A proof-of-work darling
There are many projects in the crypto space that fail to survive in the long term. From scams like Bitconnect and Terra Luna to projects with numerous issues such as Solana, centralization is a killing factor for blockchain. DigiByte is an example of a proof-of-work blockchain that is truly decentralized, while maintaining impressive performance and security on Layer 1.
Started in 2014, DigiByte has set itself apart from others as a resilient PoW blockchain with no pre-mine. The major focus of DigiByte is preventing mining centralization through 5 different algorithms. Echoing the Bitcoin blockchain, DigiByte has a supply cap of 21 billion coins. DigiByte also possesses unique features that are present in other systems, including a digital authentication system called Digi-ID (more on this later).
With the many proof-of-stake altcoins springing up, DigiByte is a rarity in today's current environment. Despite a steep drop in the coin value due to the current market environment, DigiByte and its community have remained strong. Let's explore more about the prospects of this fascinating project.
DeFi and NFT explosion
Unlike many other PoW blockchains, DigiByte natively supports the creation of smart contracts, allowing for a wide range of commercial and other opportunities for different entities.
DigiByte core devs have been working on several new protocols built on the DigiByte mainnet. The first is an expansion of a new NFT platform known as Digiassetx. In late April, the Digiassetx team released the beta version to the public.
As a new competitor in the NFT space backed by a secure PoW blockchain, DigiByte now offers an alternative to other chains like Solana who have suffered numerous exploits among other problems. In addition, through the Dandelion++ protocol, DeFi on DigiByte is more private than most other chains too.
Another ambitious project is being worked on too: the DigiByte metaverse or "Digimetaverse." The project is led by experienced developer Yoshi Jaeger. Through its detailed roadmap, the Digimetaverse aims to be a top choice for enterprise and retail users alike. The project is still early, so they will have a lot of work to do since impressive competitors like Metapolis exist.
Impressive interoperable tech
As mentioned previously, DigiByte has introduced new blockchain tech to the broader world. The first is Digi-ID, a simple and effective digital authentication protocol. Through a simple browser plugin, any person in the world can authenticate themselves for a variety of purposes. The best part is, you don't need to hold any DGB or be involved in the blockchain at all. While the latter is something to consider down the line for most normal people, the underlying tech shows DigiByte's ability to change the world through open source software.
In addition, the odocrypt mining algorithm is unique to DigiByte, which allows for GPU mining and changes itself every 10 days for ASIC-resistance.
The DigiByte community has remained strong since 2014, but there have been numerous challenges throughout the journey. The first of which is founder Jared Tate. While it may seem that he's a problem simply by listing him, it's actually about coin holders disliking some of his views.
He's made it no secret in the past about his political views, and people feel that as the founder of DigiByte, he shouldn't voice his political views so often. But, attributing a founder's political views to the future of a project is ostentatious. Tate has proven over time to be committed to DigiByte and has not let his political views change that. He has a strong track record.
Another is that due to the decentralization of the project, traditional mechanisms such as marketing/funding are lacking compared to other projects. As a result of this concern, the DigiByte Foundation formed the DigiByte Awareness team. They are a group of DigiByte experts from the community who spread the word about the project and host various events to boost ecosystem interest.
Lastly, DigiByte sadly has not seen a Coinbase listing. Despite others like Wrapped LUNA being listed who have glaring issues, DigiByte is a sound blockchain and decentralized to not qualify as a security under SEC regulations. As Coinbase runs out of Ethereum tokens to list, DigiByte could potentially see a listing in 2023. But I wouldn't get your hopes up too much based on Coinbase's track record.
The future of DigiByte
DigiByte has had a rough year, with the coin price diving to 1 cent. But, when you take a broader look, this is simply due to the current market environment. Since alts follow BTC, which has been dropping, it makes sense. Despite this, innovative tech and an expanding ecosystem show that DigiByte has strong fundamentals. When you compare DigiByte to peers like Litecoin, DigiByte's 10x faster transaction times and decentralized mining structure show that it is arguably undervalued.
As more exchanges list the project and the DeFi ecosystem expands, 2023 could be a big year for DigiByte.