DAG Consensus

Definition ∞ DAG consensus refers to a method of achieving agreement among network participants in distributed ledger technologies that utilize a Directed Acyclic Graph (DAG) structure instead of a traditional blockchain. In a DAG, transactions confirm each other, creating a web of interconnected entries rather than a linear chain. This approach aims to offer higher transaction throughput and potentially faster confirmation times by allowing for parallel processing and eliminating the need for miners in some designs. The consensus is reached through the cumulative validation of transactions by subsequent entries.
Context ∞ DAG consensus mechanisms are frequently discussed in relation to scalability solutions for distributed ledger technologies, offering an alternative to traditional blockchain consensus models. News often highlights projects adopting DAG structures to address limitations in transaction speed and cost. Debates frequently revolve around the security properties and finality guarantees of different DAG-based consensus algorithms compared to established proof-of-work or proof-of-stake systems.