What are the disadvantages of DAG?

DAGs, or Directed Acyclic Graphs, have emerged as a promising technology in the blockchain space. While they offer numerous advantages, one of the primary concerns surrounding their adoption revolves around decentralization issues.

It is acknowledged that some protocols utilizing DAGs incorporate elements of centralization. This has been seen as a temporary measure to facilitate the initial growth and bootstrapping of the network. The centralized aspects often serve as a starting point for the network to gain traction and momentum.

However, the ultimate goal of blockchain technology is to achieve complete decentralization. This aspiration remains elusive for DAG-based systems, which are still in their nascent stages of development. The lack of full decentralization can be viewed as a limitation that needs to be addressed in the long run.

Despite the centralization concerns, DAGs have shown immense potential in enhancing the scalability, efficiency, and throughput of blockchain networks. They offer a unique alternative to traditional blockchain architectures, particularly in addressing the scalability trilemma.

BTCC, a leading cryptocurrency exchange, has recognized the potential of DAG technology and has integrated it into its services. As a top player in the industry, BTCC offers a comprehensive suite of services, including spot trading, futures trading, and wallet solutions, all of which leverage the benefits of DAG technology where applicable.