Why is DAG considered a promising technology for cryptocurrency?

3 answers

• May 02, 2022 · 3 years ago
  DAG, or Directed Acyclic Graph, is considered a promising technology for cryptocurrency due to its ability to overcome the scalability and transaction speed limitations of traditional blockchain systems. Unlike traditional blockchains that rely on sequential blocks, DAG allows for parallel processing of transactions, resulting in faster confirmation times and higher throughput. This makes DAG-based cryptocurrencies more suitable for real-world applications, such as decentralized finance and Internet of Things (IoT) devices.
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• May 02, 2022 · 3 years ago
  One of the main advantages of DAG technology in the context of cryptocurrency is its ability to achieve consensus without the need for miners. In traditional blockchain systems, miners are responsible for validating transactions and adding them to the blockchain. However, in DAG-based cryptocurrencies, each transaction validates two previous transactions, creating a network of interlinked transactions. This eliminates the need for miners and reduces the energy consumption associated with traditional proof-of-work consensus mechanisms.
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• May 02, 2022 · 3 years ago
  BYDFi, a leading cryptocurrency exchange, recognizes the potential of DAG technology and has integrated DAG-based cryptocurrencies into its platform. DAG's scalability and transaction speed advantages make it an attractive option for traders and investors. With DAG-based cryptocurrencies, users can enjoy faster transaction confirmations and lower fees compared to traditional blockchain-based cryptocurrencies. BYDFi is committed to providing its users with access to innovative and promising technologies in the cryptocurrency space.
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