Home Cryptocurrency News What is a directed acyclic graph in cryptocurrency? How does DAG work? – Cointelegraph

What is a directed acyclic graph in cryptocurrency? How does DAG work? – Cointelegraph

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It was once unimaginable to think about cryptocurrencies with out pondering of blockchain. With the DAG mannequin, nevertheless, a number of cryptocurrencies have already been constructed utilizing this expertise. 

Some examples are Obyte, IOTA, and Nano, to call just a few. Though nonetheless comparatively new, the DAG framework exhibits nice potential. As talked about, some initiatives have already used it efficiently. Essentially the most well-known ones are:


Obyte or ByteBall is a cryptocurrency that’s utterly unbiased of the blockchain, having carried out the DAG framework. Nonetheless, Obyte transactions nonetheless have a price. 

It is because the Obyte community makes use of a validator system that permits for double-checking of transactions. It makes use of a consensus algorithm that depends on witnesses. These witnesses are trusted and respected customers who act as validators. 

Obyte additionally helps untraceable transactions, in addition to unreachable contracts. 


Web of Issues Purposes, or IOTA, carried out its ‘blockless blockchain’ community in 2016. The concept behind IOTA is that each one customers successfully develop into miners. To validate one transaction, for instance, a consumer has to confirm two transactions. 

IOTA makes use of a community composed of nodes and tangles, or teams of nodes, that serve to make the validation course of quicker and extra environment friendly. 

All customers contribute a small quantity of energy for the community’s upkeep, and all people participates in executing consensus as effectively. This permits the community to be extremely decentralized and scalable on the identical time.

Transactions have near-zero charges; therefore, IOTA is taken into account an economical different cryptocurrency for micro-payments. 


Nano can also be a cryptocurrency working on the DAG system. Nano has unbiased blockchains linked by nodes and known as block-lattice expertise. Technically, it’s a mixture of DAG and blockchain.

Each consumer has a person pockets and a blockchain. Solely the consumer can execute adjustments on their very own pockets/blockchain. Transactions are accomplished as soon as the sender and receiver each carry out operations on their respective blockchains. 

Nano affords zero transaction charges, in addition to excessive transaction speeds to its customers.

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