Bitcoin is not the sole currency in circulation, contrary to popular opinion – many currencies are increasing in popularity. DigiByte is among them, and its basis is Bitcoin infrastructure, with some improvements to the functionality and speed of processing transactions.
What is DigiByte?
This is an open-source currency running on the DigiByte blockchain and developed in 2013, with a 2014 release. It currently has a market cap of $1 billion and is the longest public blockchain.
The founder is an entrepreneur and programmer, Jared Tate, and the aim of the currency was to reach a wide community that has greater decentralization than Bitcoin. DigiByte was the first currency to use asymmetrical difficulty adjustment mining, using DigiShield technology, and the first to fork to multi-algorithm mining from single proof-of-work algorithms.
Other achievements include:
Being the second cryptocurrency blockchain to use SegWit (Segregated Witness) through its DigiSync soft fork. This innovation is the basis for cross-chain transactions and atomic swaps.
Using a new technology, the DigiSpeed, which is a hard fork that makes processing of transactions to be at higher speeds. In fact, speedy generation of blocks increased by 50% to 15 seconds.
MultiAlgo – this hard fork, developed in 2014, allows for the use of multi-algorithm mining. It is to make different PoW methods of mining in order to allow different mining methods inexistence, such as CPU and GPU mining.
Why is DigiByte different?
The blockchain technology of Bitcoin acts as a basis of improving DigiByte. This is through examining the speed of making blocks, as well as the ability to integrate itself with other currency platforms. Here is an issue that make DigiByte stand out, especially from Bitcoin.
There is also a high transparency level on the site, with the website www.digibyte.co giving the users different information regarding the mining and the processing time of transactions. The highest beneficiaries of this information are developers, though anyone can use it to understand the workings of the site.
Alternative coins to use
DigiByte has the potential for increasing popularity with time. However, other coins provide viable alternatives, and we have put a list of some of them.
Lisk – founded in 2016, it aims to simplify development of blockchain technology, therefore allowing for faster transactions.
Bitcoin/XBT – the most famous cryptocurrency, from 2009. It is similar to DigiByte because of blockchain application system.
Ripple/XRP – based on open-source internet protocol currency, and formed in 2012.
Cardano – thought to be an open-source digital currency, and constantly evolves itself from research and scientific philosophies.
Ethereum/ETH – this is a 2015 decentralized software platform allowing smart contracts to operate without interference from third parties.
NEM – this is another blockchain currency from 2015, and utilizes Java script in its coding.
How DigiByte works
DigiByte works in a similar way to Bitcoin, though it is different in the following ways:
DigiByte has a market cap of 21 billion coins, which release gradually. Bitcoin, in comparison, has a market cap of 21 million. This makes DigiByte cheaper to purchase and mine in the long-term.
You will need to download the DigiByte wallet to your PC, and it is available in all mobile platforms – OS X, Windows and Android. In addition, there are gaming wallets on the site.
DigiByte opened with block generation time of 60 seconds, allowing it to process up to 140 transactions every second. After every two years, the blockchain system halves the block generation time, therefore increasing the number of transactions by two times.
Trading in DigiByte currency
Similar to other foreign exchange investments, DigiByte investments work in the same way – market forces of demand and supply dictate the prices. The interesting aspect about DigiByte is its use of five independent mining algorithms, which verify transactions, and allows for more decentralization.
Like all other currencies, getting a wallet is essential, so here are the steps to follow when setting it up:
Head to the DigiByte official wallet page, choose and download the compatible file, and run it.
Indicate where the wallet should store its files and click the OK button.
Indicate that the wallet should access the internet (this is the only way it can work properly).
Wait for the wallet to synchronize to the blockchain.
Click on the settings and encrypt the wallet, then enter a password, and then approve the warning.
The wallet closes to finish encryption, so open it again.
Click on File and ‘backup wallet’. Save it in a safe location, preferably an external hard drive or flash.
Press on the ‘receive’ button, and then ‘request payment’. This will bring up your wallet address, so note this address down.
If you do not own a currency in wide distribution, such as Bitcoin, purchase it first at a currency exchange (there is an indicator), and then exchange it for DigiByte coins.
DigiByte prices and trading history
DigiByte is similar to other cryptocurrencies in price volatility, particularly benefitting from alternative mining methods and security features such as CPU mining. The price has not ventured above the $1 mark, with its current value being $0.03.
Is it worth trading in the coin?
This question is complicated, since even experts generally see investing in cryptocurrency as a risky venture with low returns. The reasons given usually cite the highly fickle nature, and the unpredictable rises and falls in value.
The success of investment will depend on the uptake by individuals and businesses. The currency offers you security in transactions as well as multiple mining methods, making it cheaper.
The rise of DigiByte promises to make a difference in the financial world by providing users greater security and affordability. This will lead to it becoming among the top cryptocurrencies in the future.