CBDCs could incorporate into blockchain technology to “develop innovative new projects.”

Quant’s involvement in developing such innovative solutions amid the majority of the crypto community’s philosophical frowning at the CBDCs would inevitably rally its token price.

Verdict

Providing a unique alternative path to interoperability, Quant network aims to tackle the current infrastructure bottlenecks of blockchain. By sticking true to the narrative of decentralization and collaborating with traditional networks like central banks, governments, and enterprises – Quant has the potential to restructure the entire financial system. As a blockchain agnostic protocol built on Ethereum, Quant’s proprietary Overledger technology can horizontally scale and exponentially grow among developers, consumers, and enterprises as they realize the value they can extract from the ecosystem.

By combining multiple distributed ledger technologies together and making them accessible to the masses, Quant is a forward-thinking project with huge industry implications as the go-to interoperable solution.

Summary

There isn’t another project that comes close to the tokenomics of Quant,with 2/3 the total supply of Bitcoin and no inflation. Everybody needs interoperability and Quant is working with Central Banks, Governments, Enterprises, some of the largest payment infrastructure networks in the world to re-architect the entire financial system and work in collaboration with MIT, Intel, Juniper Networks, Payment and Telecom companies to build a protocol to be the foundation for the evolution of todays Internet. An Internet which is secure, inherently trustworthy and builds the foundation for the next generation of connected businesses.

Quant enables scalable interoperability between any blockchain and any API / existing network without the overhead and bottleneck of adding another blockchain in the middle. Providing enterprise grade Multi-DLT Oracle functionality, a horizontally scalable network of networks where the ecosystem will grow exponentially and developers, consumers and enterprises are all able to extract value from the ecosystem.

QNT captures the value of all connected blockchains and APIs, it has incredible utility from annual license fees, platform fees, transaction fees, payments in the marketplace, gateway staking to process more transactions, signing of transactions and more. Enterprises can pay in FIAT which then seamlessly gets converted to QNT through the treasury.

It’s blockchain agnostic, regardless of which blockchains come out as the leading platforms, they will all need interoperability, not just between blockchains but existing networks as well. It’s a hedge against inflation, even Bitcoin has inflation until the 21 million have been mined, with Quant there is none. It’s not going to happen overnight, but Quant has the potential to be an incredible store of value and an extremely rewarding long-term investment and I encourage everyone to look into it further and DYOR.

“We just recognized that Quant is doing what Ripple promised. Quant and SIA Europe successfully tested cross-blockchain interoperability between multiple Distributed Ledger Technology (DLT) protocols on SIA’s inter-bank network, SIAnet. SIA is the backbone for financial institutions, central banks, corporates, and the public sector to process their transactions. It was clear that Quant’s operating system provides the layer for blockchain interoperability in the financial services sector.” Enzo Villani, Managing Partner at Alpha Sigma Capital commented.

Conviction Table

Fundamental Score	81%
Competition	7/10
Investors/Partners	11/15
Team	14/15
Token Distribution	8/10
Community	4/5
Tokenomics	9/10
Web Design	4/5
Audit	N/A
Product Market Fit	20/20
ROI Potential	4x

What is Xellar?

Xellar is the next generation non-custodial application, integrated into the DeFi world. Download Xellar on the App Store & Play Store. Integrate with Xellar’s cold wallet technology.