2021 Constellation Network ($DAG)— A new framework for blockchain businesses

By: Constellation NetworkMateo Gold(COO) and Ben jorgensen (CEO) Wyatt Meldman-Floch (CTO) Benjamin Diggles (CRO)

Twitter: @ BenJorgensen @ Mgoldm

Constellation provides a framework and network to tap into a digital economy. Our aim is to bridge real world data, business mechanics, rewards, with the power of immutable distributed ledger technology (blockchain) through the Constellation L_0 standard and microservice framework.

Constellation is a framework that allows everyone to build and conduct business on a blockchain. Existing blockchain technology does not support the speed, scalability, and economic incentive needed to build applications with robust business logic. Constellation is its own network and blockchain infrastructure. 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 framework 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, security, auditability, and traceability. Constellation’s decentralized value-based network, called Hypergraph, is built for speed and scalability and leverages a reward layer that is used to maintain the network. Currently, Hypergraph supports millions of transactions a month and enables a feeless peer-to-peer network that is used to transport our cryptocurrency $DAG, which is validated by a reputation based consensus. As a microservices framework on a network powered by rewards, advanced business logic 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 utility. Constellation’s L_0 state channels are an evolution of smart contracts but provide robust business logic to create a new cryptocurrency standard, data assurance, traceability, and accountability to stakeholders.

Network Participants

Token Purchasers and Holders: These individuals have purchased $DAG, are speculating or trading and/or sending $DAG as a peer-to-peer currency between their wallets.

Node Validators: These individuals manage nodes and receive $DAG as a reward for participating in Hypergraph and consensus. Consensus is the programmatic means to govern and optimize the network with speed and security. The collection of these nodes is distributed, and forms the Hypergraph.

State Channel Businesses: Individuals and organizations can use the Constellation protocol HGTP to create unique businesses and tokens on the L_0 standard, with programmatic, automated and immutable business logic.

Opportunity

Traditional blockchains and ecosystems provide one metric to capture value on a value-based network: fees. This is programmed and pre-determined in traditional layer 1’s (base layer). This prevents the efficient transportation of data due to fluctuating and high fees for every application that builds on a fee driven base layer and thus limits the amount of currency sinks that are needed to drive a digital economy of the future. These networks are also slow and cumbersome and are not built to manage complex business logic to meet real world needs.

Constellation’s Network, Hypergraph, and transportation protocol HGTP provide speed, security, and L_0 consensus with no base layer fees. Through the creation of state channels with advanced programmable business logic and a feeless peer-to-peer network, we provide a myriad of opportunities for anyone to develop a business that attracts value from the Constellation ecosystem — with economic incentives.

Our aim is to attract the next blockchain entrepreneur to build a scalable business with confidence from multiple stakeholders that engage with the business.

Product L_0 Standard

WordPress created a framework for developing websites and businesses on HTTP; Constellation provides the L_0 standard for anyone to create a blockchain based business with robust programmable logic on HGTP.

Constellation will introduce the DAG Terminal — where anyone can download our client and create their own business built on a blockchain — Constellation’s Hypergraph. With the introduction of the Constellation L_0 Standard — a state channel/microservices framework — anyone will be able to validate data schemas and data sources, mint their own cryptocurrency, and attach business logic and metrics to their L_0. To create an L_0 application, $DAG will be required and may be procured in the ecosystem.

In today’s cryptocurrency markets, there are too many random tokens that are created for public relations stunts. The L_0 token standard will allow purchasers and holders of an L_0 token to see the business mechanics. Token types will be designed by the creator of the L_0 token to attract purchasers and holders including “shared rewards” that relate to the success and utility of the token. We will provide predefined token types for the L_0 token creator.

Business Use Cases

With no more middlemen, you can simply deploy state channels and harness the power of blockchain, with business logic and incentives baked into your application. Constellation enables anyone to tap into a cryptocurrency ecosystem and integrate blockchain technology into existing systems and applications through our state channels and L_0 standard. Existing token standards allow you to create and mint a cryptocurrency, but have zero built-in accountability and business logic. Typical smart contracts are not integratable into existing systems and applications and only support simple data structures and logic with limited permissions. This is why Constellation provides a superior solution to standard …

Use Cases:

Data Validation: Secure a data source by adding immutability and auditability around customized state channels by defining the data schema (criteria).

Example of L_0 token type: non-financial

Example of business: IoT and connected devices that transfer data between servers.

Shared Rewards: Put digital assets on chain and programmatically distribute rewards based on real world actions and outcomes. Align community and business stakeholders with business objectives.

Example of L_0 token type: shared rewards or compound rewards

Example of business: An L_0 token and business that programmatically distributes rewards for staking an asset or partition of ownership.

Digital Currency Wrapping: Wrap digital currencies to be compatible with other digital currencies ($DAG/Bitcoin) and supply liquidity for cross-chain ecosystems on the feeless Hypergraph network.

Example of L_0 token type: Native pairing

Example of business: Anyone looking to attract liquidity (an asset) to create a liquidity pool for cross-chain swapping.

Token Economy

The economic value or utility of a currency is its ability to conduct transactions within an economy. The U.S. dollar is a widely transacted currency across various economies as a value exchange. There are no transaction fees associated with transferring U.S. dollars beyond the mere value exchange for a service or product, unless another product or service is offered in between the value exchange (e.g. credit card processing fee for using a credit card company’s transaction protocol). $DAG is not a security and instead provides utility to engage in Constellation’s digital economy. By connecting the economies that exist on Constellation’s Hypergraph, there is a generative network effect in the relative price index of L_0 tokens — thus increasing overall network value.

In order to create a L_0 token or state channel, you are required to purchase $DAG or deploy a node that receives rewards for maintaining the network and participating in consensus. $DAG is the main consensus layer in the network and state channels are applications built with $DAG.. Consensus cannot run without $DAG. If you take away $DAG, you take away the consensus layer.

In our working example of the U.S. economy, banks that lend money charge a fee to people that borrow it for a myriad of uses (mortgages, business loans, personal loans, etc). The Federal Government is rather agnostic to how businesses are funded and instead lets banks and lenders build businesses around the use of capital while underwriting the risk and deciding who they want to lend money to.

Like the U.S. economy, Constellation is agnostic to businesses created on Hypergraph, leaving it up to network participants to determine the best businesses to supply liquidity (capital) to. Through Constellation’s DAG Terminal, people can create state channels (businesses) using our L_0 standard. Business logic is integrated to encourage or discourage transactions in the economy through programmatic rewards tied to certain actions or behavior (e.g. revenue share through rewards).

Wyatt Meldman-Floch’s “Generative Tokenomics’’ white paper provides mathematical proofs that ensure network stability and demonstrate how value can be transferred seamlessly throughout the Constellation ecosystem and other blockchain economies. This creates the programmatic means to develop cross-chain liquidity with zero transaction fees. By having feeless cross-chain transactions, we invite capital from other ecosystems and blockchain networks to participate and provide liquidity in the Constellation economy.

Summary

Constellation focuses on bridging real world data with the power of blockchain through state channels (L_0 standard). Constellation’s L_0 standard will allow anyone to develop business mechanics and rewards on a blockchain — a true evolution of the capabilities of digital currency.

Hypergraph is a feeless decentralized network that supports the transfer of $DAG cryptocurrency.

$DAG is required to maintain and run consensus on Hypergraph.

State channels — an evolution of smart contracts — are programmatic deterministic applications that can be built on Hypergraph by utilizing $DAG.

To build applications on Hypergraph, a business or individual must stake $DAG.

Business logic and programmatic rewards can be added to state channel logic to attract participants in the network and create accountability for all stakeholders.

Cross-chain liquidity between the $DAG ecosystem and other cryptocurrency ecosystems provides additional liquidity and network participation to state channel businesses.

Constellation’s cross-chain liquidity provides backwards compatibility to first and second generation blockchain ecosystems, allowing them to reap the benefits of using Hypergraph.

Building big data on blockchain and experiential dining: CEO of Constellation Network; Co-Owner of MZ Dining Group (Ittoryu Gozu); Owner of A5 Meats.