Since Bitcoin's launch in 2009, blockchain has remained the core technology for most cryptocurrency platforms. However, after more than a decade of usage, many networks face delays, high fees, and slow transaction confirmations. Directed Acyclic Graphs (DAG) are emerging as a new solution to these issues.
Problems of Traditional Blockchain Networks
One of the main problems with blockchains is their sluggish performance. Each transaction must fit into a block, and each block must follow the last. This slows the network down and limits the number of transactions it can handle per second. DAG systems work differently, allowing transactions to validate and link in a growing graph simultaneously. Key benefits include:
* Faster confirmation times * Lower transaction fees * More transactions per second * Better energy efficiency
Hybrid Model of BlockDAG
BlockDAG stands out not only for using DAG but also for its architecture, which combines a DAG framework with Proof-of-Work (PoW). This hybrid approach ensures rapid processing while maintaining strong network security. Miners still validate transactions like on Bitcoin, but now they are not restricted to a single chain of blocks. This distinction allows for an open and secure network with significantly higher throughput.
Progress of BlockDAG and Future Plans
The current successes of BlockDAG are not just concepts; they are being realized. The project's testnet is available to all and supports smart contract testing and node configuration. Over 2 million users are already mining BDAG coins. The project raised more than $338 million in its presale, placing it among the largest crowdfunding initiatives in the crypto industry. Additionally, BlockDAG has become the official blockchain partner for two sports teams in the U.S., promoting Web3 tools such as NFTs and fan tokens.
The challenges facing traditional blockchain networks push the search for new solutions, such as DAG technologies and their combinations with PoW. BlockDAG demonstrates potential in creating scalable and fast networks, which becomes increasingly relevant given the growing demands of the market.
