Azero utilizes DAG. So, what is this DAG, and what sets it apart from Blockchain?

"Azero uses DAG. So, what is this DAG? What distinguishes it from Blockchain?
Let's try to clarify this matter a bit.
Let's get started."

To understand DAG, let's first recall how Blockchain operates.
Imagine three individuals named Melik, Turgut, and Selim. In Blockchain, all three must maintain the balances of Melik, Turgut, and Selim.


If Turgut wants to send 1 #btc to Melik, these three individuals will first check their own notebooks to verify if Turgut indeed has #btc. Of course, for this to happen, they must have individually recorded the incoming #btc to Turgut in their notebooks when it arrived, as this is how the system operates.

Yes, after confirming that Turgut has enough #btc to send, Turgut sends the #btc. Now, these three individuals will update their final account balances. Even though Selim is not directly involved in both ends of this transfer, he still has to update his own notebook.

Now, if Turgut wants to send #btc to Selim, all participants would reconcile by checking their notebooks to ensure that Turgut has enough #btc. Once Turgut makes the transfer to Selim, they would all update this latest development in their notebooks.

Exactly, in Blockchain, every transfer is repeatedly recorded in all notebooks with the entire transaction history. So, if you want to join the #Bitcoin network by setting up a node today, you would need to download all the transaction records made since the beginning onto your computer.

Certainly, this process increases the transfer time and fees. Today, it takes up to 10 minutes for a #btc transfer to be confirmed. Due to the mentioned reasons, the number of transfers it can perform in one second is limited to 7.
This is a problem.

Because when you want to buy a coffee, you might have to wait for 10 minutes for the money to transfer to the other party. Of course, there is also the possibility that the transfer fee could be more expensive than the coffee.
Here, DAG is a mathematical algorithm poised to solve this problem.

What is DAG?


DAG (Directed Acyclic Graph), an algorithm that can be referred to as a Directed Acyclic Graph, operates on the principle of transactions being confirmed in a single direction without any backward loops.