# Locus Chain succeeds in implementing the world’s first ‘DAG-BFT deterministic consensus algorithm’ Blockchain technology

As of February 21st, the following article has been uploaded.

It has been said that the world’s first DAG-BFT deterministic consensus algorithm technology has been successfully implemented. Let’s look at what DAG is and what a BFT deterministic consensus algorithm is.

The dictionary meaning of DAG stands for Directed Acyclic Graph. It is composed of infinite number of vertices and directional lines and connected from one vertex to another, but is a graph that does not circulate in that direction.

You can refer to the following description that is included in the dictionary meaning.

DAG can model various kinds of information. Spreadsheet can be modeled with a DAG in which vertices for each cell, and each cell’s formula for an artery can be used where it uses the value of another cell. In other words, phase alignment of a DAG allows you to update the values of all cells when the spreadsheet changes. -Source: Wikipedia-

Due to this feature, DAG is regarded as a next generation technology in the Blockchain industry. A simpler explanation will be provided for those who find it difficult to follow the technical explanation.

Blockchain is a method in which a large number of nodes need to agree on the entire network to create a single block. If the existing method had a serial structure with a consecutive consensus, DAG method forms a consensus in a parallel structure which helps process the transaction faster.

For example, the existing Blockchain technology can be compared to a method in which, when checking attendance in a class of 50 people, you have to call each number from 1 to 50 in order. In this method, every student has to wait until all the numbers from 1 to 50 are called.

However, a DAG based algorithm is a method in which the 50 students need only check if the student with their subsequent number is present. (it does not have to be the subsequent number, and it doesn’t have to be just one person, but you have to make sure that the same numbers are not checked repeatedly) If attendance is checked this way, the 50 students only need to check once or twice so the process will be completed as soon as it starts.

Here, each student is a single node in the Blockchain, and the completion of the attendance check can be understood as the completion of a single transaction.

But there is a problem. As we explained earlier, DAG’s greatest advantage is its fast speed and unlimited scalability. However, this is based on the assumption that all the students participating in the attendance check are telling the truth.

This means that if anybody lies, the attendance check could go wrong in the first place.

Which is why deterministic consensus was made.

A quick attendance check (transaction) has been done, but there is a need for a consensus among the participating students that there was no lie in the completed attendance check.

Locus Chain team applied a BFT based deterministic consensus and successfully implemented a DAG-BFT deterministic consensus algorithm.

Once the transaction is completed and the deterministic consensus has been made, this record becomes semi-permanent and cannot be modified or manipulated arbitrarily.

### Why this is important

This is important because it can keep the existing block chain’s advantages while solving the issue of scalability as well as achieving fast transaction speed.

Locus Chain is developing a Blockchain technology that can be applied in real life.

Crypto currency and Blockchain technology has been developed by many teams, but the truth is that it has not been recognized as a means of transaction on a large scale such as a nation or a business.

With the first and second generation technology, there was a problem with the speed at which transactions were completed when the amount of transactions increased significantly.

In fact, when the price of bitcoin skyrocketed at the end of 2017, the increased transaction amount caused problems such as a single transaction taking hours to process or requiring high transaction fees.

Even if Blockchain is a next generation technology, few countries or businesses would use it for large scale transactions in such environment.

In the above case of attendance checking, if the number of students is about 50, though there may be the difference of serial and parallel method, the existing method could still be used.

But what if the attendance check had to be done on the entire school rather than a class, the number of students increasing to 500 or 5000?

It would probably be most efficient to use a parallel structure rather than the existing serial structure, or use a sharding method (splitting the class in half).

So far, many Blockchain-related teams have come up with excellent speed, but there was a limit to be regarded as a practical skill because most of the test results were from a private environment with a limited number of nodes.

However, it is an undeniable truth that once Locus Chain is completed, it will be able to process large-scale transactions at a stable speed in public environments, and become a Blockchain technology that can be applied in real life.

In addition, when it becomes recognized as a practical technology, we predict that cryptocurrencies will be recognized and utilized as a formal means of transaction is large businesses and organizations.

A technology that can process large-scale transactions at a stable speed needs to be developed in order to be properly recognized and accepted in the market.

Credit cards we use for transactions are said to have a payment speed of about 4K TPS. In fact, payments are made within seconds when purchasing products from convenient stores with a credit card, and though there are some delays, most people do not feel any inconvenience.

Locus Chain too, is aiming to develop a next generation Blockchain that can be used in real life, and is therefore developing a technology that allows transactions to be completed within seconds no matter how much the transaction amount increases.

The DAG algorithm has a consistent transaction speed even when the number of nodes increases. Hence, it has the feature of increasing the overall speed as well as being able to make transactions with almost no fees.

This means that there may come a time where Bitcoin or Etherium won’t have to make constant technical updates such as lightning network or increasing the block size in order to solve scaling issues as the transaction amount increases.

### Successful implementation of the core of Blockchain technology development. What’s next?

While Blockchain technology has several advantages, it definitely has its limits. Thus, many teams developing Blockchain have used various methods to maintain a stable speed even when the amount of transaction increases.

To this day however, there has not been a team that has addressed the speed and scalability issue while maintaining the advantages of the existing Blockchain, and only Locus Chain has been able to successfully implement an algorithm that can solve these issues.

Furthermore, Locus Chain has been conducting business development on a national and inter-company level.

Although the development is still at its demonstration phase, once it has progressed to the test net and main net level, we predict that it will become the first Blockchain technology that can be used on national or business level transactions.