At this moment in time, blockchain technology has huge potential across a variety of industries. However, there are still some disadvantages associated with the technology, such as scalability issues, long transaction times when confirmations are needed and the network is jammed, or numerous fees.
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To help fix these issues, a couple of new blockchain technologies are emerging on the market, known as data acyclic graph systems. With the introduction of the system, comes the introduction of DAG-based digital currencies, such as IOTA, ByteBall and more. The systems upon which these currencies are based allow users to further leverage the potential of the technology, in order to get more done.
For instance, ByteBall offers numerous benefits, such as:
- Smart Contracts, and conditional payments (users set a condition upon receiving the money- therefore, if the condition is not met, the funds are returned)
- P2P insurance (the ability to purchase insurance from peers and paid in case negative events occur. Users also have the possibility to sell insurance for profit)
- Betting on prediction markets, on events such as price movements, insurance, sports betting and more.
- P2P chat-based payments, made by clicking on links
- Chat bots (and the ability to place orders by talking with merchant bots within a few clicks)
- The bot store, where users can find new bots, and developers can build and public chat bots.
Those who are interested in ByteBall can also consider the untraceable version of the currency – Blackbytes. It advertises complete privacy, the inability to trace payments and P2P transactions.
Lastly, some of the other benefits that a DAG-based currency can provide include: atomic exchange, regulated assets, multi-signature transactions, on-chain oracles, settlement finalities, immutable storage and more.
Bitcoin transactions have often been referred to as probabilistic, considering the fact that finality depends on transaction amounts due to the risk of double-spending, thus requiring users to wait for multiple confirmation before a transaction is over. DAG currencies such as ByteBall implement a different system, through the use of deterministic criteria. Therefore, the system is slightly different when compared to proof-of-work, proof-of-stake and other similar systems implemented on traditional blockchain networks.
Based on everything that has been outlined so far, the appearance and development of DAG-based digital currencies can add numerous benefits to the fintech market. With deterministic criteria, security grows, and users are given more choices in terms of what they can do with the coins.
Recently we could seen increased interest in DAG-based currencies. IOTA and Raiblocks increased their capitalization almost seven-fold for IOTA and twenty-fold for RaiBlocks. A few days ago the price of Byteball, has rose up over 100% per day.