What is Digibyte (DGB) in simple terms: history, course and how to buy

2019-08-22 00:00:00:

As practice has shown, high volatility is not the best property of top cryptocurrencies. They often turn into objects of financial fraud, and it becomes increasingly difficult for investors to make money on them. It is for this reason that they are turning their attention to more "calm" altcoins, which may have quite good prospects. One of these digital currencies is Digibyte, which combines many of the positive aspects of other blockchain projects.

What is Digibyte (DGB)

DGB (DigiByte) is a rapidly growing global blockchain with a focus on decentralization, security, and transaction speed . This digital asset can be safely classified as one of the earliest crypto projects, since it was first learned about it back in 2014.Since Digibyte is a digital asset , it cannot be hacked, counterfeited, or destroyed. For this reason, it is the best option for the safety of your valuables - data, currency, digital information. In addition to answering the question “What is DigiByte?”, We can say that it is an electronic currency operating on its own blockchain, i.e. open source.

Initially, Digibyte was created as a game electronic currency. However, later there were many disagreements about this, this became the reason for the termination of the game function of the coin. Today, DGB is one of the few digital currencies that use multiple proof-of-work algorithms . This cryptocurrency uses 5 algorithms, which we will consider in detail in the following sections of the article.

Digibyte History (DGB)

Its creators began work on the project back in 2013. The development team, led by entrepreneur and programmer Jared Tate, has less than ten members. More detailed information is not available anywhere, even on the official website of the project.

The team has set several important goals for itself:

• develop the fastest, safest and longest blockchain;
• to create such an electronic currency that will become truly convenient for transactions, and not for speculation on the rate jumps;
• eliminate problems found in Bitcoin and Litecoin (poor scalability, low bandwidth, high fees, vulnerabilities to attacks).
• outstripping the operating speed of a number of online payment operators (for example, PayPal, Western Union). Their processing speed is such that it allows them to perform 1 million operations per day. 

The history of DigiByte began with the provision of the very first version of this digital currency on January 10, 2014. At the same time, the first block was mined. By the time Digibyte was launched, the PoW algorithm was used. But very soon this project made a hard fork, as a result of which five PoW algorithms were introduced, incl. SHA256 (which uses Bitcoin) as well as Scrypt (which is used by Dogecoin and Litecoin).

The main funding for the project came from donations to the DigiByte Foundation. An interesting fact is that Tate, like other developers, are holders of a large number of their coins, obtained by mining and making initial transactions. And so the wealth of these people will continue to grow as the value of DGB increases.

The very first breakthrough for Digibyte came almost immediately after its release. In February 2014, the DigiShield hard fork was activated, thanks to which the DigiByte project was protected from the threat posed by the multipools. They easily mined a large amount of this cryptocurrency, while inflating its value. This protection is achieved by recalculating the complexity of the blocks between each block. Thus, the difficulty of mining can be adjusted every minute. Since that time, this technology has been used in Dogecoin , Ethereum , SmartCoin, and other popular cryptocurrencies.

Another big breakthrough happened in 2016, when this electronic currency was added by Microsoft to the Azure platform. She was also nominated for participation in the BizSpark project to support software creators. It is worth noting that while the start of DigiByte was brilliant, this digital currency has outpaced other fast-growing projects.

 The development team tried in every possible way to intensify their own efforts to promote the project and increase its popularity. For a long time, the price of Digibytes remained close to zero. The situation changed only with the onset of 2017, the day came when within twelve hours the DGB quotes rose by 120%. What has been expected for so long has come to pass - all the media have finally started talking about DigiByte.

As of the current year, 2019, the development team is still adhering to the chosen vector of project development. As before, they call their task the creation of an ideal digital currency that combines a high level of security with the fastest possible speed.

You will be interested to know that there is a very important contributor to the project - a non-profit foundation called Digibyte Foundation. This organization plays the role of a kind of connecting link, because it is with its help that the popularization of the project becomes possible. This is achieved by unlocking its technical potential, as well as training all interested users.

Distinctive features of Digibyte

Digibyte is aiming for low volatility and is also increasing network capacity by incrementally increasing block sizes. Operations that are carried out using Digibyte blocks are ten times faster than with Bitcoin. This is because in DigiByte it takes only 15 seconds to check a block, while in Bitcoin it takes 10 minutes. In addition, the project offers other useful functions. Among them, one can especially highlight the possibility of developing decentralized applications, a built-in wallet for storing coins.

In other words, there are several of the most important advantages of DigiByte in comparison with other cryptocurrencies:

• speed of transactions due to the optimized blockchain algorithm;
• low volatility - the creators deliberately increased the maximum number of tokens issued to 21 billion. According to their idea, thanks to such a large number of coins, a low cost will be maintained, convenient for carrying out transactions and settlements;
• low commission (sometimes - its complete absence);
• various possibilities for obtaining DGB. It can be both classic mining and transferring payments for active participation in games;
• the ubiquity of DigiByte - the creators of this digital currency are actively promoting it in applications, as well as in partnership agreements. This makes DGB quite popular among users;
• lack of mandatory registration for transactions;
• strong encryption.

Some of the features of the DGB should be dwelled on and considered in more detail. Once every 24 months, the block size doubles. As early as 2017, the network had a throughput of 560 transactions per second. This has been facilitated by the multitude of node operators on the blockchain. As for partnership agreements, the development team is working together with a number of services and financial institutions. Digibyte is an affordable digital currency for active use in 80 countries of the world. DigiByte has recently partnered with Investa, a financial services company. She plans to add DGB to her own debit cards and ATMs.

How Digibyte works

Digibyte is just like Bitcoin - a digital currency that is based on the UTXO model. Accordingly, each new operation does not require a "balance" of the users crypto wallet. This is a different approach - each coin has its own identifier. When a coin arrives in a crypto wallet, it is considered "unused". If the user transfers the coin somewhere else, it is called "used". Thanks to this, the system has solved problems related to the security of the blockchain (including those associated with double spending).

To become more accessible and meet the needs of miners, Digibyte uses 5 algorithms:

• Scrypt (ASIC) - ranked second;
• Groestl (GPU) - makes it possible to mine coins without purchasing "hardware" and its further configuration;
• Qubit (GPU) - on average, the profit from "mining" reaches 0.2646 BTC for 1 TH per day;
• Skein (GPU) - fast, simple algorithm, energy efficient and flexible;
• Sha-256 (ASIC) is a one-of-a-kind cryptographic hash function.

When such a complex of 5 algorithms is used, it becomes possible to improve protection, as well as a qualitative change in mining. In addition, it becomes almost impossible to hack the system, since it is difficult to maintain 90% of the hash rate while simultaneously controlling another 51% on each of the 4 others. It is safe to say that no other digital currency has such a powerful security system, even the most famous one - Bitcoin.

As for the Digibyte software infrastructure, it consists of 3 layers that function one on top of the other:

• major communications, as well as the global network. Thanks to this layer, it becomes possible to unite all the nodes in the network. It supports the basic exchange of information between nodes. He is the basis for subsequent layers;
• digital assets; and a public ledger. This layer is needed to store all network information, while providing maximum security for its safety. This layer activates activity as well as replenishment of miners.
• applications - represent the outer layer of the blockchain that is facing users. It consists of transfers, API, interface and, of course, applications created on the Digibyte network.

Digibyte advantages and disadvantages

 Any cryptocurrency can be judged only by considering its advantages and disadvantages. We will do the same with the Digibyte discussed in this article. So, its main advantages are:

• a large number of coins, because the developers offered users not several million, but billions of tokens of this cryptocurrency. In addition, coins are generally available: they can be mined, bought, received in the form of earnings on the Internet;
• speed. The platform we are writing about in this article is very fast. Its operating speed is ten times higher than that of all other analogs. Thanks to the improved blockchain structure, as well as the use of the SegWit algorithm, the network scales perfectly. In addition, it has a very high throughput. At the very beginning, the value of this indicator reached 280 operations per minute. However, this value is gradually increasing every day. According to the developers ideas, already in 2020 the indicator will be at least 2000 transactions per minute;
• innovative encryption technology to protect payments. The operability of the network is supported by no less than 200 thousand servers around the world. The transactions performed are recorded in a secure registry. This is done so that these transactions can no longer be copied, edited or modified. In addition, the network is protected from most attacks due to the fact that it uses innovative mining technology;
• universality, since Digibyte can be exchanged for both fiat money and other cryptocurrencies;
• the ability to quickly and easily perform transactions, while no additional registration is required. It takes only a few seconds to generate a block;
• low DGB volatility, due to which the rate of this cryptocurrency is difficult to manage. It is for this reason that it is preferred for transactions;
• Convenience and simplicity of Digibyte - wallet;
• low commission for transactions (in some cases it is absent at all). On average, the size of the commission is no more than 0.001USD. As a comparison, we can cite the commission for making a transaction on the Bitcoin network - even after the latest changes, the user will have to pay at least 0.4 USD;
• openness and honesty of the project, which is not so often found in the digital currency market ;
• it is especially worth dwelling on the slowness of work on Digibyte. The creators of this electronic currency worked very thoughtfully on the project, and presented it to the public only after they managed to translate most of their plans into reality. The developers are still continuing to improve the platform, taking into account the wishes of users. Those of them who offer truly valuable ideas receive bonuses and are encouraged in every possible way.

Oddly enough it sounds, but Digibyte has practically no flaws. The only relative disadvantage is the lack of awareness of this digital currency. Despite the fact that it can be attributed to the "old-timer" of the crypto market, few people have heard of it. DGB-related news is not often published in the media. Perhaps this is because the developers put little effort into promoting their project.

Does DIGIBYTE mining exist?

 For the convenience of miners in the Digibyte project, soon after its presentation to the public, the DigiShield technology we are already considering was implemented. Thanks to it, the difficulty of mining is adjusted every few minutes, after each of the blocks separately for each of the algorithms. Moreover, every month the reward is reduced by 1%. With this approach, pools of miners cannot mine too many coins due to the excessively low computational complexity. Subsequently, a similar function was added in other digital currencies. Today, DigiShield has been replaced by another process called MultiShield. It is an improved version that successfully works on five mining algorithms of the Digibyte network. Thanks to this, the maximum network security is achieved, it becomes almost impossible to hack it. In addition, decentralization is achieved due to such a division of production between algorithms .

It takes 15 to 18 seconds to create a new block, and each of the 5 mining algorithms generates 1 block every 1.5 minutes. Each of them works independently of the other. Scrypt, as well as SHA-256, make it possible to mine coins using ASIC devices. As for Skein and Groestl, they work more with video cards. The Qubit algorithm allows mining with a CPU.

You need to choose a pool based on your chosen algorithm. To mine DGB, as well as to mine other coins, you will need to buy quite expensive video cards or ASIC devices. However, taking into account the fact that block generation takes only about thirty seconds, the equipment is likely to pay for itself very quickly and miners will be able to receive a solid income. At least Digibyte can be called one of the few digital currencies that combine significant potential with the ability to mine on video cards, which would be profitable.

Transaction volumes are limited within one block. The Digibyte developers were the first to use the Segregated Witness technology, thanks to which optimal scalability and small blockchain sizes are maintained. Taking into account the fast block formation time, as well as the fifth year of the projects existence, DigiByte can be confidently called the longest (even in comparison with Bitcoin) blockchain in the cryptocurrency world.

There is another way to get these crypto coins - to buy them on a crypto exchange. You can also start trading there, however, this requires special knowledge and skills. Without them, it will not be possible to get a good income from speculative transactions. If you are a beginner, you should first try to trade on the exchange only on a DEMO account.

How do I buy or sell Digibyte?

You can buy this cryptocurrency on most well-known crypto -exchanges, incl. Huobi, Bittrex, Poloniex. The exception is the popular Binance exchange. The Russian-language crypto-exchange Yobit also offers to buy DGB. Depending on the cryptocurrency exchange chosen, DGB can be purchased with Tether (USDT), as well as BTC, ETH and other electronic and fiat currencies. It is possible that before purchasing DGB, you will need to open an account on any of the trading platforms, and then exchange EUR / USD for the corresponding digital currency from a pair with DigiByte. 

If you do not take into account the trading volumes, DGB can be sold as expensive as possible for cryptocurrency on Bittrex, CryptoBridge, Trade By Trade. The cheapest (if you do not take into account the trading volume) DigiByte for crypto coins can be sold on the Crex24 crypto exchange.

DIGIBYTE rate to ruble

As of August 31, 2019, the DIGIBYTE exchange rate against the ruble is 0.536 RUR per 1 DGB. Over the past day, it has grown by 0.72% (according to data from https://coinmarketcap.com/ru/).

DIGIBYTE to dollar rate

The DIGIBYTE rate against the dollar on 08/31/2019 was 0.163 USD per 1 DGB. During the day, it grew by 0.72%.

DIGIBYTE to Euro

The DIGIBYTE rate to EURO as of 31 August 2019 is 0.007 EUR per 1 DGB. Over the past day, it has increased by 0.72% (information taken from https://coinmarketcap.com/ru/).

With the DigiByte rate, the situation is the same as with the rates of other cryptocurrencies. He hesitates, especially lately. Earlier, up to 2017, the price of the DGB coin was more or less stable and even increased at a slow pace. But in 2017, just like in 2018, Digibyt was expected to have steep ups and downs.

Back in the early summer of 2017, the creators of this cryptocurrency hinted on their Twitter that they would soon announce interesting news regarding their project. Investors took this news as a signal for action, deciding that they would soon be able to earn decent money. The excitement around DigiByte began, they began to buy it en masse, and this led to a short-term rise in value. However, no further news was heard. In the end, a few days later, the developers announced the launch of a new wallet, as well as other additional features. But the cost of coins has already approached the initial value again.

There was also a second rise in prices, which occurred at the end of 2017. - At the beginning of 2018, then John McAfee, who is a well-known crypto investor, started talking on his Twitter about the DigiByte project. This again attracted the attention of users to this digital currency and caused a short-term increase in its price. But then, in January 2018, the value of coins fell again, as did the entire crypto market.

As for 2018, there were no significant fluctuations in value. It is worth noting only a comparatively small rise in the third half of the year. It coincided with the launch of DigiBytes own crypto wallet for Android and iOS. This explains the renewed interest in DGB at the time. In addition, around the same time, the Apple App Store introduced the ability to pay for purchases using DigiByte.

Where to store DIGIBYTE

To use DigiByte, you first need to create a special crypto wallet. To do this, you need to go to the official website of the project, and then download the electronic wallet to a PC or mobile device. The software is compatible with any popular OS. Actions must be performed in the following sequence:

• after the file has been downloaded, it must be launched;
• the installation process is the same as the installation of other software. After it is completed, you can set up your e-wallet. It is possible to select a folder that will contain the necessary information in the future;
• to see the address of the created crypto wallet, you need to select the "File" tab, and then go to the "Receiving Addresses" item.

 In addition, there is the possibility of storing DGB in hardware wallets (for example, Ledger Nano S or Trezor). Of course, it is most convenient to store DigiByte in a mobile wallet developed for the Android operating system and IOS. In this case, you can quickly view the balance, find out the rate, deposit or withdraw DGB to a cold wallet or to a crypto exchange.

Lets look at a concrete example of creating a DigiByte wallet for Windows:

• you will need to run the installer;
• click the "Next" button;
• then you need to select a folder and then click "continue";
• a window will appear in which you need to write the name of the wallet you have invented;
• now you can click the "Install" button;
• the installation will be performed after it is completed, you must click the "next" button;
• after clicking "Finish" the crypto wallet will be completely ready to start using;
• you will need to set a password. It should be remembered that it cannot be restored.

Now your funds in cryptocurrency will be reliably protected. They, if necessary, are easily withdrawn by exchange. You can store this coin on the crypto exchange where it is traded, but in this case the level of protection will be much lower.

How many DIGIBYTE

Its time to find out how many DigiByte have been released in total. The Digibyte network uses DGB tokens. The maximum emission is 21 billion coins. Digibyte, unlike other digital currencies, was not funded by the Initial Coin Offering (ICO) . Nevertheless, the developers carried out a small premine in the amount of 105 million tokens (0.5% of the total emission). Coins in the amount of 0.25% (52.5 million) were shared among the community members.

Digibyte emission

According to forecasts, the issue of DigiByte should be completed in 2035. Currently, there are already almost 12 billion coins in circulation. If developers expectations are met, DigiByte will become the most convenient means of payment. This digital currency will achieve such desired popularity, and then its price will rise to several USD. In this case, it will become much more convenient for DGB to pay for purchases.

What is provided by Digibyte

The creators of the project have worked to prevent speculation with DigiByte as much as possible. And therefore, the digital currency Digibyte is tied to an international currency, making it very convenient to use it for making various transactions.

Digibytes future

With a very supportive crypto community, as well as various use cases (not only for making payments) and strong decentralization, the future of DigiByte may be quite promising. Today, as a result of the prolonged market decline observed in the past, 2018, as well as the slow development of the project, Digibyt still has to fight to support more users.

However, the bear market is quite capable of being beneficial, because in this case the weakest coins that do not bring real benefit will be liquidated. Thus, projects with great potential will have practically no obstacles on the way. Assuming that the project will continue to pay special attention to mass distribution, while at the same time embodying its own long-term plans (for example, the introduction of smart contracts ), we can talk about its good future.

 And although, according to analysts, the price of this cryptocurrency, as well as its capitalization, are rather weak, its potential is assessed very positively. Basically, this is due to the previously listed advantages of this digital currency - convenience and speed of transactions, low volatility. It is for this reason that Digibyte is a convenient means of payment for mass use.

In addition, the digital currency Digibyte can be called one of the very first large developments in the crypto world, into which the SegWit protocol was built. Thanks to this technology, it becomes possible to scale the network, and its bandwidth is also increased. Initially, this technology was developed for Bitcoin, but over time it is also being implemented in other projects.

 Based on the foregoing, experts speak of DigiByte as a fairly promising electronic currency. Therefore, we can talk about the possibility of investing in this project and about good prospects for such investment. But it should not be overlooked that the creators of the project themselves are not aimed at making their cryptocurrency turn into a speculative instrument. They are counting on the fact that Digibyte remains a low-volatility, as well as quite stable, reliable electronic currency. For this reason, a long-term investment would be a smart decision, since a rapid rise in value is unlikely to occur.

Most analysts agree that the digital currency DigiByte can be exchanged, mined, bought, because this coin has a good future. By investing in DGB today, investors can expect to see good returns over time. Many major players in the modern cryptocurrency market are already interested in this project. It can be assumed that it will become more and more popular among a wide range of users. This cryptocurrency can already be called the closest to real life, so the number of potential miners and traders is gradually growing.

Of course, there are also more skeptical opinions about the DigiByte project. Analysts with such views are not quite as rosy for the future of DigiByte. They say the huge competition in the e-currencies market today could hinder DGBs future development. There are no guarantees that this particular cryptocurrency will win in the fight against a large number of new digital currencies, which are also quite promising altcoins that can compete with Bitcoin.

Summing up, we can note the main thing: the developers of Digibyte have set very ambitious goals for themselves. This approach can be called quite well thought out, because thanks to it, DigiByte may well move to high positions in the ratings. The project has many chances not only to catch up, but in many respects surpass the leaders recognized today in the cryptocurrency market.