Directed Acyclic Graph

A directed acyclic graph (DAG) is a directed graph data structure that uses a topological ordering. The sequence can only go from earlier to later. Its main application is an alternative to the Blockchain protocol, provided by IOTA and marketed as the Tangle.

DAG is often applied to problems related to data processing, scheduling, finding the best route in navigation, and data compression. In DLT, DAG can be used for applications that require scalability in the thousands of transactions per second as it does not require miners, it is feeless, and transactions are confirmed much quicker than Blockchain.