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
Cryptography
A discipline or field of study which practices using cryptography to convert human-readable information that can only be deciphered by individuals who have the knowledge to.
Mining Reward
The reward resulting from contributing computing resources to process transactions
Masternodes
Computers that are responsible for processing blockchain transactions and receive a reward when a block is mined.
Hard Fork
It is a permanent divergence of a blockchain into two blockhains. The original blockchain does not recognize the new version.
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