After almost 2 years in the NEM ecosystem, Konstellation, the project behind the DARC token, announces that it will develop a niche financial services ecosystem. DARC will serve as its core utility token. The mainnet will be called Konstellation Network and will be developed using the robust Cosmos SDK toolkit that serves as the basis for other great projects such as Terra, IRISnet, Kava, Binance Chain and the recently announced Aragon Chain.
The Cosmos project is led by the Interchain Foundation and aims to create an “Internet of Blockchains.” Cosmos does not believe in the vertical scalability of blockchain technology. In other words, they disagree with the notion that adding more and more layers to a blockchain network is the best way to support a high number of transactions. Instead, the goal is to provide horizontal scalability via interoperability.
By adding new “Hubs” to the Cosmos ecosystem and enabling dapps to create their own application-specific sidechains called “Zones,” scalability can more easily be achieved. Transactions can be recorded on a variety of blockchains, all of which can be rooted in secondary Hubs that ultimately connect to the Cosmos Hub via Cosmos’ unique Inter Blockchain Communication [IBC] mechanism.
The first project to utilize this IBC protocol is Ethermint, which will provide a scalable and inter-operable home for Turing-complete smart contracts written in Solidity a full year or more before Ethereum will be able to implement these features itself.
As the business and technical development teams of Konstellation mapped out future strategy, it became clear that the aspect of interoperability was the most important consideration for choosing a blockchain technology to build on. With Cosmos’ team and its rapidly expanding universe of related projects, Konstellation becomes a part of a whole world of kindred spirits that are focused on expanding adoption of blockchain solutions.
The goal of interoperability is to ease the transactions between different blockchains. If you hold Bitcoin and would like to use some of that asset to secure a position in any of a variety of other cryptocurrencies or tokens, that transaction should be something that can easily be accomplished within 5 minutes. This convenience is the core motivation behind the decentralized finance [DeFi] movement.
The Cosmos blockchain, secured by its ATOM token, is the best home for this type of development. The fact that Binance has chosen to base its chain on this technology, and has also chosen Kava as its next Binance Launchpad project, underscores this notion. Cosmos is the future of DeFi.
Due to these considerations, Konstellation has decided to transition its entire token supply from the NEM blockchain to a pool of tokens that will exist in the Cosmos ecosystem. Further details about this forthcoming token migration will be provided by the Konstellation team in the near future.
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Disclaimer: This a paid post, and should not be treated as news/advice.