DAG Architecture refers to systems structured using a Directed Acyclic Graph, where transactions reference previous transactions, forming a graph rather than a linear chain of blocks. This structure allows for parallel processing of transactions, potentially leading to higher throughput. Unlike traditional blockchains, there is no single sequence of blocks. Each new transaction confirms one or more prior transactions directly.
Context
DAG architecture is frequently discussed as an alternative to traditional blockchain designs, particularly for addressing scalability challenges. Projects employing DAGs often appear in news related to high-transaction-volume applications or micro-transactions. Debates exist regarding their security models and the mechanisms for achieving finality compared to proof-of-work or proof-of-stake blockchains. Monitoring developments in DAG-based protocols offers insight into future directions for distributed ledger technology seeking improved performance.
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