Constellation Network: The Decentralized Keiretsu
Hypergraph Hour Episode 5 Recap
The first Hypergraph Hour of 2021 was exciting and a crowd favorite! In fact, we filled every seat and ran out of room in our pro Zoom chat room! The overflow quickly spoke up in our Telegram community and we released the event on YouTube a few hours later.
Hypergraph Hour Episode 5 was the first of the new year and provided an overview of the model Constellation is emulating. At Constellation, we are choosing to mirror the practices of Japanese multinational conglomerates. The concept is known as Keiretsu. The only caveat is the innovative way Constellation is adapting Keiretsu for a decentralized milieu.
Before explaining the concept of Keiretsu, and how it applies to Constellation, Ben Jorgensen, CEO dilated on the current state of the global economy, its implications for the world of cryptocurrency, and Constellation specifically. Ben observed how the economic recovery in the United States and China is quite strong, while Europe is in a period of struggle and stagnation.
The current status of the global economy that Ben outlined, detailed the significance of the strength of the current economic landscape. Essentially, the U.S. and China are the world’s leading consumers, importers, and exporters. There is also a trend that he observed regarding the increase in savings and money market accounts.
The fluidity of money in the market is dissipating while individuals choose to save their money. Meanwhile, interest rates for money market accounts is approximately 0%. This signifies that money needs to be put to use rather quickly, whether being allocated to cryptocurrencies or other markets.
The next point that Jorgensen made in regard to the current state of affairs is that the heirs from all of this have been stay-at-home stocks and ITs. While money has become cheap to borrow, the yield curve has increased for fixed income investments. Jorgensen noted how the bargain rate for borrowing money has led to an increase in buying property, taking greater risks in investments, etc., he also speculated that this lending rate will not be duplicated in the future. Furthermore, government stimulus is phenomenally aggressive and is helping bolster the economy.
However, as Jorgensen noted, not everything is sanguine on the economic front. A few of the problematic aspects include the rise of unemployment and bankruptcy. Taking a macro-perspective, we perceive geopolitical uncertainty, as well as a lack of transparency. Not the least concern is rapid inflation from highly aggressive stimulus policy.
Additionally, even within the cryptocurrency market, we are experiencing parabolic effects with price per earnings ratios. Although we are experiencing a bullish scenario in the cryptosphere, Jorgensen mentioned that mass adoption is hindered by the difficulty in purchasing these assets, as well as the fact that there is no ease of utility with them.
From this point, Jorgensen outlined the position that Constellation takes in the current market environment. The critical feature that applies to Constellation and other solid cryptocurrency platforms is the countercyclical nature of cryptocurrencies with the current equities market. Moreover, hyperinflation only highlights the need for digital currencies with a limited supply.
Jorgensen explained one of the most important aspects of Constellation’s position: other decentralized networks (such as Ethereum) are not providing the ease of liquidity at the base layer, and are limited in scaling. Due to Constellation addressing the problems with liquidity, scaling, gas fees, etc. the future for Constellation is clear.
Additionally, the introduction of yield-bearing assets within the cryptosphere has demonstrated that they are not merely speculative. With Lattice as a DeFi application built on the Constellation network as an interface for these yield-bearing assets, the positioning of Constellation as a whole is ideal.
One of the most intensely interesting segments of the Hypergraph Hour was when Jorgensen elaborated on the keiretsu principle which guides Constellation. Keiretsu is a principle of business organization that is responsible for the persistent economic success of Japan.
In the traditional keiretsu model, an industrial (holding) company owns horizontal entities, acting as an essential bank. The holding company actively engages in preventing negative economic scenarios such as stock fluctuations, takeovers, and market manipulation. This governance is effectuated by the holding company’s allocation of capital to the various entities.
Constellation is becoming a decentralized keiretsu. The primary focus will be on governance, with the express purpose of neutralizing competitors, and further progressing in the communication and cohesion within the community. In respect to DAG, it shall be the base layer that is leveraged for the building of additional applications within the network.
The principal segment in this Hypergraph Hour came when Jorgensen unveiled the 2021 roadmap for Constellation.
This year shall see Constellation shift its focus from enterprise towards crypto-related products. The goals include the creation of liquidity in the Constellation ecosystem, the creation of crypto-related programs and APY programs. Additionally, Jorgensen also stated the objective of facilitating the ability for people to create their own tokens.
Next month, Constellation will be making their tokenomics model available. With this one may analyze the facets that set Constellation apart from the competition. The detailed mathematical principles behind it will be explained through this release.
Within Q1, Constellation will also be releasing their state-channel demo. This release will familiarize the community with what a state-channel is, as well as how it is built.
Perhaps the most important aim for Q1 is the proposition and possible establishment of a new governance structure. This possible change in governance will be determined by the entire active community that wishes to participate in this important and democratic process.
With the new governance structure, there is an emphasis on cultivating a greater degree of communication between the core team and the community. The key is accountability for those involved with Constellation, as well as paving the way for further development on the platform.
Q1 will also witness an enterprise and marketing event. There will be a fireside chat with Rehito Hatoyama, who will describe his experience with keiretsu while working with Mitsubishi, as well as the role of blockchain technology, and non-fungible tokens. Rehito is on the board of Mythical Games who incorporate blockchain technology in their gaming infrastructure.
Q2 will be the most significant quarter of the year. This quarter shall see the launch of the DAG Terminal, a downloadable client where state-channels are launched. The basic idea of the state-channels is essentially a smart contract with more permissions and logic built into it (making it more fluid, and less fallible and ossified, as smart contracts can be.) Included with all of this will be a token standard similar to an ERC-20 called an L-0 token.
All of this will be accessible by the Stargazer Wallet and keys. The Stargazer wallet is a web wallet that is an evolution on the Molly Wallet.
Paramount to Q2 shall be the launch of Lattice Exchange. Lattice is the DeFi interface for the Constellation ecosystem. Lattice will provide cross-chain liquidity for the network. Additionally, one will be able to stake DAG with Lattice.
Q3 will be focused on token generation and listing. People will be able to build out financial state-channels with their own tokens and metrics. Liquidity will be provided by and accessible by DAG for these tokens. Essentially, the tokens will be built out on the DAG Terminal and those who create these tokens can have instant access to deployment as well to garner liquidity through the Lattice platform. Furthermore this quarter will shine a light upon LTX as a token with great utility through its function in governance.
Q4 will push forth for and solidify Data DeFi and the Datapreneur. This will be a data exchange that harmonizes the two sides, being the producers and consumers of data. This will be a revolutionary way in which data can be monetized and exchanged through a multiplicity of sources. Validated data in this milieu can also increase efficiency and utility of various data types.
From a cryptocurrency perspective, DataFi can be leveraged to purchase data for crypto hedge funds who seek to utilize data for models and predictive analytics. The data provided by DataFi can be used to inform hedge funds’ algorithmic agents to optimize trading solutions.
Subsequent to the exposition on the roadmap, Ben went deeper into what state channels are and the ways in which they improve upon smart contracts.
This superb Hypergraph Hour then concluded with a recap of the vision and direction that Ben Jorgensen elaborated on during this episode. His concluding statement captures the sentiment of any who have been familiarized with the groundbreaking nature of Constellation,
“This is truly a digital economy, and it’s fascinating to see, it has all of the key components, and it’s all coming together.” Ben Jorgensen, CEO Constellation Network and Lattice Exchange.
You can watch Hypergraph Hour below or click on the YouTube like here.
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Co-Authored by John Ryan
John Ryan is an independent writer and an avid enthusiast of blockchain technology. He received his University education at Northern Michigan University, as a history major, where he was inducted into the Phi Beta Kappa Society for academic excellence. While in Michigan, he also trained as an athlete at the United States Olympic Education Center, where he achieved the status of a multiple-time University All-American in Greco-Roman wrestling. He has authored several plays and a collection of poetry. Some of his major areas of interests includes: Finance, Literature, and Religious Studies.
John is available to contact via email at: arete.aphthiton@gmail.com
