Annchain.OG: A High-Performance DAG-Based Blockchain Infrastructure

Blockchain technology has long been hailed as a revolutionary force, promising decentralization, transparency, and trustless interactions. Yet, despite its transformative potential, mainstream blockchain platforms continue to struggle with the classic trilemma: decentralization, scalability, and security. Most existing blockchains sacrifice one or more of these pillars to achieve short-term gains—resulting in slow transactions, high fees, or centralized control.

Annchain.OG (OG) introduces a next-generation blockchain infrastructure built on a Directed Acyclic Graph (DAG) architecture, designed to overcome these limitations. By reimagining the foundational structure of distributed ledgers, OG delivers high throughput, fair participation, and robust security—while fully supporting smart contracts, sharding, and secure oracles.

This document explores OG’s innovative approach to scalable, secure, and intelligent blockchain systems.

Background: The Limits of Traditional Blockchains

Conventional blockchains—like Bitcoin and Ethereum—rely on a linear chain of blocks. While this model ensures consensus and immutability, it inherently limits performance. Each new block must wait for the previous one to be confirmed, creating a bottleneck in transaction processing.

Even with rising computational power, the network’s throughput remains constrained. Proof-of-Work (PoW) mining competes for block creation rights rather than improving efficiency. Alternative consensus mechanisms like BFT variants suffer from exponential communication overhead as node count increases.

The root issue? Global consensus on a single block at a time prevents horizontal scaling. This linear model cannot keep pace with real-world application demands.

Enter DAG—a paradigm shift from chains to graphs.

OG Overview: A Smart Contract-Ready DAG Blockchain

OG is a high-performance, DAG-based blockchain that supports smart contracts, horizontal scalability, and deterministic finality. Unlike traditional blockchains, OG does not rely on blocks or global consensus rounds. Instead, it leverages the parallel processing capabilities of DAGs while solving their key weaknesses.

Core Features

• High Efficiency: Throughput increases with network size—more nodes mean higher performance.
• Fair Participation: Every user is both a transactor and validator; no privileged miners.
• Enhanced Security: Built-in resistance to double-spending, parasitic chains, and DoS attacks.
• Smart Contract Support: Unique Sequencer mechanism ensures ordered execution across nodes.
• Scalable Design: Native sharding enables parallel processing of contract transactions.
• Oracle Integration: Secure data feeds from off-chain sources via passive and active oracles.

👉 Discover how OG achieves unmatched blockchain efficiency and scalability

DAG Architecture: Beyond the Blockchain Chain

What Is DAG?

DAG stands for Directed Acyclic Graph, a data structure where each transaction points to one or more prior unconfirmed transactions (called Tips). Unlike blockchains, there are no blocks—each transaction is a standalone unit that validates others.

This allows asynchronous, concurrent transaction processing, dramatically increasing throughput and reducing confirmation times. Since most transactions aren’t causally related, they can be processed in parallel.

However, pure DAG systems face a critical challenge: lack of global order. Without a deterministic sequence, smart contract execution becomes unreliable—nodes may end up with different states.

OG solves this with a novel innovation: the Sequencer.

The Sequencer: Enabling Ordered Smart Contracts on DAG

The Problem with DAG and Smart Contracts

In standard DAG models like IOTA or Byteball, transactions are unordered. For simple value transfers, this isn’t an issue—the final state converges regardless of order. But for smart contracts, execution order is everything.

Consider two transactions:

1. Transfer 10 tokens from A to B
2. Transfer all of B’s tokens to C

If executed in reverse order, the outcome is completely different.

Traditional blockchains solve this by having miners order transactions within blocks. In DAGs, no such mechanism exists—until now.

Introducing the Sequencer

The Sequencer is a special type of unit in OG’s DAG that provides global consensus on transaction order. It does not contain value transfers but instead references a batch of smart contract transactions and defines their execution sequence.

Key properties:

• Created via Proof-of-Stake (PoS)
• Generated by elected nodes called Senators
• Contains ordered hashes of contract-related transactions
• Ensures all nodes execute contracts in the same sequence

Each Sequencer also serves as a finality checkpoint—once a transaction is referenced by a Sequencer (directly or indirectly), it becomes irreversible.

This dual role makes the Sequencer the backbone of OG’s security and consistency model.

Ivy: The Evolving Ledger Structure

In OG, each node maintains its own view of the ledger, known as Ivy. These views may differ slightly due to network latency but converge over time through the Sequencer mechanism.

While individual Ivys are not identical, they follow the same growth pattern and are eventually synchronized via Sequencers. This approach balances decentralization with consistency, avoiding the need for expensive global synchronization.

Security is further enhanced through strict validation rules that prevent malicious behaviors such as lazy validation and parasitic chains.

Secure Node Selection & Anti-Laziness Mechanisms

To maintain network health, OG enforces intelligent rules for selecting parent transactions (Tips):

A-Series Rules: Preventing Double Spending

1. Randomly select two unconfirmed Tips.
2. No direct or indirect reference to already-validated ancestors.
3. Addresses must link their new units to all prior ones—ensuring sequential integrity.
4. Violations are treated as double spends—even without economic intent.

These rules prevent Sybil attacks and enforce honest behavior across the network.

B-Series Rules: Fighting Lazy Nodes

A “lazy” node might repeatedly validate old, popular transactions to minimize computational cost. This reduces overall network efficiency.

OG combats this with a two-tier Proof-of-Work system:

• PoW1 (90% effort): Generate a nonce so that the transaction hash meets difficulty a
• PoW2 (<10% effort): Combine the nonce with two parent hashes; result must meet difficulty b

Because changing parents is cheap but changing the nonce is expensive, lazy nodes gain no advantage. They must redo the heavy PoW1 every time—making laziness impractical.

Additionally:

• Long-cycle rule: Cannot reference units finalized by N+ Sequencers
• Short-cycle rule: Prevents collusion around recently confirmed Tips

👉 See how OG’s anti-laziness design ensures fair participation for all users

Smart Contract Execution Model

With Sequencers establishing global order, smart contracts run reliably across all nodes.

How It Works

1. A Senator collects pending contract transactions.
2. Orders them based on weight and timestamp.
3. Packages them into a Sequencer unit.
4. Other Senators validate the Sequencer before broadcast.

When a node executes contracts:

• It finds the oldest unprocessed Sequencer.
• Retrieves referenced transactions from the DAG.
• Executes them in specified order.
• Updates local state consistently.

Result? All honest nodes maintain identical contract states—without centralized coordination.

Security Architecture

Defense Against Parasitic Chains

Attackers may attempt to create hidden “parasitic” sub-DAGs to reverse confirmed transactions.

OG thwarts this by:

• Using Sequencers as finality markers
• Rejecting late-arriving forks that conflict with finalized history
• Requiring all new units to reference recent Tips

Since private chains cannot interact with Sequencers until revealed—and will lag behind in finalization—they cannot overtake the main network.

DoS Resistance

OG allows feeless transactions since every user is a validator. However:

• Valid DoS attacks require massive PoW investment—economically unfeasible
• Invalid transactions are dropped locally and not propagated

Thus, the network remains resilient even under attack.

Secure Virtual Machine Design

Unlike EVM-based systems prone to overflow bugs and permission flaws, OG’s virtual machine prioritizes safety by design:

• No Integer Overflow: Arithmetic operations halt on overflow—preventing exploits like those seen in BEC and SMT tokens.
• Native Coin Type: Token balances use a dedicated type, isolated from general integers.
• Explicit Permissions: Functions must declare access controls—eliminating accidental public exposure.

These features make common vulnerabilities nearly impossible to introduce—even by inexperienced developers.

Sharding for Infinite Scalability

While DAG enables high throughput for payments, smart contracts depend on Sequencer speed. To avoid bottlenecks:

OG implements contract sharding:

• Contracts grouped into independent shards
• Each shard has its own set of Sequencers
• Multiple Sequencers generated in parallel
• Finalized independently but secured collectively

For example:

• 10 shards × 100 Senators → 10 concurrent Sequencer producers
• Throughput scales linearly with shard count

A root contract (Csharding) manages:

• Senator assignment
• Shard allocation
• Proposer selection
• Validation rights

New contracts register with Csharding at deployment to determine their shard.

👉 Learn how OG’s sharding unlocks true horizontal scalability

Oracle Integration: Bridging On-Chain and Off-Chain Worlds

Smart contracts need real-world data. OG supports two oracle types:

Passive Oracles

Triggered by contract calls:

• User requests specific data (e.g., “Google search count for ‘blockchain’”)
• Oracle fetches result externally
• Returns via callback function
• Fee paid by requester

Ideal for on-demand queries.

Active Oracles

Continuously feed data:

• Poll external sources (e.g., weather, crypto prices)
• Push updates to internal storage
• Available for direct read by any contract

Perfect for time-series or public data streams.

Both models ensure secure, verifiable data entry without compromising decentralization.

Conclusion: The Future of Scalable Blockchains

Annchain.OG represents a fundamental leap forward in blockchain architecture. By combining:

• The parallelism of DAG
• The ordering power of Sequencers
• The scalability of sharding
• The safety of secure VM design

...OG delivers a platform ready for mass adoption—supporting thousands of decentralized applications with low latency, zero fees, and strong security.

While challenges remain—especially around formal verification and long-term consistency—the foundation is set for a new era of performant, intelligent blockchains.

Future whitepapers will explore advanced topics including cross-shard communication, formal security proofs, and decentralized governance models.

Frequently Asked Questions (FAQ)

Q1: How does OG differ from IOTA or Byteball?

OG builds upon DAG principles but adds smart contract support via Sequencers, ensuring deterministic execution. IOTA lacks smart contracts; Byteball supports only limited scripting. OG enables full Turing-complete logic with consistent state across nodes.

Q2: Are there transaction fees in OG?

No. OG operates with zero transaction fees because every participant acts as both user and validator. Network security is maintained through cryptographic rules and PoW requirements—not economic incentives.

Q3: How are Senators chosen?

Senators are nodes that stake platform tokens. A root contract (Csharding) randomly selects validators per epoch using PoS principles. Anyone can become a Senator by staking sufficient collateral.

Q4: Can contracts interact across shards?

Currently, OG focuses on intra-shard execution for maximum performance. Cross-shard communication is planned for future upgrades using asynchronous message passing with cryptographic proofs.

Q5: What prevents a 51% attack on a single shard?

Shard assignments are randomized and rotated frequently via Csharding. An attacker would need sustained control over multiple shards simultaneously—making targeted attacks statistically improbable and economically impractical.

Q6: Is OG open source?

Yes. While initial development was led by Annchain Labs, the protocol is designed for open governance and community contribution. Code repositories and specifications will be publicly released in phases.

Core Keywords

DAG blockchain, smart contract platform, high-throughput blockchain, Sequencer consensus, zero fee transactions, secure virtual machine, blockchain sharding, oracle integration