Question 1

What is DGB?

Accepted Answer

DGB is the native crypto asset of the DigiByte network, used to transfer value and pay transaction fees on the network. It is not equity in a company; its use depends on the DigiByte network and support for the asset from wallets and service providers.

Question 2

How does DigiByte’s UTXO accounting work?

Accepted Answer

DigiByte uses the UTXO model to record DGB. Spendable balances consist of multiple “unspent transaction outputs”; a payment transaction consumes old outputs and creates new outputs for the recipient, and may also create a change output when necessary. Nodes check whether inputs are unspent, whether signatures are valid, and whether input amounts are sufficient to cover output amounts and fees. Therefore, a confirmed transaction does not modify an account balance; instead, it marks old outputs as spent and generates new spendable outputs. The payment amount, change, and network fee are all reflected in the relationship between inputs and outputs.

Question 3

How does DigiByte protect the network through five algorithms?

Accepted Answer

DigiByte produces blocks through proof of work. Miners hash candidate blocks and broadcast a valid block once they find one that meets the current difficulty target; other nodes validate the transactions and proof of work, then continue producing blocks on top of valid blocks. Miners receive protocol-generated block rewards and transaction fees in the block. The network uses five algorithms: SHA-256d, Scrypt, Skein, Qubit, and Odocrypt. The multi-algorithm design means block security does not depend solely on the hash power of a single algorithm; however, miner revenue is still affected by difficulty, hash power, equipment costs, block rewards, and fees.

Question 4

Which steps determine confirmation of a DGB transfer?

Accepted Answer

DigiByte’s target average block time is approximately 15 seconds, but this does not mean a payment is necessarily final 15 seconds later. A transaction first propagates through the network and is then included in a valid block by a miner; subsequent blocks continue to accumulate, creating more confirmations. The actual waiting time depends on whether the transaction is included in a block, how well its attached fee matches transaction competition at the time, network conditions, and the number of confirmations required by the recipient. A transaction having been broadcast or displayed as pending is not the same as having received a block confirmation.

Question 5

What are DGB’s supply cap and issuance schedule?

Accepted Answer

DGB has a maximum supply of 21 billion coins, with new coins gradually produced through PoW block rewards. Project materials state that it uses a transparent monthly declining issuance curve rather than placing the entire maximum supply into circulation at once. The supply cap is the total amount the protocol can issue, not the circulating supply at any particular time. Whether already produced coins are tradable is also affected by holder custody, lost keys, and service support; declining issuance affects the pace of future new supply but does not directly determine market demand or price.

Question 6

What does DigiShield difficulty adjustment change?

Accepted Answer

DigiShield is DigiByte’s difficulty-adjustment mechanism. When the hash power participating in an algorithm changes, it adjusts the mining threshold for that algorithm, aiming to bring block production back in line with the target pace and reduce sustained overly fast or slow block production caused by short-term hash-power migration in or out. Difficulty adjustment does not create additional DGB or fix miner income; it changes the amount of work required to find a valid block. For users, it helps maintain stability in block-production and confirmation expectations.

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