What is QUAI Network? PoW 2.0 Blockchain Potential Analysis

What is QUAI Network? PoW 2.0 Blockchain Potential Analysis

Quai Network is a layer1 network of 13 Proof-of-Work 2.0 (PoW2) blockchains operating in parallel. Applying a combination of Merged Mining and Sharding, Quai maintains decentralization and high security while improving throughput compared to the traditional PoW blockchain.

The network is divided into a hierarchical structure consisting of Prime, Region and Zone - different properties and functions. Quai is cross-chain and EVM-compatible, using the Solidity programming language.

Quai Network Structure

Quai Network architecture applies Sharding by splitting a blockchain into many smaller blockchains to increase performance. Currently, the Sharding solution has been implemented by Proof-of-Stake chains such as Ethereum - Darksharding, Near - Nightshade, and Polkadot - Parachains, and the QUAI network is the only one that combines Sharding and PoW2 with a 1 Prime chain, 3 structure Region chain and 9 Zone chain.

  • Prime Chains - utilizing a memory-intensive hashing algorithm shared across all subordinate (Region and Zone) chains - high difficulty and low throughput, so not suitable for a single transaction and dApp operations (1 block/15 minutes). All miners are required to mine the Prime chain.
  • Region Chains - higher throughput (1 block / 5 minutes), as well as lower difficulty than Prime chain, and each miner can mine 1 Region Chain at a time (besides Prime Chain).
  • Zone Chains - highest throughput (1 block/10 seconds) so suitable for normal transactions and interactions. Between Zone Chains there is the ability to communicate with each other, even those under a different Region chain ⇒ undertake most of the activities on Quai Network.
  • Coincident Blocks - ensures the entire network receives security from Prime Chain and can still operate independently.

⇒ Although faster than many traditional financial transactions, this technology still does not meet the expectations of current blockchain technology, especially the scaling solution that has been developed strongly on new generation blockchains such as Aptos, Sei and Sui, or blockchain modules like Celestia, sharding like Ethereum and Near.

Merge Mining

Merge Mining is the sharing of hash rate between multiple blockchains. Each block header contains Prime, Region and Zone chains data ⇒ miners can verify for all 3 blockchains at the same time, increasing efficiency and scalability. Instead of a Layer2 solution, the network can expand by adding new chains based on demand.

⇒ Better than the old Proof-of-Work mechanism but still consumes more energy than the Proof-of-Stake system in general.


Quai Network Tokenomic

Currently the QUAI token is still under development and this is not an official version. The total supply has not been decided but the allocation is designed as follows:


  • 25% Adoption incentives - partner with organizations to promote the integration and adoption of QUAI Blockchain.
  • 20% Mining - miner reward reserve ensures blockchain operation ⇒ This is inflation.
  • 0.5% Testnet incentives
  • 3% for Community - Details not announced but airdrop likely.
  • 2% provides liquidity on release. 5% bonus for maintaining network security.

Team and investors

  • Strategic partners and infrastructure partners are 15% and 5.5%, respectively.
  • 5% for the founding team.
  • 4% for core contributors.

The community holds not much, most of them belong to partners ⇒ the ability to affect the price of $QUAI token.


  • 15% - Marketing, business development and product building. Vesting for 10 years and can be burned out of circulation if not used ⇒ degree of long-term companion commitment.

Quai Network developer team and investors

Quai Network was built by Dominant Strategies - the founders include Alan Orwick - former Apple member, Jonathan Downing, Karl Kreder, Yanni Georghiades, and Sriram Vishwanath.

Quai Network's Investors

Dominant Strategies has successfully raised $10 million - $8 million from Polychain Capital and $2 million from Alumini Ventures.

QUAI Network is still in the 2nd testnet phase - Bronze Age and Mainnet plan in Q2/2023. Detailed development roadmap will be announced Iron Age.

  • Stone Age ✅
  • Bronze Age ✅
  • Iron Age Golden
  • Age Silicon
  • Age

Currently, QUAI Network is implementing a $QUAI Token airdrop event and everyone can participate in just a few simple steps.

Guide for Joining Quai Network Social Media Rewards Program Get Airdrop $QUAI HERE


QUAI Network is building a new approach to increase throughput and scalability for blockchain. However, compared to the deployed solutions, PoW2.0 is still not really outstanding, so it takes time to prove its effectiveness.

The information, statements and conjecture contained in this article, including opinions expressed, are based on information sources that Holdstation believes those are reliable. The opinions expressed in this article are personal opinions expressed after careful consideration and based on the best information we have at the writing's time. This article is not and should not be explained as an offer or solicitation to buy/sell any tokens/NFTs.
Holdstation is not responsible for any direct or indirect losses arising from the use of this article content.
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