BlockDAG’s Keynote 3 Shows Why DAG + PoW Outclasses Bitcoin Cash & Hyperliquid
BlockDAG Revolutionizes Scalability Where Others Fall Short
Scalability remains a critical challenge for blockchain technology. While Bitcoin Cash tackled the issue by increasing block sizes and Hyperliquid focused on speed and DeFi tools, both projects are limited by conventional blockchain architectures.
BlockDAG, however, offers a groundbreaking alternative that transcends incremental upgrades. By combining Directed Acyclic Graph (DAG) technology with Proof-of-Work (PoW), BlockDAG delivers a balanced approach to speed, security, and decentralization—traits that are often sacrificed when scaling traditional blockchain networks.
### Bitcoin Cash’s Attempt to Scale with Larger Blocks
Bitcoin Cash (BCH) forked from Bitcoin on August 1, 2017, aiming to enhance transaction speeds and reduce fees by increasing block sizes to 8 MB. The strategy allowed more transactions per block, easing network congestion.
Initially, the market reacted favorably. BCH launched around $240, soaring to an all-time high of $4,355.62 by December 20, 2017. However, the hype was short-lived, with prices plummeting to $519.12 by August 23, 2018. As of March 24, 2025, BCH trades at $332.19, far below its peak.
Despite its early promise, BCH has encountered growth limitations, reflected in its current market cap of approximately $6.6 billion, with 19,847,375 coins in circulation out of a 21 million cap.
### Hyperliquid: Fast Growth, Volatile Performance
Hyperliquid made headlines when it launched its HYPE token on November 29, 2024, opting for a user-centric distribution model that airdropped 31% of its 1 billion tokens to early adopters. The strategy worked—over 90,000 users signed up, daily trades surpassed 10,000, and the platform processed $470 million in daily volume. Total trading volume is already nearing the $1 trillion mark.
Yet, HYPE has faced sharp price declines. After peaking at $35 in December 2024, the token dropped to $14 by March 2025, with its market cap shrinking from $9 billion to $4.7 billion. Concerns over token dilution and liquidity challenges contributed to the decline. Hyperliquid responded by increasing margin requirements to 20% after a $4 million loss from liquidity fund liquidations.
Despite these hurdles, Hyperliquid boasts nearly 400,000 unique users—demonstrating its staying power within the competitive DeFi landscape.
### BlockDAG’s DAG + PoW Hybrid: A Paradigm Shift
Traditional blockchains rely on linear transaction processing, creating congestion, delays, and inflated fees. Proof-of-Work systems like Bitcoin and early Ethereum exemplify these bottlenecks.
BlockDAG breaks away from this outdated model by employing a DAG structure combined with PoW. Unlike linear blockchains, BlockDAG’s architecture allows for simultaneous transaction verification, eliminating bottlenecks and drastically enhancing throughput. Current mainnet performance already reaches 2,000 transactions per second (TPS), with aspirations to hit 15,000 TPS.
As CTO Jeremy Harkness put it:
> **“Our hybrid consensus mechanism combines the best of two worlds: the security and proven robustness of Proof-of-Work with the flexibility and speed of a Directed Acyclic Graph.”**
BlockDAG’s progress isn’t just theoretical—it’s already generating traction. With $209 million raised during its presale and over 19 billion coins sold, the ROI from batch 1 to batch 27 has skyrocketed by 2,380%, with the current token price at $0.0248.
### Key Takeaways
- **Bitcoin Cash** aimed for scalability by enlarging block sizes, but its linear architecture continues to limit growth.
- **Hyperliquid** emphasized speed and DeFi tools but faces volatility due to token dilution and liquidity challenges.
**BlockDAG** stands out with its DAG + PoW setup, offering parallel transaction processing, lower fees, and decentralized security that scales effectively.
The blockchain landscape is evolving rapidly. As networks strive to meet increasing demands for speed, scalability, and decentralization, BlockDAG’s architecture presents a promising new direction. It’s not just upgrading what exists—it’s laying a foundation for the blockchain technology of the future.