1.2 Why DGT

Currently, there are various active blockchain-based networks, each with unique characteristics. For instance, Bitcoin is primarily intended to support its eponymous cryptocurrency, Ethereum enables smart contract execution and distributed computing, and Hyperledger Fabric is designed for implementing private blockchain projects. In contrast, the DGT platform is dedicated to building hybrid networks that support complex ecosystems with varying security requirements, specifically geared toward the tokenization of digital objects. To support business objectives, the platform has a comprehensive set of technical specifications, which are summarized in the table below.

	Bitcoin	Ethereum	Stellar	EOS	IOTA	Hyperledger Fabric	DGT
Subject	Cryptocurrency support, mining	Distributed computing, cryptocurrency, tokenization	Payment network	Distributed computing	Micropayments, IoT Support	Data Exchange in a corporate environment	Real-Time Data Integration, Ecosystems
Network Topology	Peer-to-peer, public	Peer-to-peer, public	Federal, public	Peer-to-peer, public	Peer-to-peer, public	Peer-to-peer, private	Federal, hybrid
Cryptocurrency support	Yes	Yes	Yes	Yes	Yes	No	Optional
Consensus	PoW	PoW/PoS	FBA	dPOS	FPC (MCMC)	PBFT	F-BFT
Data Storage	Blockchain	Blockchain	Blockchain	Blockchain	DAG	Blockchain	Blocks/DAG
Tokenization	No	Yes/Smart	No	Yes	No	No	Yes
Smart contracts	No	Yes	Yes	Yes	Yes	Yes	Yes (+ Transaction Processors)
Decentralized Identification	Only Private & Public Key	Only Private & Public Key	Only Private & Public Key	Only Private & Public Key	Only Private & Public Key	X.590 Certificates + Hyperledger Indy	X.509 Certificates + DID Management
Integration with another network	Only Exchange	Only Exchange	Only Exchange	Only Exchange	Only Exchange	Via Hyperledger Cactus	Ethereum Smart contracts, Rely-Nodes
Encryption	ECDSA curve secp256k1	ECDSA	Asymmetric, Ed25519	ECDSA secp256k1	Kerl	PKCS11, pluggable	Asymmetric, ECDSA curve secp256k1
Post-quantum Cryptography	No	No	No	No	No	No	Under Development
Program Languages	C++	GO	Java	C++	Python, C#, JavaScript	Java, JavaScript (Node.js), GO	C++, Python

DGT provides a robust and reliable framework for decentralized data exchange, embracing the Web 3.0 principles of decentralization, sovereignty, and user empowerment. It fosters a new era of internet interactions, where users have greater control over their data, participates actively in network governance, and contribute to a more inclusive and decentralized digital ecosystem:

• F-BFT Consensus: The platform utilizes the F-BFT Consensus, which reconciles transactions between nodes based on a classic Byzantine Fault Tolerance (BFT) approach. Enhanced by the federated nature of the network, this consensus mechanism ensures robust transaction validation and significantly improves computational speed compared to traditional Proof of Work (PoW) approaches.

• Business-Oriented Node Groups: DGT deviates from the traditional peer-to-peer network model, enabling the formation of business-oriented groups of nodes within the larger network. This, combined with the F-BFT Consensus, dramatically enhances computational speed, and eliminates the drawbacks associated with PoW, such as high energy consumption.

• Tokenization and Token-Free Transactions: The platform offers the option to use tokens or conduct token-free transactions. The inclusion of tokens allows for the tokenization of objects and assets, while also reducing overhead costs associated with network maintenance. For instance, it mitigates the need for expensive gas fees required to execute smart contracts on platforms like Ethereum.

• Hybrid Network: DGT embraces a hybrid network model, enabling the deployment of both public and private segments. This flexibility allows for the creation of private blockchain networks and provides extensive configuration options for network topology, catering to diverse use cases and privacy requirements.

• DAG-Chain Data Structure with Heartbeating Mechanism: DGT leverages a graph-oriented structure known as a Directed Acyclic Graph (DAG-chain) for data storage. This unique data structure enables efficient and scalable handling of transactions and data within the platform. In addition to the DAG-chain, DGT incorporates a Heartbeating Mechanism, which establishes an internal network time synchronization mechanism.

• Off-Chain Calculation with Notary Nodes: The DGT Platform introduces the concept of Notary Nodes, which are responsible for off-chain calculations and data validation. This approach helps reduce the computational burden on the main blockchain network while ensuring the integrity and accuracy of computations. Notary Nodes act as trusted entities that verify and validate data externally, enhancing scalability and performance for complex computations within the DGT ecosystem.

The features mentioned above establish the DGT platform as a highly effective tool for addressing a range of practical tasks within the realm of WEB 3.0, as outlined in section 1.6.