DigiByte (DGB) Review (UPDATED 2018): A Beginner’s Guide | VKOOL

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What exactly is DigiByte, and why is it so obscure? DigiByte is a cryptocurrency that's been in development since 2014, which makes it one of the older crypto projects around, but despite the length of time it's been developed, hardly anyone knows about it.

Those who swear by DigiByte say that it's at the forefront of crypto, and insist that unlike more popular currencies like Bitcoin and Ethereum, DigiByte will eventually rule the world of cryptocurrency with its network capabilities, its speed, and and its security.

We checked, and while the project does indeed have its supporters and around a hundred throusand nodes, there isn't a lot of information about how it specifically works. Nonetheless, we've compiled this little guide into DigiByte, what it's supposed to do, and how, so that you can decide for yourself if this coin is worth your time.

The History and Team Behind DigiByte

The development of DigiByte technically began in 2013 with the work of blockchain developer Jared Tate. In 2014 the first block of its blockchain was formed and it was released with no ICO and almost no press. At the time, it was one of the only blockchain projects in existence, but unlike Bitcoin, it didn't get much attention. Since its inception it's been funded largely through donations.

Except for Tate, there isn't much information about the people behind DigiByte, and though there are some names associated with the company on LinkedIn, there are only 5 people listed as working on it. As far as we can tell, there don't seem to be any team members that work on promotional marketing, meaning that DigiByte is at a serious disadvantage compared to other cryptocurrencies that have marketing teams and social media outreach to increase public awareness of the brand.

Its price history has been up and down. While the price was more or less constant through 2017, it went up after they made an announcement on their Twitter account that they'd be unveiling something new. This made many investors want to buy in, hoping that it would be a breakthrough, but too much time elapsed between the announcement-for-the-announcement and the actual announcement (it ended up being confirmation of a few new features, including a wallet). But it was too late: the price had already gone down.

The price went up again in December 2017, but like all cryptocurrencies, the price went way down in January 2018.

How DigiByte Works

DigiByte uses a similar approach that Bitcoin uses called unspent transaction output (or UTXO), meaning that when you “spend” a unit of the currency, it goes from being classed as “unspent” to “spent,” preventing the crypto problem of double spending.

It uses a blockchain proof-of-work design split across five algorithms, which means that when miners spend time and resources to solve hashes and mine new DigiByte blocks, the work is broken up into different algorithms as opposed to the same one, making things more secure and decentralized.

With a quick mining time (a mean time of 16.5 seconds) and a long history (four years) DigiByte has the world's longest blockchain.

Over the next twenty or so years, 21 million DigiBytes will be mined. It can be purchased outright from one of the bigger exchanges and marketplaces, or you can mine it yourself.

There are three layers to DigiByte's platform:

  • The Core Communications and the Global Network, which supports data transfer between nodes and connects them all.
  • The Public Ledger, where all the data in the network is stored, and the Digital Assets that give incentive to miners.
  • The Apps, or applications that the users of the service interact with. It includes not just the interfaces but all the main transactions that the DigiByte Network uses.

DigiByte's Speed

When block formation is quick, it makes everything easier. Not only are transactions faster, but more of them can get processed in the amount of time it would take other platforms to process fewer, putting it ahead of other services like Bitcoin in that regard. But when blockchains become larger and each node has to store a file that becomes more complex and longer with each transaction, that could slow things down.

That's why DigiByte invented SegWit, or segregated witness, where a transaction can be confirmed independent of the transaction's entry in the blockchain, meaning transactions can go on as quickly as they can – the blockchain can catch up later.

Another solution they've implemented is limiting the size of transactions, which helps keep transaction times down.

What does all this result in? 280 transactions a second, which blows right past Bitcoin's current speed of 8 per second. While it can't compete with something like Visa, which handles 2,000 a second, DigiByte has taken the challenge seriously and plans to try and match and exceed Visa's transaction speed – although they haven't specified exactly how they plan to do it.

DigiByte and Security

The key to DigiByte's security approach is decentralization. When information and capabilities are split up, it's harder for them to be fully compromised, and if a problem happens, recovery happens faster.

This decentralization helps mining as well: by splitting miners and algorithms up into five equal groups, miners with more processing power can't overwhelm and take things over, keeping things competitive. And by changing the difficulty of each algorithm, one group can't find themselves dominating the mining scene, a technique accomplished using something called MultiShield. This means that if you're a miner and you don't have expensive processors doing your work for you, you can still get in on the mining action.

Development of DigiByte

Proponents of DigiByte claim correctly that DigiByte, while not being the most popular or famous cryptocurrency, has led the way in developing a number of applications and technologies. One of these is the DigiShield, the precursor to the MultiShield software we mentioned earlier. The SegWit technology was something else which DigiByte pioneered.

Looking forward, DigiByte plans to use smart contract technology and add it to the way their blockchain works. They'll be releasing API for developers who want to create Javascript applications that can work with DigiByte, something which will increase user development and interaction with the platform.

DigiByte vs Bitcoin

These are similar currencies. Both of them are older cryptocurrencies that use the UTXO system to solve the problem of “double spending” with digital currency. They also both operate on blockchain technology to maintain records of transactions. DigiByte uses some technology that's less associated with Bitcoin, like segregated witness, which avoids the need to have transactions be recorded in the chain before they're processed. Bitcoin is more widespread and well-known, and is used by far more individuals and businesses, while DigiByte is still relatively unknown.

DigiByte vs Verge

Both of these applications are focused on secure cryptocurrency transactions. Verge claims it's meant for everyday use and has a focus not only on quick usability, but also privacy and anonymity (using Tor and I2P), while DigiByte right now seems to be mostly focused on implementing decentralized mining for a fair and secure mining process, as well as using tech like SegWit to maintain scalability. Verge has a bigger presence and more public support than DigiByte, from the looks of it, but it's not clear how Verge has chosen to tackle scalability for larger transactions and adoption like DigiByte has.

DigiByte vs Ripple

These currencies were both developed in platforms that were intended to address speed and scalability in cryptocurrency exchange and transactions. Ripple provides the ability to connect users with banks and businesses, while DigiByte appears to be more of an insular system. Ripple is more public, DigiByte is private. You can buy both currencies on major exchanges, however, although Ripple claims that their currency can handle 1,500 transactions a second, which would be way more than DigiByte's 280 per second.

Frequently Asked Questions

  1. Where can I read news about DigiByte coin?
    You can read about the latest from the DigiByte Twitter, or from some cryptocurrency blogs and websites.
  2. Is there a forum for DigiByte?
    There doesn't appear to be an official forum for DigByte, but if you check out Reddit you'll find that there's an entire subreddit dedicated just to them.
  3. Where can I buy DigiByte?
    You can buy it on big exchanges like Poliniex, Bittrex, Kucoin, and Upbit.
  4. Is there a DigiByte Twitter?
    Yes, they're active on Twitter.
  5. Where can I read a review for DigiByte?
    You can check out user impressions of DigiByte on cryptocurrency blogs or on Medium.
  6. Can I get DigiByte for playing Minecraft?
    There is a server where you can earn DGB for selling diamonds that you mine in Survival, and for minigames.
  7. Is there a DigiByte Reddit?
    Yes, you can check it out on Reddit.
  8. What is DigiByte?
    It's a cryptocurrency with a focus on security and large-form scalability, including decentralized mining for a more level playing field.
  9. What is the prediction for the price of DigiByte?
    It's hard to tell, but the price may go up if they begin to make themselves more public and let more people be aware of them.
  10. Does DigiByte have a Wallet?
    Yes, you can download it for Windows, Mac, iOS,and Android.
  11. What's the conversion rate of DigiByte to USD?
    That changes daily, but as of this article it was trading at $0.0493.
  12. Can I buy DigiByte with a credit card?
    Depends on the exchange you buy from, and whether it supports credit cards.
  13. Is DigiByte an exchange?
    No, it's a cryptocurrency and blockchain network.
  14. Is there a DigiByte Wallet for iOS?
    Yes.
  15. Is DigiByte worth investing in?
    That depends on if they plan to expand, increase their public visibility, or join up with new partners in the coming year.

Conclusion – DigiByte's Future

Despite being around for four years – which is a long time in cryptocurrency terms – not many people know about DigiByte. It's unclear why they haven't yet spent much time or effort trying to reach out to the public and make themselves known, but that seems to be changing with the creation of DigiByte Gaming, which gives DGB currency to gamers when they play certain games.

Other than that, in an increasingly competitive and crowded market, DigiByte will have to step up their game if they want to avoid living out the rest of their lives as they have been: at the back of the crowd.

Peter Lehmann

Peter is a blockchain investor and cryptocurrency writer at Vkool.com. Since 2014 Peter has advised blockchain startups and ICOs on content marketing, strategy and business development.

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