Scalability is an issue for the widespread adoption of cryptocurrencies. The situation is being addressed by multiple start-ups. One of the companies that have designed a solution is Constellation. Their DAC protocol can handle transactions at a high rate. Allowing a blockchain-based network to compete with existing financial infrastructure is a big step forward.
Constellation is committed to creating an online community that helps their platform to grow. They have created a platform called Orion to make communication easy. Users that want to help the platform grow can use Orion. They will be rewarded with tokens for their work. Constellation hopes this system will help their platform to develop a solid base.
Constellation addresses a major issue
The criticism leveled against platforms like Bitcoin and Ethereum by entities like the BIS isn’t baseless. An app that was designed to give people virtual pets nearly shut down the Ethereum network last year. Reliability issues like this can’t be a part of a global financial clearing system.
New directions for clearing technology
Constellation’s DAG protocol joins other platforms that are working to make cryptos a viable large-scale settlement platform. Liquidity Network is working on a system that would address the same problem.
According to estimates from Constellation, their hylochain could process more than 4,000 tps (transactions per second) for every 1,200 nodes. They calculate that if a million people acted as nodes, nearly 4.5 million tps would be achievable.
Adoption is key
The capabilities that Constellation and Liquidity Network are creating are incredible. Making these networks commonplace is a challenge. Networks like Visa have connections with most of the global banks. Allowing transactions to happen on demand is critical to consumer acceptance.
Even with innovations like the DAG protocol, many challenges remain. There are many in the banking community that opposes cryptocurrencies. Making sure that crypto users can pay for everyday goods and services will be important for these new platforms to consider.
Constellation takes a step in the right direction
KuCoin recently announced that Constellation’s DAG tokens would be traded on their exchange. They are allowing DAG to be traded for BTC, ETH, and NEO. Making the DAG token freely tradeable for industry standard cryptos will help Constellation grow.
According to the company, their private presale in January raised USD 35 million. They sold more than 730 million tokens to accredited investors, institutional investors, and other funds.
Constellation is planning to perform six token airdrops this year. The first airdrop is scheduled for July 7. If they are successful in creating a dynamic platform that can alleviate the scalability issues that cryptos face, their company will be in a great position to supplant existing payment systems.
Nicholas Say was born in Ann Arbor, Michigan. He has traveled extensively, lived in Uruguay for many years, and currently resides in the Far East. His writing can be found all over the web, with special emphasis placed on realistic development, and the next generation of human technology.