DAG in Cryptocurrencies: My Critical View of this Alternative Structure

Wow! When I think of cryptocurrencies, blockchain, blockchain, and more blockchain always come to mind. But there is another architecture that could change everything: directed acyclic graphs or DAG. Let me share my personal experience with this technology that intrigues me so much.

What the hell is a DAG?

A DAG is basically a different data structure that connects information. It sounds complicated, and it is! Imagine spheres connected by arrows that only go in one direction and never form closed circles.

I have seen how these structures are used in medicine to connect symptoms with causes, but what is really interesting is how they can revolutionize cryptocurrencies.

How this wonder ( or nightmare ) works

Unlike blockchain where we wait endlessly for the next block (, who hasn't cursed while waiting for a confirmation? ), in a DAG each transaction builds on another. There are no blocks, nor mining.

When I send money, my transaction must reference previous transactions to validate them. It's as if each user were a mini-miner. I can finally feel important!

The system favors transactions with more "weight" ( more confirmations ), naturally forming a main path. And although it could technically spend the same funds on different branches, the system tends to consolidate on the heaviest branch.

It seems quite clever to me, although it still worries me how it might behave under a coordinated attack.

Advantages that I love

• Speed: No need to wait for blocks. Send, confirm, and done.
• No mining: My ecological conscience appreciates not spending energy as if there were no tomorrow.
• No fees: I can make micropayments without feeling like I'm paying more in fees than the actual value of the transaction.
• Scalability: It can handle more transactions per second. This is gold for IoT, although I still see it more as a promise than a reality.

Disadvantages that concern me

• Covert Centralization: Many DAG projects have centralized elements that "temporarily" solve problems. Temporary? We know how that ends...
• Unproven experiment: They have not been shown to work on a large scale. It reminds me of the early days of some platforms that promised to revolutionize the world and now no one remembers.

My personal conclusion

DAGs have the potential to change the game of cryptocurrencies, especially in IoT and micropayments. But let's be honest, there is still a long way to go.

While the major blockchain platforms continue to dominate with their known issues, these DAG alternatives remain risky bets. Personally, I see them as a fascinating technology but one that still needs to earn my full trust.

Will they solve the scalability issues? Maybe. Will they create other problems? Almost certainly. Technology is never perfect, and as a user who has witnessed many "revolutions" rise and fall, I keep my enthusiasm in check.