DigiByte Review: Beginners guide
DigiByte (DGB): A network built for speed and security.
Industry type: Decentralised digital economy.
What is DigiByte? DigiByte is a public decentralised blockchain based on the Bitcoin core code that began in 2014 and has since developed into a network and cryptocurrency made to rival Bitcoin in security, speed, and decentralisation.
What gives it value?
- It is a secure decentralised network.
- It provides fast transactions.
- It hosts decentralised applications.
- It has a capped supply of 21 billion to be in full circulation by the year 2035.
- Its platform is comprised of three layers of infrastructure that function on top of each other to provide different Utilities to the network.
(1) The applications layer hosts dApps, Digi-apps, and smart contracts. DApps are software utility applications developed for the blockchain; Digi-apps are centralised software that is native to the DigiByte blockchain; Smart contracts are digital obligations that are enforced by coding for asset-based agreements without middleman intervention.
(2) The digital asset and public ledger layer provide security and administration to the value of data tokens and assets on the blockchain.
(3) The core protocol and global network layer provide communication channels for nodes to talk across the network. Any server, computer or mobile phone connected to the DigiByte network becomes a node and helps to relay transactions.
- Multi Algo splits DigiByte mining into 5 separate algorithms of SHA256, Scrypt, Qubit, Skein, and Groestl. Each algorithm is equally allocated 20% of the network to keep the network safe from corporatisation and to preserve decentralisation.
- The Multishield algorithm is the advanced version of DigiBytes pioneering technology Digishield. Digishield retargets mining difficulty after each block is finished, fixing a common problem in cryptocurrencies with difficulty resets at much larger intervals where mining pools target them en masse for profit when the difficulty is low and abandon the network as it increases. Digishield became popular and was deployed in many other blockchains including Dogecoin and Zcash.
- Digispeed allows the network to create a block every 15 seconds with the capacity of holding 10MB of data compared to Bitcoins 1MB blocks every 10 minutes. As block sizes are closed so quickly, DigiByte also has the longest recorded blockchain which causes problems with scalability, but as a solution to this problem, DigiByte was one of the first cryptocurrencies to implement segregated witness (SegWit). To put it simply, Segwit is a process that splits a transaction in half to exclude any unnecessary data that is not needed to be confirmed as legitimate.
- The DigiByte foundation is an unincorporated, decentralised community that supports the DigiByte network through education, outreach, and development.
- Jared Tate is the founder of DigiByte who started mining the Bitcoin network in 2012 when he noticed problems with Bitcoin’s mining-difficulty system, and so developed and launched DigiByte as a solution to the problem.
- Payment platform UTRUST has partnered with DigiByte to use their cryptocurrency due to security, low transaction fees, and a dedicated team.
- The DigiByte community has partnered with Youtuber David Hay, and crypto activist Arcane Bear, to donate thousands of dollars worth of DigiByte to economic refugees in Venezuela to provide them with food and supplies.
DigiByte Review: The Good
Blocks close every 15 seconds for fast transactions.
The network has over 200,000 nodes so is widely distributed and decentralised.
It’s multishield technology protects the network from becoming dominated and corporatised by ASIC mining pools.
It has an extremely supportive, engaged, and friendly community that does most of its marketing.
It has a well respected and dedicated development team.
DigiByte Review: The Not So Good
- Although it has a limited supply of 21 billion, it is a large supply that may slow the down the value of DBG increasing.
- It has no whitepaper or future roadmap which creates problems with research and trust for new investors.
Although it has a limited supply of 21 billion, it is a large supply that may slow the down the value of DBG increasing.
It has no whitepaper or future roadmap which creates problems with research and trust for new investors.
- Although the DigiByte foundation is reportedly working on many projects for future implementation, the team is reluctant to make promises or dates to avoid the DGB pumping and dumping around promised announcements.
In my opinion, DigiByte has many good things going for it. It is a mature project with plenty of experience and cutting-edge innovations that have become popular on other well known blockchains. It’s approach to decentralised mining is an important feature when considering the corporatisation of the Bitcoin network. It is a project with a long term vision that is often overlooked, and because of this it receives a lot of hype in forums for being a ‘sleeping giant’ and a juicy investment. Although it is a respectable project, I’m not yet convinced that it will automatically stop being overlooked over time just because it is overlooked now. However, from my research I can see that it has a very friendly and enthusiastic community behind it, so if it is community that you are looking for then DigiByte would be a good place to start.
The current DigiByte price, market cap and charts.
Where to store this crypto:
Hardware wallet: https://www.DigiByte.co/DigiByte-wallet-downloads
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