{"id":1106375,"date":"2021-11-07T12:00:00","date_gmt":"2021-11-07T17:00:00","guid":{"rendered":"https:\/\/cointelegraph.com\/explained\/what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work"},"modified":"2021-11-07T12:00:00","modified_gmt":"2021-11-07T17:00:00","slug":"what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work","status":"publish","type":"station","link":"https:\/\/platodata.io\/plato-data\/what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work\/","title":{"rendered":"What is a directed acyclic graph in cryptocurrency? How does DAG work?"},"content":{"rendered":"\n<div><img decoding=\"async\" src=\"https:\/\/wordpress-1016567-4521551.cloudwaysapps.com\/wp-content\/uploads\/2021\/11\/what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work.jpg\" class=\"ff-og-image-inserted\"><\/div>\n<p dir=\"ltr\"><em>It used to be unimaginable to think of cryptocurrencies without thinking of blockchain. With the DAG model, however, several cryptocurrencies have already been built using this technology.&amp;nbsp;<\/em><\/p>\n<p dir=\"ltr\">Some examples are Obyte, IOTA, and Nano, to name a few. Although still relatively new, the DAG framework shows great potential. As mentioned, some projects have already used it successfully. The most well-known ones are:<\/p>\n<h3 dir=\"ltr\">Obyte<\/h3>\n<p dir=\"ltr\">Obyte or ByteBall is a cryptocurrency that is completely independent of the blockchain, having implemented the DAG framework. However, Obyte transactions still have a fee.&amp;nbsp;<\/p>\n<p dir=\"ltr\">This is because the Obyte network utilizes a validator system that allows for double-checking of transactions. It makes use of a consensus algorithm that relies on witnesses. These witnesses are trusted and reputable users who act as validators.&amp;nbsp;<\/p>\n<p dir=\"ltr\">Obyte also supports untraceable transactions, as well as unreachable contracts.&amp;nbsp;<\/p>\n<h3>IOTA<\/h3>\n<p dir=\"ltr\">Internet of Things Applications, or IOTA, implemented its &amp;lsquo;blockless blockchain&amp;rsquo; network in 2016. The idea behind IOTA is that all users effectively become miners. To validate one transaction, for example, a user has to verify two transactions.&amp;nbsp;<\/p>\n<p dir=\"ltr\">IOTA uses a network composed of nodes and tangles, or groups of nodes, that serve to make the validation process faster and more efficient.&amp;nbsp;<\/p>\n<p dir=\"ltr\">All users contribute a small amount of power for the network&amp;rsquo;s maintenance, and everybody participates in executing consensus as well. This allows the network to be highly decentralized and scalable at the same time.<\/p>\n<p dir=\"ltr\">Transactions have near-zero fees; hence, IOTA is considered a cost-effective alternative cryptocurrency for micro-payments.&amp;nbsp;<\/p>\n<h3 dir=\"ltr\">Nano<\/h3>\n<p dir=\"ltr\">Nano is also a cryptocurrency operating on the DAG system. Nano has independent blockchains connected by nodes and is called block-lattice technology. Technically, it&amp;rsquo;s a mix of DAG and blockchain.<\/p>\n<p dir=\"ltr\">Every user has an individual wallet and a blockchain. Only the user can execute changes on their own wallet\/blockchain. Transactions are completed once the sender and receiver both perform operations on their respective blockchains.&amp;nbsp;<\/p>\n<p dir=\"ltr\">Nano offers zero transaction fees, as well as high transaction speeds to its users.<\/p>\n<p> <a href=\"https:\/\/cointelegraph.com\/explained\/what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work\">Source: https:\/\/cointelegraph.com\/explained\/what-is-a-directed-acyclic-graph-in-cryptocurrency-how-does-dag-work<\/a><\/p>\n","protected":false},"author":1,"featured_media":1106376,"template":"","meta":{"_eb_attr":"","type":"","auto_type":false,"post":"","stream":"","stream_url":"","waveform_data":[],"duration":0,"start":0,"end":0,"bpm":0,"downloadable":false,"download_url":"","purchase_title":"","purchase_url":"","post-count-all":0,"like_count":0,"download_count":0,"editor_note":"","copyright":"","captions":[],"sources":[]},"genre":[41],"station_tag":[4634,4339,3761,3681,3884,4298,4150,3722,3831,3767,4158,4346,4070,4311,3801,3694,3650,3906,5784,3653,4747,4094,5055,3742,4204,4096,3963,4100,3918,3743,4548,4123,4124,4127,4549,3671,3752,3753,3755,3757,4368,3941,3935,4668],"artist":[5815],"mood":[],"activity":[],"_links":{"self":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station\/1106375"}],"collection":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station"}],"about":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/types\/station"}],"author":[{"embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/users\/1"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/media\/1106376"}],"wp:attachment":[{"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/media?parent=1106375"}],"wp:term":[{"taxonomy":"genre","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/genre?post=1106375"},{"taxonomy":"station_tag","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/station_tag?post=1106375"},{"taxonomy":"artist","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/artist?post=1106375"},{"taxonomy":"mood","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/mood?post=1106375"},{"taxonomy":"activity","embeddable":true,"href":"https:\/\/platodata.io\/wp-json\/wp\/v2\/activity?post=1106375"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}