The QuarkChain ICO and QKC Token are raising funds toward a multi-layer, peer-to-peer transaction blockchain. The first layer of system contains shards, while the second layer is comprised of a root chain. The architecture of QuarkChain is predicated on finding a balance between security, scalability and decentralization.
Scalability and security do not go always hand-in-hand when it comes to blockchain technology. QuarkChain have set out to find a solution that balances both these needs through by separating the two main functions of the chain into separate layers.
The first layer contains all minor blockchains, or shards, which process a sub-set of all transactions independently. As the number of shards increase, so to does the number of transactions which can be processed concurrently.
The second layer of QuarkChain is the root chain. The primary function of the root chain is to confirm all blocks from the sharded chains, but does not process transactions itself.
QuarkChain allows for two types of transactions- in-shard and cross-shard. In-shard transactions occur between addresses on the same shard. However, setting QuarkChain apart from other high-throughput solutions is the ability to conduct cross-shard transactions. The throughput of the cross-shard transactions system will scale linearly as the number of shards increases.
To simplify the user experience of the cross-shard system, QuarkChain is developing a Smart Wallet. All addresses owned by the user in any shard are accessible via a single private key.
Theoretically, a user may have many addresses associated with disparate shards. To address this issue, QuarkChain employ both a primary and secondary account within the wallet. The primary account contains the address of the user’s default shard, while the secondary manages the remaining addresses in other shards.
To simplify management of funds, any transaction executed in a secondary account will revert the remaining balance back into the primary account. The user balance will then remain in the primary account, eliminating the confusion caused by multiple balances across multiple shards.
QuarkChain ICO tokens (QKC) are ERC-20 compatible and distributed on the Ethereum blockchain. After the mainnet is launched in Q4 2018, the ERC-20 tokens will be converted to the mainnet token by pre-mining. Future QKC will be produced by miners.
QKC are the sole means of transacting value in the system and supply a reward for miners. QuarkChain will support smart contracts on the Ethereum Virtual Machine (EVM) to enable future compatibility with existing dApps, which will benefit from increased scalability.