In this article, we are going to dive deep into the Constellation Network ecosystem. We’ll look at the different layers of the project in detail. This includes the Hypergraph network, Hypercube development tools, state channels, and the L_0 standard use cases. Also, we’ll explore the roles and utility of the native DAG coin. Plus, we’ll discuss the fundamental DAG node network and the unique proof of reputable observation (PRO) consensus model. 

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What is Constellation Network?

Constellation Network is a development framework that is decentralized, open-source, and permissionless, which enables anyone to develop applications. Further, Constellation offers full autonomy over the tokenomic structure and incentives of applications. However, Constellation Network is far more than just another decentralized playground and toolkit. Rather, the project is building a universal interoperable “application of knowledge”. Accordingly, Constellation blends various approaches to enable a “hybrid of cryptocurrency/blockchain, distributed systems computing, machine learning, and enterprise (SME) adoption”.

Constellation Network - a new framework for blockchain businesses.

Introducing a novel “L_0 state channel” and token standard, the Constellation Hypergraph network is built using directed acyclic graph (DAG) technology. This enables scalability, speed, and security without risk to decentralization. Also, the Constellation Network’s native asset, the DAG coin, is another fundamental part of securing the network. In turn, the project presents a solution for building secure decentralized applications with the ability to manage, index, and query secure data using community governance. 

AI, Machine Learning, and Big Data Security

Why do we need Constellation Network, and what makes the project so valuable? The project presents solutions to issues surrounding securities of the most valuable asset class currently available, big data. Data is fundamental to the progression of cutting-edge technologies, including machine learning and artificial intelligence (AI). 

Showing the world being connected with AI, and nodes using Constellation Network.

Accordingly, AI is only as good as the data it harbors. However, there is barely a way of confirming the validity of said data currently. Furthermore, the few digital data audit trails available from AI devices are centralized and vulnerable to the risk of manipulation. Specifically, Constellation Network wishes to help prevent any more potential scenarios similar to Uber’s lack of responsibility for its autonomous vehicle knocking down and killing someone. Unfortunately, as there was no immutable audit trail of the data entered in the maintenance log, no individual nor company was found responsible for the incorrect calculations and algorithmic malfunctions preventing the car from stopping in time. 

While Constellation Network’s focus is still largely on speed, development experience, and security, it places itself within an emerging category of ensuring safety surrounding big data. As such, using the Hypergraph network, state channels, the novel proof of reputable observation (PRO) consensus, and the native DAG coin, Constellation Network is creating a transparent audit trail with an open network. Moreover, all the data aggregated on the network will be subject to community governance. This way, a global network of like-minded people can confirm the validity of data.

The DAG Coin

DAG is the crypto asset of the Constellation Network project. Further, as DAG is native to the project running on the Hypergraph network, the asset is technically a coin, not a token. Any further cryptocurrencies built on the Hypergraph network will conversely be a token. Additionally, the DAG coin is more than just the medium of exchange throughout the network. 

The DAG coin for Constellation Network - image stating "$DAG Defined".

Asset holders of DAG can use the coin to a) run a node on Constellation Network’s Hypergraph protocol or b) set up and run a state channel. We will discuss state channels in detail later on in this article. The multi-utility DAG coin incentivizes honest behavior on the network. In turn, the protocol rewards nodes and validators with DAG coins for their contribution to the project. In addition, the DAG coin facilitates frictionless interactions across the Constellation Network ecosystem. This includes nodes, state channels, L_0 tokens, and different businesses using the Hypergraph network protocol. Also, the DAG coin allows for cross-chain liquidity pools available throughout other blockchain ecosystems as well. 

Constellation Network Ecosystem

There are various aspects to the Constellation Network ecosystem. Together, they offer transparent, secure, and scalable frameworks for building decentralized applications with the ability to index and query data. Further, the network ensures the integrity and validity of said data. The entire project is purpose-built, using a directed acyclic graph (DAG) architecture for its database. Also, the project designed its consensus mechanism, proof of reputable observations (PRO), from the ground up. Additionally, the Hypergraph transfer protocol (HGTP) allows for secure message transfer between devices while simultaneously generating a secure audit trail with the retrospective metadata. Overall, the project aims to create a community of interoperable networks aggregating trusted data sources, using a self-sustainable, self-governing model. 

Hypergraph Network Protocol

Constellation Network’s Hypergraph transfer protocol (HGTP) is a novel form of distributed ledger technology using a directed acyclic graph (DAG) infrastructure, a “non-linear and asynchronous data model”. This presents a feeless, user experience (UX)-enabled, scalable framework for small and medium-sized enterprises (SMEs) to build decentralized applications. Moreover, the HGTP network is seamlessly interoperable with current traditional centralized IT infrastructures. In addition, developers can use the Hypergraph network protocol to deploy state channels, validating specific types of datasets. 

Info chart explaining "what is Hypergraph?" for Constellation Network.

The Hypergraph network transfer protocol allows for the transaction of DAG assets across the ecosystem. Also, the Hypergraph network facilitates the development and deployment of the L_0 token standard (we will discuss this in-depth later on). Achieving such a framework was not possible with existing consensus models. As such, the Constellation Network team designed a peer-to-peer (P2P) reputation system. This operates as a secure communications mechanism for the Constellation Network and Hypergraph network nodes. 

PRO — Proof of Reputable Observations

Constellation Network has a focus on big data and aims to facilitate the validation of data integrity through a community consensus. This is particularly important with machine learning and artificial intelligence (AI) protocols. With this in mind, traditional consensus models thus far appear inadequate to achieve such a vision. In turn, Constellation Network uses its own innovative consensus protocol, incorporating machine learning aspects “to balance [the project’s] complex network topology with a performance approach to validator rewards”. This protocol is called proof of reputable observation, or PRO.

Constellation Network's proof of reputable observations logo.

PRO is fault-tolerant and achieves a reputation-based consensus using automated federation. Validators receive DAG coin rewards as an incentive for honest participation and validation of data. Moreover, Constellation Network is introducing a new “consensus as a service” (CaaS) model for developers, enabling integration of the protocol via any API “on either native or cloud server infrastructure”. 

State Channels

To facilitate the hosting capabilities of international tech conglomerates, Constellation Network uses novel infrastructure involving state channels. State channels are their own network, aggregating and validating their own specified type of data. The fundamental structure of the Constellation Hypergraph transfer protocol (HGTP) comprises a series of state channels, or “microservices”. Developers using state channels have complete autonomy over the tokenomic design and business parameters. Plus, developers can choose their preferred data types within the flexibility of the Hypergraph consensus protocol.

State channels provide frictionless interoperability with existing traditional IT applications. As such, this creates a seamless bridge for centralized applications to transition or incorporate elements of decentralization within their business model. Moreover, state channels must operate at least one DAG node to enable throughput. An example is the native DAG node validating all DAG coin transactions and data within the Constellation Network ecosystem. 

DAG Nodes/Validators 

The foundational layer of Constellation Network is responsible for running and securing the Hypergraph network and transfer protocol. Thus, it comprises a global network of DAG nodes or validators. While state channels store various schemas of data sets, DAG nodes are the network operators validating the data for state channels. During the initial launch of the project, the team selected 100 reputable “foundation nodes”. This was to give the network a stable introduction to users. Moreover, the proof of reputable observation (PRO) consensus involves financial incentives for nodes to attract new trustworthy DAG nodes. 

State channels with DAG nodes, state channel nodes, and a hybrid node combining the two for the Constellation Network.

DAG nodes or validators receive rewards in the project’s native DAG coin. However, the amount varies depending upon the node’s contribution to the network and the reliability of attracting new honest nodes. The calculation of rewards is proportional to a DAG node’s proof of reputable observation score (PRO score). The highest score a DAG node can receive is 1.0. The higher the score, the higher the number of rewards. To become a node, users must stake a certain amount of DAG coins. The project states that it has an allocation of 1.6 billion DAG coins as rewards for distribution over the next ten years.

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Hypercube and the L_0 Standard

Catering to freelance developers, individual sole traders, and global enterprises alike, Constellation Network offers an end-to-end business toolkit for deploying applications and cryptocurrencies on the Hypergraph transfer protocol (HGTP) network. The state channel development suite, Hypercube, introduces a novel application and token standard, the L_0 standard. Furthermore, there is no requirement for knowledge of coding! Instead, Hypercube offers the ability to deploy scalable applications on the HGTP network in just a few steps. Simply select the preferable hosting provider and determine the token strategy and data type, then it’s good to go! Using the minting tool available, users can choose different types of tokens to deploy, such as non-fungible tokens (NFTs), stablecoins, or governance tokens. Also, Hypercube will offer any relevant legal advance surrounding suggested tokenomics to ensure full legal compliance and protection upon launch. 

Introducing Hypercube - the end-to-end blockchain business toolkit for Constellation Network.

The key difference between traditional cryptocurrency token standards (such as ERC-20, BEP-20, etc.) and the Constellation Network L_0 standard is the adaptable and flexible framework it offers. For example, L_0 is an application standard for microservices or state channels and a token standard for minting cryptocurrencies. In addition, an L_0 token displays all tokenomic and business mechanics of an application in the metadata. Plus, L_0 tokens have the “ability to define custom consensus parameters”.

Hypercube allows anyone wanting to launch their business model on the Hypergraph network the ability to do so with minimal technical knowledge. Also, the L_0 standard offers the flexibility of both public and private applications. Plus, deploying a token or application using the L_0 standard means it is “ecosystem ready” and fully compatible with other protocols and applications on the Hypergraph network. 

Exploring Constellation Network and the DAG Coin – Summary 

Constellation Network is a next-generation infrastructure incorporating blockchain technology to aid in the progression of the Web3 evolution. The project recognizes the need for cryptographic validation and integrity of data. Particularly, this demand is for machine learning and artificial intelligence (AI) progression. In turn, Constellation Network presents a multi-stack, secure, scalable solution offering true immutability and transparency of data. Furthermore, this offers a revolutionary opportunity for community governance and a majority vote of the validity of data. This is possible thanks to the native DAG coin. 

With the globe seen from space in the background and Constellation Network's logo in the front stating "Honest Data - Connected Future".

The foundation of the Constellation Network is the DAG node network. DAG nodes operate with financial incentivization for honest participation in return for rewards in DAG coins. Moreover, the DAG nodes are responsible for validating data that is used by state channels operating on the Hypergraph transfer protocol (HGTP) network. The Hypergraph network operates on the layer above the nodes. Overall, the Hypergraph network provides a development environment adequate for large-scale enterprise use. This is possible thanks to the use of state channels. These operate as individual networks streaming and aggregating specific data types. Also, Constellation Network offers the Hypercube development toolkit introducing the novel L_0 token standard. As the value and demand for data integrity and security are likely to continue to increase, Constellation Network presents a valuable opportunity for businesses to enhance and evolve. The project enables frictionless integration of decentralization and data immutability. 

To discover more about how businesses can benefit from using blockchain, see our Blockchain Business Masterclass course at Moralis Academy! This course is perfect for non-developers to gain an insight into the management of blockchain projects. Also, don’t forget to reach out to us on Twitter @MoralisAcademy! Let us know your thoughts about Constellation Network and the DAG coin!