Verge is a cryptocurrency designed to give users TOR-level privacy and security while still allowing the cryptocurrency to be practical for everyday use.
This guide will explain what Verge is, how it was designed, what drives its price, and what experts have to say about it.
What is Verge?
Verge was founded in 2014 under the name DogeCoinDark. This was a fork of Dogecoin and was designed to provide an anonymous alternative to Dogecoin.
Despite having a small devoted community, DogeCoinDark struggled to acquire popularity.
In 2016 the decision was eventually taken to rebrand the currency under the name Verge. This was done to help differentiate the currency from other so-called “dark” coins as Verge’s creators and its community felt that they were not getting the recognition that they deserved.
Verge: The Privacy Altcoin
Verge sits alongside other so-called “privacy coins” like Monero, Pivx, and Zcash. The creators of Verge want to use their currency to take blockchain technology and make it accessible to the everyday user.
They also want to give users the option to protect their privacy and prevent outside entities from tracing their transactions. There are a number of privacy coins available at the moment but what makes Verge special is the team’s commitment to transparency and usability.
One of the most interesting features of Verge is that the cryptocurrency’s blockchain features both TOR and I2P integration. Both TOR and I2P are effective tools to help anonymize their users but they work in slightly different ways.
“The Onion Router” works by directing a users traffic through a worldwide overlay network consisting of more than seven thousand relays. The package is encrypted and is then sent on to another relay that can only read enough information to send and receive the package.
This is then re-wrapped and sent on to the next relay until the package has reached its destination. At this point, the final relay can decrypt the information held in the package but will be unable to pinpoint the source I.P. This grants the user anonymity.
Like TOR, I2P transactions are designed to shield a users I.P. address and activities from prying eyes. Unlike TOR, I2P uses packet based routing rather than circuit-based routing.
This means that the service is able to move around a congested network and maintain a more secure service at times of heavy load. When users send information to each other, the sender and receiver both build a series of tunnels.
The information is then randomly sent through these tunnels until it reaches its destination. In essence, I2P is a large P2P network.
Verge uses both of these protocols and they are one of the only cryptocurrencies to have access to an Android wallet with built-in TOR and I2P options. The approach taken by Verge is interesting because it allows them to maintain an open transparent blockchain while also ensuring that users transactions are private.
The wallet will allow traders and users to assess the health of the Blockchain without violating anybody’s privacy.
The creators of Verge are rolling-out the Wraith Protocol. This will provide users with a “toggle” option where they can decide to either allow their transactions to be publically viewable on the blockchain or to hide them completely.
The Wraith protocol will use a combination of Key agreements, Stealth addresses, and Tor + SSL integration in order to protect its users. These are fairly technical concepts so if you’re interested in finding out more I would recommend looking at page 8 of the Dark Paper.
The thing that makes Verge really stand out from other privacy coins is the team’s focus on transparency. The Cryptocurrency was not pre-mined or part of an ICO and the entire project is available on Github.
This is in sharp comparison with a cryptocurrency like say, Dash, which has been plagued with controversy surrounding the insta-mine event during its launch.
In terms of usability, Verge is already offering Electrum powered wallets on every platform including Linux. The team is planning to further enhance the utility of XVG with the release of the RSK platform.
5 Interesting Verge Facts
- Verge was founded as a Dogecoin fork in 2014 under the name of DarkDogeCoin.
- There was no “instamine” event and the developers had to purchase coins using their own money, like everybody else.
- Verge is a completely open source project and anybody can scrutinize the code behind the project on Github.
- Verge uses Simple Payment Verification (SVP) to help keep transaction times down to 5 seconds.
- In December 2017 Verge experienced explosive growth of over 1000% on the back of a tweet made by John McAfee on 13th Dec.
Verge vs Bitcoin
How does Verge compare to Bitcoin? What are the key differences to Bitcoin? See below for our head-to-head comparison:
|Verge (XVG)||Bitcoin (BTC)|
|Purpose||Focus on privacy. Practical for everyday use.||Decentralized digital currency|
|Founder||Sunerok (psudonym)||Satoshi Nakamoto (alias)|
|Market Cap||Over $2 billion||Over $250 billion|
|All time High||$0.28 (December 2017)||$19,908 (December 2017)|
|All Time Low||$0.000004 (Nov 2014)||$0.06 (July 2010)|
|How long did it take to hit $100?||Verge hasn’t yet hit $100 although it did experience an increase of value of over 1000% in a week in December 2017||51 months|
|Notable Supporters||John McAfee||Jeff Currie (Goldman Sachs)
Peter Theil (Venture capitalist)
Christine Lagarde (IMF)
Marc Andreessen (Early internet Pioneer)
|Consensus Method||Proof of work||Proof of work|
|Network Hash Rate*||4.9 Th/s||Over 40 BTC per hour|
|Difficulty increase||Difficulty is adjusted based on hashrate with a 30 second target time||Every 2,016 Blocks|
How is Verge Made?
Verge is created in much the same way as other cryptocurrencies. Rather than being printed by a bank or government XRP is made by its community.
Like most cryptocurrencies, Verge is based on a decentralized ledger of all transactions, called a blockchain. This blockchain is secured through a consensus mechanism called Proof of Work (POW).
A miner uses their computer in order to solve complicated equations. Once the equation is solved a new block is added to the chain and the miner is rewarded with some Verge.
These equations are defined by an algorithm such as Scypt or SHA-256. The majority of cryptocurrencies only use one algorithm. Different algorithms are more effectively “solved” by different kinds of hardware and this has lead to the rise of specialized machines called ASICs that are designed to mine a specific cryptocurrency.
These expensive machines can give large mining groups undue influence over a cryptocurrency and prevent less well-equipped users from making a profit.
Verge’s Five Algorithms
In order to counter this Verge uses five different algorithms; Scrypt, X17, lyra2Rev2, Myr-Goestl and Blake2s.
Each of these algorithms favors a different hardware setup and so utilizing all five allows for a wide variety of hardware to be able to effectively mine Verge in order to ensure a more equal distribution of newly created coins.
What Drives The Price Of Verge?
Prior to its rebrand, Verge never really managed to make much headway, its value stubbornly stuck below even a single cent. Post-rebrand XVG has managed to do much better for itself and has seen significant growth.
Given the relatively short history of Verge’s growth, it is difficult to pin down specific growth factors however the price outlook for all cryptocurrencies are all governed by a similar set of rules.
The most significant price driver for Verge so far has been media attention, or more specifically, social media attention.
This phenomenon is fairly common and sometimes result in day traders buying up large amounts of the currency and then selling it shortly after, hoping to catch the crest of the wave.
This tactic is viable however you are competing with large numbers of users so it can be difficult to sell at the most profitable moment and if you miss the peak you might even lose money.
New Feature Announcements
You should also watch out for the introduction of new features. When a cryptocurrency adds new features it can help to increase media attention and user interest.
In the case of Verge, you should keep an eye on the RSK platform and smart contracts. This will increase the utility of Verge and traders and users will probably take note.
Another major factor will be secondary partnerships, particularly retail. Verge aims to take the blockchain into everyday use which means that it wants merchants to accept it as a payment method.
Verge already have a handful of vendors willing to accept payment in the cryptocurrency, although there are no major retailers yet. If Verge do manage to gain a partnership with any major merchants then you should expect a sharp spike in value.
Given the increasing risk of cryptocurrency legislation in the wake of Chinese and South Korean moves to regulate the market it shouldn’t be surprising that experts think privacy focused coins will do well.
If Bitcoin holders fear that they will risk losing access to their funds then they will naturally look to transition their assets to anonymous cryptocurrencies like Verge.
What Is The Price Outlook For Verge?
As with most cryptocurrencies the short term price outlook for Verge can be described in one way. Volatile. The Cryptocurrency market is still young and therefore still unstable. You should expect fairly big peaks and troughs in the short term.
In the medium to long term Verge has a positive price outlook. It has experienced fairly explosive growth that self corrected and as more features are added to the blockchain and you should expect the trajectory to continue upwards.
What Do Experts Say About Verge?
Experts are quite bullish on Verge and privacy focused cryptocurrency in general. The most obvious example is McAfee’s recent tweet however other experts have voiced their support for privacy based cryptocurrency
Manfred Karrer – Developer and Founder of Bitsquare
“I expect three things. One, regulations on cryptocurrency exchanges will come. Two, the war on cash, gold and cryptocurrencies will accelerate. And three, privacy-protecting technologies like Monero and Zcash will elevate in importance.”
John McAfee stated that while he didn’t believe the price would rise to $15 he did say: