DigiByte is a cryptocurrency and blockchain platform focused on providing fast, secure transactions. In addition to the DigiByte cryptocurrency, DigiByte software hosts other cryptocurrencies through smart contracts and other distributed apps. DigiByte launched in 2014 and ranks just outside of the top 100 cryptocurrencies by market capitalization.
This article will take a deeper look at DigiByte, how the platform works, and how to invest in the cryptocurrency. Learn more about DigiByte so you can decide if it makes sense for your investing strategy.
What Is DigiByte?
DigiByte is a cryptocurrency trading with the symbol DGB, and it is also a cryptocurrency blockchain platform. The DigiByte currency is used as both an investment and payment method for transactions on the DigiByte network. As of this writing, DigiByte ranks as the 112th largest cryptocurrency, with a market capitalization of $617.8 million. There are currently 14.7 billion DGB in circulation out of a total 21 billion coin supply.
DigiByte was initially created to build off Bitcoin blockchain technology, and now has notable enhancements. The main features of the DigiByte blockchain prevent centralized control and ensure fast, secure transactions. DigiByte launched in 2014 and releases new coins through mining by network participants.
DigiByte has no CEO and is not controlled by a company, per se. Rather, the blockchain is fully volunteer based, which is why DigiByte prides itself on being decentralized. The volunteer organization, the DigiByte Foundation, is tasked with overseeing preservation of the project, while the DigiByte Awareness Team is responsible for marketing efforts.
Special Features of DigiByte
The unique features of DigiByte focus on security and network speed. In terms of security, DigiByte software requires network decentralization to prevent 51% cyberattacks and other hacks. It also uses five cryptographic algorithms—a form of encryption that makes data confidential—to secure transactions.
DigiByte blocks are verified every 15 seconds, which DigiByte claims is 40 times faster than Bitcoin.
Similar to Ethereum, DigiByte software is capable of hosting additional cryptocurrencies. However, DigiByte trades, other smart contracts, and distributed apps on the DigiByte network require DigiByte coin for payment.
|Already Mined / Total Supply (as of September 30, 2021)||14.7 billion current supply; 21 billion max supply|
|Special Features||High security and fast transaction times|
How To Mine DigiByte
A network of cryptocurrency miners powers DigiByte. As a proof-of-work cryptocurrency, miners compete against one another to verify the next block of transactions and earn a mining reward, and DigiByte currency is only generated through mining.
DigiByte updates mining difficulty automatically to encourage network participation and minimize the risk of centralized control.
Miners use a combination of five cryptographic algorithms to securely record DigiByte transactions in the next block, keeping the process secure. Anyone can participate in DigiByte mining using a computer and cryptocurrency mining software.
The total maximum supply of DigiByte is 21 billion coins, which is 1,000 times more than Bitcoin. Plus, block rewards reduce by 1% every month instead of the more typical halving every four years. This means that all DigiByte coins should be mined by around 2035, at which point, miners will only be paid through transaction fees.
How To Buy DigiByte
The easiest way for most people to get DigiByte currency is by buying it through a major exchange. Using a cryptocurrency exchange or brokerage, you can buy and hold DigiByte, similar to buying a stock or other investment asset. Exchanges with DigiByte support include Bittrex, Binance, and KuCoin.
Outside of exchanges with DigiByte support, you can buy and store DigiByte using a compatible software or hardware wallet. DigiByte developers built the DigiByte Mobile app for Android and iOS devices, although many wallets come with DigiByte support.
In addition to the official DigiByte wallet, the team behind DigiByte recommends software wallets including Coinomi, Ownbit, Edge, Exodus, Atomic, and Guarda. Hardware wallets with DigiByte support include Ledger, Trezor, and Bitfi.
DigiByte transactions are included in new blocks generated every 15 seconds, and the transactions themselves should complete quickly. The entire DigiByte network can support up to 1,066 transactions per second.
Fees and Expenses
DigiByte operates a relatively low-cost network compared to currencies such as Bitcoin and Ethereum. According to a Twitter post from DigiByte, transactions require less than one cent in fees per transaction when sending DigiByte.
If you buy or sell DigiByte through an exchange, the fees will vary based on where you buy or sell.
DigiByte creator Jared Tate began work on DigiByte in 2013 before launching the coin to the public in January of 2014. Major upgrades over the years added features such as DigiShield and MultiShield for security; DigiSpeed for faster transaction times; Digi-ID for online logins; DigiAssets to support additional assets beyond DigiByte; and other features. All of the aforementioned features add to DigiByte’s influence, specifically when it comes to speed and privacy.
The Balance does not provide tax, investment, or financial services and advice. The information is being presented without consideration of the investment objectives, risk tolerance, or financial circumstances of any specific investor and might not be suitable for all investors. Past performance is not indicative of future results. Investing involves risk including the possible loss of principal.