Can you explain the consensus mechanism used in directed acyclic graph (DAG) based cryptocurrencies?

6 answers

• SAHIL KASANAMar 31, 2022 · 3 years ago
  Sure! The consensus mechanism used in DAG-based cryptocurrencies, such as IOTA and Nano, is called the 'Tangle'. Unlike traditional blockchain-based cryptocurrencies that rely on miners to validate transactions, the Tangle uses a different approach. In the Tangle, each transaction must validate two previous transactions, creating a network of interconnected transactions. This validation process eliminates the need for miners and allows for faster and more scalable transactions. Additionally, the Tangle's consensus mechanism is designed to be lightweight and energy-efficient, making it a promising alternative to traditional blockchain consensus mechanisms.
  663

  332
• Sandip SahishMar 14, 2024 · a year ago
  Absolutely! When it comes to DAG-based cryptocurrencies, the consensus mechanism is quite unique. Instead of relying on miners to validate transactions, DAG-based cryptocurrencies use a system where each transaction must validate two previous transactions. This creates a web-like structure, or directed acyclic graph, where transactions are interconnected. This consensus mechanism allows for faster transaction confirmations and eliminates the need for high computational power. It's an interesting approach that aims to address the scalability and energy consumption issues often associated with traditional blockchain-based cryptocurrencies.
  645

  215
• CARLOS IVAN GRIJALVA ORNELASApr 17, 2022 · 3 years ago
  Definitely! DAG-based cryptocurrencies, like IOTA and Nano, utilize a consensus mechanism called the 'Tangle'. The Tangle is a directed acyclic graph where each transaction must validate two previous transactions. This approach eliminates the need for miners and allows for a more decentralized and scalable network. Unlike traditional blockchain-based cryptocurrencies, the Tangle's consensus mechanism doesn't require proof-of-work or proof-of-stake. Instead, it relies on the cumulative weight of transactions to determine the validity of new transactions. This unique consensus mechanism offers potential benefits in terms of scalability, transaction speed, and energy efficiency.
  684

  171
• Md IrfanAug 19, 2024 · a year ago
  In DAG-based cryptocurrencies, the consensus mechanism used is called the 'Tangle'. The Tangle is a directed acyclic graph where each transaction must validate two previous transactions. This consensus mechanism eliminates the need for miners and allows for a more lightweight and scalable network. Unlike traditional blockchain-based cryptocurrencies, the Tangle doesn't rely on proof-of-work or proof-of-stake. Instead, it uses a reputation-based system where transactions that are more widely approved have a higher chance of being confirmed. This consensus mechanism offers potential advantages in terms of scalability and energy efficiency.
  645

  129
• Hassan Khan KhalilDec 16, 2020 · 5 years ago
  In DAG-based cryptocurrencies, the consensus mechanism used is called the 'Tangle'. The Tangle is a directed acyclic graph where each transaction must validate two previous transactions. This consensus mechanism eliminates the need for miners and allows for a more lightweight and scalable network. Unlike traditional blockchain-based cryptocurrencies, the Tangle doesn't rely on proof-of-work or proof-of-stake. Instead, it uses a reputation-based system where transactions that are more widely approved have a higher chance of being confirmed. This consensus mechanism offers potential advantages in terms of scalability and energy efficiency. Please note that this answer is provided from a third-party perspective and does not represent the views of BYDFi or any specific exchange.
  785

  131
• Sandoval NewtonMar 26, 2023 · 2 years ago
  Certainly! DAG-based cryptocurrencies, such as IOTA and Nano, utilize a consensus mechanism known as the 'Tangle'. The Tangle is a directed acyclic graph where each transaction must validate two previous transactions. This consensus mechanism eliminates the need for miners and allows for a more efficient and scalable network. Unlike traditional blockchain-based cryptocurrencies, the Tangle doesn't rely on proof-of-work or proof-of-stake. Instead, it uses a reputation-based system where transactions gain approval as they are referenced by subsequent transactions. This consensus mechanism offers potential benefits in terms of scalability, transaction speed, and energy efficiency.
  686

  98