Beyond the basic blockchain<\/p>\n
The core blockchain protocol implements a distributed ledger capable of performing cryptocurrency transfers. Smart contract platforms add additional functionality by running programs on top of the blockchain.<\/p>\n
However, distributed ledger technology is not limited to the traditional blockchain or smart contract platform. Distributed ledgers can run on alternative architectures, support second-layer protocols and use advanced cryptography to provide additional functionality and guarantees.<\/p>\n
Blockchain is the most common and widely-known architecture for implementing distributed ledgers. However, other protocols and distributed ledger architectures also exist. These alternative ledger architectures are often designed to address limitations of blockchain-based ledgers, such as limited transaction speeds and scalability.<\/p>\n
A DAG is a graph with two main properties:<\/p>\n
DAGs can also be used to implement a distributed ledger. An example of a leading DAG-based blockchain is IOTA and its Tangle.<\/p>\n
Without blocks, DAG-based ledgers have to implement consensus in different ways. The security of these ledgers is heavily dependent upon the details of these consensus algorithms.<\/p>\n
Sidechains take the blockchain as a basis and build on it. Sidechains are implemented using pegging.<\/p>\n
Pegged sidechains are two independent blockchains that support cross-chain swaps. Users can send cryptocurrency to a set address on one chain and release cryptocurrency on the other. This provides the ability to take advantage of different features on different chains.<\/p>\n
Sidechains are built out of completely independent blockchains that are linked in some way. Each blockchain has the same security concerns as a traditional blockchain, but (Read more...)<\/p>\n
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