With no doubt that blockchain has been great so far. It brought us cryptocurrency and was the technology that set the pace for a myriad of industry-disrupting innovations. If you know what blockchain is, you probably also know that it is a kind of distributed ledger. But what are we going to talk today is not blockchain, but a game changer — DAG.
What is DAG?
DAG stands for Directed Acyclic Graph. It is a directed graph data structure that uses a topological ordering. The sequence can only go from earlier to later. DAG is often applied to problems related to data processing, scheduling, finding the best route in navigation, and data compression.
But how do blockchain and DAG relate? Well, let’s say if blockchain were a staircase, DAG would be a tree. While the former is a list of blocks, the latter branches out from one transaction to another.
Blockchains allow one to track down any record stored in a ledger’s history, but their sequential structure is also what hinders their transaction throughput significantly, the flat list nature of blockchains is the biggest bottleneck for their ability to scale.
A DAG works differently. This data structure resembles a flow chart where all points are headed in one direction. You can compare a Directed Acyclic Graph (DAG) to a file directory structure where folders have subfolders that branch into other subfolders and so on; they are tree-like.
As a blockchain grows over time, nodes will need more and more storage capacity and a higher bandwidth (volume increases) to keep up-to-date with the transactions added to the ledger.
This has the potential to become very costly, keeping in mind that internet speed will increase and storage cost will decrease over time. Other elements include: no data privacy as many blockchains are public and unwanted centralization because of the miners.
Concepts in the DAG
A DAG works in depth. This means that every node consists of multiple layers of transactions. When a transaction is registered in a node, it first has to verify two other transactions before his transaction will be verified. Those two transactions are chosen according to an algorithm.
The node has to check if the two transactions are not conflicting. For a node to issue a valid transaction, it must solve a cryptographic puzzle similar to those in the Bitcoin network (Proof of Work). Just two verifications are needed to verify a transaction. This gives the benefit of a drastic decrease in unnecessary verification.
One of the most promising companies working on DAG at the moment is CyberVein.
CyberVein
What also makes CyberVein different from competitor projects is the multi-mechanism use of sophisticated tech. Firstly, the project uses a Proof of Contribution to validate blocks. Secondly, transactions take place via the DAG structure, ensuring a vast amount of data processed every second, in a HIGHLY secure, complex consensus algorithm.
And yes, CyberVein’s DAG technology use cases apply to a multitude of enterprises and institutions.
Supply Chain management
By Using CyberVein’s solution, the participants in the supply chain can have credits spread over them, where the core company or banks can help financing the suppliers. By decentralizing the process, they not only save time for all parties but also improve efficiencies.
Medical
For many hospitals, their data is often not shared with anyone, which hinders the process of achieving better diagnosis or treatment plans. Obtaining data and the process of structuring data is costly and time consuming. To solve this problem, CyberVein proposes the use of its federal learning technology to put the data from different hospitals to good use without compromising data privacy issues.
Research
Again, research institutions require large amount of data for their researches. These data are often inaccessible or expensive to obtain, which limited the speed of the research processes. CyberVein’s solution allows research institutions to be able to tap into more data sources and data sets, and improves the process of research by using the models results from federated learning. This will greatly help developments such as medical drug development or disease research and other kinds of researches.
Conclusion
CyberVein is a decentralized platform designed to unify the storage, management and monetization of data through the blockchain, DAG and AI technologies, which solves the issues with scalability, speed and privacy issues. Please looking forward to Cyber Vein’s future performance.
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