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DigiByte, abbreviated as DGB, is a decentralized digital currency and a blockchain-based network that was developed with the goal of security, use as money, and a fast and cheap payment method. This digital currency is one of the few old digital currencies that is still popular and has its own fans. The development of this digital currency started in 2014.
Supporters of Digibyte refer to this digital currency as a giant that has not yet woken up. According to Digibyte fans, this digital currency uses the most advanced technology in the field of cryptography, has the fastest network, has high scalability (the capacity to confirm transactions) and is more secure than other major currencies.
Digibyte community members believe that the superior technology of this network will overtake Bitcoin, Litecoin and other digital currencies in the coming years. They claim that this network has more than 100,000 nodes worldwide and its user community is extremely loyal to this currency. Of course, it has not been proven that this digital currency has more than 100,000 nodes. A node is a computer that is directly connected to the network and has downloaded the entire blockchain.
DigiByte aims to be a digital currency for the everyday needs of everyone in the world. This blockchain can be considered a fork of Bitcoin. The Digibyte development team developed this digital currency using the code and technical structure of Bitcoin, and then gradually made it less and less similar to Bitcoin with various updates.
One of the basic similarities between DigiByte and Bitcoin is the transaction confirmation structure of this digital currency. Both networks use the Unspent Output Transaction (UTXO) model, which we will explain below.
Like Bitcoin, the security of the DigiByte network is provided through the mining process or the Proof of Work consensus model, and DGB units are produced through the mining process.
Unlike Bitcoin, whose total number of units is 21 million units, the number of DigiByte units is 21 billion units, all of which will be mined within 21 years (until 2035).
According to the Digibyte team, the reason for the high number of units of this digital currency is its easier use as a payment method. For example, if the price of a coffee is 3 dollars, this 3 dollars will be about 0.0003 in Bitcoin. If we want to pay for the coffee with bitcoins, we have to pay some fees, which increases the cost. But the same $3 is about 533 units of Digibyte, which will have a much lower transfer fee. Of course, according to many experts, this cannot be a good reason to increase the units of a digital currency, because Bitcoin is also divided into smaller units called “satoshi”.
The block time of DigiByte at the beginning of the launch was 60 seconds, and according to the development team of this network, it could process 140 transactions per second. Every two years the block time is halved and is now 15 seconds. Faster block creation allows transactions to be confirmed faster and faster. Digibyte’s plan is to reach 280,000 transactions per second by 2035.
Digibyte mining reward, ie its production number in each block is also reduced by 1% every month, so that according to the production team, its supply will decrease and its rarity will increase.
DigiByte mining is done simultaneously with five different algorithms. Bitcoin can only be mined with the SHA-256 algorithm, but in DigiByte, the following algorithms can be used for mining at the same time:
SHA256
Script
Qubit
odocrypt
Skein
Each algorithm can have 20% of mining capacity. The purpose of this work is called “non-centralization” and “non-exclusivity” of mining.
Unlike Bitcoin, whose mining difficulty is adjusted after 2,016 blocks, in DigiByte, the mining difficulty is adjusted after each block, so that, according to the development team, we can see more balance in the network.
Just like other digital currencies, DigiByte has also struggled with many fluctuations. Until 2017, the price of this digital currency went through a relatively constant trend and sometimes faced a small increase.
The sharp growth of the Digibyte price started in early 2017 and reached its highest date by the first month of 2018.
In May 2017, the price per unit of DGB was around $0.002, and on January 6, 2018, it reached $0.12, which is a 5,900% growth in less than a year. After reaching the highest price in January 2018, DigiByte, like other cryptocurrencies, began its free fall and fell by more than 94% to $0.005.
As of this writing, the price of Digibyte has recovered slightly and is at $0.006. Considering this price, Digibyte is still trading 350% higher than its initial price (2014).
The price of DGB, like any other digital currency, depends on many factors such as acceptance among users, development of infrastructure, accepting exchanges and several other factors. Being removed from the Poloniex exchange and not being added to the Binance exchange gave a strong blow to the price of this digital currency.
Community and the future of Digibyte
Like Dogecoin, DigiByte is one of the digital currencies that has a passionate and strange community and fans.
The Digibyte page on the Reddit website has more than 20,000 members, which is a very impressive figure compared to its peers. However, so far in Chen’s life In the last year of this project, there has been no news of attraction for this digital currency and it does not seem to be very successful in achieving its goals.
Although it is possible to extract digibyte with five different algorithms, many miners have not shown interest in extracting it, and the total hash rate of this network (the processing power available to miners) reaches about 90,000 terabytes. While the hash rate of Bitcoin is more than 100 million Terahs.
The low profitability of mining this digital currency at the moment makes miners have little desire to mine it. However, some miners who are optimistic about the future of DigiByte continue to mine it.
The leader of the Digibyte team has promised more interactions between this foundation and the public. At present, however, attracting more audiences is the main challenge of this digital currency. The future for this digital currency is not so bright. It can both move forward relying on its speed, scalability and security, and it can also take its uncertain course.
Since DigiByte is built on unspent transaction output, it faces many competitors. Bitcoin and Litecoin are among the most important competitors of this digital currency. Due to the high speed of transactions in DigiByte, Dash can also be considered as a competitor. Dogecoin is also one of the competitors that moves along with this digital currency.
