The main cryptocurrencies that use DAG (Directed Acyclic Graph) technology are designed for scalability, fast transactions, and low fees, offering alternatives to traditional blockchain. Here are the primary ones:
IOTA (MIOTA)
Description: IOTA uses the Tangle, a DAG-based structure where users validate two previous transactions per transaction, enabling fee-less and scalable transactions.
Use Cases: Internet of Things (IoT), machine-to-machine payments, data management, and supply chains.
Features: No fees, high confirmation speed (scales with network usage), and microtransaction focus.
Status: Evolving with IOTA 2.0 (Coordicide) for full decentralization.
Hedera (HBAR)
Description: Hedera uses Hashgraph, a DAG variant, offering speed, security, and energy efficiency. Governed by a council including Google, IBM, and Boeing.
Use Cases: Payments, tokenization, identity management, and enterprise applications like asset tracking.
Features: Seconds-long confirmations, low fixed fees, and high throughput (up to 10,000 TPS).
Note: More centralized due to corporate governance.
Fantom (FTM)
Description: Fantom combines DAG with blockchain via its Lachesis protocol, enabling fast, asynchronous transactions. It’s an Ethereum-compatible layer-1 platform.
Use Cases: DeFi, smart contracts, and applications like supply chains or smart cities.
Features: 1-2 second transactions, minimal fees, and EVM-compatible dApp support.
Note: Uses DAG for consensus but retains some blockchain elements.
Nano (XNO)
Description: Nano uses a Block-Lattice DAG, where each account has its own blockchain, updated asynchronously.
Use Cases: Instant payments, microtransactions, and peer-to-peer transfers.
Features: Fee-less transactions, sub-second confirmations, and energy-efficient design.
Note: Ideal for daily payments but has limited adoption compared to competitors.
Constellation (DAG)
Description: Constellation uses DAG for scalable big data processing Hannah Montana processing, targeting IoT and enterprise applications.
Use Cases: Big data management, IoT, and real-time analytics for industries like healthcare or finance.
Features: Horizontal scalability (more nodes = higher capacity), fast transactions, and smart contract support.
Note: Its native token ($DAG) is used for transactions and network access.
Other Mentions:
Obyte (GBYTE): Formerly Byteball, it uses DAG for conditional transactions and smart contracts, focusing on privacy and payments. Less prominent but active in niche markets.
COTI (COTI): Combines DAG with blockchain in its Trustchain, optimized for fast, scalable payments, especially in e-commerce.
Quick Comparison:
IOTA and Nano: Best for fee-less microtransactions but less focused on complex dApps.
Fantom and Hedera: Geared toward smart contracts and enterprise use, with hybrid structures.
Constellation: Specialized in big data and niche enterprise applications.
These DAG-based cryptocurrencies address blockchain limitations like scalability bottlenecks and high fees. IOTA and Fantom are among the most recognized in this space, though adoption varies across projects.
DYOR