What is Digibyte, how it works, and why it's gaining attention?

What is DigiByte?

DigiByte (DGB) is a decentralized cryptocurrency and blockchain platform that facilitates peer-to-peer transactions. DGB tokens serve as the currency for decentralized applications (dApps) and smart contracts operating on the DigiByte blockchain.

Known for its scalability, the DigiByte blockchain is capable of processing a large number of transactions per second. It is one of the earlier Bitcoin alternatives, having been originally derived from the Bitcoin blockchain.

Despite being less known than other cryptocurrencies, DigiByte's scalability could make it suitable for various applications. Launched in 2013, DigiByte aimed to create a fast, secure cryptocurrency with a broader and more decentralized community than Bitcoin. The platform is open source, allowing anyone to view and contribute to its code.

DigiByte uses a proof-of-work mechanism for generating new tokens and processing transactions. Its blockchain supports multiple mining algorithms, including Sha256, Scrypt, Skein, Qubit, and Odocrypt. The block difficulty on the DigiByte blockchain changes with each new block, ensuring the network remains robust and secure.

DigiByte special features

DigiByte offers several unique features that set it apart:

1. Multi-algorithmic mining: DigiByte supports five mining algorithms, enhancing decentralization and security compared to platforms with just one algorithm.
2. Dynamic block difficulty: The blockchain adjusts the computing power needed for each block, reducing the risk of a network takeover by a concentrated group of miners.
3. No ICO: Unlike many cryptocurrencies that raise funds through ICOs, DigiByte was launched without one and is maintained by volunteers.

DigiByte vs. Bitcoin

You might be curious about the differences between DigiByte and Bitcoin. While DigiByte's code is originally derived from Bitcoin's, there are several key distinctions:

• Maximum coin supply: DigiByte has a maximum coin supply of 21 billion tokens, which exceeds Bitcoin's maximum supply of 21 million by an order of magnitude.
• Mining rewards schedule: Both DigiByte and Bitcoin reduce mining rewards over time, but they follow different schedules. DigiByte decreases its per-block reward by 1% monthly, whereas Bitcoin halves its reward approximately every four years.
• Transaction speed: DigiByte processes transactions faster than Bitcoin by adding new blocks to its blockchain more frequently. DigiByte transactions are typically processed in about 15 seconds, compared to Bitcoin's average block processing time of 10 minutes.

Is DigiByte superior to Bitcoin?

DigiByte asserts its superior security compared to Bitcoin due to its blockchain's support for diverse mining mechanisms. Additionally, DigiByte's blockchain processes transactions at a faster rate by adding new blocks more frequently than Bitcoin. It's worth noting that Bitcoin, as the original cryptocurrency with the highest market value, remains a prominent player in the market.

Is DigiByte secure?

The DigiByte platform utilizes blockchain technology, known for its inherent security. DigiByte bolsters its blockchain security through two primary methods: supporting multiple mining mechanisms and regularly adjusting mining difficulty.

How can I buy DGB?

The simplest method to buy DGB is via a cryptocurrency exchange. Exchanges like KuCoin and Bittrex facilitate DigiByte transactions. Depending on the exchange, you might need to buy another cryptocurrency like Ethereum first to acquire DGB.