Directed Acyclic Graph (DAG)

Tangle (DAG) is a distributed ledger technology (DLT) that uses a directed acyclic graph (DAG) to store transactions. DAGs are different from blockchains in that they do not have a linear structure. Instead, each transaction is linked to two previous transactions. This allows for faster and more scalable transaction processing.

Tangle is used by the IOTA cryptocurrency, which was designed to be a machine-to-machine (M2M) micropayment system. IOTA is particularly well-suited for M2M payments because it is fast, scalable, and fee-less.

Tangle works by having each node in the network validate two previous transactions before adding a new transaction to the ledger. This process is called "tip selection." Nodes are incentivized to validate transactions because they are rewarded with IOTA tokens for doing so.

Once a transaction has been validated by two nodes, it is added to the Tangle and is considered to be confirmed. The more transactions that are added to the Tangle, the more secure it becomes. This is because attackers would need to control a significant portion of the network in order to reverse transactions on the Tangle.

Tangle has a number of advantages over blockchains, including:

Speed and scalability: Tangle is much faster and more scalable than blockchains. This is because DAGs do not have a linear structure, which allows for parallel transaction processing.
Fee-less: Tangle is fee-less, which means that there are no transaction fees associated with using the network. This makes it ideal for M2M payments.
Security: Tangle is very secure because it is difficult for attackers to control a significant portion of the network.

However, Tangle also has some disadvantages, including:

Complexity: Tangle is more complex than blockchains, which can make it more difficult to understand and implement.
Centralization: Tangle can be centralized if a small number of nodes control a large portion of the network's hashing power.
Lack of maturity: Tangle is a relatively new technology, and it is still under development.

Overall, Tangle is a promising DLT with a number of advantages over blockchains. It is particularly well-suited for M2M payments due to its speed, scalability, and fee-less nature. However, it is important to be aware of the potential disadvantages of Tangle, such as its complexity, centralization, and lack of maturity.