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DAG (Directed Acyclic Graph)
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A DAG (Directed Acyclic Graph) is a graph data structure where connections between nodes have direction and no path leads back to the starting node (no cycles). In cryptocurrency, some blockchains use a DAG structure instead of a traditional linear chain to process multiple blocks or transactions simultaneously.
DAG vs traditional blockchain
| Linear blockchain | DAG-based | |
|---|---|---|
| Structure | Single chain of blocks | Graph of interconnected blocks/transactions |
| Throughput | Limited by block time | Higher — parallel processing |
| Examples | Bitcoin, Litecoin | Kaspa, Alephium, IOTA |
DAG in mining
Several actively mined coins use DAG-based architectures:
- Kaspa (KAS) — uses GHOSTDAG / BlockDAG, producing multiple blocks per second
- Alephium (ALPH) — uses sharded DAG with BlockFlow
- Conflux (CFX) — uses tree-graph structure
The DAG structure allows these networks to achieve much faster confirmation times than Bitcoin while maintaining Proof of Work security.
