How to Trade Digibyte for Bitcoin?
There are thousands of cryptocurrencies available on the market (more than 10.000 at the moment of writing, in July 2021). They try to bring something new to the table – faster transactions, better smart contracts, increased security, etc. Many of them don’t last and are quickly overtaken by the competition.
However, this is not the case for Digibyte. It is one of the oldest alternate cryptocurrencies that tried to improve upon the Bitcoin network. Today, it’s still hanging in the top 100 of cryptocurrencies by market cap.
In this article, you will explore how this crypto managed to stand the test of time and figure out how to best trade it.
What Is Digibyte and Who Created It?
Digibyte (DGB) is a fork of Bitcoin created to outperform major cryptocurrencies in terms of security and scalability. The first block of DGB was mined back in 2014 using a proof-of-work consensus mechanism. This means that DGB is mined by solving complex equations to form the next block in the blockchain. Unlike other PoW cryptos, Digibyte allows 5 mining algorithms (Sha256, Qubit, Odocrypt, Scrypt, and Skein)!
The Digibyte crypto was created by Jared Tate, an entrepreneur involved with Bitcoin since early 2012. He felt that Bitcoin was too slow to fulfill the purpose of an everyday currency. So, he took the code of Bitcoin and modified it to be faster and more secure.
How Does It Differ From Bitcoin?
Because it’s based on Bitcoin’s code, Digibyte has many common points with the original cryptocurrency. However, modifications in its code also present the following major differences:
- DGB has a maximum supply of 21 billion coins in contrast to Bitcoin’s 21 million (1000:1 ratio).
- Digibyte can run multiple mining algorithms simultaneously. Bitcoin, on the other hand, only runs on the SHA-256 algorithm.
- Digibyte blocks are added to the blockchain every 15 seconds, whereas Bitcoin blocks take 10 minutes to be mined.
- Each new DGB block currently provides around 540 DGB. This number is reduced by 1% each month. This is unlike Bitcoin’s issuance plan where the reward is reduced by 50% every 4 years.
How Does DGB Work?
The Digibyte blockchain uses a layered system to provide its services to DGB users. These layers are designed to interoperate but do not impede the function of the other layers.
- The application layer serves to deploy decentralized applications similar to those on the Ethereum blockchain.
- The consensus layer is used to confirm transactions and create new DGB coins.
- The network layer ensures communication between the validating nodes, miners, and users.
Main Advantages of Digibyte
As a veteran of the crypto space, DGB brought many innovations that are still used today, For instance, it implemented the Digishield, which is now utilized by many cryptocurrencies to recalculate mining difficulty between blocks.
Moreover, Digibyte, with its 5 different mining algorithms, is much more democratic to mine than Bitcoin, which requires powerful and specialized machines called ASICs. Consequently, you can become a DGB miner with lower-end hardware, such as a personal computer or laptop.
Finally, thanks to the DigiAssets protocol, programmers can issue new cryptocurrencies based on the network that benefits from all the security measures of the main Digibyte blockchain.
How to Exchange DGB for BTC
Exchanging DGB for BTC is pretty easy, as Digibyte is a widely accepted cryptocurrency that can be found on most exchanges. However, if you are looking for an anonymous DGB to BTC exchange, there’s no better platform than Godex.io.
This exchange really doubles down on the anonymous side of things. You won’t have to create an account on Godex before you are able to swap DGB to BTC. This is to maintain the privacy of the users and allow them to exchange crypto without sharing any of their personal details online.
The procedure is quite simple:
- Open the website and go to the “Exchange” section.
- Select DGB as your sending currency. Then, enter the amount of DGB you want to exchange.
- Pick BTC from the drop-down menu on the right as your receiving currency. The software will automatically show you the amount of BTC you will get.
- Proceed by providing your wallet addresses and start the transaction.
That’s it! In a matter of minutes (up to 30), you should have your BTC without a tedious identification procedure.
Wrapping Up
Digibyte is one of the old-timers in the crypto space that have managed to bring a fair share of innovations to this industry. Today, DGB is still hanging in the top 100. This proves that investors still value it highly, even compared to newer, more exciting projects.