What is Verge? – Everything You Need to Know About the XVG coin
At a glance
|Mineable||Yes. Proof of Work.|
|Total coin supply||16,555,000,000|
With the popularity of cryptocurrencies rising, there are many new coins and tokens appearing in the market. Our goal is to educate the public on these new cryptocurrencies. This guide will cover what Verge (also known as XVG) is, its history, how it works and it uses.
What is Verge
Verge is a cryptocurrency that anyone can use to send or receive anonymous and untraceable payments. Verge began as either a fork of Bitcoin, Peercoin or DogeCoin and was originally named Dogecoindark. It was later rebranded to Verge in February 2016.
Verge is focused on privacy and anonymity by making transactions on their network very difficult to trace. Unlike cryptocurrencies like Ethereum or Bitcoin, Verge uses certain technologies to anonymize your connection and obfuscate (which basically means to hide) your IP address. This stops even your internet service provider, or ISP, from tracking you.
Verge’s trading symbol is XVG. At the time of writing this article, XVG’s market cap is $808,641,000 and has a total supply of 16,555,000,000 coins.
Since being launched on trading exchanges, XVG’s value has risen from an initial price of $.000004 to as high as $.23! The XVG coin is currently listed on several larger exchanges such as Binance, Bittrex, Upbit and HitBTC.
Verge’s popularity has grown rapidly since December in which its price went from $.005 to $.25 in just a few days. Some attribute this to endorsements by John McAfee on Twitter. And just recently, Pornhub announced their support of Verge as a payment method. Stressing its emphasis on privacy protection. This gave XVG an additional boost in value.
Who created it
Verge was developed in Florida by Justin Valo back in 2014. Their mission statement includes:
“To empower people around the world by bringing blockchain transactions into everyday life. Verge Currency makes it possible to engage in direct transactions quickly, efficiently and privately.”
There is no foundation or governing authority behind Verge. The project is 100% open source and entirely led by the community, making it fairly unique. The community funds the project through donations and contributions in other areas such as software development, graphic design or digital marketing.
Unlike many blockchain startups, Verge did not pre-mine or have an ICO. Developer and contributors to the project purchased the coins on the open market after they were released.
No additional funds have been raised from outside investors or venture capital firms. It is truly 100% open source and community led. Which makes the fact that XVG is nearing a $1 billion market cap even more amazing!
What does Verge do
Verge allows users to send and receive payments while hiding their IP addresses. Their aim is to fill a gap left by cryptocurrencies such as Bitcoin that are not truly anonymous. Every Bitcoin transaction is tracked to an address in a public ledger, and those addresses can be linked back to their owners by several means including tracking IP addresses.
Currently, everyone must access the internet through an internet service provider, or ISP. Any information a user sends or receives is sent through the ISP. This information is sent and received through a unique identifier called an IP addresses, and that address is associated with the user’s identity. So that’s not good for people who want to stay anonymous.
How does Verge work
Verge tackles this problem by taking the information that is being sent and received, encrypts it and then bounces it around multiple addresses in its networks that are not associated with the user. By doing this, it’s virtually impossible to track the origin of the transaction. The technology behind that serves as the backbone of Verge is called Tor and I2P.
What is Tor
One of the tools Verge uses to accomplish its mission is called Tor. Tor is an IP obfuscation service which allows anonymous transactions across a network. Here’s how it works:
- A user sends an XVG coin as payment to another user.
- That transaction is then encrypted and sent through Tor’s peer to peer network. The transaction is then bounced from node to node many times. The node to which the transaction is sent is also encrypted each time, making it even more difficult to track.
- In the end, on the final relay, the transaction is decrypted and sent to the recipient’s address. By that time, the transaction can no longer be tracked back to the source IP address.
Because the routing of transactions is partly encrypted every time the information is routed to another node, it eliminates the possibility of determining the source address through network surveillance.
Tor is the standard used by Verge for transactions but it also allows users to choose another more powerful option called I2P.
What is I2P
I2P is the next level up from Tor. I2P works similar to Tor in that it sends transactions using a peer to peer style routing method. Both also operate using heavy encryption. However, unlike Tor which uses internet-based relays to bounce transactions around, I2P uses its own private network, creating a private network within the internet.
There are many benefits to this including increased privacy and a higher level of reliability.
Verge users have the option of sending transactions using either Tor or I2P, Tor being the default choice. Both offer superior levels of privacy when compared to many other cryptocurrencies.
The Wraith Protocol
The Wraith Protocol gives users the choice of sending their transactions through their public ledger or their private ledger. Users who value transparency, such as merchants, can choose the public ledger on which all transaction are viewable. For those wishing for more anonymity, they can choose the private option which hides their transactions completely.
Those choosing the public option will enjoy faster transaction speeds than those choosing private.
To achieve these private transactions, Wraith generated stealth addresses that are one-time use. These stealth addresses are then routed through Tor.
It is important to note that the IP addresses of all transactions, whether on the public or private blockchain, are hidden using Tor, Verge’s default protocol. So while transactions are traceable on the public blockchain, the sender and recipient are still hidden.
Compared to many other privacy related cryptocurrencies, Verge stands out with a few interesting features.
- Allows users to choose how to anonymize their IP address, Tor or I2P
- Created the Wraith Protocol which lets users choose between transacting on a public or private blockchain. Cryptocurrencies like Monero operated only on a private blockchain.
- Verge is a multi-algorithm cryptocurrency
Who uses Verge
Verge, or XVG coins, can be used by anyone wanting increased privacy on the blockchain. It’s is a fact that cryptocurrencies like Bitcoin are not anonymous and never intended to be. That’s something the media made up on their own.
Verge has stated their main target are online merchants whose customers value increased privacy.
Recently, a partnership between Pornhub and Verge was announced in which Pornhub would begin accepting XVG coins as payment. This brought Verge into the mainstream discussion of privacy focused crypto coins.
Usage vs Speculation
Verge is actively being used by merchants and clients across the world, most notably by users of the adult video sites like Pornhub. So it is being used for its intended purpose. However, Verge is also the subject of heavy speculation and volatile price swings.
Verge’s main competitors in the privacy focused area are:
- Monero (XMR)
- PIVX (PIVX)
- Zcash (ZEC)
- DASH (DASH)
There are not really any traditional competitors in this area. The only truly anonymous way to exchange value between two parties is to use cash. However, that only works with face to face transactions.
As of now, there is no traditional way for an online merchant to accept truly anonymous payments other than using one of the cryptocurrencies mentioned above.
- Is Verge open source? Yes, Verge is open source. You can view their source code here.
- Is Verge popular on the darknet? Given its emphasis on privacy, it’s safe to assume that Verge is growing in popularity, but Monero is still the go to cryptocurrency for darknet users.
- How do I start using Verge? First you need to purchase XVG coins from a crypto exchange. Then you can download their wallet from here.
The future of Verge (Roadmap)
Verge has a dedicated development team and they are actively growing their business model. They have over 300,000 Twitter followers and their GitHub repository has over 1,000 stars, which is impressive.
Verge’s future plans are:
- Q1 2018 – Implement RSK Smart Contracts. This is big!
- Q1 2018 – Provide mining updates
- Q2 2018 – iOS and Android wallet integration
- Q3 2018 – Implement Tor I2P Electrum wallet
How to get Verge
How to buy Verge
The only way to buy XVG is to exchange it with another cryptocurrency like Bitcoin or Ethereum. It’s not easy to buy XVG coins with traditional fiat currency like US dollars.
Below are several exchanges that trade XVG:
Up to 2%
KYC : Yes
Ease of use : Easy
Speed : Fast
Privacy : Low
Reputation : Trusted
Payment methods :
- Bank Account
Founded in Melbourne in 2013. Coinspot offers an easy way for Australians to purchase a large variety of coins with cash. They also support BPAY and POLi payment deposits. The have a clean and easy to use interface. With no history of major hacks, Coinspot seems to be a well run cryptocurrency exchange. Their fees are competitive and they have one of the largest choice of coins among fiat to crypto exchanges.
- Lots of coins
- Easy to use
- Founded in 2013
- Transparent fees
- Lengthy verification process
- Deposits can be slow
13% and up
KYC : Yes
Ease of use : Easy
Speed : Fast
Privacy : Medium
Reputation : Trusted
Payment methods :
- Credit Card
- Debit Card
A worldwide exchange with a huge selection of coins to purchase with a debit or credit card. They charge around a 15% premium for simplified buying platform, which may be the highest in the industry. Their trading platform offers better deals with a 3% commission fee, but it’s a little buggy. We’ve listed them only because of the sheer number of altcoins offered.
- Established & reputable
- Extremely easy interface
- Huge coin selection
- Mobile app available
- Extremely high fees
- Fees are priced into crypto purchase
- Only 2 payment methods
- Trading platform is buggy
How to mine Verge
Verge utilizes Proof of Work and can be mined just like Bitcoin. Many miners use AMD or Nvidia GPUs to mine XVG coins. Verge is also a multi-algorithm cryptocurrency, meaning it can be mined with different mining devices. It supports 5 hash functions:
How to store Siacoin
There are a number of ways to store Verge:
- Coinomi – A mobile wallet that supports many different cryptocurrencies. Check /our review of Coinomi here/.
- Verge Electrum Wallet – Verge’s native wallet. A lightweight way to store and manage XVG coins.
- Verge QT Wallet – Another native Verge wallet for XVG exclusively. This wallet offers added privacy.
There are a few controversies surrounding Verge and its privacy methods. The main one being that it uses a public blockchain to store transaction data. However, with the introduction of the Wraith Protocol, users now have the ability to hide their transactions on a private blockchain.
Verge is growing rapidly and has received a lot of press coverage lately which is important for an open source project. The more publicity they receive the more developers want to contribute to the project.
While not as respected as Monero or Zcash in the crypto communities, Verge is taking a fresh approach towards the privacy issues related to Blockchain and we believe their future is bright.