Every day more and more people are switching to opportunities created by cryptocurrencies. And while blockchain is currently the focus of many technology companies, DAG technology presents a viable alternative for different technological verticals: reducing transaction costs, improving transparency and increasing efficiency – all whilst providing a sustainable platform for companies to maintain the integrity of digital assets and transactions. In a highly competitive marketplace, DAG could really be the future of cryptocurrency.
What is DAG-chain?
Directed Acyclic Graph (DAG) technology provides a new and unique way of imbuing all the benefits of blockchain within a more succinct system. Like blockchain, users on a network can secure each other’s information by referencing the previous unit transactions they created. However, unlike blockchain, DAG-chain transactions are confirmed between users in topological ordering. This means that information with any given value can only go from earlier to later in the sequence and does not have to loop back on itself to gain verification. This cuts out a lot of time making transactions and requires far less power to activate.
Data is therefore sent from one node to another without having to loop back or follow a particular route. Think of it like a river that continues its course forwards in a sequential stream. Over time, tributaries join this river without slowing it down but instead creating a more powerful and faster flow. This river is always directed in a certain direction and does not have to go backwards to reach its final destination. This technological advancement allows DAG-chain to be used by larger communities as it’s more scalable. What’s more, the bigger the user base, the faster the transactions become without affecting the cost!
What do you think? Leave a comment down below!
Want to know more about the future of cryptocurrencies? Check out last week’s blog post!