The development and rise of Bitcoin have set the precedent for other blockchain developers to follow. The idea behind having a decentralised digital currency secured cryptographically has proved to be a popular one, with many cryptocurrencies now attempting to follow the same path with better features and characteristics than Bitcoin’s. One such coin is DigiByte and is considered to be the sleeping giant of cryptocurrency.
What is DigiByte?
DigiByte is a decentralised international blockchain that is publicly available. The native cryptocurrency that is utilised on the DigiByte Blockchain is known as DGB. These DigiBytes are digital assets that are immutable and cannot be destroyed. This makes it perfect to store and protect objects of value like digital data, currency, et cetera. Needless to mention, any transaction that takes place on the DigiByte Blockchain remains on the blockchain forever.
Owing to its functionalities, high security, and superior technology, DigiByte can be considered to be an advanced version of Bitcoin. The cryptocurrency has been around the block for more than four years now - the time that has been spent on extensive research and development of its blockchain technology. It is also the world’s longest blockchain with more than 6 million blocks and counting.
To begin with, the DigiByte Blockchain is globally decentralised and is spread across more than 200,000 servers. It comprises of three layers, namely:
- Core Protocol Layer - This is the layer that connects all the nodes on the network together, and supports all infrastructure.
- Digital Asset / Public Ledger Layer - This layer incentivises the security of the entire network and stores all the data. It also has safety measures in place to prevent the manipulation of data.
- Applications Layer - This is the first layer of the DigiByte blockchain that is utilised in day-to-day applications, transfers, et cetera.
The network utilises proof-of-work algorithm to verify transactions. In order to ensure security and greater decentralisation in mining, the network has five different mining algorithms, each with its own adjustable difficulty. A new block is mined every 15 seconds and each of these five different mining algorithms mines one block every 1.5 minutes.
This is a remarkable improvement over Bitcoin, which has only one mining algorithm with a block time of around 10 minutes. Another feature that makes DigiByte an exceptional cryptocurrency is its scalability. Bitcoin can perform up to 7 transactions per second whereas DigiByte is capable of performing up to 560 transactions per second. Furthermore, it is expected that the network will surpass this number by 2020 to 2,000 transactions per second.
Coming to the total supply of DGB, the DigiByte Blockchain will generate a total of 21 billion coins by 2035. So far, a little over 10 billion DGB tokens have been mined. The current block reward is 797 DGB.
Where to buy DigiByte?
DigiByte is available on some of the leading cryptocurrency exchanges across the world like Bittrex, Poloniex, Upbit, Cryptopia, YoBit, Livecoin, et cetera. Being an altcoin, you need to remember you may have to trade it with either ETH or BTC.
The best way to store your DigiByte is in the official DigiByte wallets available on leading operating systems such as Windows, Mac, Linux, et cetera. The same can be downloaded on the official website of DigiByte. Alternately, you can also consider storing your DigiBytes in hardware wallets like Trezor and Nano Ledger S.
As mentioned earlier, it is possible to mine DigiByte. To begin with, you will have to choose between five mining algorithms - SHA256, Skein, Qubit, Groestl, and Scrypt. Keep in mind that each algorithm is suitable for a particular type of mining hardware. For example, miners who utilise ASIC hardware utilise SHA256 and Scrypt algorithms.
Once you have chosen the mining algorithm, all you have to do is download the right software and select a mining pool. There are plenty of options to choose from, but the most popular mining pool for DigiBytes is DigiHash.
DigiByte Price Trends
The altcoin has already exhibited two significant bull runs. The first one came in May-June 2017, wherein the value of DGB swelled from around $0.0017 to $0.05. However, this rally did not last for long and the price collapsed soon thereafter. The second run commenced in December 2017 and continued into the new year - around the same time when other coins like Bitcoin and Ether made massive gains. The price went up by more than 400%, breaching the $0.10 mark. However, this was followed by an equally dramatic plunge in price in late January-early February. At the time of writing this article, 1 DGB is worth approximately 0.034 USD.
Risks associated with investing in DGB
While DigiByte is a significant improvement over Bitcoin and Ether, it still is a cryptocurrency by nature. This means that it is subject to volatility and regulatory issues that plague the cryptocurrency space. Being the part of a relatively new asset class, risking massive sums in these instruments is not a feasible idea.
Instead, you can look into other investments like mutual funds. In fact, we urge you to consider them as they are relatively safer and if chosen wisely, can deliver healthy returns in the long run.
The Reserve Bank of India (RBI) and Ministry of Finance has frequently cautioned the users, holders and traders of virtual currencies regarding the potential economic, financial, operational, legal, customer protection and security related risks associated in dealing with virtual currencies. RBI also further clarified that it has not given any licence/authorisation to any entity/company to operate schemes or deals related to Bitcoin or any virtual currency. RBI has also barred its regulated entities from dealing or providing services to any individual or business entities dealing with cryptocurrency. The Ministry of Finance has also officially stated that virtual currencies are not legal tender or coin.
A&A Dukaan Financial Service Private Limited BankBazaar does not endorse investing or dealing in virtual currencies in any manner. The information provided on our website is solely for illustrative purposes and should not constitute investment advice or assistance in investing or dealing with crypto currencies. If you decide to invest or deal in cryptocurrencies, you should be aware that you will be dealing with the respective individuals or business entities dealing in cryptocurrency and BankBazaar has no role in any manner in such transactions or dealings. We strongly advise our visitors to invest in legally recognised financial instruments rather than risking their capital on virtual currencies which are unregulated instruments