Hi everyone, I'm new to the Steem platform but wanted to share my thoughts on what will truly be a disruptive force in crypto-exchange markets in the coming months: Direct Acyclic Graph coins.
Most cryptocurrencies run on some form of traditional blockchain-based technology, however DAG architecture takes a more distributed approach, allowing transactions to confirm each other without needing to be embedded in blocks. Its this key feature that gives DAG coins a competitive advantage in two places in the realm of exchange arbitrage: speed, and fees.
If you've ever transferred money between exchanges, you'll know that its a nerve-wracking process. BTC can take hours to transfer with high fees, and Ethereum provides some advantages, but can still run into pitfalls. Other currencies improve on this, but none can compare to DAG coins, which feature much faster transaction times, and low-to-no fee transactions depending on the coin used, making them a perfect tool for moving money between exchanges. Once a DAG coin achieves listings on several major exchanges, expect fewer price swings between exchanges, and eventually featured pairings with whichever DAG wins the battle for mass acceptance.
Current major DAG coins include IOTA, Raiblocks (XRB), and Byteball Bytes (GBYTE). Each has their own set of pros and cons, and I'd encourage you to do your own research - but this isn't a post to shill for any one in particular. They currently are only listed on limited exchanges, or the networks aren't in an entirely working state (IOTA), but once more widespread adoption takes place, the advantages for arbitrage traders will be seen immediately.
Thoughts? Any other interesting DAG coins? Or alternate crypto-solutions to the arbitrage problem? Comment below!
Disclaimer: This post only represents my own opinions, make decisions based on your own research. I hold a position in XRB and IOTA.
Congratulations @shad0ws! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOPDownvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Hi there. This is a great post. I have had a keen interest on dag coins now and they aren't many so far. The only other that i have seen(at least that's out of ico) is Travelflex -TRF. It will be interesting to see what dag technology brings on the table in 2019
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations @shad0ws! You received a personal award!
Click here to view your Board of Honor
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit
Congratulations @shad0ws! You received a personal award!
You can view your badges on your Steem Board and compare to others on the Steem Ranking
Vote for @Steemitboard as a witness to get one more award and increased upvotes!
Downvoting a post can decrease pending rewards and make it less visible. Common reasons:
Submit