DAG Ordering

Definition ∞ DAG Ordering refers to the method of arranging transactions or blocks within a Directed Acyclic Graph based ledger structure. Unlike linear blockchains, DAGs allow multiple transactions or blocks to be added concurrently, forming a graph where each new element confirms previous ones. DAG ordering establishes a logical sequence for these concurrently added elements, ensuring transactional validity and preventing conflicts. This approach aims to enhance scalability and transaction throughput by moving beyond the sequential block structure.
Context ∞ DAG ordering is a central topic in discussions about alternative distributed ledger technologies seeking to overcome the scalability limitations of traditional blockchains. News articles frequently highlight projects that utilize DAGs, such as IOTA or Fantom, and their efforts to optimize transaction finality and network efficiency through innovative ordering algorithms.