Future of digital currencies might not involve Blockchain
Nov 20, 2017 Posted / 7062 Views
The world has started to look up to cryptocurrencies. Cryptocurrencies and blockchain are trending with so much admiration such that they have created an impact where the law-abiding organizations are talks of implementing them in their industrial infrastructure to create a transparent and scam free atmosphere. At this point in time, it can be difficult to think, but cryptocurrencies are way atavistic than its driving force- The Blockchain technology. While the large amount people consider Bitcoin as the foremost cryptocurrency, even though it is no more than the first Blockchain technology-based virtual currency. Prior to bitcoin, cryptocurrencies like Digicash, BitGold, B-money, Hashcash were there before Bitcoin, nonetheless, these virtual currency pioneers didn’t actually make it big, particularly when judged in opposition to Bitcoin.
The quandary with cryptocurrencies that were conjured up before Bitcoin was their centralized network. With the lack of the Blockchain technology, there was no sort of an immutable, decentralized and transparent public ledger in which transactions that could be recorded, thus leading to centralization. however, it seems to be like that the Blockchain might not be the all-important element of the several prevalent digital currency technologies.
In recent times, an innovative type of technology has come forward that uses the "DAG" Directed Acyclic Graph model for the organization of its decentralized ledger, permitting old problems to be deciphered as well as other innovative features are to be added.
Looking at the features of DAG, we can consider that this technology can probably substitute for the Blockchain technology plus some of its recent implementation use cases.
Even though the implementations can be new, but the concept of DAG is not. In 2013, a paper was dubbed which was titled as “Accelerating Bitcoin’s Transaction Processing. Fast Money Grows on Trees, Not Chains,” and its authors Yonatan Sompolinsky and Aviv Zohar initiated the GHOST protocol which puts forward a modification to Bitcoin’s configuration from a Blockchain into a tree, by plummeting confirmation period as well as enhancing security. Though this amendment has not been implemented in Bitcoin, few altcoins are using the DAG-based system effectively.
The blockchain is as refreshing as DAG, but since blockchain has started to create waves amongst numerous small-scale plus big-scale based industries in many countries, including India. Any new technology has to prove its mettle before gaining the acceptance from the masses. So, currently blockchain is trending quite well and it has more shelf life.
Applancer is an open platform for discussion on all things like Blockchain , Cryptocurrency and Ico news updates. As such, the opinions expressed in this article are the author's own and do not necessarily reflect the view of Applancer .
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