DigiByte (DGB) Recovers 15% as Testing Begins on ASIC-Defeating Algorithm
DigiByte (DGB) showed strong signs of recovery on Friday, as the coin price made up 15% of its value after the recent market dip.
Testing has begun on a self-adjusting algorithm which changes itself every ten days. According to the DigiByte team, and founder Jared Tate, such a move would see the threat of ASIC centralization greatly reduced.
As it stands, the DigiByte blockchain (which is the longest in the world) is secured by five different hashing algorithms, and subsequently, five different groups of miners. SHA256, Scrypt, Skein, Groestl and Qubit miners currently take 20% each of the block rewards, and the algos are cycled every ninety seconds.
Even with the multi-algo system already in place, testing has begun on a self-adjusting algorithm which would be impossible to predict by ASIC machines. According to the DigiByte twitter feed:
“We are proud to announce we are testing the next generation of #blockchain mining technology. Imagine a mining algorithm that recreates itself every 10 days? No ASIC could ever be created for it. True #Decentralized #ProofOfWork #CyberSecurity.”
DigiByte founder, Jared Tate, whom you may remember from his recent spat with Binance CEO, CZ, further elaborated on the concept of the new algorithm, stating:
“The idea is an algorithm that recreates itself every 10 days. FGPA’s will be the ideal hardware to mine with. Every 10 days miners will get to “reprogram” and rediscover the most efficient settings to mine the #DigiByte #blockchain with.”
A History of Innovation
Along with the aforementioned multi-algo mining, DigiByte can point to several unique features and achievements which one might not expect of a coin ranked around the 30s by market cap.
The blockchain is the longest in the world, thanks largely to its fifteen-second block times. DigiByte also claim their blockchain is the fastest, and with 560 transactions per second confirmed that might be true.
Likewise, the blockchain is secured by over 70,000 node operators, while the Bitcoin and Ethereum chains are only backed up by around 9,000 and 15,000 respectively.
DGB/USD On the Move
From the 11-month low of $0.015186, the DGB coin price recovered to the tune of 15%, hitting the $0.017591 mark by Friday morning. After levelling off, the price remained at the $0.017 range for the rest of Friday afternoon, and was still there moving into the evening.
While the broader market waves probably dictated DGB’s fate during the recent dip, the return to the $0.015 range may prove to be technically significant. That was the price range which triggered DGB’s parabolic growth last December, when it went on a near 10x growth run over the course of the next month.
Over 60% of DGB’s movements were fuelled by BTC trades, however the second most concentrated trade was, surprisingly enough, against the Turkish lira – making up 18% of the $1.6 million total volume.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
Featured image courtesy of Shutterstock.