A Directed Acyclic Graph (DAG) is a graph structure with directed edges and no cycles. In blockchain, DAGs are used to represent transactions and their dependencies, allowing for parallel processing and improved scalability.

What is a Merkle Tree?

A Merkle Tree is a binary tree where each leaf node contains a hash of a data block, and each non-leaf node contains the hash of its children. Merkle Trees are used in blockchains to efficiently verify the integrity of large data sets.

Why are they important?

• Scalability: DAGs allow for parallel transaction processing, increasing throughput.
• Integrity: Merkle Trees enable efficient and secure verification of data.
• Security: Both structures help prevent tampering and ensure data consistency.

In summary, DAGs and Merkle Trees are foundational data structures in blockchain technology, enabling secure, scalable, and efficient distributed systems.