Blog Borrowing Digibyte (DGB) coin review: Why miners are noticing DGB

Digibyte (DGB) coin review: Why miners are noticing DGB

date March 11, 2021 time 5 min read 175 views

It’s fast, it’s secure, and it’s coming to an exchange near you. DigiByte coin might have remained off-the-radar for the first few years of its existence, but its fate may be changing in 2021. Here’s everything you need to know about the up-and-coming digital asset.

DigiByte coin has had an explosive 2021 so far, reaching prices it hasn’t seen since 2018. But why the increased interest in DigiByte? The coin project claims to be 40 times faster than Bitcoin for transactions and boasts a larger supply of coins, but many projects boast similar features.

Investors have started looking at DigiByte due to its strong potential but low price point. It also has greater ease of minability making it potentially much more profitable for early adopters.

In this DigiByte review, we’ll discuss the pros and cons of investing in DigiByte’s coin, DGN, and how you can get started today.

DigiByte is aiming to be faster, more scalable, and more secure than its competitors
DigiByte is aiming to be faster, more scalable, and more secure than its competitors (source: invezz.com)

What is DigiByte?

DigiByte’s infrastructure claims to combine some of the best features from existing crypto platforms in one place. These include a proof-of-work mechanism for mining coins and smart contract functionality to handle transactions securely and trustlessly.

Like Bitcoin, DigiByte provides a way to carry out transactions using a digital currency. Also like Bitcoin and Ethereum (for now), DigiByte uses a proof-of-work system — meaning miners compete to solve complex mathematical problems to verify transactions and receive crypto as rewards.

But DigiByte aims to create a faster, more scalable alternative to the slow and expensive Bitcoin proof of work process.

The mining protocol on DigiByte has five different mining algorithms. This allows users to mine DigiByte from a wider range of computers including personal computers. This boosts security and decentralization since the group of miners isn’t limited to those with expensive rigs.

Another key differentiator is DigiByte’s three-layer architecture:

  1. Core infrastructure — the layer the DigiByte blockchain is based on.
  2. The public ledger for the DGB coin — the layer for mining DGB.
  3. Smart contracts powering decentralized applications (Dapps) — The layer anyone can access to transfer crypto.

All this helps the DigiByte network to run faster than its competitors. Bitcoin manages 7 transactions per second and Ethereum 15. DigiByte can handle 560 transactions every second. Advocates argue this makes it far more feasible as a payments solution than its better-known competitors.

What is DigiByte coin?

DigiByte’s network is incentivized by its native coin, DBG.

As we’ve said already, DigiByte coin essentially has the same use case as Bitcoin. It provides a way to make payments and transfer value freely across borders.

However, DigiByte coin does have a secondary use case: it’s needed to run the DigiAsset smart contract network. 

DigiAssets are a feature added to DigiByte in 2019. A DigiAsset can represent anything from the real world in crypto form — from rare artwork to wills. Anyone can then exchange or trade them while they remain protected on the platform.

DGB is used directly for transactions and also for network fees known as gas costs, which pay for the electricity needed for transactions on the blockchain.

A quick review of the DigiByte coin’s blockchain highlights the quick transaction speeds on the network
A quick review of the DigiByte coin’s blockchain highlights the quick transaction speeds on the network (source: cryptoadventure.org)

Is DigiByte a privacy coin?

Since one of DigiByte’s key offerings is security and its logo looks quite similar to that of another crypto specializing in privacy, you might be wondering if it’s a privacy coin like DASH. In a word, no. Although DigiByte is a secure protocol, it places its transaction data on a public ledger like most blockchains.

How many DigiByte coins are there?

There’s a fixed supply of 21 billion DigiByte coins, with all of those coins set to be mined and in supply by 2035. Already, there are more than 14 billion coins in circulation.

Some worry that an end to mining will mean no incentive for users to verify transactions and keep the system going. However, DigiByte has stated it may switch to using transaction costs to incentivize trade, much like on many DeFi platforms. The community shows no signs of any intention to mint more coins in the future.

DigiByte coin history

  • DigiByte coin was created by founder Jared Tate in 2013 and launched in 2014. It’s been around a while, but it had a pretty slow start.
  • In April of 2017, DigiByte became the first major altcoin to activate SegWit soft fork technology.
  • In May of 2019, DigiAssets was launched on the blockchain.
  • In February of 2020, the DigiByte Foundation meant for crypto donations was officially launched.
  • In May of 2020, founder Jared Tate stepped down from his day-to-day tasks on DGB citing “backstabber and constant pillaging” rampant in the project.

Is DigiByte a good investment in 2021?

If ultra-fast transaction speeds and a secure, decentralized project sound like something you can get behind, investing in DGB coin might sound tempting. However, as we mentioned earlier, DigiByte is off to a slow start.

Despite launching seven years ago, it took until 2017 for the DGB coin price to rise above $0.01. But things took off exponentially in 2018, with the price rising to around $0.13 at its highest point — that’s an increase of 1,200% in less than a year.

The quick rise was mostly due to the digital wallet app, Abra, announcing it would let users trade the coin on their platform.

Unfortunately, DigiByte hasn’t remained at this high point consistently. The price of DigiByte coin fell shortly after and experienced a serious blow again during the market crash in March 2020.

But it’s certainly not all doom and gloom. DigiByte has been consistently introducing valuable new features. Not just DigiAssets, but also DigiStats in 2019 to enable more mobile payment processing options and the DigiByte Foundation in 2020 for crypto fundraising.

DigiByte is also aiming to increase its transaction speed from 560 transactions per second to 280,000 per second by 2035. 

Proponents claim it’s one of the most viable cryptocurrencies around thanks to its solid technological base, while critics complain that DigiByte isn’t introducing anything new. 

Despite mixed reviews, DGB has a very low price point compared to many other crypto projects and has proved to have long-term staying power.

Some think DigiByte coin is one to watch for the future, while others are more skeptical of whether it has potential
Some think DigiByte coin is one to watch for the future, while others are more skeptical of whether it has potential (source: pixabay.com)

How to buy Digibyte coin on MyConstant

Most people get their hands on DigiByte by buying it on an exchange and then placing it in a DigiByte wallet (which you have to download), but this often involves hidden transaction costs. 

If you want to get your hands on some DigiByte coin without all the extra fees AND without trading your crypto, you may want to look into getting some on loan.

Crypto-backed lending is a service growing increasingly popular among savvy crypto traders and we offer it here at MyConstant.

We’re a P2P lending platform where you can exchange the crypto you already have for a USD or stablecoin loan which we transfer to buy DGB on exchanges for you.

When you buy your DGB through a loan on MyConstant, we automatically check the major exchanges to ensure you always get the lowest price available at any given time. And that’s not all.

A crypto-backed loan from MyConstant also offers:

  • Borrowing rates starting at 6% APR.
  • You can leverage the buying power of multiple cryptocurrencies.
  • 24/7 customer service.
  • Secure collateral storage.
  • No additional or hidden fees.
  • Pay back early for lower rates.
  • Payback in USD, stablecoins, or in the collateral of your choice.

Think that having the opportunity to experiment with DGB without committing to selling any crypto sounds like a good deal? Sign up for free today.

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