What Is DigiByte (DGB)?

DigiByte is an innovative permissionless blockchain that can store digital assets, execute smart contracts, run decentralized applications (dApps), and provide secure authentication. The DigiByte blockchain is an immutable ledger made up of a series of blocks with digital signatures that can be verified. DigiByte aims to be widely supported across various platforms to encourage participation from as many entities as possible.

According to the whitepaper, the blockchain emphasizes scalability, security, and speed. DigiByte has faced and solved particular challenges that many other blockchains confront. The blockchain maintains decentralization via various techniques, including GPU/FPGA mining. These techniques help educate the importance of running a full node, multiple algorithms, on-chain scaling, and embracing code contributions. An actual transaction occurs when it takes place on-chain and is recorded in the blockchain.

DigiByte is a decentralized UTXO blockchain. It believes on-chain scaling is essential for future growth in a number of transactions. UTXO refers to the unspent amount left after executing a cryptocurrency transaction. There are no anonymous/shielded transactions because DigiByte feels that the prominent rise of on-chain transactions and the pseudo-anonymous aspect of UTXO's architecture is a strong defense for anonymity.

Segregated Witness (SegWit) protocol is adopted to improve data storage further, alleviate transaction malleability issues, and stay true to DigiByte's forward-thinking attitude. SegWit is nothing but a change in the transaction of a cryptocurrency. SegWit reduces the size of transactions by separating parts of the data, resulting in a 4X increase in the adequate capacity of each block.

Digi-ID is a security system based on the DigiByte blockchain that allows users to sign in to websites, apps, and even the internet of things with ease. Digi-ID eliminates the need for a login, password, and two-factor authentication. There is no risk of passwords or usernames being exposed because Digi-ID employs public/private key cryptography. This strategy safeguards not just the consumer but also the services they utilize.

The network infrastructure, security, and communications are all provided by DigiByte's three layers. The top layer resembles an app shop with obvious real-world applications. The DigiAssets protocol runs on top of the DigiByte blockchain. It can be used to generate any digital asset. The DigiByte blockchain is also used to create decentralized apps. Security and administration are provided by the middle layer. Communication and operating procedures are provided by the lowest layer.

DGB is the platform's native digital currency that allows transactions with nominal fees. 

How Are New DigiBytes (DGB) Created

The whitepaper mentions that DigiByte is globally one of the leading decentralized proof-of-work-mined blockchains. While other blockchains only use a single mining algorithm to create new blocks and assets, DigiByte has developed a "MultiAlgo" approach that uses five distinct and independent algorithms. DigiByte has an order of magnitude greater hash power than any other competitive blockchain in three of its five algorithms globally. This increases network security while preventing "rented hash power" from attacking the blockchain. The platform also enables its consumers to mine DigiByte from home, contributing to the safety of the DigiByte network from their desktop PC by keeping parts of the algorithms "GPU friendly."

Further, the MultiShield upgrade enables real-time DigiByte to distribute difficulty adjustments over all 5 algorithms, ensuring that block timings remain consistent. MultiShield also allows a real-time influx and exit of hash power on one or more mining algorithms, further safeguarding the DigiByte network. DigiByte is also immune to single-algorithm from 51% attacks, thanks to MultiShield.

MultiShield guards against a single algorithm by increasing the difficulty of one algorithm every time. It discovers a block while concurrently lowering the problem of the other algorithms.

The Digibyte blockchain generates a mining algorithm, Odocrypt, which rewrites and morphs every 10 days to avoid ASIC supremacy and focuses on FPGA mining.

History of DigiByte (DGB)

The blockchain was developed in 2013 and later released on January 10, 2014. No ICO was held, and no CEO or a company owns/controls the platform. It is operated by volunteers and driven by the global community. 

The platform's founder is Jared Tate, who created DigiByte to fix many of the apparent flaws of previous blockchains. With 60-second block timings and a two-hour difficulty retargeting frequency, DigiByte began as a Scrypt-only mined network. There are 21 billion DigiBytes to be wholly mined by 2035.