There is a lot of excitement surrounding the IOTA project. That should not come as much of a surprise, considering that its native Tangle technology is very different from traditional blockchains. It now seems the team is preparing to raise the bar by introducing Qubic. It’s said to be another technology that will “change the world”, even though very little is known about it today.
How Does Qubic Work?
Most of the specifics regarding Qubic remain shrouded in mystery, even though the project will be revealed in the coming days. On the surface, it seems Qubic will change the way businesses interact with and use smart contracts, which sounds promising. Similar to most other “mature” ecosystems, IOTA will provide smart contract functionality. Competition is a good thing in this regard, as there is no one-size-fits-all blockchain solution whatsoever.
Under the Hood
While Qubic places a strong focus on smart contracts, most people are interested in the features from which they can benefit. It would appear that Qubic provides an oracle system which is capable of connecting USD-EUR conversions to a smart contract. Exchange rates will be taken from Bloomberg.com, and this will allow for the introduction of new trading vehicles linked to IOTA.
One potential outcome is that Qubic will pave the way for trading options related to IOTA. Speculation on any asset can lead to more volatility, even though the IOTA developers would like to see some more price stability, by the look of things. Hedging cryptocurrencies is somewhat popular, but market volatility makes it pretty difficult to do so effectively. Qubic may offer a viable solution in this regard, assuming that is how the technology will work in the end.
Additionally, it appears Qubic will offer a way for existing IOTA trading platforms to tap into decentralized margin trading. This particular improvement will be achieved by using the IOTA tangle to provide a trustless and low fee infrastructure. For anyone looking to convert to and from USD and EUR with IOTA, a very interesting future may lie ahead.
Considering that the Qubic technology will be officially introduced in the very near future, it will be interesting to see how well this technology holds up. It is a big development for IOTA, assuming the technology can deliver on its promise. There won’t be an official roadmap in place until the project is introduced; thus, the world will have to wait and see what the future holds for Qubic.