Thread by @ProfessorDegen_

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So you’ve heard about $DAG ? and you keep seeing the following tagged with them ;

‘ $LTX, $ADS, $BIOFI, $CBD, $JAM #HGTP' etc there are many more

Let me tell you how they all link together in simple terms;

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Firstly what are they all?
$DAG – Constellation
#HGTP – Hypergraphic transfer protocol
$LTX – Lattice Exchange
$ADS – Alkimi Exhangce
$BIOFI – Finnovant
$CBD – Greenheart
$JAM - GeoJam
$FAN - Token Events

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$DAG is the token for Constellation
And why is Constellation different to the other big names?
Lets quickly compare $DAG and $ETH
Simply,
$DAG is Layer 0
$ETH is Layer 1

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Why is this important ?
I read a thread by @1Manifest8 that described a perfect analogy, basically think of L0 as the ocean, and L1 as the boats.
L0 connects to all the boats even though the L1 boats don’t connect together.

What does this mean .....

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On L1 - ETH & BTC – they’re unable to cross chain exchange ie swap ETH directly for BTC.
Generally you’d swap for a stablecoin ETH -> USDC USDC->BTC.

However L0 is able to connect to them all, like the ocean and boats analogy. Therefore, allowing cross change exchanges.

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When buying on;
L1, if there is a high volume, there is a longer wait for miners to validate the transaction.

L0, if there is high volume this has no affect on the speed of the transaction, all transactions are processed instantly.

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Gas Fees;
L1 - ETH&BTC record transactions & wait for miners to validate transactions which is where the fees and time comes into play depending how busy the network is.
L0 - The hypergraph is able to validate & transport transactions themselves = no gas fees

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$LTX & $ADS
L1;
$Eth – you have the UniSwap,
$BSC – PancakeSwap
$AVAX - TraderJoe

L0 here we introduce $LTX & $ADS which are the two main exchanges which will be used on $DAG.
They will have their own State Channels = transactions are validated through themselves.

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So like #uniswap whereby you use it to buy and sell coins, $ADS and $LTX will be your go to on the $DAG network.

The DAG main net is due to be released in 5 weeks, now have a look at the current prices prior to release....

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Right now
$ADS is sitting at 14m MC
$LTX 20m MC
$UNI (uniswap) is sitting at 2.4b MC
If they made this MC you would be looking at over a x100 right now!!

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$BIOFI, $CBD, $JCO, $JAM, $FAN
These will be projects on the hypergraph with their own state channel.
Ie.
L1 – projects ie $VRA $PXT $XRP are created and added onto the network, they create their own smart contract and trade their token on their chosen blockchain

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L0 – projects created will have their own state channels.
Therefore $BIOFI, $CBS, $JCO and others will be some of the first projects on the hypergraph.

Being built on the Hypergraph will make it more secure for these projects along with other benefits already mentioned.

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However, its key to remember just because projects associate with $DAG you still need to do research, check for basic security, check they fit with your investment plan and strategy.

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I hope this thread helped those who are just starting to research the $DAG network and keep seeing the same names, understand a little more!

I aim to go into detail about some of these individual projects so keep your eyes peeled👀