Updated on:11/29/2025 05:02 PM 
While widespread blockchain adoption might be one of the less discussed topics in the fast-paced world of crypto and blockchain, it could be the most crucial catalyst to a futuristic reality where everyone and everything is recorded on a distributed ledger.
As a global economy, we're now in a transitional phase where some forward-thinking companies have been eager to get ahead of the curve by ensuring their infrastructure is built on the latest technology available.
However, many major tech brands who play a vital role in making the world go 'round have been running on all sorts of legacy technology that is quite simply outdated and not efficient enough to keep up the pace. To get some deeper insights into mainstream adoption, we had a chance to sit down with Benjamin Diggles of Constellation Network.
What is the problem the Constellation Network is trying to solve?
Constellation is a platform that allows everyone to build and deploy business on a blockchain. Existing blockchain technology does not provide the speed, scalability, and business incentive necessary to build applications with robust business models. Constellation is its own network and blockchain protocol. With Constellation's L_0 state channel standard, you can define the rules of your business while tapping into Constellation's Network, powered by rewards.
Entrepreneurs building applications in any industry can add blockchain-like functionality and attach incentives to real-world business metrics and outcomes. Like WordPress, we provide an open-source platform with robust developer tools that anyone can build on. Constellation's state channels are built on our L_0 standard. We provide data assurance tools and incentives while tapping into the unique capabilities of blockchain technology, providing immutability, transparency, auditability, and traceability.
Constellation's decentralized value-based network, called Hypergraph, is built for speed and scalability and leverages a base layer that is used to secure the network. Currently, Hypergraph supports millions of transactions a month and enables a feeless person-to-person network that is used to transport our cryptocurrency $DAG, which is validated by a reputation-based consensus. As a microservices platform on a network powered by rewards, legacy business models and data can be connected to our feeless and scalable network, governed and optimized by mathematical proofs.
Constellation is forging blockchain entrepreneurship through an ecosystem of businesses and state channels powered by $DAG tokens. Constellation's L_0 state channels are an evolution of smart contracts but provide robust business models to create a modern cryptocurrency standard, data assurance, traceability, and value to stakeholders.
What is the current timeline for autonomous vehicles and why is a blockchain-based solution necessary?
One of these is the issue of sharing data between vehicles, companies, and the users driving the cars. The vehicles need to safely and reliably transmit telemetric data that could save lives. At the same time, they may need to collect personal data of the drivers for utilization purposes—a potentially tough proposition in the current world.
There are varying levels of how autonomy is defined in vehicles. Currently, most vehicles in production have some sort of assisted driving capabilities but we are still a ways out on full autonomous vehicles. That said, with the implementation of Blockchain technology the pace at which AVs are moving into production has sped up significantly. The timelines vary based on the regulatory framework in different countries. More developed areas like the West Coast of USA are going to see full autonomy driving in the next 5 years – well before an area like Dubai, UAE will be able to have this type of implementation.
In order for true vehicle autonomy to take place, there needs to be a network, or series of networks, that orchestrate the communication between the vehicles, infrastructure components and devices. And there is no right answer for who owns the network because there are issues with trust, security and ownership of IP. Distributed Ledger Technology is the key element in solving the massive barriers to orchestrate these networks. By providing a secure series of trustless networks, AVs can communicate with each other while maintaining an audit trail of the ownership of data. This is what has changed the game for accelerating autonomous vehicle networks.
How will users of the network be incentivized for participation?
In order to create a L_0 channel or state channel, you are required to stake $DAG or deploy a node that receives rewards for maintaining the network and participating in consensus.
What are the pros and cons of traditional blockchains versus DAGs?
The concept of a DAG cryptocurrency (directed acyclic graph) was first introduced in 2015 by Sergio Demian Lerner in his paper outlining his concept for a digital currency called DAG coin. DAG technology is an alternative system that allows cryptocurrencies to function similarly to those that utilize blockchain technology without the need for blocks and miners.
A DAG is a finite directed graph that does not have directed cycles. It consists of an infinite number of edges and vertices, each edge being directed from one vertex to another without having to start at any one particular vertex or follow a consistent or directed sequence of edges to wind back to the same vertex again.
Every technology has its own set of limitations, and it's no different with blockchain. Here are some of them:
Scalability:
Blockchain technology and the use of security consensus leads to scalability issues. Forks on the bitcoin blockchain like BCH, SegWit2x etc are aiming to solve this issue, however, if these issues are unresolved, we'll see rising issues with transaction failures, high transaction fees, and long transaction times.
Hardware scalability:
With the increase in popularity of blockchain and cryptocurrencies, the cost of hardware is on the rise. This is also raising the cost of entry to mining, thereby making it centralized.
Speed:
This is a common issue in all blockchain based systems. The basic goal should be that systems should be able to handle the volume of transactions without choking.
Proof of Work Consensus Mechanism:
Traditional cryptocurrencies are experiencing rapid centralization which is making individuals within the network powerful and able to take advantage of the system. This is particularly evident with bitcoin.
Security:
The notorious 51% attack and the development of quantum technology. Currencies such as Bitcoin run based on cryptographic algorithms or puzzles that are difficult to solve with current hardware. As technology advances, how obsolete will this become? This isn't anywhere in the near future, but with the development in quantum technology, solving that algorithm will become easier.
The Developer Learning Curve:
Different protocols require engineers to learn a new language, like Solidity for Ethereum or Script for Bitcoin. Some developers are not going to want to take the time to learn a new language when they have spent years in other programming languages – especially within enterprise organizations.
It's clear that there is a lot of room for improvement when it comes to traditional blockchains, but how does a DAG differ from a traditional blockchain, and what are the advantages?
To explain that, let's look at another metaphor, 'The Party'. In more traditional blockchains, the party host (Let's call him Satoshi) provides the food/drinks (i.e resources) for the party. When the guests arrive, the amount of resources can only serve so many people, the portions are tiny, and then everything eventually runs out and Satoshi's party ends. Think of Constellation DAG like a potluck (a party where everyone brings food/drinks). With every additional guest (node to the network), the more resources the party has to keep going. This is the nature of a DAG, and of Constellations approach to scaling.
Tell us more about the Proof of Reputable Observation consensus. What is the advantage over proof-of-work or proof-of-stake?
The Proof of Reputable Observation consensus represents benevolent behavior across Constellation that is rewarded and should be imitated to improve a nodes overall reputation within the system. In short, as each actor on our network functions as a node, and the behavior of each individual node works along with other nodes to ensure the success of the greater network.
How will the Connected Mobility Data Marketplace work?
The CMDM working group aims to enable a DLT based data marketplace for stakeholders of the mobility data space, including OEMs, insurance providers, advertisers, and others to effectively collect, store, access and share data with others. The group is working on standards for vehicle, infrastructure and user data and user interactions exchange. The system will provide a foundation for applications to be built for a variety of uses, including but not limited to V2X data exchange, targeted marketing with vehicle data, sharing/monetizing AV driving data for better driving algorithms through machine learning.
CMDM is co-chaired by DENSO and General Motors (GM), with support from Accenture, AMO Labs, Cognizant, Constellation Network, Continental, CPChain, Dealer Market Exchange (DMX), Ninth, Bosch, Ford, IBM, NuCypher, Ocean Protocol, RouteOne, ShareRing, German Blockchain Association, and Toyota Insurance Management Solutions (TIMS).
What will Constellation Network adoption look like in the next few years?
Traditional blockchains and ecosystems provide one way to extract value on a value-based network: fees. This is programmed and pre-determined in traditional layer 1's (base layer). This prevents the efficient flow of data due to fluctuating and high fees for every application that builds on a fee-driven base layer and thus limits the number of data sinks that are needed to drive a digital economy of the future. These networks are also sluggish and cumbersome and are not built to operate complex business models to meet real world needs.
Constellation's Network, Hypergraph, and full protocol HGTP provide speed, security, and L_0 consensus with no base layer fees. Through the use of state channels with existing programmable business models and a feeless person-to-person network, we provide a myriad of opportunities for anyone to develop a business that attracts value from the Constellation ecosystem – with strategic incentives.
Our goal is to attract the next blockchain developers to build a scalable business with quality from enterprise stakeholders that engage with the business. Over the next few years, anyone will be able to build and deploy a business using Constellation's blockchain technology by using the "DAG Terminal" – a user-friendly software complete with open-source developer tools. This software does not require the user to know how to code but offers deep level access to developers looking to make network and crypto deployments as they wish.
Our scalable and simple-to-use blockchain protocol will make an impact not only in the legacy enterprise market but also in the emerging world of crypto tools and decentralized applications.
