distributed ledger technologies other than blockchain

⁠

DAG

⁠

DAG has no blocks, chains, miners, or transaction fees.

the total supply of coins is either issued to users or “pre-mined,”

and consensus is done very quickly.

DAG has an extremely high theoretical limit on transactions per second (TPS throughput)

because of the way consensus is achieved.

IOTA and Fantom

patented technology

aiming to be used with permissioned blockchains, in contrast to Bitcoin’s permissionless blockchain.

able to handle 250,000+ transactions per second

and achieves consensus by having ⅔ of the network agree on valid transactions.

consensus is achieved through a voting system combined with a “gossip” system,

which is essentially a way for nodes to communicate by sharing information with neighboring nodes.

gossiping is how transactions are spread across the network

and once over ⅔ of nodes received the gossip information and sees events are truthful,

then the network is validated.

the two biggest issues with blockchain technology are scalability and fees.

since each node on the network must verify each transaction,

the network becomes slower with more transactions.

for example, if 1,000 transactions are broadcasted to the network at once,

then each node (or a large majority) will ultimately need to agree that each transaction is valid.

with few miners, these 1,000 transactions can take hours to complete,

and only those with high fees will gain higher priority.

the point of blockchain originally was to offer an extremely low-cost and fast method for transacting without a middleman.

with potential scalability issues and high-fees,

some view blockchain as the first iteration for the future of DLT.

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