DigiByte (DGB) – A Hidden Gem or Forgettable Coin?
What is DigiByte?
DigiByte is an open-source Cryptocurrency with the focus on providing an advanced payment method. The currency has its own blockchain, and the native asset is called DGB, which has a supply of 21 billion (100x higher than Bitcoin).
The code is based on Bitcoin source code but was heavily altered in the past. Like his role model Bitcoin, DigiByte is also based on UTXO (unspent transaction output). But there are some big differences between DGB and BTC:
- Block time: BTC has 10 minutes, DGB 15 seconds
- Mining algorithms: BTC has 1, DGB has 5
- Difficulty adjustment: BTC adjusts roughly every 2 weeks, DGB adjusts in real time
- Scalability: BTC achieves 4 tx/s, DGB achieves 280 tx/s
- DGB is believed to have more nodes than BTC
The architecture is designed in a specific way so that the block time doubles every two years. This effectively doubles the number of transactions per second. One of the platforms of the DigiByte ecosystem is DiguSign, a smart contract platform allowing anyone to store, notarize, and validate any document in public in a secure, decentralized manner.
DigiByte was founded by Jared Tate and developed by him and his associates in 2013. The genesis block was mined in 10. January 2014. There was no token sale. Around five developers are working with Jared Tate on the DigiByte project. DGB was originally targeting the gaming industry, and the goal was a use-case as an in-game currency in video games.
This was discarded through upcoming security problems, and the use-case for DigiByte is to be a functional digital currency ever since. They did a little pre-mine to pay developers and early supporters.
Can DigiByte be mined?
Yes, DigiByte is based on Proof-of-Work and supports five different mining algorithms:
- SHA256 (ASIC friendly)
- Scrypt (ASIC friendly)
- Groestl (GPU friendly)
- Skein (GPU friendly)
- Qubit (ASIC friendly)
What differs DigiByte from other Cryptocurrencies?
DigiByte was the second blockchain to implement SegWit (the first was Groestlcoin), and through the unique setup of five different mining algorithms, they make sure to prevent mining centralization. DigiByte also has one of the longest existing blockchains with over five million blocks attached.
How much is DigiByte worth today?
What is the total and the circulating supply?
The maximum supply of DGB is 21,000,000,000 and the circulating supply at the time of writing is 10,284,321,916 DGB.
Where can you buy DGB?
You can buy DGB on several cryptocurrency exchanges, most notably Bittrex, Poloniex, and Upbit.
Can DGB be sold for cash?
You can sell DGB for cash on several cryptocurrency exchanges that have fiat-pairings, for example, LiteBit.eu (not recommended).
The DigiByte team is working on hardware wallet support (Trezor), wallet upgrades for Android and iOS, Algo Swap efficiency upgrades for miners and to further strengthen adoption through exchange listings and partnerships. DigiByte doesn’t publish exact dates or timelines to prevent pump-and-dumps.
Verdict and Rating
3/10 Good tech but almost no marketing. The supply is way too high for SoV-characteristics, and there are several red flags, for example in a twitter-audit in 2015 there was a massive number of fake followers discovered on DigiByte’s twitter account, and around 40% of all DGB is held by only ten DGB wallets.
Bitcoin and the Lightning Network will render all other cryptocurrencies useless in my opinion.
DisclaimerThe writer’s views are expressed as a personal opinion and are for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
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