Definition
A DAG, short for Directed Acyclic Graph, is a way of organizing data where records are connected as nodes in a graph that has a direction and no cycles. In some crypto systems, each node in the DAG can represent a transaction or a group of transactions, and edges show how new transactions reference earlier ones. Unlike a single chain of blocks, a DAG allows many branches and connections, while still preventing loops that would break the ordering of data. This structure is used as an alternative to a traditional blockchain to represent the history of activity in a network.
In Simple Terms
A DAG in crypto is a network-shaped ledger where transactions are linked like a web instead of stacked in a single chain. Each new transaction points to earlier ones, creating a directed pattern that never loops back on itself. This gives the system a clear sense of what happened before what, without relying on one long sequence of blocks. It is simply a different design for keeping track of who sent what to whom over time.
Context and Usage
The term DAG describes the underlying data structure some projects use instead of a classic blockchain, but it still serves the same basic purpose of recording and ordering transactions. In these systems, the DAG structure defines how transactions are stored, referenced, and validated across the network. Because it is a general concept from computer science, DAGs can also appear in other parts of crypto and technology, wherever a directed, non-circular graph is needed to represent dependencies or flows. In the context of coins and tokens, mentioning a DAG usually highlights that the project’s ledger is graph-based rather than block-based.