DigiByte (DGB) - a cryptocurrency that paved the way for the Lightning Network

DigiByte (DGB) is a platform and cryptocurrency based on the source code Bitcoin. However, it has been significantly changed, which allows the use of several cryptographic algorithms simultaneously and significantly increases network bandwidth.

We are continuing the cycle of the Forex Club portal in which we describe the largest, most interesting, most popular and controversial cryptocurrency projects in the world. Today it's time for DigiByte, a cryptocurrency that paved the way to the emergence of technology Lightning Network.

History of DigiByte

This network and cryptocurrency were created in early 2014. They are based on the Proof of Work consensus algorithm, but they surprise at the level of cryptography because they focus on several coding algorithms simultaneously. This significantly increases not only the security of the network, but also its stability.

The creator of the project is a programmer from the USA, Jared Tata, who - like many programmers who know the details of Bitcoin - has come to the conclusion that there is a lot to improve in the world's first cryptocurrency. So he decided to modify the BTC code and on January 10.01.2014, XNUMX, the first DigiByte (DGB) block was dug out. Like Bitcoin, it also had an encrypted message with a headline from the USA Today newspaper: "Confidential data over 110 million customers have been stolen". The first 105 million cryptocurrency units went to programmers, testers and other people working on its creation.

How DigiByte works

Already three years after its debut, DigiByte implemented SegWit, ie the possibility of "thinning" the transaction, which accelerated the network, releasing its processing capacity. Back then, no one even thought that Bitcoin would be created Lightning Network, i.e. a network that allows transactions with trusted sites without saving all changes in the block chain (they are added in bulk after completing a series of transactions).

DigiByte focuses on network applications that allow for new functionalities. These include Digi-ID, with which you can confirm a digital cryptographic signature, i.e. simply confirm your identity. The DigiByte network supports dedicated applications, you can also create cryptocurrencies or raise funds through it.

Faster than Bitcoin

The main assumption when creating a new network and cryptocurrency was to create an easier and above all faster solution than Bitcoin. And it undoubtedly succeeded. The average block time in BTC lasts about 10 minutes, and in DGB it is up to 40 times shorter. Thanks to this, over 550 transactions can be carried out every second. However, this is not the end, because the average block size will double in the network every two years, as well as the scalability of the network.

It is worth emphasizing that the network is very secure due to the use of five different cryptographic algorithms simultaneously. This ensures greater network dispersion, i.e. its greater security, and virtually eliminates all threats resulting from theoretically possible centralization by gathering most units by one user or a group working in concert.

DigiByte (DGB) Quotations

Currently, DigiByte units can be traded on 45 cryptocurrency exchanges around the world. Their maximum supply is set at 21 billion, of which 13,1 billion is already on the market. It is estimated that all units will be extracted by 2035.

On 18.05.2020, each unit of DGB had to pay USD 0,018030, which gave the cryptocurrency a market capitalization exceeding USD 237 million, which in turn allowed it to 38th place taking into account the value of all cryptocurrencies. The daily turnover exceeds USD 16 million.

The peak of DGB trading was on 07.01.2018, when altcoins were valued at USD 0,14, and the cryptocurrency capitalization exceeded USD 1,3 billion.