What is DigiByte?
DigiByte is a cryptocurrency platform that serves as an alternative to other major cryptocurrencies like Bitcoin, Litecoin, Ethereum, and XRP. Launched in 2014, DigiByte sets itself apart from other platforms by prioritizing cybersecurity and scalability. Although it may not be as well known as its more illustrious counterparts, DigiByte has lots of applications and a very vibrant community.
DigiByte is built in a manner that enables it to offer transactions that are fast, cheap, and secure, something that not even newer blockchains are able to achieve.
DigiByte operates a unique three-layer structure that serves as the foundation for the platform’s emphasis on security and is also responsible for the platform’s ability to support a variety of digital assets, such as decentralized applications (called DigiAssets), smart contracts, and identity management.
How Does DigiByte Work?
DigiByte is more than just a cryptocurrency, with projects of all sorts able to use the platform for their DigiAssets, although naturally it has its own cryptocurrency – DGB – which is the oil that greases the wheels of all projects DigiByte operates.
DigiByte uses a unique iteration of the proof-of-work (PoW) consensus mechanism first seen with Bitcoin in 2009. What differentiates DigiByte from other PoW platforms is that it uses five different algorithms to secure its network. This renders it near impossible for any group of malicious actors to achieve the 51% hash rate required to take over the network and attack it.
As mentioned earlier, the DigiByte blockchain operates on three layers, all of which serve different functions:
- Application Layer: Users on this layer have access to the DGB currency for transactions and the platform’s smart contract function.
- Consensus Layer: This layer contains the ledger on which transactions are recorded as well as handling mining.
- Network Layer: This is the foundation of the entire platform, handling the communication and operating procedures.
The DigiByte Consensus Mechanism
DigiByte uses an iteration of the PoW mechanism to keep its network in sync. While it still requires users to run nodes to secure the network, validate transactions, and earn rewards in the form of newly minted DGB, DigiByte supports mining using GPUs.
This allows home users with reasonably powerful graphics cards to join in, further democratizing and decentralizing the DigiByte blockchain and cutting down the energy and upfront resources required to do so.
What is a DigiByte Wallet?
A DigiByte wallet will allow you to send, receive, and trade DigiByte tokens, with many other wallets having other features alongside these more basic ones. You can leave your DGB tokens on an exchange rather than a wallet, but doing so is a poor idea security-wise, given that the coins reside in the wallets of the exchange rather than your own.
Before you jump straight for the first DigiByte wallet Google shows you, it is important to understand the different types of wallets that are available so that you can determine which one is most appropriate for your use case.
In the next section, we will explore the different types of wallets you can use to store your DGB.
Types of DigiByte Wallets
There are a variety of wallets out there, but they all typically fall under four categories:
Hardware wallets, as the name suggests, are physical devices that warehouse your private keys in an offline environment, rendering it next to impossible for a hacker to gain access to your holdings. Even if they could they still need physical access to the device to send them on anywhere.
Hardware wallets have the appearance of USB sticks, making them easily portable, and connect to your computer via a USB cable. Some hardware wallets even take it a step further by securing your keys in a fragmented partition, which ensures that even if the wallet is plugged into a compromised computer its interactions will not allow access to your private keys (essentially the password to your account).
Hardware wallets are the safest wallets available, although the cost can run into the triple figures depending on the model you buy.
Online wallets are wallets that require the use of an internet browser to be accessed, which has the advantage of being able to be accessed from anywhere in the world. There are a variety of wallets that fall into this category, and although they are natively online wallets, many have also started to offer desktop and mobile wallets for a more synchronized experience.
The most popular wallets in this category are the Binance wallet, Coinbase wallet, and MetaMask wallet. Online wallets are relatively safe in themselves, given that they are typically provided by cryptocurrency exchanges that make heavy investments into cybersecurity, but they are only as secure as the device on which they are being used. The private keys are also usually saved on the browser in question, which means a third-party – the browser developer – also has access to your data.
Mobile wallets are designed for the crypto enthusiast who values mobility, offering users the chance to check their account and send/receive coins wherever they are. Some mobile wallets also have DApp access, allowing yield farming, trading, staking, and more.
Mobile wallets are generally safer than online wallets because they store private keys in the secure enclave on a phone, but there is the risk of the device itself being lost, stolen or otherwise compromised. It’s therefore best to only store small amounts on a mobile device.
Desktop wallets are unique. In most cases, they are developed by the platform developer and a download of these wallets usually includes a download of the entire blockchain. In essence, by downloading this type of wallet you are becoming a full node on your chosen cryptocurrency network.
This gives you the opportunity to participate in some level of governance activities on the platform, although it comes at a cost – some blockchains are over 100GB in size, while operating a node requires your device to be running (with an internet connection) 24/7.
Top 4 DigiByte Wallets
Now we have explored the different types of DigiByte wallets out there, let’s take a look at the best examples of each type that you can get your hands on today.
Ledger Nano S
The Ledger Nano S is a hardware wallet developed by French crypto company Ledger. Ledger is a well-renowned and trusted cryptocurrency wallet developer, so you can be sure that your DGB tokens will be safe on their devices. One of the strongest suits of the Ledger Nano S is its affordability, representing the best value for money in the hardware wallet game, which is one of the reasons why it is the bestselling crypto hardware wallet of all time.
The strengths of the Ledger Nano S include:
- Supports a large number of digital assets (700+)
- Good value for money
- Lightweight and ultraportable
- Quick, intuitive, and easy to use
- Supports multiple languages
The weaknesses of the Ledger Nano S wallet are:
- Supports a limited number of simultaneous wallets
- Less user friendly than other models, including the newer Ledger Nano X
- Not open source
- It comes with an upfront cost
- Known to experience memory size issues over time
The Ledger Nano S is one of the best wallets for DigiByte users who want that extra level of security, with users confident that their DGB holdings are safely held away from the reach of malicious actors. While some may frown at the price tag, which can be as high as $99, the reality is that you cannot put a price on security, especially if you are a user with a large DGB holding.
The DigiByte GO wallet is one iteration of the official wallet for DigiByte and is considered to be one of the most secure ways to store your DGB. DigiByte GO is an online wallet that users can install as a Chrome extension which makes for an easy and smooth process. This is especially beneficial for those users that are either new to cryptocurrencies entirely or just new to DigiByte.
All you need to manage your DigiByte account is an internet connection, with all the actions taken through the browser and the add-on. Users have hailed DigiByte GO for its speed, its security and having an easy-to-use interface.
The strengths of the DigiByte GO are:
- Official DigiByte wallet
- Intuitive and easy-to-use
- Download and setup process is very simple
- Users can execute fast transactions on the simple interface
The weaknesses of the DigiByte GO wallet are:
- Online wallets require a constant connection to the internet, making them susceptible to bad actors
- Does not have an exchange feature
- No mobile option
The major strength of the DigiByte GO is its ease of use and simplicity, which means it will be particularly attractive to those users who are either new to cryptocurrencies entirely, or just new to DigiByte.
The DGB Mobile wallet supports both iOS and Android operating systems, making it available to almost all mobile users. The wallet has much of the same strengths as the DigiByte GO, with the exception being that it is predominantly a mobile wallet, while it also connects to an SPV (Lite) wallet.
The DGB Mobile wallet uses a Personal Recovery Key and phrase to expedite the account recovery process, and also uses passcode and fingerprint options to secure access to the wallet. A major benefit of the DGB Mobile wallet is that it is a non-custodial wallet, so you are fully in charge of your funds.
The DGB Mobile wallet has the following strengths:
- An official wallet
- Intuitive and easy-to-use
- Secure authentication
- Low transaction fees compared to other platforms
- Only way to have DGB readily available on the move
The weaknesses of the DGB Mobile wallet are:
- Not as popular as other platforms
- Limited advantages over other DigiByte wallets
- Risk of device being stolen/lost
The DGB Mobile wallet is the best DigiByte wallet for those who like to take their DGB with them on the move. Like other official DigiByte wallets it is easy-to-use, intuitive, and most importantly, an official wallet.
The DigiByte Core is the main wallet developed by DigiByte for holding your DGB, which makes it one of the most popular wallets for DigiByte around. DigiBute Core is a client wallet, meaning that you will be downloading the entire DigiByte blockchain and will become a full node on the DigiByte network.
This means you will help verify transactions on the blockchain, but you need to maintain a stable internet connection in order to keep the node in sync.
Despite being a basic wallet with few features, DigiByte Core has over 100,000 active users, which shows the popularity of the platform. Like all the other official wallets on this list, the DigiByte Core sports a simple interface that is intuitive, easy to use, and is constantly updated by the DigiByte team.
The DigiByte Core has the following strengths:
- The flagship wallet from the DigiByte team
- Users become a full node in the network and participate in network activities
- Intuitive and easy-to-use
- Supports Windows, Linux, and macOS
On the other hand, the weaknesses of the DigiByte Core wallet are:
- Only available in English
- Only basic options (send/receive)
- Support can be poor despite big community
- It requires large data expenditure to download and use
As a full node in the DigiByte network, users get to participate in governance activities and play a role, however small, in shaping the future of DigiByte.
The DigiByte Core wallet is most appropriate for users with a large amount of disk space, access to unlimited broadband, and most importantly a level of understanding over the DigiByte project in order to participate actively in managing the affairs of the network.
DigiByte is a very popular PoW cryptocurrency platform that continues to surprise with the additions to its DigiAsset portfolio. It may not be as popular as other cryptocurrencies, but it has been around the block a few times and is still growing. Not to mention the fact that transactions are fast and cheap.
In this article we have presented what we believe to be the best wallets for DigiByte that you can get at the moment, each of which has its own target market and its own strengths and weaknesses.
Only you will know the best DigiByte wallet for your needs, but hopefully we’ve provided enough ammunition for you to make an informed decision. Happy holding!