What is Constellation Token (DAG)?

Constellation Network provides cybersecurity for big data. The Constellation Network's underlying technology, the hypergraph, provides a scalable and secure distributed network that validates data for enterprise and public sector clients. 

The network is fast and can meet the high data throughput demand that big data expects. Constellation aims to be the one-stop shop for tech companies to build and transact in a decentralized data-driven marketplace in a safe and scalable way. 

Overview of Constellation Token (DAG)

Constellation creates data transmission mechanisms to enhance interconnectedness between devices, software and digital worlds. These data transfer mechanisms use what the network's creators call the hypergraph transfer protocol (HGTP), and they seek to unlock the ability of engineers to seamlessly create applications that distribute and transact information in a trustless and decentralized way to a global population of interconnected smart devices and applications.

To handle the data demands of the future, Constellation is specifically looking to the edge computing industry. Edge computing allows for particular data processes to occur at a local level by focusing computing power near or at the source from which it originated — like a traffic light, for example. 

This process relieves strain on a network while creating less lag time for passing data to cloud computing.

Constellation’s global network will enable existing hardware and software to tokenize data. The network works alongside existing cloud computing infrastructure by allowing enterprise organizations the ability to toggle between their existing infrastructure and Constellation’s network. 

How could data be tokenized? 

The DAG token itself represents bandwidth on the network, which allows transactions above the rate limit and the monetization of data streams. 

DAG users become "datapreneurs" and can monetize their data in any way they like, Constellation's website says. 

The DAG token plays a couple of other roles inside Constellation’s mainnet:

• Nodes earn validator rewards in the form of DAG.
• DAG is used to secure throughput on the network.
• DAG will be used to purchase validated data sets on the network.

Tokenizing data could one day lead to data packages being sold and exchanged like commodities. 

To run a node on the network the user must put up 250,000 DAG tokens as collateral.These node validators receive DAG as a reward for participating in hypergraph and the consensus process. They are rewarded based on their reputation score or Proof of Reputable Observation (PRO), which uses a machine learning algorithm to score how benevolent the validator is.

The total maximum supply of DAG tokens is 3.69 billion, per CoinMarketCap.com, with 18% currently locked up in nodes.

Why Do People Use DAG?

DAG is the financial state channel of the Constellation Network. State channels are organizations that use the HGTP to create unique businesses and tokens that exist on the network with the benefits of Constellation’s technology. DAG allows for exchange and interaction between the state channels and nodes that make up the network. DAG binds the network components together so that they relate to one another.

State channels operating on the network could include:

• Big data and analytics
• Cloud computing
• Artificial intelligence, machine learning and robotic process automation
• Internet of things (smart devices)
• Digital identity

Besides the ease of integration and customization of state channels, the network boasts more potentially valuable characteristics.

Constellation's value proposition is as follows:

• Faster processing: As nodes join its network, the quicker the network becomes. Additionally, as it scores and identifies different nodes, it will be able to send a smaller amount of data to centralized servers.
• Cost savings: Cost-effective network for processing local data.
• Infinite scalability: As more sensors and devices exponentially come online, traffic through existing infrastructures will become too heavy thus needing the bandwidth of Constellation's Network.
• Improved security: With less of an emphasis on centralized cloud services, it mitigates Constellation against a single point of vulnerability. Additionally, Constellation will enable organizations to decide what data is stored on the parachain and available to the network. Networks will be able to toggle between off-chain and on-chain data.
• Ease of adoption: Developers need a low learning curve to quickly onboard and leverage Constellation’s technologies. It focuses on Java (>9 million developers), which is taught in nearly every school in the world.

Constellation's History

The company launched in 2017, and the DAG roadmap dates back to April 2018. When developing the project, the founding team rethought the usual solutions to many problems for existing blockchains, such as scalability and centralization. 

Constellation is designed to enable the secure processing of big data, offering the ability to connect to external datasets through easy-to-use APIs. 

Constellation Labs (CST) was co-founded by Benjamin Jorgensen, Benjamin Diggles, Mathias Goldmann and Wyatt Meldman-Floch.

How to Buy Constellation (DAG) Token

DAG is a relatively underground asset, but it can be found on a few popular exchanges. DAG has been listed on trading platforms including Kucoin and Gate.io. These exchanges — and all exchanges offering DAG — are not available to U.S.-based users.  Verifying your identity on these exchanges is easy and usually requires your address, Social Security number and driver’s license. If this is not an option for you, then the exchange may not be available in your jurisdiction yet.

Hypergraph vs. Other Blockchains

Instead of being a typical linear blockchain, the network has gone with a directed acyclic graph (DAG) structure, which is similar to one used by Hedera Hashgraph and IOTA. Since Constellation uses a DAG for its data structure, it can execute consensus rounds in parallel, so one node could be a facilitator in multiple blocks of information. This method allows the network to process information much quicker because it is non-linear like typical blockchain architecture. 

Moreover, Constellation can process transactions asynchronously, which essentially means they have multiple blockchains forming at once. Asynchronous or concurrent processes are the backbone of scalable programming because it allows all the resources of a network to be used, speeding up overall computation.

DAG data structures process data on the network in bits like a text message would while traditional blockchains process larger blocks of data one by one as with Bitcoin.

How to Store Constellation Safely

Constellation does not offer Ledger support at the moment but Constellation's homepage offers two wallets to store your DAG off exchanges.

Stargazer and Molly wallet are the two current options available. Stargazer can be added to your Chrome extension like MetaMask or downloaded on the iOS or Android store while Molly Wallet is a software wallet that can be downloaded on Mac, Windows or Linux.

If you are interacting with software wallets, then it is wise to write down your secret recovery phrase on a sheet of paper and store it somewhere safe offline.

Key Takeaways for Constellation

• Constellation DAG is used for big data and secure data transfer. 
• Uses a Directed Acyclic Graph — hence the coins name DAG.
• Working closely with the U.S. Department of Defense, U.S. Air Force and data companies like Splunk. 
• The U.S. government has also chosen it to onboard other blockchain companies in the future if they want to secure a government contract.