Blockchain vs. DAG


DAGs and blockchains both record transactions on a distributed ledger, albeit in different ways.

What function does DAG play in blockchain?

            DAG can be viewed as a viable alternative to blockchain, albeit it still has to be fine-tuned. The DAG architecture aims to address typical blockchain technology challenges such as cost, speed, and scalability.

Both methods, technically, record transactions on a digital ledger and aim toward the same goal. The key distinction between the two is the structure each model employs to store data.

Here’s a short comparison of the two in terms of advantages and disadvantages:

DAG Advantages

  • Suitable for microtransactions and large transaction volumes
  • Mining equipment is no longer required.
  • Fees may be drastically decreased.
  • Reduced energy consumption

DAG’s disadvantages

  • Due to the low number of transactions, the system is vulnerable to assaults.
  • It is still in its infancy and has not yet achieved significant degrees of decentralisation.

Benefits of Blockchain

  • Cryptocurrencies such as Bitcoin and Ethereum are well-established and frequently utilised.
  • Transparent and unchangeable, high-security
  • For high-value transactions, it is cost-effective.

Disadvantages of blockchain

  • Storage and network bandwidth requirements are increasing.
  • Significant quantities of power are utilised.
  • Excessive transaction costs

In the end, picking which model to adopt will be determined by one’s company objectives. As previously noted, each model has advantages and disadvantages, and depending on your needs, one may be more appropriate than the other.

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