DigiByte (DGB) is a form of cryptocurrency, which is a digital asset with a decentralized blockchain environment. DGB first appeared in 2014, five years after Bitcoin appeared as the first cryptocurrency ever to be developed. With the implementation of faster processing times for DGB-based transactions, the DigiByte team claims that DGB runs on one of the longest blockchains among cryptocurrencies.
DigiByte is an altcoin, which means it is an alternative coin to Bitcoin. It offers improved features that facilitate speed and efficiency. What is interesting about DigiByte is that the team behind the crypto never organized an ICO or a token sale to issue DGB, which is defined through the idea of complete decentralization. However, DGB and the DigiByte blockchain are not owned by a private company.
DigiByte is the fastest, longest, and most secure unspent transaction output (UTXO) in the world. A UTXO is a form of abstract electronic money that confirms ownership. It is a chain in which digital ownership is contained. This chain represents a digital signature that signs transactions. Basically, DigiByte runs on a decentralized blockchain similar to Bitcoin.
DigiByte is an open-source, decentralized environment, which means that this crypto is based on the same principle as Bitcoin. It was also developed based on the Bitcoin Core. However, the DigiByte team wanted to do what almost every altcoin dev team wants to do: improve the basic architecture of Bitcoin. This work is usually done by making transactions faster and more cost-effective while addressing the scalability issues noted in Bitcoin.
Transactions times can become more efficient by increasing the size of blocks so that the blocks making up the chains and carrying transactions can process more data at a faster pace. To make the network faster and transactions more efficient, the DigiByte team added some crucial changes to the code. DGB implemented a difficulty adjustment in real-time, a 15-second block time, and enhanced security. During the initial development, the team behind DGB also decided to place a special focus on cybersecurity, payments, and increased speed of transactions.
Another interesting thing about DigiByte is that the DGB team had a lot of “firsts.” DGB was the first altcoin to successfully implement Segregated Witness (SegWit). The team behind this digital asset also contributed to the overall development of blockchain-based features and protocols, creating DigiShield, Odocrypt, DigiAssets, and the MultiAlgo mining protocol.
Some blockchains, including Ethereum and Bitcoin Cash, have adopted some of DigiByte’s technology, such as DigiShield for example. By bringing novelties to the sector of blockchain technology and innovation and the domain of cryptocurrency development, DigiByte has found its place within broader adoption.
How DigiByte Works: Protocols and Architecture
DigiByte is based on UTXO and a Proof-of-Work (PoW) protocol. However, there are crucial differences between the way Bitcoin uses PoW and the way DGB uses it.
DigiByte can be mined, just like Bitcoin and other altcoins and cryptos based on Bitcoin Core. That means that miners work on keeping the network secure and safe, validating transactions and preventing double-spending of DGB by confirming transactions.
To make the process of mining more efficient, the DGB team implemented five different algorithms dedicated to the mining of DGB. These algorithms are based on PoW and are equally distributed on the blockchain to split the power used for mining and make the network safe and secure. This feature is known as MultiAlgo mining.
The difficulty adjustment for nodes used within the network is regulated by MultiShield technology, which was also created by the DigiByte dev team. MultiShield features make sure that none of the five algorithms prevails as dominant, assuring that smaller chains can’t be manipulated.
DigiSign is another one of DigiByte features. It enables easy and seamless validation, sending, and embedding of documents and data within the DigiByte blockchain system. Other features created with DigiByte technology are DigiShield, Odocrypt, and DigiSpeed.
DigiShield is a feature created by the team behind DGB to slow difficulty. It was first released in February 2014 and has since been adopted by numerous blockchains, such as Ethereum, Dogecoin, Zcash, and Bitcoin Cash. It assures protection against multi-pool mining of large amounts of DGB at a lower difficulty. DigiShiled can recalculate block difficulty, inspecting each block and correcting multi-pool mining at the beginning or end of operations.
Odocrypt was made to prevent ASIC miners from joining DigiByte mining pools, which decreases competitiveness in mining. The algorithm protects the network from ASICs by changing hashing details every ten days.
DigiSpeed is a feature that enables faster processing times and allows 15-second blocks on the blockchain, making the network more scalable than Bitcoin and many other networks. Thanks to DigiSpeed, the DigiByte network can process around 560 transactions per second, making DigiByte 40 times faster than Bitcoin.
There are 21 billion units of DGB in total supply, with 105 million of the supply being pre-mined.
DigiByte blockchain is made up of three different layers. The Core Protocol Layer or Global Network Layer is the basis of the entire blockchain, supporting the entire infrastructure and posing as a bottom layer of DigiByte blockchain. On top of the Core layer, is the Digital Asset or Public Ledger Layer, which provides administration and security. This layer is the middle layer. It contains DigiByte units, the immutable public ledger, and the five protocols for mining. New DGB units are created through the process of mining. The top layer is called the Application Layer or DigiAssets Layer. It enables the development of other digital assets on top of the DigiByte chain. This layer, which is the first layer of DigiByte ecosystem, enables the development of DApps and the utilization of smart contracts, making it a rigid and secure blockchain-based environment.
DigiByte is a complex ecosystem of different features, layered architecture, and improved mechanisms in opposition to the original code used to create Bitcoin. Still, DigiByte is far from topping BTC when it comes to market capitalization and market share.
DigiByte: Origins and History
DigiByte development took place in 2013, but the genesis block wasn’t released until January 2014, which is the official date of the initial launch of DGB and DigiByte blockchain. The crypto doesn’t belong to a private company. It was created by Jared Tate, who is also the founder of DigiByte blockchain.
Jared Tate was first introduced to Bitcoin in 2012, three years after BTC was officially released to the public. Tate planned to improve the Bitcoin Core protocol. Eventually, his plan culminated in the development of a brand-new altcoin we now know as DigiByte.
While Bitcoin was released to represent the first peer-to-peer currency for decentralized monetary transactions, Tate wanted to create a new digital asset based on the Bitcoin Core protocol and that honoured decentralization as the core value of blockchain mechanisms and architecture but with improvements that would make it more secure, more reliable, faster, and more efficient. Moreover, Tate wanted to create more than a currency, which is why DigiByte advanced by presenting innovative blockchain products that allow IoT and AI integrations and implementations. He also specifically worked on improving the general level of cybersecurity.
The DigiByte team viewed their currency as more than just a currency, which is why they decided not to raise funds through DGB within an ICO or a token sale. The DigiByte team, headed by Tate, noted that blockchain technology has broad potential, and this potential could be captured in a digital asset within a blockchain environment, as well as various other sectors.
Allegedly, DigiByte technology can be used to resolve up to 90% of security problems for online operations and communications. Furthermore, DigiByte technology can be used to integrate IoT appliances and devices, improving the way robust communication works. Additionally, the DigiByte team is dedicated to exploring uses of AI and DGB-based technology to facilitate innovation in the AI sector, data, and automation.
DigiByte (DGB) Wallets
DigiByte can be stored in hardware or software wallets. Every wallet is designed to provide security and safety for funds while making balances and funds accessible to private key owners.
Hardware wallets have the highest level of security, storing private keys and making funds difficult for hackers to steal. DGB can be stored safely in hardware wallets such as Nano Ledger S and Nano Ledger X.
The team behind DGB created a software wallet called DigiByte Core. It is a desktop wallet. DigiByte Core provides safety and security for your DGB funds, and you are contributing to the network’s safety by choosing it.
Guarda Wallet for DGB units offers mobile, desktop, and web version. Some wallet functions can be synchronized across devices for easy management of DGB funds. Guarda Wallet also offers direct exchanges between DGB and other cryptos.
Users can also create paper wallets for DGB by visiting Walletgenerator.net page. DGB can also be stored on exchanges that support DigiByte and offer custodial services.
It all started with Bitcoin and Jared Tate’s idea to create an upgraded, faster version of the Bitcoin Core architecture. That is how a layered and complex blockchain-based environment was created and represented in DigiByte.
Since 2014, DGB and the DigiByte network have developed into a supportive community that is important to the project. DigiByte got where it is today thanks to two tens of thousands of community members. It is an open-source, completely decentralized blockchain project that is not owned by any one private company or entity.
The idea and practice of decentralization are very important for DigiByte. Because of the importance of community for the development and functionality of the project, DigiByte Global Community created Telegram channels to keep the community actively involved and up-to-date. It has channels for technical support, information about mining, developer discussions, community discussions, marketing and news informations. The DigiByte Global Community properly emphasizes DigiByte’s open-source architecture and decentralization.