Constellation Network Complete Analysis

TL;DR

The Constellation Network and its Hypergraph Network is a layer 0 Distributed Ledger Technology that uses a DAG-based protocol that promises security, a fully decentralized network, and boasts infinite scalability. It is positioned for the growing needs of Big Data solutions.

Via its state channels, the constellation protocol seeks to achieve full interoperability not only with other blockchains but all data networks and allows easy integrations with existing infrastructure. Passive income is made available to $DAG holders who can stake to validate data. It has impressive existing partnerships that include Amazon AWS, the US Space Force, Space ISAC.

The Hypergraph Transfer Protocol HGTP Network

The Constellation Network uses a Directed Acyclic Graph (DAG) based protocol on its Hypergraph Transfer Protocol (HGTP) architecture, and $DAG is the native token. A key difference to note is that while Constellation is a DLT, it does not use a blockchain like BTC or ETH, but rather the Directed Acyclic Graph (DAG).

The technical explanation of DAG is quite mathematically nuanced, but as a visual exercise we can use the following; imagine two teachers marking the work of an entire class. This represents a traditional, linear blockchain, processing transactions one by one. As the transactions pile up, a bottleneck may form leading to a slowing rate of processing, as there is a limit on how many papers the teachers can mark in a given timeframe.

Now imagine, the teachers asking the students to mark each other's papers. In this scenario, there is no limit to how many papers can be marked, and in fact the more students, (the larger the network) the more efficient the process becomes.

This is DAG at work. In technical parlance, this is known as horizontal scalability.

The Proof of Reputable Observation Constellation Protocol.

The consensus protocol is the Proof of Reputable Observation (PRO). Compared to competing consensus mechanisms like Proof-of-Work or Proof-of-Stake, PRO is very energy efficient. This is because the consensus mechanism is only triggered, when a conflict arises, which acts as a distributed consensus among the nodes.

When deciding on conflicting data, the node assesses the reputational score of the node. Much like a credit score, the trustworthiness of a node is based on past performance, behavior, and commitment to the network.

As well as the reputation of the node, the trust flow between the nodes is taken into account. This also means the security of the network doesn't rely on staked tokens, eliminating any issues with the centralization of capital that some argue is inherent in Proof-of-Stake.

The ConstellationNetwork as a Layer 0 Protocol

The Constellation Network claims to be the world's first layer 0 protocol. Constellation uses a complex form of mathematical abstraction to achieve this, but in very simplified terms, a 'layer 0’ meta-network is modeled from all the existing data sources (DLT, blockchains, layer 1 or layer 2 protocols, private enterprise, government systems, etc) to form a network of connected state channels that can analyze past, present, and even probabilistic future data points. Potentially all the world's data in an interconnected network of state channels.

This ‘layer 0’ or the ‘layer 0 token standard’ allows for complete cross-chain interoperability for all the protocols. Of significance is that state channels can process and validate third-party data from any data source (blockchains, DLTs, APIs, devices..).

Another way to view this with obvious use-case implications is the creation of a decentralized order book of global liquidity which permits the exchange of assets from all connected DLTs.

State channels operating on the Constellation Network also serve the function of very advanced smart contracts, without the need for centralized oracles to validate the data. Other advantages over traditional smart contracts include having the ability to define their own business logic. The ability to mint their own Layer 0 tokens that can interoperate with all blockchain protocols for zero fees. Infinite scalability thanks to HGTP’s horizontal architecture as well as permitting the cross-chain exchange of tokens and atomic swaps.

The $DAG Coin Utility

The $DAG token underpins the Hypergraph network and allows it to function. The value of the $DAG token will be derived from the sum of the data running on the Hypergraph. Projects building on Constellation will need to lock up $DAG to secure bandwidth with the state channels. The more $DAG staked, the higher the Transactions Per Second (TPS) the channel can freely facilitate.

Of significance is that $DAG derives its value from the data throughput (the quantity of data being processed within the ecosystem), effectively making it an index of network value.

Put another way, state channel businesses building on Hypergraph need to hold $DAG to scale their business and access necessary bandwidth. As such, the $DAG token can be viewed as tokenized bandwidth or data as a unit of currency. As data is onboarded onto the ecosystem there will be a proportional increase in the value of the token.

$DAG Coin Metrics

The market cap is $188M, the circulating supply is {{3.5B with 100% outstanding. As of November242024 COnstellation network is {{percentagefromatl}} from its all time low. A good opportunity to buy now in hopes of it hitting its all-time high of $0.451761 again.

The Founding Team Behind Constellation Network

The website lists 6 c0-founders. Head of Community & Events Altif Brown. An angel investor who brings extensive experience in managing community strategies.

 

CEO Benjamin Jorgensen is an entrepreneur and company founder with over 10 years of experience in business leadership.

VP of Business Development Benjamin Diggles, who has over 15 years of consulting and marketing experience. He spent 4 years at Oracle where he managed all Business-to-customer (B2C) services and technology partners.

VP of Finance Mathias Goldmann, who brings experience working from institutions such as the European Central Bank. Co-Founder and CTO Wyatt Meldman-Floch is a well-connected Data & Platform Engineer.

Constellation's Global Partnership Strategy

Constellation has onboarded many reputable partners as state channels including the US Air force, US Space Force, Space ISAC, Amazon Web Services, Arizona State University, IEEE Blockchain, CGI plus others.

Constellation Network Mainnet 2.0 launch

The main event on the radar for Constellation is the Genesis Block of Mainnet 2.0 launch on 28th September 2022. The updated roadmap will be released on the same day.

Competitors

Other DLT projects using DAG technology are IOTA and Hedera. DLTs that claim layer 0 status include Horizen, Cosmos, and Polkadot.

Where to Buy $DAG Token

The $DAG coin is available on many cryptocurrency exchanges including Kucoin, Gate.io, and LCX Exchange.

Constellation Price Analysis

As of November 24 2024 Constellation has a marketcap of $188M. This is {{percentagefromath}} from its all time high of $0.451761. In terms of its tokenomics, there's a total supply of 3.6B with 100% currently outstanding. Keep in mind Constellation has a fully diluted value of $188M which many investors might interpret as overvalued.

Of course, don’t trust price predictions alone, always check the Coinrotator token screener to follow the trending market.