Directed Acyclic Graph (DAG)

A Directed Acyclic Graph (DAG) is a data structure where information flows in one direction and never loops back on itself. In blockchain technology, DAGs are used as an alternative to traditional linear blockchains, allowing multiple transactions to be processed in parallel rather than sequentially. Cryptocurrency projects like IOTA (using the Tangle) and Hedera Hashgraph use DAG-based architectures to achieve higher throughput and lower fees.