The San Francisco-based Constellation Network Inc., which offers a framework for enabling anyone to build and conduct business on a blockchain, has started a long-term strategic partnership with LCX.com. LCX is a new form of a global financial technology company, which has the approval of Liechtenstein Financial Market Authority for 8 blockchain-related registrations.
The two of them want to take the “next step” when it comes to the blockchain ecosystem in order to establish a new token standard that will offer transparency, accountability, and security for creators and holders of tokens. While there are plenty of blockchain protocols that are offering a token standard in order to generate new tokens (Ethereum being the most famous one), there isn’t much regulatory compliance for these standards, according to the Constellation Network (DAG).
And this is why the two companies plan on creating the Constellation Network L_0 token standard. As part of the partnership, LCX will support the listing of L_0-based tokens, offer legal support and framework, and use Constellation’s Hypergraph Transfer Protocol (HGTP) in order to bring trading and transaction transparency to the centralized exchange.
With Constellation’s HTGP, LCX wants to build a state channel (L_0 business) that will validate the trade data, thus bringing several of the benefits found in DeFi to a centralized exchange.
Constellation’s L_0 state channel token standards will offer firms the opportunity of defining the rules for their business model while using Constellation’s network, which is powered by rewards. DAG represents the native cryptocurrency that runs on the Constellation network.
The founder and CEO of LCX.com, Monty Metzer, commented on the partnership:
Meanwhile, Benjamin Jorgensen, Co-Founder and CEO of Constellation Network, said: