What is Verge (XVG)? Your ultimate guide

The privacy coin offering completely untraceable transactions

The Verge logo surrounded by numbers                                 
Verge (XVG) is bringing anonymity back to payment transactions – Photo: Shutterstock
                                

Contents

The digital nature of the modern world means organisations and individuals are able to track our every move. Verge is using blockchain technology to change this, allowing users to make truly anonymous payments.

The network started as a fork from Dogecoin, but has since evolved to its own blockchain and cryptocurrency. By scrambling IP addresses, Verge claims to be providing convenient and private transactions for its users.

Although it was founded by Justin Valo, a 43-year-old from Florida, Verge is an open-source project run by a community of volunteers. Decentralisation does have its benefits, but a lack of strong leadership can hinder a project’s progress. Does Verge have the strong sense of direction to become the go-to private coin?

What is Verge (XVG)?

Cryptocurrencies, including bitcoin and ether, have come under fire from some users as they do not offer complete anonymity in the transactions. Verge was one of the first privacy coins to provide a solution to this. It was created in 2014 under the name DogeCoinDark as it was a fork of Dogecoin and provided anonymity for its users. The project rebranded to Verge in 2016.

Verge is a decentralised cryptocurrency that provides completely anonymous transactions by blurring the location and Internet Protocol address (IP address). An IP address is a number associated with a specific computer or computer network, which makes it possible for users to trace the online activities of the device.  Many cryptocurrencies make it possible to find IP addresses from the transactions, including bitcoin. Verge,  however has anonymised this data.

As well as privacy, a key principle for Verge is decentralisation. The project was created by Valo after he decided none of the other coins around were functional or sufficiently private. However, Verge does not have a traditional company structure. Instead, it is a completely open-source project that is run by its volunteer community. These volunteers are motivated by the idea of creating a completely private and decentralised cryptocurrency.

How does Verge work?

Verge’s goals of a truly decentralised, private and accessible cryptocurrency are achieved through the technology it has implemented. The network protects its users’ identity through the existing software of The Onion Router (TOR).

TOR blurs users’ IP by encrypting the information in a “package” which is sent to multiple different devices on the TOR network. When it reaches its final destination, the device will be able to decrypt the information but is unable to determine the original IP address. TOR is integrated into all of Verge’s wallets, meaning there is no single point that can pinpoint the source or destination of the transactions.

Verge can give its users an extra layer of protection with its dual key “stealth address” technology. This allows users to send multiple payments to different addresses even though they were directed to the same address. Stealth addresses make the transaction history even more private and unclear.

Atomic Swaps have also been implemented onto the Verge network, which allow peer-to-peer trading across different blockchains. This removes the need for traditional centralised exchanges and instead allows Verge users to control their transactions. Verge said on its website: “By enabling Atomic Swaps capability, Verge takes a proactive step towards a decentralised future.”

Mining verge coin (XVG)

Verge uses proof of work (POW) protocol to create new blocks on the network. POW verifies blocks by getting miners to solve complex mathematical problems: the first computer to solve the algorithm receives a reward in verge (XVG), Verge’s native currency. Although this is the same protocol as Bitcoin, Verge is more accessible as it has “multi-algorithm mining”.

Multi-algorithm mining supports multiple different types of mathematical problems. In the case of Verge it uses five variations. This is designed to make mining more accessible, as different types of equipment can mine the currency.

Verge (XVG) has not jeopardised transaction speeds either. It takes around five seconds to process and validate a transaction. The transaction speed is a lot quicker than Bitcoin, which can take 10 minutes to complete a transaction.

What is verge coin used for?

Verge coin is the vessel for the network’s private transactions. The cryptocurrency was designed to allow convenient private payments for everyday use. It intentionally set a high max supply of XVG coin, of 16.55bn, to meet this goal.

Cryptocurrencies with a high market cap and low maximum supply, such as bitcoin, result in customers paying for everyday items in microscopic amounts of the currency. For example, at the time of writing a $3 cup of coffee would cost 0.000057BTC, whereas it would cost 150XVG. Verge’s approach is much easier to understand from an everyday consumer standpoint.

Most of the verge cryptocurrency has already been mined, with 16.49bn XVG in circulation at the time of writing.  Like Bitcoin, Verge undergoes halving, which reduces the XVG mining rewards by 50%. A Verge halving takes place every 500,000 blocks.

It has been a volatile price history for XVG coin. Despite launching at $0.000007 on 25 October 2014, it saw its first major price rally four years later. The verge cryptocurrency reached its all-time high of $0.30 on 23 December 2017. However, by the end of January it had dropped below the $0.10 mark.

It continued to fall over the following years, dropping below $0.001. The bearish trend did not last forever and verge coin picked up this year. It started climbing in March and by 6 May it had peaked at $0.68. The price has lost a great deal since then, however, and as of 7 December it is hovering at the $0.02 mark.

Recent news

Travala.com, a blockchain-based travel booking platform, announced on 9 August that users could use XVG as a means of payment. Users could now pay for any of Travala.com’s hotels and activities with the privacy cryptocurrency. Paying for the travel products is as simple as entering the user’s details and choosing the XVG payment option.

Juan Otero, chief executive of Travala.com, said in a press release: “In continuing our commitment towards mass cryptocurrency adoption, we’re very excited to partner with Verge to champion the growth of the crypto community and to bring a new use case to XVG. The team impressed me with their vision for their business, and I have no doubt that we will see them making waves in the crypto community.”

Verge review

Verge has been praised for entering many partnerships, like the recent one with Travala.com, as it draws awareness of the cryptocurrency and demonstrates its real-world value. CoinBureau said that this continued exposure is also brought by Verge’s large community, which are “pushing adoption of the privacy coin”.

However, CoinBureau does warn that Verge faces stiff competition from larger rivals. It points towards Monero and Zcash, both privacy coins that are ranked higher on CoinMarketCap by their market capitalisation.

Yet, some argue Verge has what it takes to stand out from the crowd. Unblock said: “There are several very good privacy coins like Monero and Zcash, and there are good payment coins as well, but there isn’t yet a coin that combines the two features to offer convenience, ease of use and privacy.”

Verge is trying to fill that gap, by providing a decentralised, convenient and private method of payment. The cryptocurrency has set a good foundation over the past seven years, but it still has a long way to go before it becomes the go-to privacy coin.

FAQs

There are 16.49bn XVG in circulation, which is very close to the maximum supply of 16.55bn XVG. A halving takes place on the Verge blockchain every 500,000 blocks. This reduces the XVG per mined block by 50%.

Justin Valo created Verge back in 2014 as a fork from the Dogecoin blockchain. It rebranded to Verge in 2016 and is an open-sourced project run by a group of volunteers.

Verge’s goal is to become a private and convenient means of payment for everyday transactions. It has integrated stealth addresses and TOR to hide users’ IP addresses to ensure every transaction is untraceable.

Further reading

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