DigiByte, a Project Without Risks ?
DigiByte, a project without risks
That sounds like a very bold statement, but once you read this article, I think you’ll have to agree with that statement. If you enter the cryptocurrency landscape, you have to be aware of the risks involved. Before you put in hard-earned money, there are a lot of questions to be answered and choices to be made. In addition to the choice of the right project there is the choice of broker or exchange to use and very important is the choice of storage for your cryptocurrencies. It’s essential to keep control of your own keys and keep your cryptocurrencies offline in a secure cold storage hardware wallet instead of leaving them on an exchange. When making the choice for a cryptocurrency to invest in, it’s important to do research and make an assessment of the risks involved. By looking at the risk factors that all projects have to deal with, I would like to explain why I think DigiByte is extremely safe.
Recently NEM announced the risk of bankruptcy. They need USD 7,5 million to rescue the organization from the verge of bankruptcy. The risk of bankruptcy is absolutely unthinkable and out of the question with DigiByte. It’s just not possible because DigiByte is not a company, has no employees, and has no money. DigiByte is being developed and supported by a global community, all unpaid volunteers.
In recent months a number of crypto companies including Bitmain, ConsenSys, Huobi and Blockfolio have downsized and cut staff. The NEM Foundation can be added to that growing list. As mentioned before DigiByte is not a company and has no employees. It’s community driven, and globally decentralized. This also means that nobody and nothing can close DigiByte down.
Single Point of Failure
A number of projects claiming to be decentralized but are in fact not decentralized at all. They are centralized and are exposed to a single point of failure. An example is the recent claim by an early-age IOTA investor that the project is centralized and a single point of failure exists. He identified issues related to how IOTA’s data structure operates.
DigiByte’s decentralization comes from the fact that it has over 200,000 nodes all across the world. None of the major projects can match that. No entity can ever shutdown DigiByte, unless they shut down the internet all across the world.
It is a fact that a 51% attack, such as the one that happened to Ethereum Classic (ETC), would never happen to DigiByte. The costs involved are just not tenable, and would not payoff. It’s a waste of time and resources. DigiByte is most secure because it uses 5 mining algorithms (PoW).
Nearly 1,000 cryptocurrency projects died during this year’s bear market.
A complete list of ICO exit scams and extinct coins can be found on deadcoins.com. DigiByte is an open-source project and is being developed and supported by a truly decentralized global community. Whatever happens to people or resources involved with DigiByte, the globally decentralized community ensures the guaranteed continuity of the project, its development and applications build on top of it. Proven and working since 2014, it’s seeing an increasing adoption and application of its technology.
The integrity of team members is very important. It must be clear that all members involved are trustworthy and have the best intentions.
When dealing with an ICO project or a company with paid employees managing the project, there is always the risk of having people focussed only on money, instead of a real dedication to the project. In a decentralized community like DigiByte, all active members are unpaid volunteers, dedicating free time and money out of own pockets to support the project. There will be no fraud, corruption or illegal actions. The decentralized nature of the DigiByte community produces a self-correcting and self-improving system. If someone fails or seems to have wrong intentions, it will get noticed by the community and the person will get blocked, ignored and excluded from the community.
DigiByte is here to stay
This prolonged bearmarket will uncover weakness of many projects and exchanges, with even the risk of killing them. DigiByte is here to stay, thanks to its strong technology, continued developement, increasing adoption and application, and the large and strong decentralized and dedicated community support.
DigiByte, a Project Without Risks ? was originally published in Data Driven Investor on Medium, where people are continuing the conversation by highlighting and responding to this story.