I bet you have heard of bitcoin and other alternative forms of currency that are coming up with all the changes in technology happening worldwide.
The recent trends in technology are mainly towards enhancing paperless transactions and hence the current competition in the various paperless currencies.
It is important to note that even before the Bitcoin took the worldwide market by storm, there were other forms of cryptocurrency.
However, they were unable to realize the dream of decentralization which bitcoin readily offered. The bitcoin technique of using a tamper-proof and immutable ledger utilizing the blockchain was challenging to outdo, and the public accepted it wholeheartedly without any questions.
With time, however, there were challenges with the blockchain used by bitcoin. The major problem that the blockchain has caused is the major challenge of conducting transactions despite the fact it offers immutability and decentralization.
Competition is cropping up in a bid to solve the issue. There is a new contender, Byte ball which uses the Direct Acyclic Graph organizational model which offers new features.
DAG VS BLOCKCHAIN – Differences
The Direct Acyclic Graph also known as DAG offers a different operational method, unlike blockchain. The blockchain requires Proof of Work whenever any transaction is being carried out by a miner.
On the other hand, the Direct Acyclic Graph bypasses this and gets rid of the whole block. The DAG transaction are linked to each other in such a way that one transaction confirms the next one. It is from this links that the DAG gets its definition.
DAG is a directed graph without cycles. It used to make models of probability, connectivity, and causality.
There are a lot of upsides that come with the new technology using DAG. The transaction times are way faster compared to those that Bitcoin offers even at its best-operating circumstances.
In fact, the blockchain can take up to ten minutes per transaction when operating optimally.
However, since in DAG each transaction is connected to the other and does not involve the miner, the transaction time will go down even with more people using the system.
We all know that with the blockchain, there is a high threat where it is possible for a person to own up to 50% of the network and is very likely of double spending.
However, with DAG, this ever looming threat is neutralized. The transaction order is spread out evenly through the multiple transactions without the Proof of Work.
As a result of the transactions being spread all over the network, any attempt to double spend will be noticed and rejected. This makes DAG very convenient.
Although DAG is not as robust as Ethereum is regarding smart contracts, it offers the contracts in a simple language understandable to the user instead of the complexity provided by Ethereum.
You cannot help but wonder if this is the future for cryptocurrency transactions. DAG is like the next generation technology to replace the blockchain. It is advisable that companies upgrade to it for its numerous advantages as well as its secure nature.