DigiByte goes up more than 13% after it approves Taproot activation upgrade

Both DGB and BTC rely on a proof‑of‑work mechanism to secure their blockchains. While DigiByte also follows a PoW model, it employs five different mining algorithms, which are SHA‑256, Scrypt, Skein, Qubit, and Odocrypt.

DGBs multi‑algorithm approach helps to prevent the centralization of mining power and makes the network accessible to a wider range of hardware—from ASICs to GPUs and CPUs.

At the moment, DGBs circulating token supply is at 17.60 billion, which is around 83.8% of its total supply. Meanwhile, there is still approximately 3.40 billion DGB that can be mined or around 16.2% of its total supply.

Why is DigiBytes token trending？

The DGB token has been on the rise since the blockchain has been considering an upgrade to its system called the Taproot Activation process through the BIP-9 soft fork. So far, 95% of its blocks have indicated support for DigiByte adopting the Taproot Activation model.

According to the site, Digibyte has already begun the process of Taproot activation. However, it is not fully active yet.

Initially deployed on Bitcoin in 2021, the Taproot upgrade is a collection of protocol updates that introduce new features that change the way blockchains process transactions. With the Taproot upgrade, transactions require less data and less work as multiple signatures can be combined for verification, rather than being aggregated individually.

Additionally, it can also improve smart contract functionality on the blockchain. In Bitcoins case, this feature expanded on the types of transactions that could be processed through native smart contracts on the blockchain.

Another key benefit brought in by Taproot is the reduction of fees on the blockchain. The upgrade is able to streamline how data is processed, therefore cutting down on resources which leads to lower costs for users. This is one of the reasons why the upgrade is highly anticipated by the DigiByte community.