A DAG Protocol employs a Directed Acyclic Graph data structure where transactions link to multiple prior transactions, not a linear chain. This architecture permits parallel transaction processing, aiming for enhanced scalability and faster transaction confirmation times. It can reduce transaction fees by decentralizing transaction ordering and validation without relying on traditional blocks.
Context
DAG protocols are a frequent topic in discussions concerning distributed ledger scalability, presenting alternatives to sequential blockchain models. Key debates revolve around their distinct security properties and the mechanisms used to achieve network agreement without a global transaction order. Continued progress focuses on practical deployments and fortifying these networks against various attack types, particularly for high-throughput applications.
A novel DAG-based consensus protocol leverages Trusted Execution Environments to significantly improve scalability, reduce communication overhead, and ensure censorship resistance.
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