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
Cloud Mining
Mining on blockchains through rented processing power rented from companies that host the physical equipment.
Wash Trade
Meaningless back and forth trading between a single party with the aim of inflating trade volume.
Block Explorer
Application or websites which display information such as status of transactions or data contained in a block of a given public blockchain network.
Double Spending
Double spending refers to the act of spending digital currencies twice. This is most commonly applied on crypto exchanges by unscrupulous actors.
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