DAG: A TECHNOLOGY THAT COULD REPLACE BLOCKCHAIN ON THE FUTURE?

image source

Just when we thought disruption in blockchain technology will permanently stay and change this world, then I realized the fact that technology is progressively increasing in a fast pace.

There are several industries that blockchain technology is currently disrupting. Most of these industries have not even started experiencing the disruption and we are seeing something that is planning on being better than blockchain technology.

Before I move on, I'll like to explain what this blockchain technology is, just for those who don't know what a blockchain technology is.

WHAT IS BLOCKCHAIN (simple non complicated explanation)

image source

Blockchain is a public ledger (book) where records of transactions are registered. This records are visible to anyone and cannot be edited or deleted.

Imagine a scenario where 20 different people were kept in a big field and a big truck drives into the field for these 20 persons to see and write down how many trucks they saw at that time , it will be difficult for the number of trucks to be manipulated to two or zero by each person in the field because they all saw one truck at the same time and the 20 persons are far from each other so it will be impossible for them to agree on a particular number to input other than what they saw,That's how blockchain is.

DIRECTED ACYCLIC GRAPH (DAG)

DAG is that technology that some cryptocurrency analyst and blockchain technology experts think could replace blockchain technology.

In explaining this technology, I'll break it down into 3

• Directed: this is the flow from one node connection to another A to B.

image source

• Acyclic: this is a non circular movement from one node to another in a way that no same node can be encountered again.
  
  
  image source
  
• Graph: a graph is a structure that has nodes and each node is connected with a vertex.
  
  
  image source

Directed Acyclic Graph is attempting to solve the problem of propagation between nodes and blocksize.

Bitcoin has a concept of mining which periodically checks that transaction are OK and true,DAG doesn't have/need that (miners).

DAG is a finite graph that has no directed cycles, blockchain on the other hand is a distributed public ledger that contains list of properly ordered records called blocks.

Some analyst believe DAG is more secured than blockchain because there are more successful attacks on technology that make use of blockchain than DAG.

Cryptocurrency that uses DAG

the two popular cryptocurrency that uses DAG are

• BYTEBALL
• IOTA

BYTEBALL:

image source

Transactions in byteball are not stored in blocks, rather they are linked directly to each other. There are no proof of stake or proof of work here. Old transactions are confirmed by new ones.

Sometimes deals about byteball:

• 100 TSP+
• SUPPLY : 645,222 GBYTE
• CURRENT PRICE : $187.09
• FEES : yes
• RANK: 53

IOTA:

image source

IOTA seems to be more friendly because it has no transaction fees. All new transaction validates two previous transactions.

Some details about IOTA:

• 100+ TSP
• SUPPLY : 2,779,530,283 MIOTA
• FEES: no
• PRICE: $0.421032
• No privacy yet, but on roadmap
• RANK: 11

Conclusion:

In my opinion, I feel DAG is good because it does not need mining which makes it environmentally friendly and easy to use. DAG also needs some good real wold testing and I think it's still far from replacing blockchain but it's possible in the future.

---