Both blockchain and DAG are DLTs. However, let's look at the differences between these two for a better perspective on their technologies.
The following table compares DLT - Blockchain and DAG:
|
Properties |
Blockchain |
Directed Acyclic Graph |
|
Structure |
It is a linked-list of blocks where transactions are grouped into blocks. |
It is a network of linked transactions. There are no blocks of transactions. |
|
Data structure |
It's a linked list (list of blocks). |
It's a tree (tree of transactions). |
|
Consensus |
Transactions are validated block by block to meet the consensus. |
Transactions are validated by one another. |
|
Features |
It offers transparency and immutability. |
It offers high scalability and a negligible fee. |
|
Use case |
It's suitable for use cases with low volume and high worth of transactions. |
It's suitable for high volume, of transactions. |
|
Pitfalls |
There's a high transaction cost, storage and bandwidth requirements, and computing power (for permissionless scenarios). |
Low transaction volume can lead to attacks. For private versions of DAG, it uses coordinators, which do not allow DAG to be fully decentralized. |
|
Approach |
It's a linear, utilitarian DLT that offers near real-time updates for transactions and offers disintermediation. |
It has a non-linear approach that actually results in faster transactions as the network grows. |