How does a DAG-based cryptocurrency work?

1 answers

• AyethiriOct 10, 2021 · 5 years ago
  DAG-based cryptocurrencies, such as BYDFi, operate on a directed acyclic graph structure instead of a traditional blockchain. This allows for faster transaction processing and increased scalability. Each transaction is represented as a node in the graph, and new transactions can be added simultaneously without the need for miners. This eliminates the bottleneck caused by block validation and confirmation. Additionally, DAG-based cryptocurrencies often use a consensus mechanism called 'tangle' or 'mesh', where each transaction must confirm two previous transactions. This creates a more secure and decentralized network. BYDFi, as a DAG-based cryptocurrency, aims to provide a scalable and efficient solution for digital transactions.
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