Data is now more valuable and profitable than oil!

Tomorrow’s world of IoT and machine learning means that data throughput, processing and analysis will be on a scale difficult to imagine. By the year 2020, it is estimated that there will be around 75 billion interconnected devices and the average person will generate 1.5 gb worth of data per day.

Big data necessitates big computational capabilities. Blockchain technology has scalability issues, high transaction fees and transaction times that are too long for what is needed. With typical blockchains the more transactions that are processed the slower and more clogged up the network can become, leading to a backlog of delayed transactions, such as was the case when CryptoKitties completely gummed up the Ethereum network — totally unsuitable for processes requiring many thousands of transactions per second. So how are we going to process and secure all this data?

With a DAG (directed acyclic graph) the opposite can be true. A DAG operates without the need for block processing and miners. It works on the concept of horizontal scalability — the more users that enter the network the more users that can confirm previous transactions and the faster the network becomes. Every new device with processing power that joins the network becomes a node, which can lead to huge scalability.

Bad data is costing industry trillions of dollars a year

Bad data is data that is erroneous, misleading or just missing, and can cause serious problems down the line if it is not picked up and corrected early on. Bad data can lead to disastrous consequences for an enterprise, which can result in high consumption of resources and crippling losses in revenue.

Constellation has provided a solution. It has developed the technology that will harness the power of big data and has created the infrastructure that will secure and validate the gargantuan swathes of data generated by the Internet of Things and a globally connected world.

Constellation’s solutions

Any industries requiring big data, AI and machine learning are perfect for disruption by Constellation and some of these are laid out here.


The automotive sector is undergoing massive change as connected cars begin to proliferate and vast amounts of data are being processed such as health checks on vehicles or analysing recalls. The nature of this data analysis is now more predictive than reactive and will require AI and machine learning on a deep level.

Just one example where Constellation can help is with the threat of spoofing of key-less fobs. This could enable a malicious party to capture the fob signal and thereby gain entry to an owner’s car. However, with a Constellation node integrated into a fob app on the owner’s phone the incorrect LAT/LONG and time criteria would result in a malicious request being denied.

Internet of Things (IoT)

Enterprise networks are very much unprepared for the speed and security requirements with the advent of IoT. Constellation’s new protocol infrastructure will enable all devices to share data efficiently across a multitude of networks with a high level of security (see PoW vs. PoS vs. Constellation’s reputation model).

With the vast throughput required, typical blockchain solutions are just not up to it. Each new block needs to be confirmed by the entire network, slowing consensus and leading to clogged networks. Constellation’s DAG allows transactions to flow through networks unimpeded given that nodes do not have to be individually verified before the next consensus round.

In addition, Constellation’s mobile nodes obviate the need for all the computational usage and mining of typical blockchains which are just not suitable for running networks of small mobile devices.

Finally, IoT will consist of a multitude of entities making transactions across many different data networks and across disparate chains. Constellation can sync all these networks whilst being an open source framework which allows developers to build on it with ease.

Other use cases, which are a perfect fit for Constellation, are Healthcare where between “20 and 30 billion Internet of Medical Things (IoMT) devices will be in use by 2020”. Challenges such as security/data breaches, and patient record keeping can be solved with the hack-proof DAG-based protocol.

Also, the distribution of energy is another sector ripe for disruption where Constellation would tokenise consumer’s energy consumption allowing them to earn by distributing over-production and therefore minimising wastage. The decentralisation of the energy market would mean that the market itself would decide the rates, thereby allowing consumers to find the best deals for themselves.

The Constellation Network and Protocol

The Constellation Network is made up of many interconnected nodes whether they be a smart phone or a high-performance server. As long as the node has some form of computational power and storage it is accepted and can have a role in the network.

The Constellation Network is powered by Proof of Reputable Observation (PRO). This is a novel consensus which incentivises nodes to act honestly. A reputation score is assigned to every node, which is based on an autonomous machine learning algorithm which assigns a higher or lower score depending on each node’s contribution to the network. Nodes with the best reputation score benefit from throughput and validator rewards while nodes with less reputation still get to contribute to the network but get less throughput and rewards. Continued bad reputation results in removal from the network. The immense win here is that this consensus is ‘not computationally heavy’.

The $DAG token is essential for the Constellation Network and is used to tokenise throughput. Big data pays for this throughput, which then gives access to consensus, validation and notarisation functionalities. The $DAG token attaches value to information and then that information is exchanged between participants of the data network. All transactions that take place need the $DAG token. This data exchange mechanism makes $DAG a true utility on the network.

Application interface (SPORE)

The SPORE platform provides security and data validation and notarisation. Integrated into existing tech stacks, enterprises have early upstream visibility over their data pipelines. With easy to use APIs, a dashboard provides analytics of the data pipelines and tools for their management so that security and integrity can be guaranteed.


Constellation is building a network for the data throughput of today but also for the demands of the future to come. It is the only network that can process big data securely and rapidly on-chain, providing a marketplace that monetises this data as it is validated and exchanged.

Constellation is very actively engaging with government agencies for contracts and they have built out a solid partnership and BD pipeline with new announcements being expected. The University of Illinois is now a partner and Constellation is exploring research opportunities with automotive OEMs and other large enterprises. Big things are expected!

Disclaimer: This article should in no way be taken as financial advice or as an encouragement to invest in any particular asset or company. All those wishing to invest in the crypto market should do their own research or use the services of a fully certified financial adviser.

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