#### What is Diamond? Diamond (DMD) is a unique [cryptocurrency](https://www.coinbase.com/learn/crypto-basics/what-is-cryptocurrency) that aims to provide a decentralized, secure, and efficient digital asset platform. Established in 2013, DMD is a community-driven project that has undergone several significant upgrades to adapt to the evolving technology and market conditions. The latest upgrade, DMDv4, is a layer-1 [blockchain](https://www.coinbase.com/learn/crypto-basics/what-is-a-blockchain) that implements a cooperative HBBFT consensus with a delegated [PoS](https://www.coinbase.com/learn/crypto-basics/what-is-proof-of-work-or-proof-of-stake) election validation mechanism. This allows DMD to offer features such as true decentralization, robust security, low transaction fees, high throughput, and on-chain governance. With a finite maximum supply of 4.38 million coins, DMD is three times scarcer than [Bitcoin](https://www.coinbase.com/learn/crypto-basics/what-is-bitcoin), making it a unique player in the cryptocurrency space. #### How does Diamond work? DMD operates on a cooperative HBBFT [consensus mechanism](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/consensus-mechanism-protocol) supplemented by a delegated Proof-of-[Stake](https://www.coinbase.com/learn/crypto-basics/what-is-staking) (PoS) based [validator](https://help.coinbase.com/en/coinbase/getting-started/crypto-education/glossary/validator-) election. This unique combination allows DMD to offer fast transaction times, low fees, and a low carbon footprint. The DMD coin maintains its original fixed-issuance coin emission model, making it five times more scarce than Bitcoin. DMDv4 also implements a sustainable endless coin reward mechanism for consensus nodes and dPoS stakers, while maintaining a coin maximum. This mechanism reinserts unclaimed and abandoned coins into circulation after a certain period, ensuring the long-term growth of the network. #### What are the potential use cases for Diamond? DMD aims to enable people to achieve financial freedom and independence by creating a platform that provides a safe, affordable, and rewarding [smart contract](https://www.coinbase.com/learn/crypto-basics/what-is-a-smart-contract) powered blockchain economy. With its high transaction speed, low fees, and full interoperability with [Ethereum](https://www.coinbase.com/learn/crypto-basics/what-is-ethereum), DMD is an appealing environment for developing [decentralized applications](https://help.coinbase.com/en/wallet/other-topics/what-is-a-dapp) ([dApps](https://www.coinbase.com/learn/wallet/guide-to-dapps)). It also allows for easy migration of fee-intense parts or whole [DeFi](https://www.coinbase.com/learn/crypto-basics/what-is-defi) protocols, decentralized exchanges, or similar projects to run partly or as a whole on DMD Diamond blockchain. Furthermore, DMD's smart contract functionality and compatibility with Ethereum EVM make it easy to port smart contracts written for Ethereum to DMD. #### What is the history of Diamond? DMD Diamond was created in mid-2013 during a surge of new coin creation, based on forks of Bitcoin. Despite the initial enthusiasm for the coin, the original creator of DMD disappeared several months after its creation. However, a small community convened and a team of developers and enthusiasts got together to maintain and evolve the coin. Over the years, DMD has undergone several significant changes in its architecture to adapt to the constantly changing and evolving technology and market conditions. The latest upgrade, DMDv4, is designed to solve the greatest industry challenges by combining the best of Ethereum, Bitcoin, and other worlds.