How does a directed acyclic graph improve the scalability of digital currencies?

3 answers

• Ravishankar RameshFeb 13, 2025 · 5 months ago
  A directed acyclic graph (DAG) improves the scalability of digital currencies by allowing multiple transactions to be processed simultaneously. Unlike traditional blockchain systems, which rely on sequential processing of transactions in blocks, DAG-based systems enable parallel processing. This means that as more users join the network, the system can handle a higher volume of transactions without sacrificing speed or efficiency. DAG also eliminates the need for miners to validate transactions, further increasing scalability. Overall, DAG offers a more scalable and efficient solution for digital currencies.
  615

  308
• Albert Putra PratamaJul 29, 2021 · 4 years ago
  DAG improves the scalability of digital currencies by removing the bottleneck of block size limitations. In traditional blockchain systems, the block size determines the maximum number of transactions that can be included in a block. This limitation can lead to congestion and delays in transaction processing. With DAG, there is no fixed block size. Instead, each transaction is linked to multiple previous transactions, forming a graph-like structure. This allows for parallel processing of transactions, resulting in higher scalability and faster transaction confirmation times.
  581

  194
• Akshay GuptaMay 17, 2022 · 3 years ago
  In the context of digital currencies, a directed acyclic graph (DAG) can greatly improve scalability. DAG-based systems, such as the one used by BYDFi, offer several advantages over traditional blockchain systems. First, DAG allows for parallel processing of transactions, which means that multiple transactions can be confirmed simultaneously. This greatly increases the throughput of the network and improves scalability. Second, DAG eliminates the need for miners, as transactions can be validated by any participant in the network. This reduces the reliance on a centralized group of miners and further enhances scalability. Overall, DAG is a promising solution for improving the scalability of digital currencies.
  718

  180