Classic Blockchain, DAG or DyDAG: Which Blockchain is Better?
Blockchain is a new technology in the world of finance and e-commerce and modern business wants to utilize it worldwide. The idea of recording the information without any ability to change it afterward is brilliant and was implemented in the first cryptocurrency, Bitcoin and later, it came to other fields like banks, insurers, etc. Over recent years of blockchain evolution, we can see that it still has some vulnerabilities. As new advanced blockchains appear, there is hope that soon the technology will be widely adopted. Let’s compare classic blockchain with the advanced ones: DAG (IOTA) and DyDAG (HyperSphere) to see the progress.
Classic Blockchain: Bitcoin, Ethereum
Existing blockchain technologies used by Bitcoin, Ethereum and others employs a single public blockchain with global permissionless participation. Despite its evident advantages classic blockchain becomes slower and heavier with each new transaction and is a subject to privacy leakage, theft, content contamination and illegality.
The classic blockchain also has shown some inefficiencies such as high demands to hard drive capacity, network hashrate and connected nodes count (reminder about 51% attack) and operates with energy inefficient mining system. It cannot exist without miners, so the need to pay miners fees is inevitable within the system.
Original Satoshi Nakamoto blockchain, first introduced in 2009, is without doubt a great decision. But 10 years of usage born new problems that may not be able to solve in old architecture.
DAG Blockchain: IOTA
IOTA aims to impact the Internet of Things space by reducing the for issues, like scaling and transaction time, that classic blockchain is struggling with.
IOTA blockchain (also called Tangle) is different from the classic blockchain like Bitcoin or Ethereum as it uses a Directed Acyclic Graph (DAG) called Tangle. In Tangle, transactions are linked to each other like a big web tangle. There is no concept of blocks. Each transaction is verified by a little PoW by the originating device. The system links the transaction further to two more random transactions. In Tangle, you do not need to wait for blocks to be mined. The transactions are verified in parallel.
Tangle is more fluid and scalable than classic blockchain, and it becomes quicker and more powerful with time, while blockchain gets slower and less productive. When it comes to security, Bitcoin or Ethereum are much more secure and hacker-resistant than IOTA because of more complex algorithm for verification and bigger network hashrate.
DyDAG Blockchain: HyperSphere
To circumvent long blockchain weaknesses and vulnerabilities, the HyperSphere employs a completely new blockchain structure and control system for blockchain processing, cryptocurrency transactions, and traffic management– the dynamic directed acyclic graph, or
‘DyDAG’, developed and introduced in the Whitepaper for the first time.
Contrasted against conventional single-chain ledgers, DyDAG blockchains are personalized and multi-tree, thereby limiting blockchain length, reducing storage demands, and accelerating transaction resolution rates. Beyond these obvious performance benefits, DyDAG blockchains are robust, ensuring tamper-proof consensus for transaction validation. Unlike the global communal single-chain blockchain used in conventional cryptocurrency, the various trees in the HyperSphere’s DyDAG blockchains are ‘individual’ (not communal), with each blockchain having personal or enterprise ownership through an identity-trust-chain.
In the HyperSphere, all blockchain-to-blockchain asset transfers are executed through HyperContracts specifying the participants including buyers, sellers, jurors, and alternate jurors. At contract completion all credit-debit transactions are recorded and time stamped as debits on the payor’s DyDAG blockchain and as credits on the payee’s private blockchain. In the case of public blockchains, the modified DyDAGs are then published on the HyperSphere using pseudonyms to protect the owner’s true identity from hackers and thieves. Although these pseudonyms do not reveal an owner’s true individual or corporate identity, in criminal investigations or in cases of civil litigation, a pseudonymous blockchain owner is traceable to their true identity.
To manage transactional integrity while preventing personal identity theft or leakage from an account owner’s blockchain, the HyperSphere uses a unique and inventive method referred to as a replicant blockchain observer segment (RBOS). Comprising a limited length copy of a host’s blockchain, the RBOS is sufficiently long to authorize a transaction but too short to enable backtracking of prior history or inadvertently result in privacy leakage.
That means absolutely different approach to transaction history storage and validation, uniquely designed for rapid execution, robust dynamic security, cloaked distributed consensus, attack resilience, and inherent privacy protection.
Comparison of Blockchain Functions of HyperSphere, Bitcoin, IOTA and Some Other Blockchains
