Cercles dans un cercle, 1923, Vassily Kandinsky

What architecture to promote a real payment revolution?

Since the creation of Bitcoin in 2009, blockchain has continued to bring its own batch of evolutions in finance as well as in industry. However, it must be acknowledged that this technology is still struggling to find its place in common usage.

Hindrances to use

It could be argued that the democratization of blockchain-based payment solutions is simply a matter of time. This thesis, underpinned by the history of consumer technologies such as Internet, or previously the telephone, is based on the idea that large-scale deployment of blockchain is possible and sustainable. This assumption is false. Indeed, the reasons why Bitcoin mass adoption, or even Ethereum, has been hindered are due to the blockchain itself and not to the means deployed for its implementation.

From a blockchain integrity…

Among the different data structures, blockchains can be considered as simple lists where each element is linked to the previous one by a cryptographic method which ensures overall consistency. A linear register of chained transactions is thus obtained.

A, B and C are three transactions where C refers to B which refers to A.
Transactions are organized into blocks, each referencing to the previous block.

To a transaction flow integrity

The DAGChain is, as its name indicates, a Directed Acyclic Graph. Each transaction is confirmed by one or more transactions occurring after it.

Transaction A is confirmed by subsequent transactions B and C.
  • A reduced carbon footprint down to its bare minimum, since without mining, there is no need to push the hardware to its limits and thus cause premature obsolescence of many graphical cards, processors, network memory cards;
  • A more robust security, since without minors, these nodes in charge of the calculations, there is no longer the possibility of organizing themselves into a cartel to slow down and take the network hostage. The DAG network structure also makes any attack so-called “51%” (or “majority”) impossible. These attacks have already allowed malicious groups to take control of the mining within blockchains and steal several hundred million euros across various projects.
The non-linear aspect of the DAG makes the DAGchain structurally more complex.

Legacy and Future of the DAGchain

The future will show whether the DAGchain will tend towards more reliability and resilience at low energy costs. It is clear that this particular data structure is already part of the present and avoids several functional impasses inherent to the initial choices of blockchains. From the legacy of the blockchain’s founding fathers, it will have retained the distribution of end-to-end computing and the need for effectiveness to make it a relevant tool in daily use.

SOURCES:

[1] On Scaling Decentralized Blockchains, 2016, 3rd Workshop on Bitcoin and Blockchain Research, Financial Cryptography 16

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