Directed Acyclic Graphs (DAGs) are regarded as the solution to blockchain weaknesses.

One of the newly developed technologies created mainly as an alternative to existing blockchains is Directed Acyclic Graphs (DAGs). DAGs are regarded as the solution to blockchain weaknesses. With the ability to improve upon low transaction speeds, high transaction costs, and loose security that have been plaguing existing platforms, DAGs address a lot of the issues that have hindered the widespread adoption of decentralized technology. DAG could completely oust Bitcoin and Ethereum from their position as the market leader in DLT industry.

DLT and Blockchain are frequently described as being synonymous. However, this is not accurate. DLT is actually a more extensive term and consists of different technologies. DAG and Blockchain are indeed different types of DLT. The two record transactions on a digital ledger and are both decentralized. As each has many advantages, some regard the two as competitors, but few see DAG as a viable solution compared to Blockchain.


Blockchain is a digital record or database that records transactions between parties in the form of digital assets. The chronological orders of transactions in a chain increases with links added in the form of blocks when new transactions are verified, approved, and completed. The block of transactions is openly distributed to many nodes globally in a public/private network.

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DAG network is a distributed ledger technology without blocks, rather it’s a network where transactions are direct links within a chain, with no need for miners to approve blocks. It is mostly utilized in planning, information handling, and navigating the best route. NXT community was the first ever to think of implementing DAG network.

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Structure of the Network

DAG uses the last two nearest nodes to confirm transactions. The objective is to minimize the system load within a specific range to facilitate fast transaction approval. Only two verifications are needed, drastically reducing the energy utilization.

Speedy Transactions

As a result of its lack of blocks, transactions are executed instantly. The entire procedure is much quicker when compared to blockchains.

No Mining Activities

Miners are useless in DAG networks. In DAG, transactions are executed directly and immediately. Transaction charges are eliminated since there aren’t mining activities.

Small Payments

With the wider adoption of DAG, soonest advanced services and least transaction charges will be achieved. This implies small funds can be sent without substantial charges.


DAG network utilizes different structures. In these ways, rather than storing data in blocks, its system utilizes nodes and group of nodes that can be executed at the same time.

Miners can’t create more than a single block at a time on the blockchain. This implies new transactions can’t be approved until the last transaction ends. DAGs function without blocks, and transactions are added simultaneously to the chain.

No block implies no mining, means less power is consumed to help the system.

DAG is very effective at storing data, it’s like a tree structure and enables more transactions to be approved simultaneously. In this network, nodes are linked similar to branches of a tree. A node possesses multiple parent roots, which implies that users don’t have to wait endlessly for a transaction to end before they begin processing another one.

DAG can improve the ease of use of a system by ensuring its scalability. Owning to the fact that the more nodes created simultaneously, the quicker transactions are processed.

With a new technique for approving nodes, the consensus mechanisms additionally change. Miners don’t need to contend to add the new block to the chain. This implies that DAG could possibly solve the decentralization issue.

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Blockchain forms a chain of transactions, packaged into blocks to be validated. Approved blocks are added to a chain of previously approved blocks. While DAG is a network of individual transactions connected to different transactions, it is a tree-like structure, spreading out starting from one transaction onto the next, to another, etc.

Proof of Work can likewise utilize huge amounts of power. DAGs in addition bypass the need for miners and thus sophisticated mining equipment. No blocks imply no mining, which means less power is required to aid the network.

In blockchain, miners can’t create more than a single block at a go, this implies new transactions can’t be approved until the previous transaction ends. While in DAG, transactions are approved simultaneously, users don’t have to wait for a transaction to end before they begin processing another one.

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Projects like Helios Protocol, Byteball, Fantom, IoT Chain (ITC), Nano, and IOTA validate that DAGs network offer strong challenges to conventional blockchains.

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DAG guarantees real-time transaction executions and unending scalability at low fees. These are additionally the main driving forces adding to the odds of adoption by businesses. DAG will be utilized by applications that desire scalability in large numbers of transactions per second.