What Is DigiByte? P2P Solution for Crypto Transactions

Komodo Team
Komodo Team

What Is DigiByte? P2P Solution for Crypto Transactions
Table of Contents
Table of Contents

The sheer number of actively traded crypto assets - and more expected to launch - show that the nascent sector has plenty of room for growth. However, a few projects have been around longer than others and stood the test of time. In this regard, the Digibyte coin sets itself apart.

What Is DigiByte?

DigiByte is a blockchain platform built on an open-source and peer-to-peer network that rivals available options with improved features and general ease of use. Providing services through its Proof of Work (PoW) blockchain and the DGB coin, the DigiByte platform offers digital asset, decentralized application (dapp), Script-based smart contract, and secure authentication services to users.

DigiByte prides itself as a decentralized network that operates without excessive internal or external control. The blockchain combines security and scalability features that make it easy for users to launch applications, handle payments, issue assets, and protect their digital identities.

Like Bitcoin, the DGB cryptocurrency also has a permanent deflationary measure that helps regulate price, access, and inflation. Specifically, the DigiByte coin price and general ecosystem largely benefit from its maximum supply of 21 billion coins.

How Does DigiByte Work?

DigiByte prioritizes security and scalability within its platform, ensuring that its processes revolve around these characteristics. The blockchain's PoW consensus mechanism helps to secure the DigiByte network, mint DGB, and also validate transactions, similar to Bitcoin and other PoW blockchains.

The DigiByte blockchain provides the infrastructure users need to work in a fast and secure ecosystem.

  • Public Ledger: This is where security and administration take place. The DigiByte public ledger records all blockchain transactions just like most other networks. The public ledger is tamper-proof and immune to duplication, hacking, or counterfeiting. DigiByte ensures the security of the blockchain by employing five individual PoW mining algorithms. Essentially, the core protocol runs the network's operating and communication procedures.
  • Applications: ┬áDigiByte supports Script-based smart contracts and security protocols such as Digi-ID, which empowers users to effortlessly sign-in to websites, applications, and even into the internet of things via public keys rather than usernames and passwords.

Features of the DigiByte Network

DigiByte has several features that attract new users and keep its old ones coming back for continued usage. Members of the DigiByte community enjoy the following features:

  • Ease of Use: Joining DigiByte is very easy. Prospective users that want to sell or buy DigiByte can simply install a DigiByte wallet, available for multiple operating systems, including Windows, Mac, Linux, Android, and iOS. The apps provide support for multiple languages, DigiAssets, SegWit, Digi-ID, and many more features.
  • True Decentralization: DigiByte is a truly decentralized network with no CEO or other company at the helm of affairs. The network has never received any funding from selling pre-mined coins to retail or institutional buyers, or through an initial coin offering (ICO). DigiByte is a global community-driven and volunteer-based project.
  • Security: Although a Proof of Stake (PoS) consensus protocol has its advantages - especially with scalability - DigiByte uses PoW, which ensures more robust security. DigiByte secures its network using mining algorithms, including SHA-256 (Secure Hash Algorithm), Scrypt, Odocrypt, Skein, and Qubit. Notably, Odocrypt secures the network with substitutions and permutations that ensure ASIC resistance by changing itself every ten days. The combination also specifically provides additional protection from 51% attacks.
  • Fast Transaction Speed: Transactions on the DigiByte blockchain only require about 15 seconds for confirmation - 10 times faster than Litecoin (LTC) and 40 times Bitcoin's speed. Furthermore, DigiByte uses SegWit, which frees up space for more on-chain activity, boasting up to 1,066 transactions per second. What's more, DigiByte charges light fees for these features, making it that much more usable when compared to competing networks.
  • DigiByte Mining: In September 2014, DigiByte activated the MultiAlgo hard fork at block height 145,000, allowing multi-algorithm DGB cryptocurrency mining. MultiAlgo introduced multiple PoW mining methods to cater to ASIC, CPU, and GPU mining capabilities. With this accommodation, DigiByte opened mining to more people than the original algorithm initially allowed for.
DGB stats as of August 29, 2023
DigiByte blockchain stats as of August 29, 2023

A Look At DigiByte's History

Creator and founder Jared Tate envisioned DigiByte to improve Bitcoin and shore up some of its shortcomings. Jared created DigiByte to be a faster and more secure cryptocurrency option than Bitcoin, hoping to attract a larger crowd with payment and decentralization solutions. The DigiByte blockchain launched in 2013, with the first block mined on January 10, 2014.

In its early days, DigiByte was a Scrypt-only blockchain with difficulty retargeting frequency of two hours and block times of 60 seconds. Since its inception, the blockchain has gone through several upgrades, increasing speed, on-chain scalability, and cybersecurity. To drive the security point home, the Genesis Block had a news headline "USA Today: 10/Jan/2014, Target: Data stolen from up to 110M customers" hashed in. Today, the on-chain scalability and cybersecurity principles still guide DigiByte's operations and upgrades.

The Future of Digibyte

There are several categories of people who have reasons to switch to DigiByte. Firstly, DigiByte operates an open-source, peer-to-peer network that prides itself on true decentralization. This feature makes payments and DGB cryptocurrency trading easy.

Miners also benefit from DigiByte, especially since the blockchain accommodates different types of mining. Currently, the ease of DigiByte mining attracts people not only interested in producing new blocks, but also securing the network.

Furthermore, the 21 billion DGB coin supply cap helps to drive Digibyte price valuation. Each month, the network reduces its monthly block reward amount by 1%. By 2035, DGB coin will hit its maximum supply cap, leaving miners to rely solely on transaction fees.

DigiByte offers a rich and effective cryptocurrency with a platform that has the scalability needed for launching applications. Generally, the blockchain is a comprehensive offering for all interested crypto traders, miners, and solutions providers, regardless of the crypto subsector where they thrive best. Members of the crypto community can join the DigiByte bandwagon for quick and easy solutions for speed, payment, decentralization, and security.

DGB Available on Komodo Wallet

Komodo Wallet is a non-custodial wallet, crypto bridge, and peer-to-peer (P2P) decentralized exchange that provides native support for the DigiByte blockchain and the DGB coin.

Users can HODL and trade DGB on Komodo Wallet along with other popular cryptocurrencies such as BTC, ETH, DOGE, MATIC, and much more.

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