The $DAG Token

$DAG is the financial state channel of the Constellation Network. It allows for seamless exchange and interaction between the various state channels and nodes that make up the Network. $DAG binds the network components together so that they relate to one another.

Tokenized Throughput

The Utility of $DAG

While $BTC does not provide utility besides a store of value, $DAG provides a second functional value as tokenized throughput or bandwidth on the network. At the same time, basic rate-limited functionality will remain free, allowing users to send single transactions for one-off P2P payments. For any serious data processing or data exchanges, more throughput is needed. This is acquired through $DAG micropayments or by contributing resources as a node operator to the network.
Adding Value to Data

A Data-Focused Token

$DAG allows for the attribution of value to data. Whether it’s a single package of data or an entire data stream traded in real-time on an event basis, $DAG provides a decentralized data marketplace for the data economy. In doing so, it enables data-preneurship for individual and corporate users, who can securely and compliantly monetize their data.

How $DAG Works

The Constellation Network is composed of $DAG nodes, state channel nodes, and ‘hybrid’ nodes, which perform consensus for multiple state channels and $DAG. Each state channel can ‘license’ or share its data to accounts, either by granting access rights via payment in $DAG or a throughput allowance for validating data as a node operator (sole state channel node or hybrid). Hybrid nodes allow for direct license exchange via atomic commits from hybrid nodes.

Importantly, in contrast to classical blockchain solutions, Constellation Network’s architecture is based on the concept of microservices. This means that as network adoption grows, different types of application specific or task specific hybrid nodes are foreseeably created. Hybrid nodes ultimately allow for cross-chain liquidity while $DAG is the financial aspect that ties all types of state channels, data or currencies together.

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