A Directed Acyclic Graph is a data structure where nodes represent transactions and edges show the order of operations, without any cycles. In blockchain technology, DAGs serve as an alternative to linear blockchains for recording transactions, allowing for parallel processing and potentially higher throughput. Each new transaction typically references and validates previous transactions, forming a graph where data flows in one direction. This architecture aims to resolve scalability issues present in traditional sequential block structures by removing the need for global ordering.
Context
DAGs are frequently discussed in crypto news as a potential solution for the scalability and transaction fee challenges faced by many established blockchains. Projects utilizing DAG structures often claim superior transaction speeds and lower costs, appealing to applications requiring microtransactions. However, questions regarding their security guarantees and decentralization levels, compared to robust blockchain models, remain a subject of ongoing technical analysis. Their practical deployment and adoption are closely monitored within the digital asset sector.
Proxima introduces a DAG-based ledger with cooperative consensus, enabling scalable, decentralized, and energy-efficient transactions without traditional validators.
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