DigiByte Blockchain: Complete Guide
What is DigiByte (DGB)?
DigiByte blockchain is a rapidly growing public blockchain with a strong focus on cybersecurity of digital payments and decentralized applications. Created by Jared Tate in 2014, it is currently the world’s longest major blockchain. The DigiByte currency (DGB) was created to improve on the shortcomings of BTC and LTC, specifically high fees, vulnerability to attacks, poor scalability, low bandwidth, and volatility.
Jared Tate, the founder of DigiByte, comes from computer programming, blockchain, and cybersecurity background. He designed DigiByte in 2013 with the incentive to offer a faster and more secure alternative to Bitcoin. The official start of the project was marked with the mining of the genesis block in January 2014. As there was no initial coin offering (ICO), the project start did not draw any significant media interest. Instead of this, the project was funded through donations granted to the DigiByte Foundation – a dedicated organization in charge of promoting the project at the global level.
The DGB Genesis block contains a direct allusion to Bitcoin’s Genesis block: “USA Today: 10/Jan/2014, Target: Data stolen from up to 110M customers”.
Some of the main milestones:
- January 2014: The launch of DigiByte
- September 2014: DigiByte successfully implements its second hardfork that allows mining on 5 different algorithms. It becomes the first-ever blockchain to do so.
- June 2016: Official partnership with Microsoft BizSpark
- April 2017: DigiByte becomes the first major blockchain to implement SegWit support, outrunning Bitcoin and Litecoin
- Q2 2018: DigiByte added to Atomic Wallet
What makes DigiByte unique in the world of cryptocurrency is the complex architecture of its blockchain and the tendency towards new technological trends.
The mottos of DigiByte can be defined as follows:
- A faster-than-average network. DigiByte claims to have the fastest block generation speed of all public UTXO blockchains (e.g. Bitcoin, Litecoin) in operation today. Furthermore, it was one of the first adopters of SegWit (Segregated Witness) protocol which conferred unprecedented scalability and security to the network.
- Security does not have to be the weak point of the crypto world. DigiByte developers believe that its blockchain implementation is capable of plugging the majority of potential security-related leaks thanks to its global-level decentralization involving more than 200000 devices such as computers, phones, nodes, and servers. Additionally, to manage the difficulty stability and protect itself from recurring malicious attacks, DigiByte implemented its pioneering DigiShield and MultiShield technologies.
- Blockchain implementation needs to be more progressive in its applications. DigiByte is keeping an eye on three key technologies that are expected to transform the world: Artificial Intelligence (AI), cybersecurity, and the Internet of Things (IoT). DigiByte hopes to extend its innovations in security to IoT devices and combine its blockchain technology with AI in order to become one of the main players in the field of data analytics, cybersecurity, and automation.
DigiByte’s complex architecture is what defined its functionality and made it famous in the crypto-community. Ever since the beginning, the focus of its development was on scalability, decentralization, payment security, and speed. For this, the blockchain has a layered structure and includes:
- Core Protocol Layer as the Prime Mover. Located at the bottom o the layered structure, it takes care of data management and communication between the nodes and handles all operations taking place on the blockchain.
- Digital Asset and Public Ledger Layer as the Security and Administrative Hub is where all the data from the network is stored. This layer also hosts the security mechanism that incentivizes miners and prevents meddling with the data.
- Application Layer as the Front of the DigiByte Architecture is the topmost layer which is the one that users actually interact with. This is also where the dApps and Smart Contract platform will be located once implemented (see below).
Both DigiByte and Bitcoin operate using Unspent Transaction Output (UTXO), which is a technical method for keeping track of blockchain transactions between accounts. Nevertheless, as of July 2019, DigiByte had over 9 million blocks as compared to Bitcoin’s 600,000 blocks. Besides, DigiByte is 40 times faster than Bitcoin, making it the fastest and longest UTXO blockchain in the world.
Since April 2017, DigiByte has had over 275,000 full nodes downloaded and 15,000 nodes active globally.
DigiByte has a well-defined supply and distribution schedule. A total amount of DGB – 21 billion – will be created and mined gradually in the course of 21 years (from 2014 to 2035). Since there was no DigiByte ICO or any other token distribution event, mining is the only way for new DGB to be produced.
As opposed to most conventional blockchains, DigiByte uses five cryptographic mining algorithms, which prevents mining centralization. The block time is 15 seconds. Thanks to Segregated Witness (SegWit) implementation, cross-chain transactions, and single confirmation transactions are made possible. A distinct feature of DigiByte transactions is a set limit in size and scope, which leads to an increase in throughput, speed, and efficiency, while also helping maintain security.
Another characteristic feature of DigiByte is the presence of several functional hardforks:
- DigiShield is a pioneering asymmetrical difficulty adjustment mining technology created by DigiByte. Conceptually, it protects the blockchain from multipools that mine large amounts of DGB at low difficulty. It is a widely used technology and that be found in the core of many other blockchains (Dogecoin, Startcoin, Zcash, CasinoCoin, CreativeCoin, Granite, Huncoin, Monacoin, AuroraCoin, BitcoinGold, BitTokens, CasinoCoin, CreativeCoin, Granite, Huncoin, Monacoin, Mooncoin, Nautiluscoin, Quatloo, StartCoin, SuperiorCoin, Ubiq, SakuraCoin, Scorecoin, SmartCoin). DigiByte was also the first blockchain to fork from a single proof-of-work (PoW) algorithm to multi-algorithm mining. (Not the first cryptocurrency to use multi-algorithm though – Huntercoin was ahead.)
- The MultiAlgo hardfork was activated in September 2014 from Myriadcoin source code and allowed for multi-algorithm mining. Its goal was to accommodate different types of existing mining capabilities (dedicated ASIC mining, GPU, and CPU mining) by creating a number of different proof-of-work (PoW) mining methods. Naturally, this allows for a larger number of people to access DigiByte mining pools, therefore creating a more decentralized blockchain featuring the groups of users who were previously unable to mine the coin on its original single-algorithm (Scrypt) fork.
- MultiShield was activated in December 2014 and served to enable DigiShield across the new MultiAlgo platform and accomplish the same goals on all five mining pools.
- DigiSpeed was activated in December 2015 and focused on increasing the speed of DigiByte transactions. Besides, the block time was reduced by 50% (15 seconds), and a new block propagation code was added with the help of Microsoft.
Perspectives and takeaways
Going beyond Being a Payment Platform.
The philosophy of DigiByte is built on the belief that focusing solely on payments and transactions is not enough, and by doing so, cryptocurrencies are bound to slowly die out. Instead, DigiByte closely follows the developments in the fields of Cybersecurity, Artificial Intelligence (AI) and IoT (Internet of Things). The DigiByte team believes that the scalability and security of the network are ideal for the use with IoT devices that can number thousands and grow really fast. This is why DGB already has a plan of pairing its blockchain technology with AI for the protection of IoT devices.
The newest release from DigiByte is DigiAssets – the top layer of the DigiByte blockchain that enables the implementation of smart contracts, decentralized applications, and programmable tokens, much like Ethereum. The team believes that DigiByte’s elevated security and scalability offer the ideal base protocol for a platform like DigiAssets. The DigiByte founder Jared Tate was the creator of the first two DigiAssets called DigiTorch and DigiFlame in April 2019. Those are meant to be passed on by different DigiByte community members as they build new projects on the platform.
Apart from constantly developing technical upgrades and improvements for the core protocol, DigiByte launched DigiStats in the autumn of 2019. The aim of DigiStats is to increase mobile and payment processing options, create more fiat and USDT stablecoin pairings on different exchanges, and provide interactive and historical blockchain statistics.
In January 2020, as the network turned six years old, the company launched the DigiByte Foundation which serves to help with fund-raising inside the community.
While the aforementioned plans are still in development, it is worth noting that DigiByte was always willing to expand its technology beyond cryptocurrency. Back in 2017, for instance, DigiByte Gaming division was launched with the aim of promoting digital advertising and user engagement in games through prizes and micropayments delivered in cryptocurrency.
That said, the biggest and most important upcoming plan for DigiByte is still the growth and development of DigiAssets. If all goes according to plan, the entire ecosystem of dapps and ICO will be an integral part of the network.
For the ultimate source of information, visit DigiByte’s Official Website.
DigiByte Blockchain Explorer
Track your DigiByte transactions with DigiByte Block Explorer.
Join Digibyte’s subreddit r/DigiByte to discuss the currency with the rest of the community.
Follow @DigiByteCoin on Twitter to keep up with the latest updates.
How to store and manage DGB
DigiByte (DGB) is supported by multiple wallet providers, including Atomic Wallet. In Atomic, you can manage, exchange, and buy DGB with your bank card – everything you need in one wallet application. Atomic Wallet empowers you with full control over your funds since your Private Keys are protected with a mnemonic seed and never leave your device. Atomic Wallet provides you with one of the best options to store, send, exchange, and buy DGB. Install the app now and manage your DGB right in the Atomic Interface.