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"We started working on developing the site back in October 2004," Kevin Rose told ZDNet "We started toying around with the idea a couple of months prior to that, but it was early October when we actually started creating what would become the beta version of digg. The site launched to the world on December 5th 2004."
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. “Diggnation” would eventually be used as the title of Kevin Rose and Alex Albrecht's weekly podcast.