A Compelling Future for Quant
Disclaimer: Your capital is at risk. This is not investment advice.
Token Takeaway: QNT;
This week is not a typical week for my Token Takeaway series (TTTs). Avid market participants will have noticed a weak market, and our models paint a similar picture. Last week’s article focused on QNT, emphasising the company/team and the ecosystem surrounding the token, as well as a more technical and broader market analysis.
Since then, QNT has continued to be the only token highlighted in our model. Therefore, we will expand further on the future of Quant and provide readers with an actionable viewpoint of its future potential and the risks involved with such an investment.
The Future Potential of Quant, Overledger and QNT
The Overledger Network plays a pivotal part in the success of QNT as an investment because the network effect for QNT is based on the growth of the Quant ecosystem. The more enterprises and interoperability involved, the more valuable the network becomes. QNT will thrive as a widely used network due to its nature as a utility token.
Essentially, Metcalfe’s law plays a part in the value of any blockchain. Normally, we look at the blockchains individually and sum the parts, i.e., the demand, how far-reaching it is, and its liquidity. However, Overledger, which acts as the main driver for QNT’s value, can tap into individual blockchains and their network effect. By doing so, it has the potential to combine several network effects, which has very bullish potential. This would be like all financial institutions joining all their networks and offering everyone their financial products (like DeFi x100!)
Like most projects in the digital asset space, institutional/enterprise adoption is key to a positive outcome for investments. Enterprises will need to access several blockchains at once, which requires the ability to do this seamlessly and with interoperability. In the case of Quant, interoperability is achieved through gateways between blockchains.
Quant aims to improve upon current interoperability by creating an operating system, Overledger (OS), a simple UI dashboard that enables its users to connect to different blockchains. Furthermore, Overledger enables access to the decentralised applications (dApps) and thereby the yield opportunities they have to offer. For Quant, these applications are called multi-chain applications (mApps).
In the bigger picture, blockchains and their exclusive dApps have created the most accessible financial product sector we know (DeFi). If you add the competition between blockchains that can connect to other chains, you add a layer of accessibility that is truly disruptive to traditional means.
This does not come without risks. As we saw in 2017, ICOs (which QNT is) can be credible, interesting, and potentially change the world. However, according to Alexander Larsen, 90% of ICOs have failed or were scams. This is not as bearish as it seems for QNT as it has outperformed the vast majority of ICOs, which adds to its credibility (to an extent).
Overledger’s Patents
Before we end, I just wanted to add an extra point to the original TTT: Quant’s Patents.
Patents, or any copyright, are very valuable, especially in the digital asset space, which thrives on open-source code. When it comes to Quant, they need to protect the Overledger Network from being copied, as it is the key to success for this venture. For an investor, this is essential because, without the Overledger Network, the token becomes fundamentally useless, which will have a detrimental impact on QNT’s holdings.
Quant’s recent patents can be found here:
Although these seem to be identical patents, they apply to different jurisdictions. In this case, the United States and Europe.
Additional Resources
Although we hope to see QNT on our model in the coming months, we are moving on to another token next week: MIR, the Mirror Protocol. Therefore, I wanted to include some key resources for our valued readers to read more about QNT.
- CryptoSeq’s has published a three-part research report on Quant, which I would highly recommend, but be aware of the slight bias towards the risks involved with an unproven token. Part 1, Part 2, and Part 3
- The Quant Network Whitepaper
