Directed Acyclic Graph (DAG) Technology is a data structure that enables fast and secure transactions in cryptocurrencies without the need for traditional blocks and chains. In a DAG system, every transaction is linked to previous ones, forming a graph structure that is both directed (transactions flow in one direction) and acyclic (there are no loops or cycles in the graph).
This technology allows for faster transaction speeds and increased scalability compared to traditional blockchain systems. Instead of waiting for a block to be mined, transactions in a DAG network can be processed simultaneously, leading to quicker confirmation times and lower fees.
One of the key features of DAG technology is its ability to achieve consensus through a process known as “gossip protocol,” where transactions are broadcasted to a network of nodes for validation. Each node verifies multiple transactions, leading to a decentralized and secure system.
Overall, DAG technology offers a promising alternative to traditional blockchain systems by addressing scalability issues and improving transaction speed in cryptocurrencies.
