Abstract
In this study the authors present an innovative approach to resolving scalability and efficiency challenges in blockchain technology through the integration of Directed Acyclic Graphs (DAGs). This approach helps to overcome the limitations of traditional blockchain systems, particularly in transaction processing. The classic blockchain has some problems as slow transaction processing and poor scalability. The authors offer Directed Acyclic Graph (DAG) as a scalable and energy-efficient alternative. The paper outlines the development of a DAG-based blockchain model, utilizing Python and Flask alongside the Ed25519 cryptographic curve. It conducts a comparative analysis of DAG with traditional consensus mechanisms like Proof of Work and Proof of Stake, underscoring the efficiency and security benefits of employment of DAG. The research methodology includes an extensive literature review and the construction of a practical model to demonstrate DAG's applicability in blockchain networks. Particularly notable is the exploration of DAG's potential in Internet of Things (IoT) ecosystems, addressing critical issues such as energy inefficiency and network communication challenges in existing consensus algorithms. The authors calculated the performance of the model and compared it with similar models on several evaluation criteria. The simulation results of our proposed model show an improvement in performance and security by minimizing end-to-end delay, time cost, energy consumption, and throughput. The model eliminates the limitations of classic blockchain systems, such as high latency and low scalability. It structures transactions and blocks as a DAG, which provides fast validation and high scalability without compromising security. The research demonstrates the transformative implications of DAG for advancing blockchain technology.