Directed Acyclic Graph (DAG)
[1] Plazibat, A. (2017): The Business Potential of Distributed Ledger Technology
Bild: Plazibat, A. (2017): The Business Potential of Distributed Ledger Technology
The "Directed Acyclic Graph" technology (DAG technology) belongs to the distributed ledger technology and describes an alternative data structure in contrast to the Blockchain. The main difference between the two technologies is the data distribution. In DAG, the transactions are not bundled and not stored among all nodes in the network. The individual transactions are connected by graphs and only send to selected nodes for verification. As a result, the transactions can be processed and validated much faster and therefore cheaper [1]. An administrator coordinates, that before a sender can carry out a transaction, it must first verify two randomly selected transactions.
The Directed Acyclic Graph is used for example within the DLT platform Corda, but in general, a Blockchain structure is used more often in DLT frameworks than DAG.
