Artificial intelligence. Machine learning. Internet of Things. The space economy. Driverless cars. Genome sequencing. And much more. So, what’s this to do with “Blockchain Killer”. Let’s find out.

There’s a lot of excitement surrounding these technologies.

Futurists have made no shortage of predictions about how they’ll radically transform our world.

But, here’s one thing they barely mention:

All of our major technological innovations are limited by the speed, security, and trustworthiness of the data storage solutions.

This is the big bottleneck.

Blockchains allow us to have trust and transparency without the need of a central authority.

And, make no mistake. This is revolutionary stuff.

But, here’s the harsh truth:

The “traditional” architecture of blockchains can’t scale to meet the data needs of 21st century foundational technologies.

We need a FUNDAMENTAL shift in the architecture, without throwing out the baby with the bathwater.

For this reason, a few crypto teams are turning to a data modeling technique called Directed Acyclic Graph, or acyclic graphs.

Wait! Blockchain Killer, Seriously?

Directed acyclic graph technology is a big deal. Some are even calling it a “blockchain killer.”

Here’s the truth:

Acyclic graphs will be a great complement to blockchain, making it easier for legacy systems to use blockchain technology, and helping crypto reach mass-adoption.

But, contrary to the hype, acyclic graphs won’t kill blockchains.

And, though there are many crypto companies using this technology…

We’ve identified only ONE acyclic graph crypto project that has a shot of hitting mainstream adoption. And, right now, it’s less than 25 cents.

We’ll get to that in a moment.

First things first…

“Acyclic Graph” Explained

Simply put, an acyclic graph is a data modeling tool. All software has a specific architecture. Acyclic graphs are just a different way to model data, with its own set of trade-offs.

Blockchains move in a straight line, with blocks of data connected by chains, but acyclic graphs are a series of transactions in a graph.

While blockchain architecture looks like this…

Acyclic graphs look like this…

They are similar in two ways…

Both create immutable ledgers showing agreed-upon information. Both allow users to send, receive, and confirm transactions.

But that’s pretty much where the similarities end.

The biggest difference is how they scale.

How To Scale Up?

When it comes to scalability, there are two approaches: you can scale up (vertical) or scale out (horizontal).

Vertical scaling improves the efficiency of each transaction. Horizontal scaling increases the entire platform’s capacity.

Traditional blockchains scale vertically.

A good analogy is a busy grocery store with only one checkout aisle. The vertical scaling solution is to train the cashier to be faster at his job (make blocks bigger). The horizontal scaling solution would be to create more and more lanes with more cashiers (utilize Acyclic Graph technology).

Vertical is easier to implement and more secure, but it comes with a lot of limitations.

Horizontal is more complex, but offers scale that far exceeds vertical architectures.

Pros:

→ No miners
→ Instant transactions
→ Micropayments

Cons:

→ Complexity
→ Requires big user-base (traffic is tied to network security)

Again, acyclic graph is not a replacement to blockchain. It is a complement.

Acyclic graph could be a crucial tool for crypto’s mass adoption, but traditional blockchains will work hand-in-hand with them to maintain security.

Here Is a Favorite Acyclic Graph – The Real Blockchain Killer

As mentioned, there are several crypto projects using the directed acyclic graph technology.

Constellation (DAG) is described as a “distributed network that enables fast, scalable solutions for organizations who need to process and transfer data securely and build interoperability for connected sensors and devices.” 

In my evaluation of projects with monstrous upside potential, and Constellation stand tall.

Constellation boasts that it provides the ONLY scalable, secure solution for the next evolution in Big Data and the Internet of Things.

It’s a bold claim, and time will tell if it lives up to the hype. That said, they’ve made great strides since their foundation, have a strong team, and are one of the most innovative projects in the blockchain space.

As just one example: In 2019, the company signed a working contract with the United States Air Force (USAF). 

This contract is part of an effort by the USAF to modernize data silos into a new framework called Multi-Domain Command and Control (MDC2). Each domain must monitor, share, and be able to keep up with an incredible amount of data from satellites, drones, planes, defense systems, and much more.

This multi-domain system requires interoperability (ability to communicate and share data) between domains and between legacy system data with cloud infrastructure data. 

Constellation is building a blockchain-based solution: decentralized security, encryption, audit trails, and a live overview of the status of any data source.

Here’s another example of where it’s being adopted: 

Constellation is also a part of “Space ISAC,” a group of private companies that operate in space. The space economy is and will continue to be, highly data-intensive. (Sensors,  satellites, weather balloons, etc.) All of this data needs to be cryptographically secure and trustless, but there’s no way current blockchain architecture can handle this much data. 

Enter Constellation.

Unlike many other cryptos, Constellation isn’t a solution looking for a problem. It’s tackling one of the biggest problems in traditional data-intensive industries. 

Not to mention, attacks over the years on centralized data systems like Equifax, Visa and the IRS, are just scratching the surface of what’s to come. As long as the status quo remains to be centralized data storage, our mainstream data systems will remain honeypots for savvy cybercriminals. 

Why DAG Now?

Consider that 90% of the world’s data has been generated over the past two years, and that’s growing exponentially. 

There are roughly 2.5 quintillion bytes of data transferred every single day — unimaginable amounts compared to a decade ago. 

That’s why Constellation is creating “the Internet of Big Data.”

Constellation is positioning itself as the bridge between traditional businesses and the blockchain age, a “Layer Zero” blockchain that can operate “underneath” Web3.

Constellation’s DAG (direct acyclic graph) blockchain gets around scalability issues by spreading out the workload amongst several different microservices, or state channels.

Each microservice is its own distributed network, helping to validate data across the entire network.

Rather than proof-of-work or proof-of-stake, DAG works by Proof of Reputable Observation, an alternative consensus mechanism that allows the network to become faster and more scalable the more it grows.

Why the DAG token? 

One of the biggest questions we always ask when looking at an innovative crypto company: That sounds great, but why do you need a token?

Often, they don’t.

In DAG’s case, however, it has real utility. 

The DAG token is an “index token of all the data on the network.” 

To run their own “data businesses,” organizations need the DAG token. It’s a pay-to-play network and DAG is the currency.  

Jorgensen recently published a post called “What Matters Now?” This will give you the latest update on Constellation. 

If looking for a BIG asymmetric bets. High risk, higher rewards. This one has a chance of making 100X… and even 1,000X gains over the next few years.

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