DAG Vs Blockchain ENG

What is a Directed Acyclic Graph?

A Directed Acyclic Graph(DAG) is a graph that represents a series of activities and the flow from one activity to another. As shown in the illustration above, the activities are represented as circles (vertex), and the order in which they are depicted is as lines (edge) with a unidirectional arrow.

DAG, in particular, is a unique type of data structure that uses topological ordering and a specific type of distributed ledger technology based on consensus algorithms. As a major benefit, the DAG model allows developers to express themselves freely by engineering the technology to the specific tasks from the standard model. Meanwhile, the standard DAG connects various pieces of information and during the request for the registration of new orders, the system refers to a number of previous transactions in a whole chain. In common during the recording of transactions in DAG, two things happen at the same time: referring to older transactions and the confirmation of whole chain integrity.

Although the related problems to data processing, scheduling, finding the best route in navigation, and data compression DAG is often applied. In general, embracing nodes connected with edges comes down to a few types of web. Thus with a specific direction, the edges are a connection between nodes. So, when moving from node to node by following the edges, Acyclic means that it’s not possible to experience the same node for the second time. One of the differences lies in the data structure instead of adding blocks constant to a chain, use its Direct Acyclic Graph (or web).

After discussing what DAGs are, we’ll now highlight their key differences when compared to blockchain technology solutions. Since both technologies have significant differences, let’s take a look at each of them.

Mining process

The Mining context is generally the procedure of approving transactions in a blockchain while obtaining new coins in return. The miner solves complex computations using specialized hardware processes. To add transactions to the new block and earn tokens for his efforts, the successful miner must send a confirmation of the transaction’s correctness.

Aside from mining, blockchain networks can gain consensus using the Proof-of-Stake model. In this case, validators take over the role of miners, so achieving consensus depends on the value of stakes in the network.

Blockchain: Participants can create new tokens using various consensus mechanisms.

 Directed Acyclic Graph: The previous transaction validates the achievement of success to consensus.

Transaction speed

Although DAGs are fast, the ideology of Blockchain technologies is to be faster. As a result, the inherent waiting times are absent here, promising faster transaction speed.

However, when it comes to scalability, blockchain technology has a lower transaction number per second. But thanks to DAGs’ unique data structure, adding a large number of transactions with improved scalability is possible.

Data structure

Verified data in a blockchain system is contained within blocks, which are linked together in an infinite chain of blocks. As a result, putting new data in each block depends on existing transactions, which are all encrypted. Meanwhile, data storage in a DAG is independent, as a layer atop another.

Transaction validation

A secure transaction is on the miners or validators in a blockchain system either approve or disapprove the decision. In a DAG protocol, the achievement of a transaction relies on its expertise to approve previous transactions.