If you've been on CT recently you've likely heard of $DAG @Conste11ation.
But what EXACTLY is $DAG? & how does it work? A question on the lips of many.
Today, I have simplified this answer as much as possible, to show you how $DAG, IMO, is the future.
#DAG #DeFi #Crypto
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@Conste11ation As mentioned above, due to the complexity of $DAG, I'll be breaking this thread into a series. Threads can get long & my aim is to have you leave them better, not bored!
If you appreciate this content, make sure to RT and spread the word. And follow me for the next parts! 🙏
@Conste11ation Before we get into it, I want to provide some well known parameters that we can use to understand why $DAG is different.
Introducing @ethereum
$ETH is a layer 1 decentralised blockchain. It facilitates the transaction of data across it chain and stored it in blocks.
More 👇🏻
@Conste11ation @ethereum it does this through smart contracts, Its novel creation. These allow trust-less transactions of money/assets/data.
If you're already confused here, then I would suggest reading a bit more into the above first before continuing. Only so much simplifying can be done for $DAG. 🙂
@Conste11ation @ethereum This incredible creation paved the way forward, completely revolutionising tech as we know it. $ETH has done amazing things.
But there's a few problems for it to achieve mass adoption...
1- It's too slow
2- It's too expensive
3- It doesn't integrate with centralised tech.
@Conste11ation @ethereum For a technology to truly revolutionise the world, it has to be applicable to the current state. So for blockchain & decentralisation to achieve this it has to be...
1- More Profitable
2- Better than what we have
3- Easy to change/integrate with
$DAG has created the solution.
@Conste11ation @ethereum So... What is $DAG?
$DAG is a custom built Layer 0 protocol. Designed to sit underneath Layer 1's & everything else, facilitating lighting fast, almost infinite transactions per second, for free! Its purpose is to bring blockchain to the world.
See below for layer examples.
@Conste11ation @ethereum What is a Layer 0?
A good analogy could be a Layer 0 being the roads/highways and Layer 1's being the vehicles. They're not directly connected, but the road allows them to connect with ease, wherever they are.
Which gives you a big hint as to why Layer 0 is so important.
@Conste11ation @ethereum Layer 1's are not cross chain!
Which means you cannot directly swap, for example, from the AVAX chain to the ETH chain.
To swap you have to bridge them or make transactions first into USDT etc, which takes time & fees!
Layer 0 is the foundation that will connect everything.
@Conste11ation @ethereum To touch very briefly.
$DAG have created this reality by building their own consensus model(Proof of reputable observation) & a variety of other genius innovations.
Such as their...
- Hypergraph network
- Hypercube
Don't stress about these just yet! More info in part 2 & 3.
@Conste11ation @ethereum So how is $DAG changing things?
In today's world data is everything. There are roughly 2.5 quintillion data bytes created daily, and growing fast!
Why is this important?
Because, for the world to adopt blockchain it has to be able to handle that level of data transacting.
@Conste11ation @ethereum In blockchains current form, every transaction is charged by the network to facilitate that transaction in the form of gas fees.
Could you imagine the $ETH gas fees on transacting 2.5 Quintillion bytes of data?
Not only that, but how slow would it run under that load?
@Conste11ation @ethereum I think you're starting to grasp it now...
No business would want to operate on a Layer 1 network when the cost would be huge & the speed unworkable. It's just not economically possible!
As said earlier, it has to be easier, better & more profitable.
$DAG is the solution
@Conste11ation @ethereum An example...
$DAG is doing for blockchain what Wordpress did for the internet.
With the release of internet & HTTP, Wordpress allowed anyone to build a website on the internet.
With the release of Hypergraph(more in Pt 2) $DAG is allowing anyone to build on the blockchain.
@Conste11ation @ethereum So, how exactly are they doing this? Remember smart contracts?
@Conste11ation have created the next evolution. "State Channels"
In basic terms, State channels are individual channels within the $DAG network that businesses can either build on or integrate into. Bare with me...
@Conste11ation @ethereum As we all know, when you first start out in crypto it can overwhelming. Lots of hoops to jump through to just use an exchange!
Crypto & blockchain is currently not an easy streamlined process at all. And for big business to integrate, it needs to be!
$DAG fixes this.
@Conste11ation @ethereum To use another website analogy, let's take Squarespace.
Squarespace created a framework that allowed anyone to take it & easily build their own, customisable website.
State Channels will allow anyone to create their own customisable chain, in very simple steps.
it's Huge!
@Conste11ation @ethereum This means that each State Channel is in essence it's own blockchain.
Businesses can create their own crypto token, tokenomics, and integrate their current technology onto that. Allowing them to connect all their current data processes.
Truly bringing blockchain to the world!
@Conste11ation @ethereum To sum it up(very simply)
$DAG have created the bridge that allows all tech as we know it into the blockchain/decentralised world.
Allowing every part of our lives & business to benefit from an immutable, trust-less data trail for everything. Creating a fair world, & much more.
@Conste11ation @ethereum Where does the $DAG Token fit in?
$DAG is the backbone of the entire system.
Behind their consensus model(how they validate transactions), Proof of reputable observation, $DAG is required to validate transactions in the form of $DAG nodes(Much more on how this works in part 2)
@Conste11ation @ethereum Without $DAG the whole network fails.
Unlike $BTC, for example, that only provides utility in the fact it is a store of value. $DAG not only validates the network through nodes, it is the medium of exchange between anyone interacting with the network & its state channels.
@Conste11ation @ethereum Let's have another analogy!
If @Conste11ation is the body. $DAG is the blood.
Delivering precious oxygen to every part of the body, keeping it all running. This makes holding $DAG a very attractive prospect. As the network grows, so does the value of $DAG.
True Utility. 💪🏼
@Conste11ation @ethereum So they have the tech. But what about the partners?
@Conste11ation are already partnered with the U.S government through the Department of Defence!
Governments and regulation are often taboo words in the crypto community, but not with $DAG. They are actively working with them.
@Conste11ation @ethereum They are working with the vision to completely revolutionise the way the world handles data, from small to medium businesses, all the way to the worlds largest governments.
If they succeed, @Conste11ation has the potential of being one of the largest companies in the world.
@Conste11ation @ethereum Thanks for taking the time to read my Intro To $DAG!
I hope I succeeded in simplifying it, & helping you leave with a better understanding.
Let me know your thoughts in the comments, or if you have any questions. Let's all learn as much as possible together! 🙂
@Conste11ation @ethereum In Part 2 we'll be covering the Hypergraph Network.
I'll be explaining in as simple terms as I can, EXACTLY how they've made all this possible!
If you found value in this, RT's are awesome & we can spread the word about this amazing project!
Part 2 coming on Wednesday! 🚀
@Conste11ation @ethereum OFFICIAL LINKS!
If you want some more info in the meantime, i highly suggest the following sources.
Website - constellationnetwork.io
Youtube - youtube.com/channel/UChMBV…
Twitter - twitter.com/Conste11ation
Tokenomics - constellationnetwork.io/pdf/Constellat…
Here is part 2 everyone! 🙌🏻
Thanks so much for all the support on the first part, really appreciate it 🙂🙂
$DAG
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