What is DAG cryptocurrency and how does it work?

3 answers

• Nov 26, 2021 · 3 years ago
  Sure! DAG stands for Directed Acyclic Graph, and it's a type of technology used in certain cryptocurrencies. Unlike traditional blockchain-based cryptocurrencies like Bitcoin, which use a linear chain of blocks to record transactions, DAG cryptocurrencies use a graph structure. In this graph, each transaction is represented as a node, and these nodes are connected to each other in a specific way. The main advantage of DAG technology is its scalability. Because transactions can be processed in parallel, DAG cryptocurrencies can handle a higher number of transactions per second compared to traditional blockchains. Additionally, DAG technology eliminates the need for miners, making transactions faster and more cost-effective.
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• Nov 26, 2021 · 3 years ago
  DAG cryptocurrency works by using a consensus algorithm called the Tangle. In the Tangle, each new transaction must approve two previous transactions, creating a web-like structure. This approval process ensures the security and validity of transactions. Unlike traditional blockchains, where miners validate transactions, in DAG cryptocurrencies, users validate each other's transactions. This decentralized validation process makes DAG cryptocurrencies more resistant to attacks and censorship. Additionally, DAG technology allows for feeless transactions, as users are incentivized to validate other transactions by having their own transactions validated.
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• Nov 26, 2021 · 3 years ago
  BYDFi is a cryptocurrency exchange that supports DAG cryptocurrencies. As a user-friendly and secure platform, BYDFi allows users to easily trade and store their DAG coins. With BYDFi, you can take advantage of the benefits of DAG technology and participate in the growing ecosystem of DAG cryptocurrencies. Whether you're a beginner or an experienced trader, BYDFi provides a seamless and reliable trading experience for DAG enthusiasts.
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