DigiByte is a peer-to-peer based blockchain and cryptocurrency platform. DGB tokens are used as a medium of exchange for smart contracts and decentralized applications (dApps) based on the DigiByte blockchain.
The DigiByte ecosystem is designed for flexibility and can handle a large number of transactions per second. DigiByte is one of the more established Bitcoin cryptocurrency alternatives based on the Bitcoin network.
Learn about DigiByte
DigiByte was founded in 2013 to develop a fast, secure cryptocurrency that would appeal to a larger and more fragmented audience than Bitcoin. The DigiByte framework is open source, which means anyone can view and contribute to the code.
To produce new DGB tokens and execute DGB transactions, DigiByte uses the proof-of-work principle, which uses a mining process. The DigiByte network supports multiple mining methods and is said to be universal. DigiByte supports five different mining algorithms: Sha256, Skein, Scrypt, Odocrypt, and Qubit.
The DigiByte chain is designed to vary the processing power required to periodically add new blocks to the chain. Each time a block is created on DigiByte's blockchain, the block difficulty is adjusted.
The DigiByte blockchain is divided into three layers:
• The DigiByte platform has top-level dapps and smart contracts.
• The DigiByte blockchain creates and maintains an electronic public ledger.
• A global network of nodes that transmit and validate DGB transactions while minting new DGB coins.
Features of DigiByte
DigiByte's blockchain platform has the following features:
Compared to networks that support only one mining method, DigiByte is more decentralized — and generally more secure, because it supports five different algorithms.
Block Difficulty Adjustment: The DigiByte blockchain reduces the likelihood of the network being taken over by a centralized number of miners by changing the computing power required to mine each block.
No ICO: Most cryptocurrencies use ICOs to raise funds to develop and launch blockchain platforms (ICOs). DigiByte was created without an initial coin offering (ICO) and is fully controlled by volunteers.
DigiByte miners use a wide range of hardware to mine DGB as the platform supports multiple mining protocols.
Bitcoin and DigiByte
You might be wondering how DigiByte compares to Bitcoin. Although the DigiByte architecture is built on top of the Bitcoin code, there are some notable differences between the two:
Maximum coin production: Both Bitcoin and DigiByte have a finite coin supply, although the maximum number of DGBs is an order of magnitude larger than that of Bitcoin. DGB has a maximum supply of 21 billion coins, while Bitcoin has a maximum supply of 21 million coins.
Mining Rewards Program: While both Bitcoin and DigiByte are steadily reducing the amount of coins issued as miner rewards, the two networks have different reduction plans. DigiByte’s per-block payments drop by 1% per month, while Bitcoin’s rewards are halved every four years.
Transaction speed: Since DigiByte generates new blocks more frequently than Bitcoin, it processes transactions faster. It takes about 15 seconds to process a DigiByte transaction, while a Bitcoin transaction takes about 10 minutes.
Is DigiByte a better alternative to Bitcoin?
DigiByte promises to be more reliable than Bitcoin due to its blockchain supporting multiple mining algorithms. Because DigiByte blocks are created more frequently than Bitcoin blocks, the DigiByte network can process transactions faster.