What is the difference between DAG and blockchain in the context of cryptocurrencies?

5 answers

• Dec 16, 2021 · 3 years ago
  DAG and blockchain are both distributed ledger technologies used in cryptocurrencies, but they have some fundamental differences. DAG is a data structure that represents a directed graph with no cycles. It is used to achieve consensus in cryptocurrencies like IOTA and Nano. Unlike blockchain, DAG does not require miners or blocks. Instead, each transaction is linked to multiple previous transactions, forming a web-like structure. This allows for faster transaction confirmation and higher scalability. However, DAG's security heavily relies on the assumption that the majority of participants are honest. If a large portion of participants collude, they can potentially manipulate the network. On the other hand, blockchain relies on blocks and miners to achieve consensus. Each block contains a set of transactions, and miners compete to solve a mathematical puzzle to add a new block to the chain. This ensures that the network is secure, but it also introduces longer confirmation times and lower scalability compared to DAG-based cryptocurrencies.
  1055528
• Dec 16, 2021 · 3 years ago
  Alright, let me break it down for you. DAG and blockchain are two different approaches to achieving consensus in cryptocurrencies. DAG, which stands for Directed Acyclic Graph, is a fancy term for a data structure that looks like a web or a mesh. It's used by cryptocurrencies like IOTA and Nano. Instead of having blocks and miners like in blockchain, DAG relies on each transaction being linked to multiple previous transactions. This allows for faster confirmations and higher scalability. However, DAG's security is a bit more fragile. If a bunch of bad actors collude, they can potentially mess with the network. On the other hand, blockchain, which you're probably more familiar with, relies on blocks and miners to keep everything in check. Each block contains a bunch of transactions, and miners compete to solve a puzzle to add a new block to the chain. This makes blockchain more secure, but it also means slower confirmations and lower scalability compared to DAG.
  975325
• Dec 16, 2021 · 3 years ago
  In the context of cryptocurrencies, DAG and blockchain are two different approaches to achieving consensus. DAG, or Directed Acyclic Graph, is a data structure that represents a network of transactions. Cryptocurrencies like IOTA and Nano use DAG to achieve faster transaction confirmations and higher scalability. Instead of having blocks and miners like in blockchain, DAG connects each transaction to multiple previous transactions, creating a web-like structure. This allows for parallel processing and eliminates the need for miners. However, DAG's security is more vulnerable to attacks by malicious actors. If a significant portion of participants collude, they can potentially manipulate the network. On the other hand, blockchain relies on blocks and miners to achieve consensus. Each block contains a set of transactions, and miners compete to solve a mathematical puzzle to add a new block to the chain. This ensures the security of the network, but it also introduces longer confirmation times and lower scalability compared to DAG-based cryptocurrencies.
  1067267
• Dec 16, 2021 · 3 years ago
  DAG and blockchain are two different approaches to achieving consensus in cryptocurrencies. DAG, or Directed Acyclic Graph, is a data structure used by cryptocurrencies like IOTA and Nano. Instead of having a linear chain of blocks like in blockchain, DAG connects each transaction to multiple previous transactions, forming a web-like structure. This allows for faster transaction confirmations and higher scalability. However, DAG's security is more susceptible to attacks. If a majority of participants collude, they can potentially manipulate the network. On the other hand, blockchain relies on blocks and miners to achieve consensus. Each block contains a set of transactions, and miners compete to solve a mathematical puzzle to add a new block to the chain. This ensures the security of the network, but it also introduces longer confirmation times and lower scalability compared to DAG-based cryptocurrencies.
  918184
• Dec 16, 2021 · 3 years ago
  BYDFi is a digital currency exchange that offers a wide range of cryptocurrencies for trading. While DAG and blockchain are both used in the context of cryptocurrencies, they have different structures and consensus mechanisms. DAG, or Directed Acyclic Graph, is a data structure that connects each transaction to multiple previous transactions, forming a web-like structure. This allows for faster transaction confirmations and higher scalability. On the other hand, blockchain relies on blocks and miners to achieve consensus. Each block contains a set of transactions, and miners compete to add a new block to the chain. While DAG-based cryptocurrencies like IOTA and Nano offer faster confirmations and scalability, blockchain-based cryptocurrencies like Bitcoin and Ethereum provide a more secure and decentralized network. It's important to consider the specific needs and goals of your cryptocurrency project when choosing between DAG and blockchain.
  956160