Scalability of distributed ledgers is a key adoption factor. As an alternative to blockchain-based protocols, directed acyclic graph (DAG) protocols are proposed with the intention to allow a higher volume of transactions to be processed. However, there is still limited understanding of the behaviour and security considerations of DAG-based systems.
We present an asynchronous, continuous time, and multi-agent simulation framework for DAG-based cryptocurrencies. We model honest and semi-honest actors in the system to analyse the behaviour of one specific cryptocurrency, IOTA.
Our simulations show that the agents that have low latency and a high connection degree have a higher probability of having their transactions accepted in the network with honest and semi-honest strategies. Last, the simulator is built with extensibility in mind