Directed Acyclic Graph (DAG)
By CoinGecko | Updated on Mar 03, 2020
Directed acyclic graphs refers to a data structure that is built in one single direction, yet branches out and never repeats.
Directed = Connections between two points (nodes) have directions such that A -> B is not the same as B -> A.
Acyclic = Opposite of cyclic where you’ll end up where you started from after some time. In an acyclic system, you’ll never encounter the same point (node) twice.
Graphs = A structure consisting of points (nodes) that are connected.
Compared to a regular blockchain data structure which operates in one straight chain, DAG based systems have more breadth as the network is similar to a expanding tree rather than a straight chain.
Related Terms
Sell wall
Anomalously large sell order(s) at a single price point that reflects as a "wall" in the order book.
InterPlanetary File System (IPFS)
The InterPlanetary File System (IPFS) is a peer-to-peer network and distributed file system protocol for storing and transferring data.
Satoshi
A unit measure for the smallest divisible unit of a bitcoin. 1 bitcoin is equal to 100 Million Satoshi.
Circulating Supply
An approximation of the number of coins or tokens that are currently not locked and available for public transactions.
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