The Digital Age Utilizes Virtual Machines To Positively Impact The DeFi Space
Lattice Exchange will be the standard-bearer in a truly decentralized, secure, speedy, and interoperable space of Decentralized Finance. Major partners have already gravitated towards them, and the list of affiliates continues to grow as awareness of their revolutionary status permeates the cryptosphere.
Lattice Exchange was built to solve existing problems in the space while paving a road to actualize a genuinely global market for DeFi. A vital component in this is Lattice’s utilization of the technologies that were brought to blockchain by the Constellation Network.
Lattice Exchange is utilizing Constellation to develop increasingly complex and efficient Automated Market Makers. These algorithmic agents have the express purpose of providing liquidity to electronic markets. Although the current DeFi ecosystem has AMMs to aid in transactions, the simple AMMs that are found on Ethereum and other networks are blemished in comparison to the sophisticated AMMs found in traditional finance.
Lattice leverages the technology of Constellation to build institutional-grade AMMs. The largest Defi platform today, Ethereum, is unfortunately ill-equipped to handle the integration of sophisticated and specific AMMs. The reason is because of the limitations on the programming and network that is intrinsic to Ethereum’s Virtual Machine.
Virtual Machines (VMs) are a major part of blockchain technology. VMs are emulations of computer systems that can be implemented as specialized hardware, software, or a combination of the two. There are two types of VMs, however we will be focusing on Process Virtual Machines. The reason being that they are a critical component in blockchain technology. In general, Process VMs are designed to execute programs in environments without the need of a platform.
Their role in blockchain has been the execution of smart contracts, pioneered by Ethereum. This Leviathan in blockchain developed the Ethereum Virtual Machine, which endows Ethereum with the status of a state machine rather than a distributed ledger (e.g. Bitcoin). This indicates that it can transition from one state to another number of finite states at any given time due to the specific inputs that it receives.
To give credit where credit is due, the VM has admirable success in being a conduit to executing smart contracts, however, the specific choice of EVM is not without its failings. Consequently, Ethereum’s employment of smart contracts is not without significant flaws.
A very serious problem is the ossification of the contract codes. EVM does not use Von Neumann Architecture. With Von Neumann Architecture, there is singular shared memory for all data and programs. EVM lacks this and is dependent on storing data on a separate ROM. Any bugs that crawl their way into the code are made permanent and irremediable.
Another major problem with EVM and any related type of Finite State Machine is that it is not Turing Complete. A Virtual Machine would be Turing Complete if it were capable of solving all computational problems, but it cannot. It would not be a tall order to require this from A VM, considering nearly all programming languages today can do this.
The EVMs computations are limited by gas (the cost to execute a transaction). This execution permeates every node in the network, thus limiting storage and computation.
The form of Turing Incompleteness that EVM utilizes creates an environment for smart contracts that is far from ideal. It permits contracts that contain non-terminating computations. This can lead to processing a transaction indefinitely, and stifling the construction of the blockchain. Ethereum is prone to these loopholes, because it can not solve every computational problem that may arise.
Another practical problem is commercial in nature. EVM uses unfamiliar programming languages and design patterns that impede rapid adoption. It is difficult to imagine many enterprises utilizing Ethereum considering how time-intensive and costly it proves.
Among those who do not have the shortcomings of incompleteness is Java. Indeed, the JVM, or Java Virtual Machine has Turing Completeness as well as a whole slew of advantages over EVM which made it the logical choice when Constellation Labs decided to improve upon the world of blockchain technology.
Constellation’s use of JVM comes with obvious advantages over EVM. Java has been widely vetted and implemented in most of the major tech companies stacks, including Google and Uber. In fact, there are 9,438 companies who have reported using Java in their tech stacks. It has already proven itself on an industrial scale and has a plethora of programmers familiar with its language. Indeed, the JVM leads the world in the number of programmers who are familiar with the languages that are employed on its platform.
Furthermore, the JVM is capable of easily fitting in nearly every smart technological device imaginable. It can operate with facility on everything from personal computers to mobile devices. This has staggering implications for the unbounded growth of the network.
Constellation Network employs the JVM to transform smart contracts into a composeable microservice. This will permit optimum efficiency, pooling computational resources to be provisioned as needed.
Recently Constellation successfully integrated with the Chainlink Network, With the express purpose of providing smart contracts with access to real-world Big Data, as well as providing validation of real-time data. At the time of this writing, Chainlink has over 4 billion dollars in market cap. Which is unsurprising considering the network’s utility.
Chainlink is a decentralized oracle network that lends to smart contracts’ interoperability. It facilitates retrieval and connections to systems and data outside of its native blockchain. This creates an environment of compatibility for fundamentally different software applications.
Constellation is providing data to the Chainlink Network to facilitate a multitude of smart contract use cases that have the Constellation advantage of valid and secure data from a myriad of sources. As a Chainlink oracle, Constellation will pave the way for smart contracts with access to processed data from real-world clients.
This spawns from Constellation’s approach to streaming data using the infrastructure of a Directed Acyclic Graph (DAG), an improvement over traditional blockchain, which I expanded upon in a previous article.
JVM permits smart contracts to be reconstructed as complex and efficient microservices. This entirely circumvents the gas limitations on storage and computation that afflict EVM.
It is easy to see the logic behind Lattice Exchange leveraging the Constellation advantage in employing the JVM among other technologies to facilitate sophistication in AMMs and every avenue of DeFi.
Additionally, with Ethereum, the transaction fees are directly linked to the logic processing of their smart contracts. By utilizing a microservice on the Constellation Network, Lattice Exchange will keep transaction fees near zero.
Considering how Lattice Exchange has superseded all existing applications of Decentralized Finance, and how it has capitalized on the technological advancements of the Constellation network, it is plainly perceivable that they will stand as a giant in the Digital Age that is dawning among us.
Join Lattice In Redefining Freedom
Lattice is a DeFi application built with Ethereum and Constellation’s Hypergraph Transfer Protocol (HGTP). Empowering users using advanced AMM algorithms.
Article is the gifted work of John Ryan
John Ryan is an independent writer and an avid enthusiast of blockchain technology. He received his University education at Northern Michigan University, as a history major, where he was inducted into the Phi Beta Kappa Society for academic excellence. While in Michigan, he also trained as an athlete at the United States Olympic Education Center, where he achieved the status of a multiple-time University All-American in Greco-Roman wrestling. He has authored several plays and a collection of poetry. Some of his major areas of interests includes: Finance, Literature, and Religious Studies.
John is available to contact via email at: arete.aphthiton@gmail.com
