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
State Channel
Secondary payment channel occuring off-chain
Encryption
In cryptography, encryption is a process of encoding information the original form of information called plaintext via an algorithm called cipher. The encrypted message is now called ciphertext. Only authorized parties can decipher the ciphertext and convert back it to the original plaintext.
Market Maker
Participant of the market who creates buy and orders
Proof of Stake (PoS)
A consensus algorthm that assigns block validation queue based on the coins/token locked in by the validator.
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