Imagine a family tree, where you can see how parents are connected to their children, and grandparents to their grandchildren. But unlike a family tree, things can get more complex. A Directed Acyclic Graph (DAG) is a way of organizing data that allows for these more intricate relationships.
Here's the key difference: in a family tree, information can only flow in one direction (parents to children). A DAG allows for some flexibility, with data able to flow in various directions as long as it doesn't create loops. Think of it like a complex family reunion chart, where some cousins might be connected through different family lines.
DAGs are becoming increasingly popular in cryptocurrencies because they can be used as a consensus mechanism for some blockchain networks. In simpler terms, they can help different computers in a network agree on the validity of transactions without needing a central authority to tell them what to do.
