Kevin Rose's friend David Prager (The Screen Savers, This Week in Tech) originally wanted to call the site “Diggnation”, but Kevin wanted a simpler name. He chose the name "Digg", because users are able to "dig" stories, out of those submitted, up to the front page. The site was called “Digg” instead of “Dig” because the domain name “dig.com” was previously registered, by Walt Disney Internet Group. “Diggnation” would eventually be used as the title of Kevin Rose and Alex Albrecht's weekly podcast discussing popular stories from Digg.
The original design was free of advertisements, and was designed by Dan Ries. As Digg became more popular, Google AdSense was added to the website. In July 2005, the site was updated to "Version 2.0". The new "version" featured a friends list, the ability to "digg" a story without being redirected to a "success" page, and a new interface designed by web design company Silverorange [2]. The site developers have stated that in future versions a more minimalist design will likely be employed. On Monday June 26, 2006 version 3 of Digg was released with specific categories for Technology, Science, World & Business, Videos, Entertainment and Gaming as well as a View All section where all categories are merged.
Digg has grown large enough that submissions sometimes create a sudden increase of traffic to the "dugg" website. This is referred to by some Digg users as the "Digg effect" and by some others as the site being "dugg to death". However, in many cases stories are linked simultaneously on several popular bookmarking sites. In such cases, the impact of the "digg effect" is difficult to isolate and assess. Wordpress is especially hated among diggers for its tendency to crash under the increased traffic.
Source: http://en.wikipedia.org/wiki/Digg
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