Verge (XVG): Cryptocurrency Overview and Examples

What Is Verge (XVG)?

Verge (XVG) is a decentralized cryptocurrency that offers completely anonymous transactions by obfuscating the location and Internet Protocol (IP) address of participants. It trades as XVG on leading cryptocurrency exchanges.

Verge was originally known as DogeCoinDark when it was created in 2014. In 2016, it was rebranded as Verge. It started as a fork of Dogecoin and aimed to provide an anonymous alternative. Verge belongs to the category of "privacy coins," along with Monero, Pivx, and Zcash.

Key Takeaways

• Verge (XVG) offers completely anonymous transactions by obfuscating the location and IP address of participants.
• Originally known as DogeCoinDark, Verge was rebranded in 2016. It was created as an anonymous alternative to Dogecoin.
• Privacy coins like Verge have increased the popularity of private ledgers that protect users’ identities.

Understanding Verge (XVG)

Verge focuses on anonymity by obfuscating users’ IP addresses, which are identifying numbers associated with computers or computer networks. Obfuscating IP addresses makes transactions untraceable.

Popular cryptocurrencies, including Bitcoin, face challenges in protecting participants’ anonymity. This has led to the rise of private ledgers, such as Verge, that offer unique ways to hide users’ identities.

Verge ensures anonymity by using anonymity-centric networks like The Onion Router (TOR) and Invisible Internet Project (I2P). TOR bounces communications over a distributed network of relays and tunnels, while I2P encrypts user data and sends it through a globally distributed network run by volunteers.

While Verge’s public ledger allows anyone to view transactions, the use of TOR and I2P network layers hides the location and IP addresses of participants.

Other cryptocurrencies like Monero and Dash also claim to offer high levels of privacy and anonymity, but they rely on cryptographic techniques and implementations. This tradeoff between privacy and transparency can make it challenging to publicly verify transactions, a key requirement for decentralized cryptocurrencies.

How Is Verge Different From Bitcoin?

Bitcoin has a limited supply of 21,000,000 tokens, while Verge has a total supply of 16,555,000,000 tokens. Both Verge and Bitcoin use a proof-of-work (PoW) system to verify blockchain transactions.

Goals of Verge (XVG)

Verge aims to secure user anonymity by leveraging the technology of TOR and I2P networks, rather than relying heavily on cryptography. Verge’s founders believe that an open ledger is essential for participants to verify transactions and for others to authenticate and monitor blockchain developments without revealing participants’ identities.

The anonymity of Verge led to an adult website network exclusively accepting Verge cryptocurrency payments in April 2018. As of September 2021, Verge is ranked 152 in terms of market capitalization among cryptocurrencies.