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What is Directed Acyclic Graph (DAG)?

Crypto Terms Glossary: What is Directed Acyclic Graph (DAG)?

A Directed Acyclic Graph (DAG) is a form of Distributed Ledger Technology (DLT). In contrast to a blockchain, which groups transactions into blocks and orders them in a linear fashion, a DAG is a network of individual transactions that are only connected to each other — without blocks. While blockchains require block validation, in a DAG, individual transactions provide validation for each other. All network users in a DAG are simultaneously miners and validators, and therefore transaction fees tend to be much lower than those common to public blockchain networks.

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