Entitled Digg v1, the relaunched service continues the company's mission "to discover the best stuff on the web", but updates it to the needs of 2012 and beyond.
The company also intends to launch an application programming interface (API) in order to enable developers to create services using the Digg technology.
In July, New York-based technology group Betaworks bought the social media pioneer for a reported fee of just $500,000 (£324,000), and announced plans to integrate it with existing product News.me.
News.me delivers news stories to users based on what has been shared by their friends on Facebook and Twitter. It operates iPhone and iPad apps, as well as a daily email system.
Digg said in a blog post yesterday (July 31) that it has been rebuilding the service "from scratch" over the past six weeks.
"After an intense month and a half, we managed to get the new Digg up and running on a fresh code base and infrastructure," said the company.
"We now have a solid foundation on which to build, and we expect to build fast. Yesterday, we previewed the new Digg applications for web, iPhone, and mobile web and today we're happy to share Digg v1."
Such was Digg's rise to prominence that at one stage US search giant Google was rumoured to want to acquire the company for $200m.
However, an unpopular redesign led to a drop in traffic to the site, and the network has struggled ever since to keep pace with Twitter, along with new aggregator rivals Reddit and StumbleUpon.
New features in Digg v1 will include network-based personalisation features - taken from News.me - to "make Digg a more relevant and social experience".
The site is also experimenting with new commenting features, and intends to continue to develop its mobile web presence.
Other new ideas include the Reading List, offering different views around the top stories on Digg, as well as additional data to help people understand why a particular story is trending.
Digg further intends to launch an API so that members of the development community "can build all the products that we haven't even thought of yet".
"We're proud of what we've built over the last month and a half, but today is just the beginning," said Digg. "Hello world, welcome to v1."