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Cryptocurrency founder Digibyte (DGB) abandons project after rising 275%


DigiByte cryptocurrency (DGB) (Photo: Shutterstock)

The altcoin that topped the top 100 this year, DigiByte (DGB), has just had an unpleasant surprise. Its founder, Jared Tate, has announced that he will leave the project, and create a company to sell blockchain services.

Although Jared intends to use DigiByte's blockchain (or technology) in his applications, it is certainly a severe blow to the currency, which had gone up 275% in just over 1 month.

What is DigiByte?

It is one of the oldest cryptocurrencies in existence, a fork of Bitcoin launched in early 2014. The maximum number of coins in existence has increased to 21 billion. Its main difference is the blocks confirmed on average every 15 seconds, instead of the 10 minutes of Bitcoin.

In addition, the developers opted for a mix of different algorithms, in order to decentralize mining. For being a fork, it was possible to take advantage of the Bitcoin Segwit, implemented in mid 2017. Ah! Its genesis block hides the following message: "Target (retailer): data from 110 million consumers leaked".

Volume, hashrate and active addresses

Its true volume is concentrated in the Bittrex, Bitfinex and OkEX exchanges, although the latter inflates the numbers by more than 10x.

Comparative data, average of thirty days:

True daily volume, Nomics USD 1.5 million USD 148 million USD 25 million
Active addresses 10 thousand 86k 82 thousand
Transaction value, median USD 0.07 USD 1.17 USD 7.53
Daily revenue, miners USD 60 thousand USD 320K USD 125k

Attack risk appears on the radar

An analysis posted on Reddit about three weeks ago revealed a 51% attack risk on two of Digibyte's five algorithms. According to the study, two entities dominate 40% of the hashrate, the mining power.

The devs quickly announced that they are closer to the implementation of ProgPoW, anti-mining mechanism via ASICs, that specialized equipment. In addition, they intend to introduce a new algorithm focused on mining via CPU, RandomX.

On April 24, Josiah Spackman announced that they had raised 80% of the donations needed to finance the development of the new mining algorithms.

Decentralized future

In favor of the currency, it weighs the fact that it did not do any type of ICO, in addition to having volunteers as developers, with no centralized entity behind it. The focus has been on Digi-ID, in the area of ​​digital identification. The software acts as a Password Manager, storing passwords in an encrypted and secure way.

However, it is undeniable that Jared Tate was an important figure, not only acting in the development, but also as the main spokesman for the project. However, the Digibyte Foundation works only with volunteers, reducing the risk of fighting for control after Jared's departure.

About the author

Marcel Pechman served as a trader for 18 years at UBS, Deutsche and Safra. Since May 2017, he has been doing arbitrage and trading in cryptocurrencies, as well as co-founder of the cryptocurrency analysis website RadarBTC.

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