Blockchain technology has been around since 2008. That’s when a pseudonymous individual or group called Satoshi Nakamoto published a paper announcing the new technology. Since then, cryptocurrencies based on blockchain technologies, like Bitcoin and Litecoin, have proliferated widely.

So many cryptocurrencies have sprung up over the past decade that the whole subject can feel overwhelming. In this article, we’ll demystify the concepts of cryptocurrency and the technology that it’s built on and talk about the differences between Dagchain and Hyperledger.

What Is Dagchain?

Dagchain is the technology that backs the cryptocurrency known as Dagcoin. It was created in response to the shortcomings in blockchain technology, which we’ll get into later in this article.

What Is Blockchain Technology?

Blockchain is the technology that supports Bitcoin, Ethereum, and other digital cryptocurrencies. Blockchain technology also underpins smart contracts and other decentralized applications, or “dapps.” There are seemingly endless uses for blockchain technology. Its supporters say that the technology takes power out of the hands of central authorities – governments, banks, and legal systems – and empowers ordinary people.

Eventually, blockchain fans say, the technology could take over virtually any operation that is currently performed by intermediaries. This means that loans, voting systems, and, of course, currency exchanges could eventually be handled by blockchain technology.

Blockchain’s critics say that technology has made it easier for criminals to launder money and avoid currency tracing when paying each other for illegal goods and services.

What Is Hyperledger?

The Hyperledger project is a collaborative effort launched by the Linux Foundation in 2016. Its stated aim is to bring together people from different industries in order to explore the uses of blockchain technology. The Hyperledger project does not have its own cryptocurrency. It aims to advance blockchain technology and come up with new uses for it.

Hyperledger’s members include leaders from the banking, computing, and aviation industries. Its members include Airbus, American Express, Cisco, and Deutsche Bank, to name just a few.

Hyperledger lists a range of different projects on its website, all involving new ways to use blockchain technology. For example, the project known as Burrow is aimed at improving the way smart contracts operate, and the Hyperledger Quilt is designed to make payments and transactions easier across different ledgers.

Problems with Hyperledger

The Hyperledger project has generated several innovations in the field of blockchain technology, but the project operates in a rigid top-down fashion. The people and groups that stand to benefit the most from it are already in the global one percent. The Hyperledger project lacks clear and immediate benefit for most of the world’s citizens, especially for those in developing nations.

What Is Dagcoin?

Dagcoin is the currency backed by Dagchain. Dagcoin was created with the goal of having a decentralized cryptocurrency for use in developing countries. The idea was to help ordinary people cope with a fundamentally unfair system and to help people deal with the problems caused by currency devaluation.

The Dagcoin cryptocurrency is intended to be just like an ordinary currency, only better. Instead of just another commodity to trade, our goal is the make Dagcoin the most usable cryptocurrency ever.

In addition, Dagcoin aims to be a step up from regular money as well. This means improving the speed of transactions while reducing the cost, giving access to money to more people with lesser restrictions and limitations, giving more freedom to transact.

How Is Dagchain Different from Hyperledger?

Dagchain does not operate on a blockchain network. It is not a series of blocks; rather, each separate transaction forms its own block. The blocks are then linked to previous transactions in order to form what’s known as a directed acyclic graph, or DAG.

The Dagchain was designed to be quick-moving and reliable enough to back a normal currency. It was designed to democratize cryptocurrency and increase its scalability. While industry leaders and big business are welcome to use Dagcoin, the technology was originally designed for use in the developing world. It was intended to run as smoothly as possible and to be accessible to people who may not have backgrounds in technology.


Unlike other cryptocurrencies, it does not rely on miners to confirm transactions. Dagchain has every new member of the network confirm at least one previous transaction. This means that there is no two-tier system, as there is in other cryptocurrencies, in which miners are privileged over other users. It also means that there is an incentive to keep Dagchain operating quickly since each new user needs to confirm previous transactions before adding their own transaction.

The Breakdown

Dagchain:

  • Is new technology that seeks to remedy problems that arose with blockchain technology
  • Makes cryptocurrency accessible to people around the world
  • Speeds up the confirmation process for transactions and eliminates the two-tier system in most cryptocurrencies

Hyperledger:

  • Runs on blockchain technology
  • Backs blockchain projects supported by computing, aviation, and banking leaders
  • Does not host a cryptocurrency

Final Thoughts

Dagchain and Hyperledger differ in how they operate as well as in their intended uses. Hyperledger aims to explore new uses for blockchain, while Dagchain avoids it entirely in an effort to increase transaction speeds while reducing or eliminating fees.

They were also created with wholly different uses in mind; Hyperledger aims to streamline payments and transactions for large banks, while Dagcoin was conceived in an effort to create a stable, decentralized currency to help users in developing countries.