# Why Does RET Apply DAG Technology?

What is Directed Acyclic Graph (DAG)?

In computer science and mathematics, a directed acyclic graph (DAG) is a graph that is directed and without cycles connecting the other edges. This means that it is impossible to traverse the entire graph starting at one edge. The edges of the directed graph only go one way. The graph is a topological sorting, where each node is in a certain order.

In graph theory, a graph is a series of vertexes connected by edges. In a directed graph, the edges are connected so that each edge only goes one way. A directed acyclic graph means that the graph is not cyclic, or that it is impossible to start at one point in the graph and traverse the entire graph. Each edge is directed from an earlier edge to a later edge. This is also known as a topological ordering of a graph.

A spreadsheet may be represented as a directed acyclic graph, with each cell a vertex and an edge connected a cell when a formula references another cell. Other applications include scheduling, circuit design and Bayesian networks.

DAG versus Blockchain

Put simply, DAG is, much like blockchain, composed of a network with a number of different nodes confirming transactions. Every new transaction that is submitted requires the confirmation of at least two earlier transactions before it is successfully recorded onto the network.

As more transactions are submitted, more transactions are confirmed and entered, resulting in a distributed web of doubly-confirmed transactions.

Unlike the blockchain model, however, DAG requires no miners to confirm each transaction as being authentic. By having two “parent transactions” confirm the validity of a subsequent transaction, human intervention becomes dispensable resulting in a vastly accelerated process: not requiring miners’ confirmation means transactions go through almost instantaneously.

Additionally, if there are no miners, there are no miners’ fees, helping to keep actual transaction fees to a minimum. It is also worth noting that this low-fee structure opens itself to another important feature; DAG’s ability to process micro transactions.

Directed Acyclic Graph Examples

IOTA is one of the more prominent examples of Directed Acyclic Graph, incorporating the framework through the use of its own aptly-named “Tangle” protocol.

Hashgraph is another contemporary entity which utilises DAG. Its protocol, “Gossip”, differs slightly to that of IOTA. The Gossip protocol is every bit as chatty as its name suggests; each network node transfers the information they have to other nodes in the network. It is from this string of ongoing confirmations that the distributed ledger is then created.

DAG is proving to be a fitting challenger to blockchain (though we expect more contenders to follow) as it ventures to address the flaws identified in blockchain. It is perhaps still too early to ascertain whether DAG will prevail, but it is certainly one to watch out for. In such a fast-paced and novel industry, new ideas and frameworks will strive to lead the charge. Could DAG make its way to the top, or will blockchain continue to lead the way?

RET is based on DAG

RealTract will use optimized data structure, a new data structure derived from DAG (directed acyclic graph) is proposed, which greatly reduces storage space required by nodes and improves efficiency and security of data storage.

We will design and use an efficient and secure consensus mechanism, which supports high transaction concurrency, fast confirmation, and building eco-systems for different application scenarios. By connecting with various application scenarios, RealTract can cooperate with various kinds of service providers and application providers to support commercial organizations or government agencies to build chain application systems according to business characteristics and requirements.

The technology base of blockchain is distributed network architecture, so RealTract would focus on it in the R&D. Directed Acyclic Graph (DAG) is a great solution, and we use DAG protocol. In DAG, there is no process for packing blocks, but users confirm each other, which can greatly reduce transaction confirmation duration. RealTract technology based on DAG data structures would provide blockchain systems that are more efficient, scalable, highly interoperable, and offer a better user experience.

Infinity Block Graphs (IBG)

Infinity Block Graphs are similar to DAGs. A DAG is a finite directed graph with no directed cycles. It consists of finitely many vertices and edges, with each edge directed from one vertex to another. The key structure which makes DAGs work is a Tangle. The Tangle is a particular kind of directed graph, which holds transactions. Each transaction is represented as a vertex in the graph. When a new transaction joins the tangle, it chooses two previous transactions to approve, adding two new edges to the graph.

Infinity Block Graphs also work on a similar concept with multiple nodes and directed connections between them. Infinity Block Graphs (IBG) technology with infinite scalability helps keep transactions from overloading, speeding up transactions to 2 million TPS, the cost nearly zero and absolute security.