DAG Structure

Definition ∞ A Directed Acyclic Graph structure is a data model where nodes represent transactions and edges indicate their approval of previous transactions, without any cyclical paths. Unlike linear blockchains, DAGs allow multiple transactions to be processed concurrently, aiming for higher transaction throughput and faster confirmation times. This architectural approach provides an alternative method for organizing distributed ledger data. Its non-sequential nature offers distinct advantages for scalability.
Context ∞ News often highlights DAG structures as a promising alternative to traditional blockchain designs, particularly for applications requiring high transaction volumes, such as micro-transactions or IoT data. Projects employing DAGs are frequently discussed in terms of their potential to overcome scalability limitations faced by earlier distributed ledger technologies. The current debate centers on achieving robust security and decentralization within DAG frameworks, balancing these properties with their inherent speed and efficiency gains.