Blockchain : Blockchain VS DAG Ledger
The current market made me think and go deeper into technology, so that on the next growth of the market get all the cherished “X2…3…”. And the first thing I started with: the blockchain has competitors?? And there is such a rival, this is DAG ledger. I prepared a small comparison and the most promising projects.
In a nutshell, blockchains are cryptographically verifiable lists. They are single Linked Lists – common data structures where each new entry (block) includes a reference to a previous one. This flat, sequential nature of blockchains is what gives us the ability to trace back any block written in a ledger. But it is also the root of the scalability issue and the reason why new blocks on Bitcoin are appended every 10 minutes.
A Directed Acyclic Graph is a different type of data structure. It’s an implementation of Graph, and it allows the networks using it to circumvent some of the blockchain’s most daunting limitations. In DAGs, all the nodes are pointed in the same direction, and no element can reference back to itself (loop). It is a tree-like data structure which is similar to a file directory structure where folders contain subfolders which branch off into other subfolders and so on.
Another example of DAG is a conventional ancestry tree. From a theoretical standpoint, it isn’t a tree; it is actually a directed acyclic graph, as in a tree-like structure there must be unique paths between every two nodes. Unlike Bitcoin or Ethereum, DAG-powered networks allow appending parallel nodes as long as everything flows in the same direction. This opens a lot of possibilities.
The most modern and interesting DAG project, in my opinion, is VITE (here is a good and detailed overview of the project: https://www.chainbits.com/reviews/vite-review/). It is very interesting whether the so strong team will be able to realize their ideas, especially against the backdrop of the problems with the scalability of current blockchain projects.
Also pay attention to IOTA – one of the pioneers who used DAG technology. In the future, IOTA will allow companies to introduce new b2b models, turning every technological resource into a potential service that will be sold on the open market in real time without any charges.
I gladly read your thoughts and comments. Peace!
What is the Blockchain?
A block chain is a transaction database shared by all nodes participating in a system based on the Bitcoin protocol. A full copy of a currency’s block chain contains every transaction ever executed in the currency. With this information, one can find out how much value belonged to each address at any point in history.
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