BlockDAG is a Layer 1 cryptocurrency network designed to solve the "blockchain trilemma"—the challenge of balancing security, scalability, and decentralization. By combining traditional Proof-of-Work (PoW) security with Directed Acyclic Graph (DAG) technology, it enables parallel transaction processing, significantly increasing speed and efficiency compared to linear blockchains like Bitcoin.
Core Technology: The Hybrid Architecture
Traditional blockchains process one block at a time in a single sequence. This creates a bottleneck because every node must wait for the current block to be verified before moving to the next. BlockDAG replaces this linear chain with a web-like graph structure.
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Parallel Block Processing: In a DAG, a new block can reference multiple previous blocks rather than just one. This allows multiple blocks to be created and confirmed concurrently, drastically reducing network congestion.
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PHANTOM and GHOSTDAG Protocols: To maintain a definitive transaction history without a linear chain, BlockDAG uses these sophisticated consensus algorithms. They identify "honest" blocks (those from miners following the protocol) and prioritize them to prevent double-spending and resolve conflicts.
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Throughput: The network launched with a speed of 10 blocks per second, with goals to exceed 100 blocks per second and reach throughput levels of 10,000 to 15,000 transactions per second (TPS).
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Ecosystem and Developer Support
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BlockDAG is designed for versatile use, featuring EVM compatibility to allow seamless migration of Ethereum dApps, alongside low-code/no-code tools for developing NFTs and tokens. It employs a dual-layer model with a UTXO layer for fast payments and an account-based layer for smart contracts.
The Mining Ecosystem and Tokenomics
BlockDAG promotes an accessible mining experience using dedicated X-Series rigs (ranging from X10 to X100) and a mobile application (X1), which allows users to mine up to 20 BDAG tokens daily. Regarding the tokenomics, the native BDAG token has a capped supply of 150 billion, designed with an annual halving schedule to manage scarcity.