What Is DigiByte (DGB)? How It Works, Uses and Risks
What is DigiByte? Learn how DGB's multi-algorithm proof-of-work works, its 21 billion supply cap, what the coin is used for and the risks to weigh.
DigiByte (DGB) is a proof-of-work cryptocurrency launched in 2014 that uses five different mining algorithms, produces a block about every 15 seconds and has a maximum supply of 21 billion coins. It began as a fork of Bitcoin's code and focuses on fast, low-cost payments and a mining design meant to resist control by any single type of hardware.
DigiByte is one of the older coins still running, with a loyal community and no corporate issuer. It is also far smaller than the networks it is often compared to. This explainer covers how it works, what DGB is used for and the risks to understand before you buy.
Origins: A Bitcoin Fork From 2014
DigiByte went live in January 2014, during the first wave of "altcoins" built from Bitcoin's open-source code. Its creator, Jared Tate, aimed to keep Bitcoin's basic model — a UTXO-based, proof-of-work chain with a fixed supply — while making it faster and harder for a single group of miners to dominate.
There was no initial coin offering in the 2017 sense. Development has since been carried on by volunteers and community foundations rather than a venture-backed company, which supporters see as a strength and critics see as a reason for slower marketing and integration.
How DigiByte Works
Five mining algorithms
Most proof-of-work coins use one hashing algorithm, which means whoever has the most specialized hardware for that algorithm has the most influence. DigiByte splits block production across five algorithms, each responsible for a share of blocks. The set has changed over time; one algorithm was replaced in 2019 with Odocrypt, which is designed to change periodically to discourage specialized ASIC chips.
The goal is that an attacker would need to control a large share of hash power across several algorithms, not just one. For background on why that matters, see our explainer on what a 51% attack is and our guide to proof of work.
Fast blocks and difficulty adjustment
DigiByte targets a block about every 15 seconds. To keep that rhythm steady when miners join or leave, it adjusts mining difficulty every block rather than every two weeks as Bitcoin does. Its difficulty system was developed partly to stop "hop-on, hop-off" miners from manipulating block times on a small chain.
Bitcoin-style features
Because DigiByte shares Bitcoin's architecture, it supports similar features: the UTXO model, standard wallet types and Segregated Witness (SegWit), which DigiByte activated in 2017, before Bitcoin did. A side protocol called DigiAssets lets people issue tokens and record data on the DigiByte chain. If UNUS SED LEO is new to you, start with what UNUS SED LEO (LEO) is and how it works.
What DGB Is Used For
| Use | How it works |
|---|---|
| Payments and transfers | Send DGB peer to peer with fast block times and typically low fees |
| Mining rewards | Miners earn newly issued DGB plus fees for securing the chain |
| Asset issuance | DigiAssets can represent tokens or records anchored to the chain |
| Trading | DGB trades on a range of exchanges |
DGB has no staking or on-chain governance token function. Changes to the protocol happen through software upgrades that miners and node operators choose to adopt. Our SwissBorg (BORG) explainer covers the project's basics, use cases and risks.
Supply Design in Plain Words
DigiByte's supply is capped at 21 billion DGB. New coins are paid to miners, and the block reward shrinks gradually on a schedule, so issuance slows over time until the cap is reached many years in the future. For background on the project itself, see KAITO explained.
A large supply means each coin is priced low, but a low unit price doesn't make a coin cheap. What matters is total market value, explained in our guide to market cap versus fully diluted valuation. See current supply and price on the DigiByte live price page.
Risks and Criticisms
DigiByte has real strengths in longevity and design, but a fair assessment includes its weaknesses:
- Limited adoption: merchant use, developer activity and integrations are small compared with the largest payment coins.
- Security budget: a smaller chain has less total hash power than Bitcoin, so the cost of attacking it is lower even with multiple algorithms.
- Liquidity: DGB trades in thinner markets than major coins, which can mean larger price swings and slippage.
- Visibility: with no company running marketing or business development, DigiByte relies on its community to gain attention.
- Competition: many networks now offer fast, cheap transfers, including layer-2 systems on top of Bitcoin and Ethereum.
- Volatility: DGB, like other small-cap coins, can fall sharply and stay down for long periods.
For a scenario-based view of how these factors could affect DGB, read our DigiByte price prediction for 2026–2027.
How to Find the Real DGB and Avoid Fakes
DGB is native to the DigiByte blockchain. That means there is no "contract address" for the original coin, but scammers can still create tokens named DGB on other networks, and wrapped versions may exist.
- 1Use a wallet that supports the DigiByte network directly, downloaded from the official DigiByte website or a reputable wallet provider.
- 2When withdrawing from an exchange, choose the DigiByte network if you are sending to a native DGB address.
- 3If you encounter a DGB token on another chain, verify it against official sources first. Our guide on how to confirm you have the real token contract explains how.
- 4Ignore "DigiByte giveaways" or "upgrade" messages in direct messages; they are a common scam pattern.
Bottom line
DigiByte is a long-running, community-driven proof-of-work coin built for fast transfers, with five mining algorithms and a 21 billion supply cap. Its design is thoughtful, but adoption, liquidity and security budget are modest compared with the largest networks. If you consider DGB, treat it as a small-cap, high-volatility asset and only risk money you could afford to lose.
Frequently asked questions
Who created DigiByte?
DigiByte was created by Jared Tate and launched in January 2014. It began as a fork of Bitcoin's codebase with changes aimed at faster blocks and broader mining participation. It is developed today by a decentralized group of volunteers rather than a company that issued tokens to investors.
What is the maximum supply of DigiByte?
DigiByte has a maximum supply of 21 billion DGB, a thousand times Bitcoin's 21 million cap. New coins are issued to miners on a declining schedule until the cap is reached. Check the live coin page for the current circulating supply.
How is DigiByte different from Bitcoin?
DigiByte uses five mining algorithms instead of one, targets a block roughly every 15 seconds instead of about every 10 minutes, and has a much larger supply. It shares Bitcoin's UTXO model and much of its code, but it has far less hash power, liquidity and adoption than Bitcoin.
Can I mine DigiByte?
Yes. Because DigiByte splits mining across five algorithms, some can be mined with ASICs, others with GPUs or, in principle, CPUs. Profitability depends on your hardware, electricity costs and the DGB price, and small miners often earn very little. Calculate costs carefully before buying equipment.