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August 27, 2018

Coin Profile: DigiByte (DGB)

digibyte dgb

Securing the next generation of digital applications.

Coin Market Cap Rank: 35
Current Market Cap: $279,774,993
Website: https://www.digibyte.io

 

Is DigiByte (DGB) the ‘sleeping giant’ of cryptocurrency? Many DigiByte fanboys argue that the blockchain cryptocurrency is on the cutting-edge of digital currency thanks to its high-performance technology.

Jared Tate

Image: Coin Central

Dissatisfied with the speed and security of Bitcoin, DigiByte was created by Jared Tate who officially launched the digital currency on the 10th of January 2014. At the time of launch, DigiByte was regarded as part of few of the first public blockchain projects. Similar to PayPal and Western Union, it allows customers to move money over the internet through lightning-fast transactions with minimal or no fees.

DigiByte received its first breakthrough with its DigiShield hard fork. DigiShield protected the DigiByte blockchain against threats of multi-pools that inflate DGB values when it is mined. Dogecoin (DOGE) has adopted by DigiShield protection, while Microsoft added it to Azure.

Consistent improvement and development in DigiByte technology have shown industry-leading implementations since Jared Tate started working on the pioneering coin in 2013; including SegWit, MultiAlgo, MultiShield and of course, Digishield.

Although DigiByte did not receive much hype during its first few years, funding through donations has been contributed to the DigiByte Foundation. However, it has never been funded through an ICO, pre-sale or token sale – no private company controls the DigiByte blockchain.

In December 2017, DGB took a surge in price by 120% in just 12-hours. But, DigiByte is still in its growth phase; and just like any other cryptocurrency, DGB prices are volatile.

Coindirect delves further into what you need to know about DigiByte (DGB).

 

What is DigiByte (DGB)?

what is digibyte dgb

DigiByte is a cryptocurrency that exists on its own public, decentralised blockchain. In crypto terms, DigiByte is an open-source cryptocurrency that runs on the DigiByte blockchain. You can think of it as the superior alternative to Bitcoin. According to DigiByte, it is “the world’s longest, fastest and most secure UTXO blockchain in existence.”

DigiByte was developed with a limited supply of 21-billion DGB to be mined by 2035. That’s 1000 times more coins than that of Bitcoin (BTC).

DGB creates a unique problem-solving experience. The altcoin was hard forked from a single mining algorithm to 5 mining algorithms. This essentially means that it uses 5 individual, equal-weighted mining algorithms; with each one having its own difficulty that is weighted against the other in a dynamic process. This process is also known as ‘MultiShield’ – an all-new version of DigiShield.

 

The DigiByte blockchain

digibyte dgb

Image: DigiByte

The DigiByte blockchain has grown to 7-million blocks through its consistent scaling of issues yielded by its blockchain. Today, DigiByte’s blockchain can be applied to applications, as well as are used to fix 90% of internet vulnerability.

The DigiByte blockchain consists of 3 layers; including the Application Layer, Digital Asset Layer and the Core Protocol Layer.


Applications Layer

digibyte dgb blockchain

Image: DigiByte

The applications layer of the DigiByte blockchain is the top layer which users operate on in apps. The top layer consists of:

  1. DApps – decentralised application
  2. Digi-Apps – centralised applications
  3. Smart contracts – leverages the security of the DGB blockchain

 

Digital Asset Layer

digibyte blockchain

Image: DigiByte

The digital asset layer of the DigiByte blockchain is essentially the ‘public ledger’ and middle layer. This layer incentivises the secure of the platform. The middle layer consists of:

  1. A digital byte of data – DigiBytes which represent larger data or a unit that holds value, and can be used to secure value.
  2. Public ledger – where all DGB transactions are recorded.
  3. Mining security – 5 mining algorithms are used for security purposes and to generate new DGB.

 

Core Communications Protocol Layer

digibyte dgb blockchain

Image: DigiByte

The core communications protocol layer of the DigiByte blockchain is also known as the ‘global network layer’. This is the final, bottom layer of the DGB blockchain and supports DigiByte’s entire infrastructure. The bottom layer consists of:

  1. Core communications protocol – the way in which nodes are able to communicate.
  2. Global network – thousands are running the DGB software.
  3. Decentralised nodes – devices connect to DigiByte becomes a node that helps to make transactions.

 

Why use DigiByte and buy DGB?

DigiByte’s initial interest lied in bridging the gap between cryptocurrency and gaming where players would be rewarded with a unit of DGB. Integration of DigiByte cropped up in games like Minecraft and League of Legends. But in paying out millions of DGB over the years, the DigiByte platform eventually started experiencing technical issues. In turn, DigiByte gaming was shut down in 2009.

But, this did not stop DigiByte from getting on to the Bitcoin-scaling bandwagon.

bitcoin digibyte

DigiByte’s blockchain is the longest in the world. Transactions and transaction confirmations are processed 40 times faster and 5 times more secure than Bitcoin. However, fast transactions also mean that each node on the network must maintain the blockchain’s entire history to confirm new transactions; resulting in more scaling issues which were quickly countered when DigiByte implemented ‘segregated witness’ (SegWit). SegWit separates transaction confirmations from the block’s transaction information.

Here’s what DigiByte is bringing to the table:

    • Security – the DigiByte blockchain ensures that transactions, mining and blockchain distribution are always decentralised.
    • Speed – a DigiByte block is generated every 15-seconds – compared to Bitcoin’s 10-minutes – making it the fastest UTXO blockchain in the world.
    • Innovation – DigiByte has developed blockchain-improved software to retain its decentralised network; such as SegWit, MultiAlgo mining and DigiShield.

 

What drives the DigiByte price?

Historically, altcoin price fluctuations have a positive correlation with Bitcoin price movements. This means that if Bitcoin prices increase, you would soon expect the altcoin prices to increase. But recently, Bitcoin and altcoin prices seem to retain an independent flow.

Digibyte dgb prices

Factors that may drive the price of DGB include:

  • Interest around the altcoin
  • Mass adoption in buying DGB
  • Prospective upgrades
  • DigiByte listing on prominent and trusted crypto exchanges
  • New DigiByte partnerships formed

Altcoin adoption is hugely influenced by the use cases of the coin. Spreading of FUD by media, negative press from influential people, banning of cryptocurrency by certain countries (regulation), and hacking of DigiByte and exchange platforms may negatively affect DigitByte prices.

 

Securing your DGB

Wallet storages are the foundation to DApps on the DigiByte blockchain. Your DigiBytes can be securely stored, sent and received using a cryptocurrency wallet. Many also use it to buy, sell and hold onto DGB. DigiByte wallets are used by DGB buyers, sellers, miners and traders all over the world.  

However, not all wallet support DGB, as the majority of digital currency wallets only cater for industry-favourites like Bitcoin (BTC) and Ethereum (ETH).

cryptocurrency wallet

Image: Coindirect

The Coindirect cryptocurrency wallet supports DigiByte and 42 other cryptocurrencies. It also integrates cold storage and two-factor authentication (2FA) for triple protection against crypto threats.

The Coindirect cryptocurrency wallet is supported in 25 countries around the world.

 

Buying and selling DigiByte on cryptocurrency exchanges and peer-to-peer marketplaces

Digibyte dgb exchangeDigiByte has been successfully traded on decentralised cryptocurrency exchanges as a key step towards generating a return on investment for DGB values and building a decentralised digital future.

DigiByte is available to trade on several main cryptocurrency exchanges, which exchange you use is an important factor. Check out the Coindirect cryptocurrency exchange for more information.

With Coindirect, DigiByte can also be easily bought via conversion on our peer-to-peer marketplace

Using Coindirect’s P2P marketplace means that you can buy DGB with ZAR, EUR, NGN, GBP, AUD and many more fiat currencies in 25 countries around the world, using your most convenient local payment method; including bank transfers, PayPal, TransferWise, supported fiat deposits, direct deposits and M-Pesa. Credit card payments are coming soon.

Digibyte can also be sold for BTC or other cryptocurrencies via the Coindirect conversion service. If you are located in one of our 25 supported countries, you can instantly sell your DGB by selecting the best buy offer from vendors in your country or you can set up a sell offer on our peer-to-peer marketplace.

 

You already have access to our integrated exchange with 50% off trading fees until the end of October 2018 (0.1% on crypto to crypto trades and 0.4% on fiat to crypto trades).

cryptocurrency trading pairs

Trade 15 trading pairs on Africa’s biggest and the world’s most emerging cryptocurrency exchange. Create a free account and select your preferred trading pair/s. #OwnTheFuture with Coindirect.