Definition ∞ An acyclic graph is a type of graph data structure that contains no cycles. In digital systems, a directed acyclic graph (DAG) represents a sequence of operations or transactions where data flows in one direction. This structure ensures no process can refer back to an earlier state in a circular manner. It is a fundamental component in certain distributed ledger technologies.
Context ∞ Directed Acyclic Graphs are a central architectural choice for several blockchain alternatives, particularly those aiming for higher transaction throughput and lower fees than traditional linear blockchains. News often highlights DAG-based systems when discussing advancements in scaling solutions for digital assets. Their distinct structure presents different challenges and advantages regarding transaction ordering and finality compared to chain-based ledgers.