What is Qubic and How Does It Work? A Beginner's Guide

05/10/2024, 12:22 PM

What is Qubic and How Does It Work? A Beginner's Guide

Qubic (QUBIC) is a Layer-1 blockchain network that combines cryptography and artificial intelligence to create a new system that will transform computing and financial landscapes.

Recently, there's been a lot of buzz around cryptocurrencies that are trying to incorporate artificial intelligence (AI) to boost the scalability and efficiency of their blockchain networks.

There is one project that really stands out among them.

The project’s name is Qubic (QUBIC).

What makes it really unique is its attempt to create a more efficient Proof-of-Work system, that will also consume less energy (compared with Bitcoin’s Proof-of-Work).

Qubic is considered revolutionary by many because it introduces new concept ideas into existing mechanisms of blockchain technology.

Why does this matter?

If Qubic succeeds, it will definitely set a new standard for many computational and financial systems beyond the crypto industry.

Below, we will cover the details of how Qubic operates and the potential benefits users might gain from it.

What exactly is Qubic (QUBIC)?

Qubic (QUBIC) is a Layer-1 blockchain network looking to make a big impact in the crypto industry by using machine learning to train its own AI (named Aigarth).

This AI is then integrated with its computing system, which relies on so-called Quantum computing.

The Qubic blockchain network has two main components:

  • AI Miners: These are AI models trained to solve complex cryptographic puzzles.
  • Computers: Referred to as "Computors," are 676 computers dedicated to executing smart contracts and running the network.
The infographic shows how Qubic network and its native token work.

In short, what Qubic aims to achieve is to create a blockchain network that is:

  • secure for users,
  • fast in executing transactions,
  • and free from transaction fees.

How does Qubic work?

The Qubic blockchain network uses a mechanism named "Useful Proof-of-Work."

Essentially, this consensus mechanism is similar to the Proof-of-Work (PoW) mechanism used by Bitcoin.

However, there are some key differences.

The first difference is that Qubic operates with 676 computers supported by so-called "AI miners."

This group of 676 computers is responsible for executing smart contracts on the Qubic blockchain network.

Unlike Bitcoin, where miners receive a predetermined number of BTC for confirming a block of transactions, in Qubic, AI miners don’t receive such rewards.

Instead, the role of the AI miners is to support the work of the validators (the computers that use the network).

To consistently maintain the high performance of the network, a ranking list of the top 451 most efficient computers is published weekly.

Those who make it to the list of the top 451 computers retain their role as "Validator-Computers," while the remaining 225 are rotated among candidates from a lower-ranked group of computers.

AI Model within the Proof-of-Work

Here lies a key difference between the traditional Proof-of-Work (PoW) and Useful Proof-of-Work.

Qubic has introduced an AI model within its consensus mechanism to address the problems associated with the Bitcoin model

  • high energy costs
  • high fees.

In the Bitcoin blockchain network, miners (and their ASIC computers) are trying independently to solve complex cryptographic puzzles to confirm blocks of transactions in the blockchain.

In the Qubic blockchain, the 676 computers do not compete to be the first to solve the cryptographic puzzle."

Instead, the mining job is delegated to AI miners.

To make AI miners more efficient, the computers are constantly feeding them with complex tasks.

In other words, the computers give the AI model tasks which include processing large databases or various cases with frequent problems (which the AI will then "learn" and apply in future scenarios).

Through Useful Proof-of-Work, the protocol directs computing power toward training and developing so-called "Artificial Neural Networks" (or ANNs), thereby enhancing the network's computing capacity for advancing machine learning.

What is the goal here?

The team at Qubic aims to create a scenario where their AI model can gradually grow and evolve to become efficient and ultimately help the network become energy efficient.

If the network ultimately becomes stable, energy-efficient, and fast, it could be applied beyond the blockchain sphere, specifically in applications and software we use for everyday activities.

The Quorum Based Computing

In addition to training artificial intelligence to create a better system, Qubic features an additional element: "Quorum Computing System."

As the name suggests, this is a model in which decisions within the network are made and accepted only when a specific number, or quorum, of members agree on the outcome.

As mentioned earlier, in the Qubic network, a quorum is achieved when 451 "members" out of 676 approve a decision.

Ultimately, this approach enhances security and reliability in distributed systems.

Concepts like Byzantine Fault Tolerance or Proof-of-Stake (PoS) are similar to this system in many ways.

Tokenomics of QUBIC Cryptocurrency

QUBIC tokens (or, more precisely, QUs, which is short for Qubic Units) are the utility tokens that drive the Qubic blockchain network.

Qubic tokens act as some sort of measurement of computing energy spent in the Qubic network (for example, energy spent to run smart contracts or request certain data from oracles).

QU tokens also serve as a “fuel” for executing smart contracts and other services on the platform.

Each week, a trillion Qubic cryptocurrencies are produced.

Each Computer (in the group of 676) with the best efficiency is entitled to 1/676 of that amount (or just under 1.5 billion each week).

This type of token distribution will continue until the total supply reaches 1000 trillion (which will happen in about 19 years after the launch).

Each time Qubic cryptocurrency is used, an amount is "burned" to reduce the pressure of new tokens entering circulation.

Who is the founder of Qubic?

Sergey Ivancheglo is the founder of the Qubic platform.

Sergey has been involved in the blockchain industry for many years.

He has several projects under his belt, with the most notable being the “IOTA” and NXT blockchain platforms.

How to Buy Qubic (QUBIC) Cryptocurrency?

You can buy Qubic (QUBIC) cryptocurrency in 2 simple steps.

Step 1: Choose a cryptocurrency exchange

There are various exchanges where you can buy Qubic (QUBIC).

Crypto beginners often choose professional trading exchanges; however, they can find them complex due to advanced trading tools.

That’s why the Bitcoin Store platform is currently the best exchange for beginners wanting to buy Qubic.

Besides the online platform, users can also buy Bitcoin with cash at one of the physical cryptocurrency exchanges.

Step 2: Create an account on the cryptocurrency exchange and make a deposit

The process of creating an account on the Bitcoin Store platform is very easy.

All you need to do is enter an email address and create a strong password.

Once you create and verify your account through the KYC process, you can make a deposit and buy your first Bitcoin.

Your QUBIC will be stored in the Bitcoin Store Wallet, which you will receive after creating your account.

How to Sell Qubic (QUBIC) Cryptocurrency?

You can easily sell QUBIC via the Bitcoin Store platform.

Simply send QUBIC from your wallet to the Bitcoin Store Wallet.

Once QUBIC is visible within your Bitcoin Store Wallet, you can easily sell it for fiat currency.

If you are a standard user of the Bitcoin Store platform, just log in to your Bitcoin Store Wallet.

If you hold QUBIC tokens in your portfolio, simply click on it and then click the “Sell”.

What is the price of Qubic (QUBIC) today?

The prices of Qubic change every second and follow the rates of global exchanges.

The average exchange rate is displayed on the Bitcoin Store platform’s rate list.

You can follow the real-time price change of Qubic here.