Directed Acyclic Graph (DAG)

A Directed Acyclic Graph (DAG) is a data structure used as a consensus tool in some cryptocurrencies to organise and validate transactions without relying on traditional blockchain methods. DAG is a graph where nodes (representing transactions) are connected in one direction, and there are no loops, ensuring data flows sequentially and cannot return to a previous node. Each new transaction validates one or more previous transactions, creating a web-like structure instead of linear blocks. DAG-based systems are highly scalable and suitable for high-throughput applications, as they eliminate block size and mining constraints.