BlockDAG Architecture

Introduction

1.1 Overview of BlockDAG Blockchain

BlockDAG is a novel blockchain protocol that adopts a Directed Acyclic Graph (DAG) architecture, similar to the Kaspa, Bitcoin and other blockchains. By leveraging a DAG structure, BlockDAG eliminates some of the inherent limitations found in traditional blockchains, such as scalability bottlenecks and confirmation delays. This allows for a more efficient and secure network that supports a higher transaction throughput and faster finality.

BlockDAG is designed to focus on supporting financial and commercial applications by enabling secure, transparent, and scalable transactions. The protocol’s architecture fosters decentralization, security, and performance, ensuring a high degree of consensus efficiency, particularly in environments with high transaction volumes.

In contrast to traditional blockchain architectures, where blocks are linearly connected, BlockDAG structures its blocks in a more complex, graph-like format. This allows multiple blocks to coexist and be processed in parallel, significantly improving network efficiency and throughput.

1.2 Objectives and Goals

The primary objective of the BlockDAG blockchain is to create a decentralized and scalable network that supports high transaction throughput while maintaining security and integrity. By using a DAG structure, BlockDAG seeks to address several challenges present in conventional blockchain systems, such as:

• Scalability: Achieving a significantly higher number of transactions per second (TPS) compared to traditional blockchains.

• Low Confirmation Times: Allowing for faster finalization of transactions by processing multiple blocks in parallel.

• Decentralization: Enabling a broad range of nodes to participate in consensus without sacrificing performance.

• Security: Mitigating common blockchain vulnerabilities, such as 51% attacks, by leveraging a novel consensus mechanism.

Furthermore, BlockDAG aims to facilitate cross-chain compatibility (Future Goal) and support for smart contracts, making it a versatile platform for decentralized applications (dApps).

1.3 Key Features & Differentiators from Other Blockchains

BlockDAG, introduces several enhancements and distinct features:

• DAG Structure: Unlike traditional blockchain chains, BlockDAG organizes blocks in a DAG format, enabling multiple chains of blocks to coexist. This structure improves transaction speeds and allows for better scalability.

• UTXO Model: BlockDAG employs a UTXO model, which provides a more straightforward method for tracking ownership and validating transactions. The UTXO model is known for its efficiency in high-volume financial systems.

• Proof-of-Work (PoW) DAG Consensus: BlockDAG employs a PoW consensus mechanism within a DAG framework. This hybrid model provides the security benefits of PoW while leveraging the scalability of DAG.