DAG-based consensus mechanisms order transactions by referencing multiple prior transactions, forming a graph structure instead of a linear chain. These systems arrange data in a directed acyclic graph where each new transaction confirms several previous ones, allowing for parallel processing of transactions. This approach aims to enhance scalability and transaction throughput compared to traditional blockchain models. The architecture mitigates bottlenecks associated with block production, potentially reducing confirmation times.
Context
DAG-based protocols are frequently discussed in crypto news regarding their potential to overcome the scalability limitations observed in conventional blockchains. Projects utilizing DAGs often focus on achieving high transaction volumes for micro-payments or internet-of-things applications. Debates persist regarding their security assurances and the complexity of maintaining consistent global ordering without a singular chain structure. Their adoption represents a significant area of development in distributed ledger technology.
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