What does DAG stand for?
The Directed Acyclic Graph (DAG) DLT is a solution that offers the benefits of blockchain with better performance.
The idea of a Directed Acyclic Graph is by no means a new one. In mathematics, a DAG is a graph that travels in one direction without cycles connecting the other edges. This means that it is impossible to traverse the entire graph starting at one edge. The edges of the directed graph only go one way. The graph is a topological ordering, that keeps each track of each node.
Imagine a collection of individual transactions where each transaction is linked to at least one other transaction in the following way:
The links point in the same direction with earlier transactions linked to later transactions, and so on.
Loops are not possible. A transaction cannot loop back on itself after linking to another transaction.
The mesh of connected transactions can be represented as nodes in a graph network, in which nodes are joined to each other by links.