“The highest form which civilization can reach is a seamless web of deserved trust. Not much procedure, just totally reliable people correctly trusting one another.” — Charlie Munger
The Hypergraph powered by Constellation Network, Inc. is a seamless web of deserved trust. Each transaction on the Hyper Graph Transfer Protocol network is validated by every single machine, also known as a node, therefore ensuring immutable and unhackable encryption for honest data transmission and storage. Honest Data For A Connected Future is the motto of Constellation Network. It is the new internet, which will replace HTTP, Hyper Text Transfer Protocol, because it is an upgraded fully-interoperable network that facilitates interconnectivity of all machines globally, instantaneously. Currently, on HTTP there is a lag time, so many real-world applications would not work, such as automated vehicles.
This brings me to my next point. Bitcoin and Ethereum are antiquated, and $DAG is a utility token. So, Ethereum ERC-20 network has projects that come into the ecosystem, but the network does not realize the growth in it’s market cap. Also, the gas fees make them unfeasible for any enterprise basically making them go bankrupt in one hour if they on boarded. To add to this, the whole concept of a smart contract actually does not have any real world application as such as is inferior to state channels. Furthermore, there is no utility provided by Bitcoin or Ethereum, therefore, it is completely unstable.
Buying $DAG allows me to achieve superior returns by being a long-term owner of a high quality ecosystem tech company with a substantial “economic and technological moat”, great growth potential that is actually inevitable, and run by trust-worthy people. In fact, I have never seen a more stellar group of human beings as the community and core team of Constellation Network. Reminds me of the Berkshire Hathaway team and it’s community.
So, HGTP is a distributed ledger technology known as a directed acyclic graph (DAG) protocol with a novel reputation-based consensus model called Proof of Reputable Observation (PRO).
Hypergraph is a feeless decentralized network that supports the transfer of $DAG cryptocurrency. A distributed network of decentralized nodes is essential for the operation and security of the network. Payments of $DAG incentives to these nodes are proportional based on each node’s Proof of Reputable Observation score (PRO score). The maximum PRO score is 1.0. This is a function of time on the network, validation consistency and behavior. Nodes with a higher PRO score (measure of effective contributions) get relatively more of the fees distributed to the network per finality window.
Hypergraph and State Channel consensus facilitate a tighter relationship between business model, resource consumption and token. Therefore, State Channels open up the blockchain space to a wide range of business applications and the connection of real world business objectives.. State Channels allow for the implementation of complex logic and consensus parameters and can be used by businesses wanting to develop a range of products, including launching their own token on the network or designing complex financial instruments equivalent to and beyond what exists today in legacy markets. The difference between existing token standards (e.g. ERC20) and the L_0 token standard on Hypergraph is the latter’s ability to define custom consensus parameters. Thus, each State Channel has the ability to define its own consensus and business parameters that converge with the main Hypergraph consensus.
Examples of How Third Party L_0 Applications May Monetize Their Capabilities
1. Subscription models. These include all services that allow users to access certain data, insights and resources and offer data monetization (DataFi), analytics (cross-chain, unchain, off-chain), oracles, merged mining, memberships, atomization, etc.
2. Service models. These connect real world business efforts with HGTP and offer various rewards and incentives for economic activity.
3. Business development and integration services. These onboard enterprise clients onto Hypergraph and offer service level agreements, consulting, and developer operation integrations.
4. Trading and finance. DeFi for on-chain trading activity, ETF’s, funds, money management, bots, loans and fundraising.
5. Validation and consensus as a microservice. For smart cities, compliance, and machine interoperability.
6. Liquidity pools. These attract liquidity with APY rates underwritten by L_0 State Channel nodes, making it possible to configure your own trading fees and thus income. Lattice is the hub and user interface for cross-chain pools and liquidity on the network.
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Constellation’s HGTP ecosystem and the $DAG token economics have been inspired by and designed according to the principles of a new economic model, Generative Economics. The term coined by Marjorie Kelly and defined as:
“A living economy that is designed to generate the conditions for life to thrive, an economy with a built-in tendency to be socially fair and ecologically sustainable.”