The Quantstamp protocol relies on a distributed network of participants to mitigate the effects of bad actors. The protocol allows automated security checks on the smart contract code, and does so in a trustless manner. The protocol allows the end user to directly submit programs for verification, with out the possibility of a bad actor manipulating the results of an audit.
Quantstamp also incentivize miners by making the verification and certification of smart contracts part of the validation node software on Etherium.
The biggest advantage I see with Quantstamp is when blockchain goes main stream. The thousands of contracts made by regular people will have to be audited by a system, that is where Quantstamp will become an integral part of the blockchain eco system.
It is well placed within the space of block chain and very much required for any smart contract to be executed with minimal issues.
Securing smart contract is an integral part of the block chain eco system. This space has seen several security breaches which could have been avoided by a validation process of smart contracts.
If we consider the DAO, the Parity multi-sig hack and other well known hacks, currently over $80 million dollars worth of Ether were stolen because of faulty smart contracts. Despite these hacks, smart contract code has not improved. A recent study found vulnerabilities in 45% of existing smart contracts and the number of contracts on Ethereum has exploded to over 2 million that collectively hold over 12 million Ether. This means that potentially $1.6 billion USD worth of Ether is currently vulnerable to exploitation.
By using both automated and crowd sourcing methods to validate the contracts, Quantstamp is trying to bring high degree of assurance. Also what makes Quanstamp interesting is that it is an upgradable protocol. The governance system is controlled by the token holders. This is very important for the protocol to scale with the increasing demand in block chain.
The technology that performs security audits is based on the cutting edge research in to verification algorithms and block chain technology. Quantstamp nodes handles the validation protocol for security audits and adds it to the data fields of transactions.
ContractS has to be audited periodically. Security library is always being updated and the validation done against the current library will get outdated and will have to go through a periodic check for any vulnerability.
I personally feel Quantstamp is one of those process that cannot be avoided with in the blockchain system.