DAG will be blockchain killer? Vite in the eyes of holder
felicity last edited by felicity Reward
Disclaimer: This post is for reference and sharing only, not to advice invesment. Every investment and trading move involves risk, you should conduct your own research when making a decision.
When it comes to adopting blockchains and cryptocurrencies, it is still a far way to go, however, mostly all major tech and finance companies have been dipping dipping their toes in the promising technology and exploring its opportunities.
While blockchain technology is the core focus for the vast majority of both retailers and companies, there is a competing technology on the rise that is touted by some as the blockchain killer: the Directed Acyclic Graph (DAG) structure.
DAG-based projects maintain the industry’s core concepts of decentralization and tokenization — but with a strong technological upgrade.
From Blockchain to DAG (What is DAG?)
At its very core, blockchain technology is a data structuring method.
The same goes for Directed Acyclic Graphs, but before we can compare the two technologies, we need to understand the logic behind DAGs.
The Directed Acyclic Graph is a well-known data structure in computer science.
The D in DAG stands for directed. A direction is given to the flow of information from the nodes in a network — you can think of it as a one-way street for information. This ensures that no nodes connect to any of the previous nodes in the flow of information.
Blockchains use most of the same logic. They are enabled by a network of connected nodes and once a transaction, or information, is transmitted to the network, there is no way that this information can return to the node without passing through other nodes first. They are directed because each new block refers to previous blocks, which is the blockchain.
One of the core differences between blockchains and DAG-based structures is that DAG allows for multiple chains of blocks to co-exist, whereas a blockchain network only allows for one main chain. This is possible because nodes can operate in parallel, as long as the flow of information is directed.
As displayed above, blockchains can be seen as a more linear data structure, whereas a DAG structure is sequential.
Because of the DAG structure, block times aren’t required. This means that transactions can occur near-instantaneous. Moreover, the problem that blockchains face when two miners find a block at exactly the same time and multiple chains exist until consensus is reached on which blockchain to use and which to abandon, is not present in a DAG structure.
Due to this, DAG-based decentralized networks have a far larger scalability potential than blockchains do, which is important given the current scalability limitations of most large blockchain networks.
Moreover, they are far more energy-efficient than, for example, Bitcoin’s Proof of Work whilst maintaining fully decentralized and thus maintaining the high levels of security enabled by decentralization. There is also no possibility for a 51% attack.
Given all these promising features of the DAG structure, it’s easy to understand the excitement of many investors about projects deploying the technology on their network. To explore what the biggest projects using a DAG structure are and how they implement it.
What is Vite?
This is probably currently the most exciting DAG project in the decentralized industry. Not because of its proven capabilities or impressive investors and partnerships, although they do have several, but because of the extremely bold promises of the project.
Vite is the name the founders have given to their DAG-based network structure. At the core of Vite’s technology lies its technologies, which can be named SnapshotChain, DAG, Smart Contract and HDPoS. These are quite complex, but thankfully clearly explained in this video with visual by Vite’s COO - Richard Yan. Introduction is unveiled here https://doc.vite.org/introduction/ and https://vite.blog/ . Videos from a lot of YouTube influencers can be found with key words “Vite public-chain”.
Vite claims to have solved distributed ledger technology scalability issues with DAG and SnapshotChain technological implementations, underscored by the Vite Fundamentals on their website, such as “instant confirmation”, “on-chain transaction”, “multiple-tokens” with the Payment application.
Vite testnet was recently launched ahead of the roadmap https://testnet.vite.net/ , after their successful fundraising in which 60.000 ETH out of 60.000 ETH was collected late June. Vite doesn’t have ICO, but around 5% of annual airdrop - which they call, community reward. Make sure to follow their social sites and Vite’s channels to get updated. After these milestones, the Testnet Snapshotchain Block Producers have already been rolled out on the network targeting producing blocks for the Snapshot Chain. Vite invented the Snapshot Chain to mitigate security issues posed by DAG architecture, which are well known. Vite holders are converting their ERC20 VITE to Vite Testnet, vote for SBPs and receive incentive as reward.
This table describe out how the Testnet incentives run.
That's how far this DAG project has gone.
DAG and blockchain based networks will likely co-exist because different industries and systems have different requirements. No system is perfect and even though DAG structures are highly promising in regards to transaction fees and scalability, blockchains are more robust when it comes to decentralized governance, several aspects of security, and smart contract deployment.
There have been multiple projects around for several years now, however, they still haven’t killed their blockchain-based competitors. In the end, it really depends on the needs of the users to decide which type of structure will be used. DAG projects in general and Vite in specific will have a long path to go and improve ahead. How do you think? Any additional idea you want to contribute? Let's share with me! May you decide!
felicity last edited by Reward
not any idead more?