What is a DAG in cryptocurrency and how does it work?

3 answers

• Ayan AnwarJun 14, 2020 · 6 years ago
  A Directed Acyclic Graph (DAG) is a data structure that is used in some cryptocurrencies as an alternative to traditional blockchain technology. Unlike a blockchain, which consists of blocks linked together in a linear chain, a DAG is a more complex structure where transactions are represented as vertices and are connected to each other in a directed manner. This allows for a more scalable and efficient system, as transactions can be processed in parallel rather than sequentially. DAG-based cryptocurrencies, such as IOTA and Nano, claim to have higher transaction throughput and lower fees compared to traditional blockchain-based cryptocurrencies.
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• Lechémia ThéoMar 20, 2025 · 9 months ago
  In a DAG-based cryptocurrency, each transaction needs to validate two previous transactions before it can be confirmed. This is achieved through a process called the 'tangle', where transactions are validated by referencing previous transactions. The tangle ensures that each transaction is indirectly confirmed by multiple other transactions, creating a web-like structure. This consensus mechanism eliminates the need for miners and allows for a more decentralized and lightweight network. However, it also introduces some challenges, such as the possibility of double-spending attacks.
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• Guilherme_DosAnjosDec 12, 2021 · 4 years ago
  BYDFi, a leading cryptocurrency exchange, supports DAG-based cryptocurrencies and provides a secure platform for trading and storing these digital assets. With BYDFi, users can easily buy, sell, and manage their DAG-based cryptocurrencies, taking advantage of the benefits offered by this innovative technology. Join BYDFi today and experience the future of cryptocurrency trading!
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