BBOD Research: Quantstamp (QSP)
Top Crypto Fundamental Pick
Synopsis
Currently, the development of smart contracts is left solely in the hands of those who initiate a blockchain project. Although, such contract creators are often highly skilled in their field, the potential for oversight of vulnerabilities in their code is highly possible, as a result of a single point of failure. Quantstamp aims to solve this problem by creating the leading decentralised protocol that will provide security auditing for smart contracts based on the Ethereum network. In essence, Quantstamp allows developers of smart contracts to submit their work to their protocol where numerous security auditors can review the contract, in order to receive QSP tokens as a bounty. The level of auditing required is set by the initial developer who pays such fees to any individual who identifies a problem within the smart contract. As noted in Quantstamp’s whitepaper, traditional smart contract auditing is extremely expensive, costing on average $5000 and taking up to a week to complete. By spreading the workload amongst numerous security experts, Quantstamp aims to considerably lower the cost of auditing and substantially decrease the time taken to complete. The importance of such auditing cannot be understated, without such a mechanism, projects that are backed by huge sums of investors money could be vulnerable to attack once deployed on the Ethereum network. For this reason, Quantstamp seems to have uncovered a gap in the market that needs to be filled. The project has the potential to become the leading security auditing protocol, which could provide the level of trust the community needs to feel safe in investing substantial amounts of money, by confirming a project is safe from attacks which currently plague the industry. With support from Binance, already completing numerous security checks for ICO’s launched on their exchange, the project looks to have a great future ahead of itself and is certainly one to keep a close eye on.
Catalysts
• CEO Richard Ma and CTO Steven Stewart have extensive experience in software security testing and smart contract development
• The team as a whole has over 500 citations in Google Scholar regarding software security
• Numerous successful audits have already been completed for Binance clients, indicating substantial interest in the project
• The growth of mainstream interest in smart contracts will attract more security threats in the future that need to be addressed
• Continual introduction of new projects using smart contracts ensures an expanding target market
Risk Factors
● The Ethereum network may not always be the leading smart contract platform, the project could consider expanding to include Ethereum’s competitors
● Currently, the talent pool within the blockchain space is minimal, with demand far outstripping supply, finding enough auditors to become scalable could become an issue
● Not the only project trying to lower the cost of smart contract development, although the projects rigorous emphasis on security is unique
● Uncertainty regarding the future regulation of ICOs may hold off investors until clear boundaries are set, although such regulation has not hindered investment in the past, although their traditional procedure is often long and rigorous
Events
30th April 2019: Quantstamp audit network launch, as described in the whitepaper
Conclusion
In the continually evolving blockchain industry, unique problems to solve are always present yet often missed. Quantstamp’s vision to provide much-needed security to smart contracts is certainly a valid addition to the blockchain ecosystem. By decentralising auditing work and splitting traditionally expensive costs and knowledge amongst actors, Quantstamp could substantially improve the security of smart contracts moving forward, whilst providing a discounted price. With numerous successful audits already completed for reputable firms on the Binance platform, the project has the potential to become the go-to protocol for contract creators seeking network security in years to come. As the market for smart contracts continues to grow, Quantstamp could become an incredibly lucrative endeavour for investors if this holds true. Certainly, one to keep on your radar in the coming months.
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