It is quite clear that the next logical step for major cryptocurrencies is to gain privacy capabilities. While this may dilute the value of privacy coins, it is a major step towards the growth of the entire market. That’s why coins like Digibyte (DGB) and Litecoin (LTC) are taking steps towards attaining privacy capabilities.
Digibyte developers are currently working on integrating Dandelion into Digibyte (DGB). Dandelion is a technology that makes it hard to trace the IP address where Digibyte is coming from. This eliminates the need to have to rely on TOR, when sending Digibyte (DGB).
This technology is important to Digibyte (DGB) for a number of reasons. For starters, it makes it impossible to trace and attack people with large amounts of Digibyte. Josiah Spackman puts it best in a write up where he states that,
“You see if somebody malicious was able to find your IP address, and they knew that you were sitting on half a million dollars’ worth of cryptocurrency (Not just DigiByte, but say also Bitcoin), then they could potentially use that in an attempt to physically track you down with the goal of stealing your computer, private keys and cryptocurrency. Naturally nobody wants this, but it’s something to be mindful of and aware of the way that blockchains work. It’s also where Dandelion comes in as a solution.”
The implication of this is that, more people will have confidence to buy and hold huge amounts of Digibyte (DGB). This could help drive up the demand for Digibyte in the long run. However, it’s not just big money HODLERs that could push up the value of Digibyte (DGB), big spenders will play into this dynamic too in the long run. For instance, assuming that at some point in the future someone wants to spend millions of DGB on a piece of art, or other collectables, they would not feel comfortable doing so while exposing their IP and identity on the blockchain. Such a person would opt to spend via a coin that protects their privacy, and that’s what exactly Digibyte (DGB) will do, once it implements Dandelion.
In essence Digibyte’s fundamentals continue to get better with time. Besides, even in a scenario where the monetary value of this implementation gets diluted by many other coins gaining privacy capabilities, Digibyte still has an edge in the market due to its other capabilities.
For instance, Digibyte (DGB)’s core focus is not on payments, it is in cybersecurity, and on this front, it is winning. That’s because, its core security feature, DigiID is already being adopted by several strategic players. An organization like AntumID has already released a chrome extension that allows users to log into any website using DigiID, even when the website in question has not integrated DigiID. Essentially, this means you can log into websites as big as Facebook using DigiID. This could play a huge role in driving up the value of Digibyte in the long run, as more people begin to appreciate the power of the Digibyte (DGB) blockchain as a cybersecurity tool.