In this article, the readers will get a chance to learn more about the DigiByte cryptocurrency network, how it functions and how it performs in the markets, and why investors see it as a small, but exciting altcoin.
Currency name(s): DigiByte (DGB)
Genesis Block: January 2014
Total Supply: maximum supply is limited to 21 billion DigiByte tokens; current total supply is ~12 billion, out of which all are in circulation
Algorithm: the network uses 5 different algorithms to perform various functions. They are: Qubit, Scrypt, Skein, Odocrypt, and sha256
Features: fast transactions, decentralized, scalable, secure
The DigiByte network was created with a goal to challenge now traditional (yet still advanced) monopolized payment systems such as PayPal, Visa, or Western Union, by offering very fast transactions – 15 seconds are needed to complete a transaction on the DigiByte network, compared to a couple of days by using Western Union or PayPal. The idea behind the creation of DigiByte was to offer a faster, more secure and ultimately better alternative to the now most established cryptocurrency network, Bitcoin. This network is also much faster than Bitcoin’s as well – 15 seconds necessary for a transaction’s completion compared to at least 1 hour when using Bitcoin.
Although it was first created in 2014, a very small part of the community knew about the network and the team behind it until 2017 when the whole crypto world experienced an increase in attention. Sometime before that period, Microsoft added DigiByte to Azure as well. Some say that its adoption was done in a truly decentralized manner, and the users increased steadily over the years. Our DigiByte network market analysis has shown that more than 100 thousand nodes exist all over the world, thus keeping the network very alive and healthy. However, the adoption of this network still needs to increase if the team behind it wants to overthrow Bitcoin. It is possible, considering how developed this network is, but one crucial factor – and that is the number of users – needs to increase dramatically in order for that to happen. For the time being, DigiByte is a great alternative to Bitcoin and other well-established financial services companies that allow cross-border transactions.
The DigiByte network is seen by the community as a pioneer in the cryptography and blockchain niches as they have contributed a lot to the development of crypto and the underlying technology. Firstly, this is one of the rarest networks that uses 5 different algorithms for allowing for blocks to be added onto the blockchain at a fast pace. It is estimated that a new block is produced in 15 seconds, but with such great speed comes the problem of scalability and efficiency. In order to tackle this problem most of the blockchains which rely on proof-of-work have as each node within the network must keep a copy of the whole blockchain history, the team behind the DigiByte network implemented segregated witness method – or SegWit – which separates transaction confirmation from transaction information and stores it separately onto the blockchain.
Another innovation that the DigiByte network brought to the cryptocurrency community is the DigiShield. The DigiShield, now known as MultiShield, was a rebalancing technology used to adjust the mining difficulties of the algorithms used for mining DigiByte so that one algorithm doesn’t become more capable than others. DigiShield also prevents miners from inflating the token as well.
Our DigiByte market analysis has shown that for the time being, the DigiByte token price is relatively stable, with minor fluctuations. The current price per token is $0.014 and has remained in that range for the past month. However, the lowest price per token ever recorded was only $0.00002 toward the end of the year of its launch. On the other hand, the highest price recorded for one token was $0.14 during the prices hike in January 2018. Currently, the total market cap stands at almost $170 million, but that estimate is expected to rise when the maximum supply of DigiByte tokens is made available to the public. Also, another factor that will influence the price is its adoption with the general public, as has happened with Bitcoin. For the time being, Bittrex, Poloinex, and HitBTC offer DigiByte trade pairs, and investors can buy or sell them for other cryptocurrencies such as Bitcoin, Ethereum and Ripple. Also, Coinfield and Bitfinex offer DigiByte trading for fiat currencies such as the British pound, Euro or the US dollar.
Although DigiByte belongs to the older cryptocurrency networks, it has remained relatively unknown despite the fact that it has contributed a lot to the crypto community and to the new technology of cryptography and blockchain. Its adoption has grown exponentially, but users themselves needed to see how it operates in order to start using it. With over 100 thousand active nodes across the globe, it is safe to say that this network is stable, but its potential still needs to be shown and accepted. Also, its goal is to tackle both Bitcoin and traditional digital payment methods, which is a huge task, so we yet have to see whether the DigiByte network will be successful in persuading people to use it as an alternative to both Bitcoin as well as others. If the DigiByte network and the team behind it are successful in their goal, the imminent mass adoption will definitely influence the price of the token, so a good holding position for this token is medium to medium-long.
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