RE: Dagcoin: A blockless cryptocurrency
@wekkel
It solves blockchain challenges.
The ever-growing size of the blockchain is a problem for storage and
synchronization. Bitcoin network can process 7 transactions per second and
the most capable blockchains could theoretically process a few thousand
transactions per second. VISA being the largest payments network is capable
of processing 56 000 transactions per second. As cryptocurrency should
help the unbanked, the need for transactions is much higher than even VISA
can handle.
Transaction fees
Transaction fees rise with the increase of transactions. Users can pay bigger
fees to the miners to motivate them to confirm transactions faster.
Blockchain is great for smart contracts and corporate bureaucracy, but not
for everyday currency.
Bitcoin is perfect as digital gold, but not as everyday currency.
While on DAG chain
A DAG chain unit includes
the signatures of one or more users who created the unit and references to
one or more previous units (parents )identified by their hashes.
Units are linked to each other such way that each unit includes one or more
hashes of earlier units, which serves both to confirm earlier units and
establish their partial order. The set of links among units forms a DAG
(directed acyclic graph). There is no single central entity that manages or
coordinates admission of new units into the database, everyone is allowed to
add a new unit provided that he signs it and pays a fee equal to the size of
added data in bytes. The fee is collected by other users who later confirm the
newly added unit by including its hash within their own units. As new units
are added, each earlier unit receives more and more confirmations by later
units that include its hash, directly or indirectly.
Unlike blockchains where issuing a block is a rare event and only a privileged
caste of users is in practice engaged in this activity, a new unit starts
accumulating confirmations immediately after it is released and
confirmations can come from anyone, every time another new unit is issued.
There is no two-tier system of ordinary users and miners. Instead, users help
each other: by adding a new unit its author also confirms all previous units.
References to parents is what establishes the order (only partial order so far)
of units and generalizes the blockchain structure. Since we are not confined
to one-parent–one-child relationships between consecutive blocks, we do
not have to strive for near-synchrony and can safely tolerate large latencies
Thanks for your elaborate answer. But what does DAGCoin do what Byteball does not do?
@wekkel
Thanks for the reply.
.
First, we should understand that Dagcoin is the first asset built on Byteball’s platform and network, apart from
Byteball’s internal currency bytes. Dagcoin and Byteball evolve hand-in-hand:
Dagcoin benefits from the developments of Byteball and vice versa. The
popularity of either one improves the network effect for the other one. So I'd like to consider Dagcoin is the "altcoin" of Byteball.
With regards to your question on what Dagcoin does, you can read that on my blog above. The one with "Dagcoin as a cryptocurrency.
They both use DAG (direct Acyclic graph) so technically they have many similarities.
The only difference is, unlike Byteball, Dagcoin is more focused on worldwide commercial and regular use for the people like mobile payments, games, merchants, financial services, payment solutions coz' as I've said it's the asset class buit on Byteball. The altcoin of Byteball.
Differences are also dependent on how far the development of both Byteball and Dagcoin would go in the future. Even though they use same DAG technoloy, the fact that development is a consistent process, many technical and practical differences will appear in the years to come considering that Byteball does not really focus on commercial and regular use for regular people unlike Dagcoin.