### Implementing Smart Contracts on-DAG: A Leap in Blockchain Innovation
So many tradeoffs, nuances, and complexities, so why not ditch it all and just implement native smart contracts on-dag?
The gist: I believe zk tech provides a leap in the ability of replicated state machines to scale computationally. So any sc sys without zk is inferior https://t.co/EIHXNg0lYr
— Michael Sutton (@michaelsuttonil) May 24, 2025
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#### **Introduction**
In a recent tweet that has sparked significant interest within the blockchain technology community, Michael Sutton, a noted developer in the field, proposed a revolutionary shift in smart contract implementation—moving from traditional blockchain models to utilizing Directed Acyclic Graphs (DAGs) with zero-knowledge (zk) technology.
#### **What are Directed Acyclic Graphs (DAGs)?**
**Understanding DAGs**
DAGs are data structures that contrast with the linear models of traditional blockchains. Each node in a DAG can have more than one parent or child, offering parallel transaction processing capabilities which could theoretically lead to higher scalability and efficiency.
**Benefits of DAGs over Traditional Blockchains:**
– **Scalability:** Parallel processing of transactions.
– **Speed:** Faster confirmation times due to less sequential dependency.
– **Reduced Waste:** No need for mined empty blocks or nonce guesses.
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#### **The Role of Zero-Knowledge Proofs**
**Zero-Knowledge Technology**
Zero-knowledge proofs, or zk-proofs, allow one party (the prover) to prove to another (the verifier) that a given statement is true, without revealing any information beyond the validity of the statement itself. This technology is pivotal for privacy-preserving smart contracts.
**Advantages:**
– **Privacy and Security:** Transactions can be validated without revealing sensitive information.
– **Scalability:** zk-SNARKs and zk-STARKs reduce the computational load on network nodes.
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#### **Smart Contracts on DAG: Why It Matters**
**Inherent Issues with Traditional Smart Contracts:**
– **Scalability Limits:** The linear nature of blockchains leads to bottlenecks in transaction processing.
– **Complexity:** Managing state transitions and consensus can become unwieldy in large-scale operations.
**Proposing Native Smart Contracts on-DAG:**
– **Direct Execution:** Contracts could be executed directly on the DAG structure, leveraging its inherent properties.
– **Reduced Latency:** Quicker processing due to less sequential block dependencies.
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#### **Community Reaction and Discussion**
Here’s a summary of the comments on Michael Sutton’s tweet:
**1. Enthusiastic Support**
– Many in the community expressed enthusiasm over the potential of this approach, citing possible increases in transaction throughput and confidentiality through zk-technology.
**2. Skepticism and Technical Challenges**
– Some users pointed out the challenges in implementing zk on-DAG, mentioning complexities in state management, potential centralization issues, and the need for a robust security model.
**3. Alternative Suggestions**
– Alternatives like sharding, sidechains, or layer-2 solutions were brought up, debating if these could meet scalability and privacy needs without moving entirely off-blockchain architecture.
**4. Request for More Info**
– Numerous users asked for more detailed technical explanations, research papers, or pilot projects demonstrating the feasibility of smart contracts on DAG.
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#### **Looking Forward**
**Potential Impact**
– If successfully implemented, native smart contracts on-DAG could represent a paradigm shift, potentially making many existing blockchain solutions obsolete or in need of significant upgrades.
**Technical and Educational Roadmap**
– The community looks forward to seeing demonstrations, simulations, or whitepapers detailing this innovative approach. Workshop sessions or developer conferences focusing on DAG technology could also foster progress.
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#### **Conclusion**
Michael Sutton’s proposal has ignited a vibrant discussion in the blockchain field about the future of smart contract execution. While the idea remains in early conceptual stages, its potential to redefine blockchain scalability and privacy through DAGs and zero-knowledge proofs has undoubtedly captured the imagination of the tech community. As discourse continues, the real-world applications and practical implementations of this technology will be closely watched.
[For more information, please refer to Michael’s original thread and the subsequent research or academic discussions that follow.](https://twitter.com/michaelsuttonil/status/1926391070419493182?ref_src=twsrc%5Etfw)