What Is Constellation (DAG)?
Constellation (DAG) is the native token of the Constellation network, which provides businesses with tools and a framework for developing decentralized applications (dApp), crypto assets, or even blockchains. The user-friendly interface for building on the Constellation network, which consists of open-source developer tools, is referred to as Hypercube.
If you're interested in the current DAG price, check out the Constellation price chart above.
It's worth noting that the amount of network bandwidth increases directly as more users join Constellation. The project's ability to scale in line with user demand and the quantity of users is its primary differentiator compared to other similar networks.
Besides, the Constellation network has its own crypto exchange and crypto wallet. Constellation's exchange, referred to as the Lattice Exchange, provides users with feeless multi-chain crypto transactions and incentive programs.
Constellation's crypto wallet is called the Stargazer Wallet. It features cross-chain compatibility with Ethereum and browser extension capabilities. This enables the holding and exchange of supported ETH and ERC-20 tokens, as well as DAG tokens.
The Founders of Constellation
Constellation Labs, the company behind the Constellation protocol, was founded in 2017 by Benjamin Jorgensen, Benjamin Diggles, Mathias Goldmann, and Wyatt Meldman-Floch. Upon launch, the Constellation price was $0.03, and the volatility remained low.
Throughout the years, Constellation has shown a tendency to follow broader crypto market trends. The asset became more volatile in early 2021, and its peak that year was reached in August at $0.46. The DAG price was also impacted by the Q2 2022 crypto market crash.
Benjamin Jorgensen has a degree in economics, anthropology, and political science. Before co-founding Constellation, Jorgensen also co-founded OHSO.TV and Klick Push. Besides that, he is a co-owner of A-Five Meats, Ittoryu GOZU, and a managing partner of MZ Dining Group.
Benjamin Diggles has held both practitioner and leadership roles for more than 20 years in the fields of web, software development, and digital design. He worked in such companies as Disney, Universal Pictures, and Oracle.
Mathias Goldmann has a degree in anthropology. In the past, he worked at such companies as the European Central Bank, Freudenberg Group, Software Suite Worldwide, CloudBounce, and others. Besides, he is an IC and mentor in the Launchpool Web3 Techstars Accelerator program.
Wyatt Meldman-Floch has a degree in physics and mathematics. Prior to joining the founding team of the Constellation, Meldman-Floch worked as a data, platform, and backend engineer at such companies as Radius Intelligence, Zignal Labs, Arrived.us, and Rally Health.
How Does Constellation Protocol Function?
The Constellation Network uses HGTP technology, which is a directed acyclic graph (DAG) protocol with an incorporated Proof-of-Reputable-Observation (PRO) consensus mechanism.
The HGTP network consists of L_0 state channels, which are microservices that employ user-defined validation routines to validate certain data types. State channels can be integrated into already-existing systems, enabling minimal frictionless deployment and direct E2E security.
Regarding the consensus mechanism, Proof-of-Reputable-Observation (PRO) is a unique reputation-based approach that rewards nodes for being trustworthy. However, Constellation'sellation's consensus mechanism does not activate after every transaction. Instead, a conflict resolution process that serves as the distributed consensus across the nodes is initiated when a node discovers a conflict in some data.
Another question could be how the trustworthiness of nodes is evaluated. Essentially, every node in the network is given a global reputation score by Constellation. A machine learning algorithm that calculates the score takes the network behavior of the node into consideration. In addition, based on potential off-chain knowledge, each node has the ability to impose trustworthiness on other nodes.
The Purpose of the DAG Coins
DAG coins are like the glue of Constellation that connects the network's components. The tokens are referred to as the financial state channel of the network. They are based on the L_0 token standard, which is Constellation's state channel standard. Overall, there is more than one utility that DAG tokens have, including:
- Reward token. Constellation tokens are used to reward validator nodes for their contribution to the network. The amount of DAG tokens a validator receives depends on their reputation score.
- Throughput tokenization. DAG also acts as a tokenized throughput or bandwidth. This makes it possible for big data applications to trade throughput for network functionalities like consensus, validation, and notarization.
- Data package tokenization. DAG coins tokenize data packages this way, allowing users to purchase or exchange data sets on the network. In other words, DAG tokens give value to the data on the Constellation network.
- Medium of exchange. DAG tokens act as a practical means of settlement and payment amongst members interacting inside the Constellation network's ecosystem.
- Staking. In order to decrease the Constellation ecosystem's liquidity, nodes have to stake DAG tokens in their wallets. The minimum stake is 250,000 DAG tokens. Besides, developers who want to develop products on the Constellation network also have to stake DAG tokens.
If you plan to buy DAG coins, note that the Constellation price is subject to change. This happens because, similarly to the pricing of other digital assets, the volatility of the overall crypto market has an effect on Constellation.
Tokenomics of DAG Coins
Constellation coins are deflationary because they have a limited supply. Over time, the Constellation price will rise while the token supply will decrease. The max supply of DAG is 3,693,588,685 coins. In 2018, Constellation held an initial DAG coin offering (ICO), during which it managed to raise more than $33 million.
New DAG tokens are minted as rewards for the system nodes. However, once the max supply is reached, no new tokens will be issued.
You can take a look at the Constellation price chart above to access historical statistics, as well as the current DAG price.