DAG stands for "Directed Acyclic Graph"
Here are some of its differences with a traditional blockchain system:
- Unit: Blockchain units are blocks, but DAG units are a single transactions
- Topology: a Blockchain is, like its name implies, a chain of blocks, while a DAG is a network of nodes that can perform transactions independently from one another
- Granularity: Blockchain units are a combination of many transactions from multiple users, compared to DAG units, which are relevant to a single transaction
Ambr's main considerations are scalability, decentralization, and security, and is the first to use DAG to promote interoperability. Ambr introduces a DAG structure based on a multi-chain account structure to isolate the units and accounts of participants in the network. At the same time, the verification chain, using the Casper protocol, is added to solve the inherent uncertainty in the DAG system (transaction confirmation, node synchronization, order, and etc.). These improvements allow the system to support smart contracts, drastically increasing the overall functionality.