What is Verge (XVG)? – New Zealand’s Verge Overview
What is Verge (XVG) and how to buy it? Take a closer look and learn all about XVG with Easy Crypto.
Verge (XVG) & Privacy Coins Explained
- Contrary to popular belief, cryptocurrencies like Bitcoin are not anonymous
- Verge is one of several privacy coins which facilitates anonymous transactions to safeguard user privacy
- XVG coins protect user anonymity by executing transactions via TOR and the I2P Internet traffic anonymization platform
What are the Benefits of Privacy Coins like Verge (XVG)?
Privacy coins like Verge have spiked in popularity over the course of the past two years. However, contrary to popular belief, this isn’t due to XVG coin users wishing to engage in illicit activity online.
Instead, privacy coins like Verge play an increasingly important role in protecting cryptocurrency users from third-parties interested in analyzing publicly viewable personal information.
What are Privacy Coins & Why are They Important?
Contrary to what many non-cryptocurrency investors believe, coins like Bitcoin are neither private nor anonymous. However, privacy and user anonymity are becoming increasingly important for cryptocurrency users.
Every transaction on the Bitcoin (and other decentralized transaction ledgers) is logged publically and permanently.
This means that as soon as someone knows a persons wallet address, that person can view what is effectively another person’s bank balance and personal transaction history.
Using Verge to Safeguard Cryptocurrency User Privacy
Verge was launched in 2014 as DogeCoinDark. Immediately Verge (then DogeCoinDark) was well received by investors, though not just because of user anonymity benefits.
Capable of processing 100 transactions per second, Verge is lightning fast compared to legacy coins like Bitcoin. What some refer to as XVG coin also uses five mining algorithms. These make Verge impossible to unofficially fork, and allow everyday users to mine coins via most modern desktop CPUs.
Like Bitcoin and Litecoin, Verge has a publically viewable transaction ledger. However, unlike coins like Bitcoin, Verge processes transactions in such a way that no wallet address can be linked to a user’s real identity or geographic location.
TOR & I2P Transaction Processing
TOR (The Onion Router) is the world’s oldest and most widely trusted Internet anonymity software. To obfuscate user identities and locations, XVG coin routes all transactions via TOR and a secondary Internet anonymity service called I2P.
- Transactions routed via Tor and I2P can never be associated with the real IP address of a users Verge wallet
- TOR and I2P obfuscate user locations by routing transactions via randomly located TOR and I2P network nodes
- The Verge-QT wallet can itself be physically encrypted to protect user privacy (and security) in the event of wallets being lost or stolen
The Verge Wraith Protocol
In 2017, Verge further enhanced user privacy by releasing a network update codenamed the Verge ‘Wraith Protocol.’
As of 2018, this allows users to select whether they would like Verge transactions recorded on the Verge publically viewable transaction ledger, or a non-public ledger, somewhat like how Navcoin’s duel blockchain used to work.
Verge (XVG) takeaways
Other cryptocurrency investors regard privacy coins like Verge with suspicion. However, this hasn’t stopped Verge from establishing payment partnerships with major brands. To date, these include the likes of Pornhub, FLOGmall, and TokenPay.
It is also worth noting that Verge focuses on the goal of achieving mainstream acceptance as a smart coin which will appeal to particularly privacy-conscious investors.
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Disclaimer: Information is current as at the date of publication. This is general information only and is not intended to be advice. Crypto is volatile, carries risk and the value can go up and down. Past performance is not an indicator of future returns. Please do your own research.
Last updated August 29, 2022