Bitcoin is the prime cryptocurrency that made the idea of decentralized digital currencies work, but it is far from perfect. DigiByte (DGB) attempts to improve on its model, so that people can have a secure and quick payment system. In this guide, ChangeHero is going to tell you how DigiByte achieves its goal and how it is used today.
What is DigiByte?
DigiByte (DGB) is both an open-source blockchain and cryptocurrency used within it. Like the Bitcoin blockchain, it uses Proof-of-Work consensus protocol (ergo, new coins get added in the mining process) and unspent transaction output (UTXO) to record transactions.
Unlike Bitcoin, DigiByte is a multi-layered, multi-purpose blockchain that is focused on cybersecurity and utility as well as secure payments and communications.
History and team
DigiByte was being developed in 2013 and officially started in January 2014. Its founder and creator Jared Tate joined the Bitcoin community a year earlier, but in late 2013 undertook a project of cryptocurrency that was his vision of improved Bitcoin.
Tate is still an active and prominent member of the community, but he is not responsible for running it anymore — from the very start, it has been in the hands of its community, in the spirit of decentralization.
There is no enterprise or business behind DigiByte. It is supported by developer and marketer volunteers for no pay at all. The teams that contribute to the project are:
- Core developer team responsible for DigiByte software;
- Core outreach and DGBAT (DigiByte Awareness Team);
- DigiByte Foundation, a non-profit organization that provides support to the DGB community and promotes decentralization.
DigiByte in Numbers
DigiByte blocks are capped at 1 MB, like in Bitcoin, but in addition to significantly faster block time it scales better thanks to SegWit implementation. DigiByte blocks occur every 15 seconds.
The transaction processing speed can handle 560 tx/s, which is significantly higher than the other UTXO coins. In addition, it has negligible fees in comparison.
Another major change from the Bitcoin code is in the miner reward system. Instead of slashing rewards in half every four years, DigiByte gradually decreases the block rewards by roughly 1% each month. This means that the max supply of DigiByte (21 billion coins) will be completely mined by 2035.
At the time of publishing, the DigiByte blocks reward 444.40242088 DGB tokens or $4.44 USD.
Layers of DigiByte
The decentralized DigiByte network is a secure and multi-purpose structure. Jared Tate described it as an “Oreo” with three layers:
- Blockchain: On the first level, we have protocol and communications. This is the DigiByte’s blockchain in its purest form, with nodes communicating with each other.
- Cryptocurrency: On the middle layer, DigiByte transactions occur, and DGB comes into play.
- Applications: Finally, the bottom layer represents a secondary chain. The main structure of this level is DigiAssets.
DigiAssets is a platform for issuing assets, tokens, smart contracts to represent real-world assets from units of value to documents and pieces of media. It is a continuation of Open Assets protocol, which lets units of data not connected with DGB transactions be transferred through the blockchain.
DigiByte is unique since it uses five different mining algorithms at once, weighted equally. This technology boosts the network’s security, as well as helps prevent mining centralization.
DigiByte uses MultiShield (an improved version of DigiShield), a technology that recalculates mining difficulty after every block and calibrates all five mining algorithms against each other. While it uses SHA-256, scrypt and Qubit, which are all hashing algorithms that are best solved by ASICs, the other two mining algorithms, Odocrypt and Skein, are ASIC-resistant.
Each mining algorithm contributes equally, so DGB can be successfully mined using any algorithm out of these five. Another issue that this technology resolves is fluctuations in hashpower caused by miners momentarily joining or leaving the network en masse.
In other networks, like Dogecoin and Zcash, this has been a cause of network congestion and spikes in mining difficulty, but DigiByte was able to resolve this problem.
Roadmap and Pipeline
In the future, DigiByte is supposed to be mineable with any type of hardware. For that purpose, the community is planning to change some of the algorithms in use. Ideally, the MultiAlgo should look like this:
- ASIC algorithm;
- FPGA (Odocrypt);
- CPU (RandomX was proposed this April);
- GPU (ProgPoW implementation to replace SHA-256 is in development);
- Additional algorithm, potentially, Proof-of-Stake.
Another way in which accessibility is planned to be achieved is in optimizing memory utilization, so the core client would run even on 32-bit processors or systems with less than 4GB RAM.
What else is in the pipeline? Right now, Schnorr signatures for increased security are being considered, as well as Lightning integration, among other things. A lot of improvements are planned for DigiAssets. Among them are mobile app management and burn, and dividends are in active development.
Use Cases and Adoption
With DigiAssets, it is possible to transact not only with DGB, but using any tokenized assets, tokens and smart contracts, which can be applied in “real estate, finance, remittance, identity, point of sale, racing, trade, healthcare, supply chain, government and more”.
Creating an infrastructure to build applications on top of the blockchain technology is already proving successful for other networks, so DigiByte sees it as a key to adoption as well.
Digi-ID is an authentication system built on top of DigiByte blockchain. It can easily replace standard usernames and passwords, as well as 2FA. All that is needed is a device with Digi-ID support to scan the QR-code and send the cryptographic signature through the blockchain.
Since the data that is transferred is encrypted, no personal information is recorded on the blockchain, so this method is superbly secure.
The main chain as well can boast low fees and fast transaction times thanks to MultiAlgo and adjusting mining difficulty. It makes DGB a viable option for transacting and remittances.
Thanks to CoinGate, Coinify and Coinpayments integrations, businesses can accept DGB as a means of payment. With Kamoney and Bitbill, users can pay their utility bills with it. DGB is supported in Spend, Pungo, UQID and PolisPay debit cards.
Best Wallets for DGB
DigiByte has a few open-source wallet applications, developed by the community members: Core (desktop), Mobile (iOS and Android), Go (Chrome extension). Mobile and Go support DigiAssets as well.
Third-party wallets with DGB integration include Exodus, Coinomi, Atomic, JAXX Liberty, Guarda, Trust and Magnum Wallet. For cold storage, you might look into Trezor, Ledger, KeepKey or Opolo.
In Exodus and Trezor Wallets, you can swap crypto and buy DigiByte with the help of ChangeHero integration. It’s fast, cheap and you won’t even need to close the app.
DigiByte on Twitter
$DGB / $BTC— Surf Ⓜ️🕸 (@_CryptoSurf) June 19, 2022
Don't know if this happens or not,
but do you really want to risk not holding at least a small bag of this thing? pic.twitter.com/cVDcdpv4Fr
Trader Serf shared a weekly chart of DGB. Looks like they’re implying a repetition of a 2017 bounce is imminent.
21 billion #DigiByte will be created over 21 years.— Digimyke (@digimyke) June 20, 2022
Only 21 million #Bitcoin will be created over 140 years.$DGB $BTC pic.twitter.com/lthSuS1x8C
Another community member going by Digimyke shared a curious comparison of DGB to Bitcoin. While the max supply of the altcoin is much higher, it will reach its supply cap much sooner.
No way this is possible 😀— Y (@YoshiJaeger) June 21, 2022
Would be ridiculous.
Of course we could launch a softfork, but who support that shit? 🤨
With the news about Terra, Celsius and now Solana, the crypto community has brought back the decentralization discourse. According to a core DigiByte developer Yoshi, though, it does not seem to be an issue to them.
DGB Price Performance in 2022
Like the majority of altcoins and even Bitcoin in 2022 so far, DigiByte has been on a downtrend. In late March and early April, Bitcoin went on a recovery bounce, and DGB dialed this trend up to eleven, reaching the yearly high at $0.03977.
The market trend was not the only reason it rallied, as the coin community had a March full of great DigiByte news, anyway.
At the moment of publishing, DigiByte is at 143rd rank by market cap ($154,730,109 USD). One DGB is worth $0.01003 USD. DigiByte’s ROI is a considerable +569%.
The ChangeHero team shares the values of utility, decentralization and accessibility with the DigiByte community. This is why we support it, meaning you can easily swap crypto currencies and buy DigiByte on our website. As always, it will be a piece of cake, quick and at a best rate at the market.
We hope you enjoyed this week’s guide! Bookmark the ChangeHero Blog, we publish interesting content about all things crypto and blockchain. Follow us on Twitter, Facebook, Telegram and be the first to get notified.