Verge’s XVG is one of the most affordable privacy coins in the cryptocurrency market at the time of writing. What sets Verge apart from the rest of the privacy-focused crypto-platforms? In order to address this question, let us examine how this platform and its XVG token are different from other privacy coins. Also, does it live up to its name of “True Privacy Coin”?
What is Verge?
Privacy-focused coins have been getting a lot of attention in recent months due to regulators tightening the noose around cryptocurrencies. Since it is more difficult to trace transactions executed using privacy-focused cryptos, a bigger market for privacy-centered crypto-platforms like Monero, Zcash and Dash has emerged. Verge’s XVG also takes a place in the list of privacy coins, and it aims to provide privacy by concealing its users’ identity (hiding IP addresses) using Tor and also encrypts the users’ traffic using an anonymous overlay network called Invisible Internet Project (i2p).
Verge’s platform is open source and was originally called DogecoinDark in 2014. “Dogecoin” was an “Internet Joke” and “Dark” gave it a negative image, so “DogecoinDark” was re-branded to Verge in 2016. The XVG coin started to rally and became a top-tier coin, mainly after John MacAfee tweeted about it and praised its privacy features. Later on, there was controversy when he retreated from his opinion.
What sets Verge apart?
Verge’s current market cap is around 540 million dollars, with each token being priced at .036$ (at the time of this writing), making it the cheapest privacy coin in the crypto-market. It is unique from other privacy coins due to its implementation of the “Wraith Protocol”. The Wraith Protocol was first published in Verge’s “Blackpaper v3.0”.
It was implemented in several phases across Verge-supported wallets and codebases when it was officially released on 9th January 2018. Wraith Protocol allows users to choose between a public and private ledger and this sets Verge apart from other privacy coins. It is similar to a toggle switch in that it enables users to select whether their transactions be made public or private. Based on the individual or entity’s use case, they can make a choice.
Verge’s XVG stands out from the crowd regarding multi-algorithm support, allowing users to mine using different mining hardware and providing more security to the network. The five different hashing algorithms used are Scrypt, X17, Lyra2rev2, myr-groestl and blake2s.
How does Privacy work?
Tor is an onion router that allows users to stay anonymous and away from surveillance. The Tor network has volunteered with thousands of computer nodes, and the data travels in a random fashion across these nodes, as per the path laid out by Tor before reaching the destination server. This is what supposedly gives privacy to the Verge user.
Invisible Internet Project (I2P) :
I2P is a “True darknet”, and it encrypts the internet traffic by routing it through a distributed computers network across the world.
Verge’s platform uses both Tor and I2p to provide users with physical security by hiding their IP addresses. This can potentially protect not only from government interference, but also from criminals demanding ransomware by looking into the blockchain of non-privacy coins like Bitcoin, and tracing them back to their physical location.
How to use the Privacy feature?
There is no point in having privacy if the end user cannot use it, so the obvious best scenario is an ecosystem that offers users full support for privacy features. Verge’s XVG doesn’t seem to disappoint us in this aspect either, because the Electrum wallet provides native support for both i2p and Tor and makes user transactions private. Users can connect either with Tor or I2p using their Electrum wallet.
Verge also has a Tor wallet for Android allowing coins to be easily stored and sent by using a QR code. You can even import the private key from a paper wallet using a QR code.
In addition to all this support from external wallets and applications, Verge’s platform makes it easy for its users to transfer coins between Telegram, Twitter, Reddit, Steam and Slack using decentralized platform integrated portals.
What are the future plans?
Verge currently processes between 5 – 10 transactions per second, beating Bitcoin, and it is expecting it to reach 2000 TPS with the future implementation of RSK technology. RootStock (RSK) is a separate sidechain on Verge’s platform allowing it to scale, as well as conduct smart contracts on its blockchain.
Verge’s network, in spite of having all these privacy features, the question remains: “Is it a true privacy coin?”. The doubt arises due to fact that it displays the top hundred addresses in its blockchain explorer with balances and transaction details which defeats its anonymity. Also, the wallet’s UI doesn’t have a good look and feel, and a regular user might find it very difficult to navigate. The question remains regarding XVG and privacy.
Only time will tell if Verge can beat the competition and truly become a prominent privacy coin in the long run.