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Published On: Mon, Oct 8th, 2018

What Cryptocurrencies Haven’t Mended Up Yet : How Dagcoin can help

Cryptocurrencies are prospering, roaring and dominating the global financial sector. Investors, as well as non-investors, are immensely interested in cryptocurrencies and a bulk of them hail these digital tokens as the currency of the future. This becomes evident from the fact that we are witnessing a plenitude of Initial Coin Offerings (ICOs) daily and the heavy turnout of investors in these ICOs prove that cryptocurrencies have made their mark in the international financial segment and are here to stay.

As you might be knowing, cryptocurrencies are based on a blockchain which can be hailed as a public ledger in which each and every transaction, made in digital tokens, is confirmed and recorded. With a vast multitude of cryptocurrencies, whether upcoming or existing, the traditional blockchain is facing serious issues of escalating transaction costs and elevating transaction confirmation time. Though research is being carried on and serious efforts and endeavors are being made to solve or minimize these issues with the blockchain, as of now, no considerable improvement has been made.

photo/ Gerd Altmann

Issues Faced by the Traditional Blockchain | what is the Solution?

  • Increasing Transaction Confirmation Time

In the beginning the confirmation time for a transaction done in cryptocurrency used to be in seconds. However, with the increase in a number of users, the transaction confirmation time has gone up the roof ranging from a few additional minutes to even hours. The support of external miners is crucial, in the case of the traditional blockchain, for confirmation of a transaction. Nothing is more frustrating for a user than waiting for hours to get the confirmation for the transaction done in a particular digital coin.

Though a number of improvements have been added to the existing blockchain in order to tackle this issue; the scope of significant improvement still exists. However, a complete solution does exist in the form of DAG-chain. What is DAG-chain? Well! DAG-chain has got the same functionality as blockchain; however, transactions done over a DAG-chain get confirmed through the transactions itself. Hence, there is no participation of an external miner in the confirmation procedure making the whole process exponentially faster than the traditional blockchain. Dagcoin is the cryptocurrency built over DAG-chain and, indeed, looks promising in terms of speed, cost, and user-friendliness.  

In the case of a DAG-chain since a transaction gets confirmed through a transaction only, the increase in a number of users, instead of loading up the service, makes it faster. The current transaction time is just a few minutes in case of Dagcoin and the same will get better with more number of users. Therefore, the possibility of an increase in confirmation time doesn’t even exist.

  • Increasing Transaction Cost

As said above, more and more users are being added up in the cryptocurrency sphere and the traditional blockchain is not able to handle the load in the way it is required. When the transaction confirmation time increases, the same happens with the transaction cost as well. More commission is required in the case of bigger transactions.

Also, for the transfers to be made in cryptocurrencies, the user requires to pay an amount as a commission to the owner of the platform who in turn authorizes the user to utilize the platform. Hence, the user has to consistently trade-off currencies in order to get the authorization from the owner.

In this case, also, DAG-chain and Dagcoin emerge as a winner. The current transaction cost, in case of Dagcoin, is a mere 0.0005 USD and there is no scope of it to increase in future. Moreover, payment of commissions, in case of Dagcoin, are based on DAG-chain automatic. This means that the user needn’t keep multiple cryptocurrencies within their wallets in order to exchange between currencies. Simply, keeping Dagcoin or any other cryptocurrency based on DAG-chain will do the trick.

Conclusion

DAG-chain has eliminated the two main problems being faced by the traditional blockchain. This makes cryptocurrencies such as Dagcoin, which are based on DAG-chain, to be more user-friendly and convenient. Hence, DAG-chain based cryptocurrencies are extremely ideal for the people living in areas where there are no centrally administered banking services. Hence, DAG-chain, certainly, has a finer and fitter future ahead.

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    […] still holds a significant portion of the cryptocurrency market; however, there is a considerable reduction in the interest of the investors towards bitcoin due to […]

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