There Already Is a Solution to the Cryptocurrency Confirmation Speed Issue

Blog by Dagcoin

One of the bigger issues faced by Blockhain-based cryptocurrencies in the near future is massive increases in confirmation times. What this means for users is a lot slower time it takes for transactions to occur. While developers look now for solutions for this issue, a new type of cryptocurrencies has emerged, which has been designed without this flaw. Read more about it below.

Why Blockchain faces this problem

Cryptocurrencies like Bitcoin and Ethereum derive their transparency and actual value for users from how transactions are confirmed. The term ‘block’ itself comes from this process – whenever a transaction is made it must be confirmed through the P2P platform, forming a block. The confirmation process is registered and can be seen by all in encrypted form within the Blockchain.

While this system is very advanced and tackles two issues at the same time – how to keep the system free from hidden abuse and generate value for the user base – it requires an exponential amount of energy and (as can be seen recently) time to keep the whole platform operational.

You have probably heard of the term ‘mining’, which is the process that keeps confirmations going within the Blockchain. To put it simply, users allow the processing power of their own personal computers to enable confirmations. This is where the value comes from: users who mine, earn a certain amount of cryptocurrency for doing this process.

It becomes a problem if the user base increases rapidly, which means more and more processing power must be used to keep the system operational. For the basic user, it simply means longer time it takes for transactions to pass. And, as a Blockchain based cryptocurrency becomes more popular, the likelihood of slow confirmations becomes higher.

DAG-chain does away with this flaw

Conversely, cryptocurrencies that are based on the DAG-chain, like Dagcoin and Byteball, do not face this problem at all. More users even means faster confirmation. But how?

DAG-chain is engineered to confirm all transactions within the chain through the confirmation process itself. Basically, it means when you make a transaction, a previous one will confirm yours, and so on throughout the chain.

In keywords, this means Dagcoin:

  • Is faster in confirmation speed (mere minutes to instantly vs ~30 minutes up to hours for Bitcoin).
  • Uses up very little processing power.
  • Enables transaction at all times, without slow-down.
  • Will only keep improving.

So in conclusion, this means cryptocurrencies of tomorrow need not have this flaw in-built after all. And there are already cryptocurrencies today that already function without the threat of slowing down.

Read more: Why Choose DAG-chain over Blockchain?