The two most popular cryptocurrencies – Bitcoin and Ethereum.

Bitcoin uses PoW and Ethereum runs on PoS. Let’s take a look at how these two disparate systems differ.

PoW is a mining and computer power based system in which participating users are required to solve difficult mathematical problems to validate and authenticate transactions. The difficulty of these mathematical tasks is constantly increasing along with the computational power of the whole ecosystem.

These calculations are very costly because of the high amount of energy needed. This leads to the problem that the grid is no longer as decentralized as originally intended and is instead controlled by large mining pools. This then causes a lot of the wealth of the ecosystem to leak to energy companies and graphics card manufacturers.

On the other hand, PoS has solved this energy related problem. In the PoS get tokens from actual holdings of the cryptocurrency. Users that own the largest chunk of cryptocurrency have the authority to make network changes and mine an equivalent portion of their funds regardless of computing power.

In 2016, the Ethereum network was split. After that appeared threats from users, including the angel investor Chandler Guo. Guo threatened to use a 51% attack on Ethereum Classic and this was possible due to the its small network size.

Is this a decentralized network? Where are the groups of people who manipulate the network? Someone says yes, someone not.

DAG (directed acyclic graph) has been offered as a solution. It is very different in contrast to the other systems. One user’s voice is just as important as another, regardless of their computing power and the number of tokens that they own. DAG is a blockchain free system and it solves several problems of the blockchain systems, including the following two basic issues – the mining pool’s oligopoly problem and the lack of possibility to speed up the validation process.

In DAG-based cryptocurrencies each new transaction confirms one or more previous transactions. As a result, transactions perform a structure which represent a directed graph with no directed cycles.

In 2012, the first concept of a cryptocurrency was developed – DagCoin. Following this was Byteball in 2015, which is based on DAG and is the project of a new Blockchain-free cryptocurrency. Then in 2016 an overview of Tangle technology, based on DAG, was published. Tangle is the framework for the Blockchain-free cryptocurrency IOTA, which is aimed at improving the payment methods between the Internet of Things.

This DAG concept is still very new and it is not being talked about much, however, the potential it has is very interesting and sooner or later people in the field of cryptos will become aware of its advantages. – leading Bitcoin News source since 2012

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  1. Pure true. PoW and PoS have been great technology and I love them. But this is not decentralization anymore. We need this new generation of crypto, we need new technology.

  2. Blockchain is for daily using dead . IOTA, Byteball and the DAG generally are future for connecting crypto and real world. And IoT will be perfect place for this connection. It is so great market with such potential and opportunitty.

  3. This is very interesting technology, that is designed to overcome the shortcomings of the current blockchain PoW and PoS currencies. Even with the larger blocks etc. the blockchain would not be able to process 150 million of transaction per day, currently handled e.g. by VISA. The DAG Byteball currency is designed to work very effectively – fast transactions, smart contracts built in, secure and untraceable, very easy to use and as it is distributed, it cannot be controlled by miners (if you remember the panic bitcoin vs bitcoin cash – attempt to hijack bitcoin by few powerfull miners). Also at the current price, there is very good growth potential.

  4. I think that IOTA is a really good choice for investing – they have partnership with a big companies like Samsung, Bosch, Microsoft….etc.

    So I am sure that it will go straight up not only because of this reason – because IOTA has much more advantages!

  5. Although Bitcoin will probably always be No. 1, I think that it will play more a function of “digital gold” than a function of currency. DAG-based cryptos are much faster, in a way safer and transactions within them are damn cheap (or free in the case of IOTA).
    I thus believe that we will see a big rise of IOTA, Byteball and other DAG cryptos. There are many other coins and tokens, some of them offer more privacy, some of them other nice features, but I don’t see anything better than DAG-based cryptos for mirco-transactions and everyday payments.

  6. When I look back, maybe it’s good to be interested in this new technology in these days when the technology is at the beginning. In the beginning, the bitcoin was also “incomprehensible” and we are witnesses to see what the situation is nowadays. The same case was with Ethereum. When it cost a few dollars, I still wondered if it really is a breakthrough thing. I missed an opportunity. In the case of DAG technologies, I can not miss this opportunity, and I’ve already invested in the above cryptomas and now I’m very curious if they fill up their enormous potential they have.

  7. IOTA will be one day very useful coin. IoT will be in very short term everywhere and classic blockchain technology has not the right properties for this technical branch. This is reason why I see very good future for DAG technologi and IOTA coin, which has partnership with big companies.

  8. Yes, IOTA is a really great investment at this time. And still very cheap when is it judged against blockchain cryptos like BTC, ETH etc. Everything around IOTA is still just start of his very bright future.

  9. Somewhere I’ve heard that cryptocurrencies are currently like internet when it was started. And it seems like it. First and second generations are already behind us and the world need something faster, cheaper, safer and better. It it will be the next generation…DAG will be great.

  10. Pow is past. I was waiting many hours to complete transaction and will be worst.
    Next generation of cryptocurrency is here and for now price is also more than ok.
    Buy Byteball and you will not regret.

  11. I bought IOTA three month ago and you should not be surprised that I am a happy man:D But this is only start line. It will be much much better and I will be much much happier. Thanks IOTA for such a great project….Byteball is my next choice.

  12. Replace probably not, but be an equal partner or more – definitely. Tha DAG technology is a bomb and it is next generation of technology. New generation meens new potential, less mistakes and errors and more opportunities. I’ll see good days for IOTA and others.

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