Review on DigitalBits by Fanuel PORPORTY
What is DigitalBits?
The protocol layer blockchain is designed to support consumer digital assets. In particular, branded currencies that you can spend on rewards and offerings. That said, the company is planning to take the feature to a completely new level. In the last couple of years, notable brands such as Facebook and Walmart have entered the crypto/blockchain space. These companies are developing grand projects like Libra, among others. With this, branded currencies look to play a significant role in developing the blockchain landscape. To that end, DigitalBits, which is aiming to create a platform for the provision of branded currencies, seems to be right on time.
The DigitalBits blockchain uses a construct of the Federated Byzantine Agreement, a robust consensus mechanism. It allows for high scalability (+10 000 TPS) across a decentralized network. The protocol will support a wide variety of on-chain assets. Effectively, allowing for a number of branded currencies to co-exist. The protocol seeks to optimize the backend infrastructure of existing consumer applications. Additionally, it will enhance connectivity for the company’s large and established ecosystems.
There is another important aspect here : it has to do with consumer behavior. The protocol will become part of existing user-friendly applications. This means that the consumers will start using blockchain without even knowing it. They won’t have to learn new processes and complicated technologies. Instead, they will enjoy the advantages of blockchain technology immediately. It also ensures the existing communities on these apps stay connected. Thus reduces the switching costs associated with moving to a new platform.
This way, DigitalBits aims to facilitate the transition to blockchain technology and paves the way for its mass adoption.
Pros
- A branded currency may be defined as “a store of value and a medium of exchange, sponsored by a specific brand or merchant, in a physical and/or digital form and used for the functional purpose of being a coupon, loyalty point, gift card or stablecoin.”
- DigitalBits seeks to address the challenges faced by both brands and consumers. Its blockchain platform facilitates the frictionless movement of assets within the ecosystem. The latter includes brands, merchants, consumers, and payment providers. Brands will be able to launch their own unique branded currencies on-chain. In some cases, they may resemble stablecoins.
- The DigitalBits blockchain uses the utility token, XDB, to perform a number of different functions. This diverse function set positively impacts token velocity, a subject of growing importance within the blockchain industry.
Cons
- None
