Since Bitcoin was created in 2009, more than 5000 different cryptocurrencies are now available to buy, trade and sell. One of these is the Verge coin. However, as you will find out from my guide, Verge is completely different from Bitcoin, as its faster, cheaper and more private!
By the way, did you know that Verge was originally called DogecoinDark before it rebranded? This complete guide will tell you everything you need to know, including how the story began and how it can be used.
I am also going to give you a full explanation as to how the technology works. Some of the terminology is rather complex, however, I am going to break it down in real-world, easy-to-understand examples. These explanations will include purchasing and storing XVG, too!
By the end of this Verge coin guide, you are going to be an expert! So, what are you waiting for, let’s find out exactly what Verge coin is!
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- Multiple updates
- Amazing for privacy
- Much faster than Bitcoin
- Highly scalable
- Not as private as some other cryptocurrencies
- Still associated with the Dark web
Table of Contents
What is Verge XVG?
The Verge coin started its cryptocurrency journey in 2014, going by the name of DogecoinDark. The reason it was conceived was to create a truly private cryptocurrency. The founder of Verge felt that Bitcoin wasn’t anonymous, so he decided to build a new blockchain where transactions could not be traced.
Interestingly, even to this day, nobody knows who created Verge, as the founder still goes by his username “Sunerok”. This is like the Bitcoin creator, who is only known by his pseudonym “Satoshi Nakamoto”!
Just like the Verge coin founder, many people believe that sending and receiving money privately is an important human right. For example, when you go on holiday and use your debit card, your bank knows where you are, how much money you have and where you are spending it!
Some people don’t mind a private company storing lots of information on how they live their lives, but most people think that it’s wrong!
The Verge blockchain is also an open-source project, meaning that anyone can suggest changes and improvements. It then goes to a vote, and if most people like the idea, the changes are made!
Verge coin is also known by its ticker symbol — XVG. In total, there will be a maximum supply of 16.5 billion coins, which is much more than Bitcoin’s 21 million!
I will explain how the technology works in more detail later on, however, the important thing to remember about Verge coin is that nobody knows who sent or received a transaction. Furthermore, the Verge blockchain can process a transaction in just 30 seconds, which is a big improvement on Bitcoin, which normally takes 10 minutes!
Verge coin is also much more scalable than Bitcoin, as it is able to process a maximum of 100 transactions per second, with Bitcoin only managing 7!
Note: You might have heard about “Scaling” or “Scalability” in some of my other reviews. This is really important; each blockchain can only process a maximum amount of transactions per second. As the network reaches this maximum number, transactions become slower and more expensive!
Another important feature of Verge coin is that it has five mining algorithms, which I have listed below.
Although these algorithms probably make no sense to you, let me explain why this is important! Mining is basically a way for people to earn extra coins in return for using their extra computing power.
When they do this, they help verify a transaction, keeping the network decentralized. Without miners, it wouldn’t be possible for a blockchain to operate!
Although people don’t actually see this when they mine, what they are actually doing is solving really complex puzzles. These puzzles (or algorithms) are so difficult that no human could solve them. However, as Bitcoin has become so popular, people need to buy really expensive hardware to be able to solve the puzzle, meaning you can only mine if you have lots of money!
Now that you have an understanding of why Verge coin started and how it compares to Bitcoin, let’s figure out what it can be used for.
How Can the Verge Coin be Used?
Much like any other cryptocurrency, Verge coin can be used to send and receive funds between wallets. The ultimate aim is that it will be used as a global payment system. Although this might take a long time, the technology is perfect for this purpose.
Firstly, think about how you would send funds to a family member living in a different country? You can go to your local bank, sign some forms, and transfer the funds. However, this is normally really expensive and takes days to arrive.
And what about if the person you are sending the money to lives in a remote village in Africa? There might not be any banks for miles! Another option is using a money transfer company like Western Union, but again, this is really expensive!
Instead, if you were to transfer funds using Verge coin, your transaction would reach your family member in just 30 seconds, costing less than a cent. You also wouldn’t need to drive to your local bank/Western Union branch and fill out lots of forms, as you can do it anonymously from your computer!
In the real world, when you spend fiat currency using notes or coins, you don’t need to give anyone your name and address, nor do you need to show any identification. This is the same idea as Verge, however instead of using paper notes, you spend money virtually.
Note: When I use the term “fiat currency”, it basically means real-world money like US Dollars or Euros. Verge (XVG) is not fiat money, it is a cryptocurrency. This means that no central bank can control it!
Another reason that people buy Verge coin is as an investment tool, hoping that in the future its value will keep rising. When people first bought the Verge in 2014 (don’t forget it was called DogecoinDark back then), its value was worth just $0.000005.
It didn’t really grow any higher than $0.00001 over the next two years, but since it changed its name, the price has gone crazy! In late 2017, Verge reached its highest point at $0.29!
If you bought Verge in 2014 and held on to it until late 2017, you would have made a profit of more than 5 million percent!
Now that you know how Verge coin can be used, it’s time to take a closer look at the technology. I hope you are ready, as things are about to get serious now!
Also, if you want to exchange Verge a good rate, you should try using the Binance crypto swap platform. After you've acquired some XVG coins, though, you'll probably want to store them somewhere safe - in this case, Trezor is your best bet.
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How do Transactions Work?
Before I get started, it is important to remember that Verge was created because the founder felt that Bitcoin was not truly private. Because of this, it would be a good idea to compare the two different blockchains. Also, the Verge team is working on a new upgrade which will make things even more private, but I will explain that part after.
So, when you send a transaction using the Bitcoin system, you need an internet connection. That’s fairly obvious, right? However, when you connect to the internet, you reveal lots of information that other people can access.
Imagine you want to access Facebook to check if you have any likes on the recent photo you uploaded. To do this, your ISP (Internet Service Provider) will send a message to Facebook, who will then have your personal IP address.
If you have WiFi at home, your IP address will always be the same, and it can be used to get a rough idea of where you are. This is the same when you send a Bitcoin transaction, as the network can see your personal IP address. That's why using Bitcoin is not truly private.
This is where the Verge is different. When you access the network, your IP address is not revealed to anyone! To do this, they use two different methods.
The first option is using TOR (The Onion Router) as the middleman between your IP address and the Verge blockchain. Tor is a peer-to-peer network that uses multiple different servers to hide your true location. It does this by constantly changing the IP address that is sent to the Verge network.
The second option is using something called I2P, which is very similar to TOR but even more anonymous. While both outgoing and incoming messages on TOR use the same path, I2P uses individual paths. In a real-world example, this is like listening in to a telephone conversation, but only being able to hear one person!
Now that you know how the Verge technology works at present, I am going to explain what the team is currently building to make the transaction even more private!
How is Verge Going to Make the Transaction Even More Private?
The next stage for the Verge coin team is to create something called the Wraith Protocol. Again, to understand how it works, I am going to explain what happens when you use Bitcoin.
When you send a transaction with Bitcoin, you send coins from a wallet address to another wallet address. For example, “Address ABC123 sends 1 Bitcoin to address DEF456”. As soon as the transaction is completed, everyone in the world can view it on the public blockchain.
Although you won’t be able to see the real name of the people that sent and received the coins, you can see the details of the transaction. Once you have the Bitcoin address, you can then investigate what other transactions that person has made. You can also check how many Bitcoins in total they have!
This is where the Wraith Protocol will be different. Check out the example below:
- John decides to send Bob 100 Verge (XVG) coins.
- John’s address is V123 and Bob’s address is V456.
- John confirms the transaction and 30 seconds later Bob receives 100 Verge (XVG) coins.
- The only thing that the network will be able to see is that 100 Verge (XVG) coins were sent.
- The transaction will look like this: XXXXX sent 100 Verge (XVG) coins to XXXXX
With the Wraith Protocol is built, it will make a Verge even more anonymous! Now that you know what Verge is working on, I am going to explain whether I think the coin will grow or not.
Potential of Verge?
Trying to understand the potential of Verge is a difficult task. One argument would say that their blockchain is really fast (30 seconds VS Bitcoin’s 10 minutes) and quite scalable (100 transactions per second vs Bitcoin’s 7). Furthermore, the cost to send a transaction is about 0.01 XVG, which is practically free!
If the Wraith Protocol is a success, then the price could continue to grow. Verge is also working on a project called Rootstock. This will allow the Verge blockchain to process smart contracts, something that would be a real achievement.
However, it is also important to remember that the Verge is not the only blockchain to offer privacy. Projects like Monero and Zcash all do the same thing. In fact, Monero’s technology is actually more private than Verge, however, transactions are also more expensive. This is something to consider before you buy any Verge coins!
Ultimately, the cryptocurrency markets are really volatile, meaning that no one can predict the future! Just make sure you never invest any money that you can’t afford to lose.
Is Verge Secure?
Like most cryptocurrencies, your coins are extremely safe as long as you store them in a secure Verge wallet. XVG is only compatible with a few wallets, so make sure you choose one that does not have access to your private keys.
You can download the official Verge wallet on to your computer, which is the safest option.
If you want to mix security with convenience, lots of people like to use Electrum. Downloading the Electrum wallet will take up less space on your hard drive and is more user-friendly.
The main thing is that you never give anyone your private keys, because if you do, they will be able to steal all your Verge coins. It is also a good idea to write your back up phrase down and keep it somewhere safe. This means if you forgot your wallet password, you can regain access.
There was a hack on the Verge Twitter account recently, in which the hacker was trying to get people to send them coins. Never send anyone coins unless you know for sure who you are sending them too! A legitimate project would never contact you asking you to send them cryptocurrency.
How Can it be Abused?
One of the main concerns about Verge coin is that it can be used by bad people who want to commit crimes anonymously. This was one of the main reasons that Verge changed its name, as DogecoinDark made it sound like it was ideal for the Dark Web.
Note: The Dark Web is a term often used to refer to websites that are accessed via Tor browsers and used to do illegal things. A good example of this was the Silk Road, which was the “eBay for criminals”. People could buy drugs, weapons, stolen credit cards and much more, using cryptocurrency to trade.
One possibility for its illegal use is for money laundering. If a criminal puts their money into Verge, it would be almost impossible for law enforcement to trace it!
The Verge coin would also be popular for ransomware attacks, which is when criminals send a virus to your computer. The virus will say that your computer is locked until you send money. As the Verge coin is anonymous, it would be very difficult to find out who is responsible for the attack!
I hope that you have enjoyed my guide on the Verge coin and that you found it both interesting and educational! Although the technology is quite complicated, I hope I explained everything to you in a simple way. This means that you should now be an expert in Verge cryptocurrency!
So, what do you think about the project? Do you think it will one day become a global payment system? When you compare the technology to Bitcoin, it certainly has lots of advantages. It faster, cheaper and much more private.
Although Verge has lots of competition, it could become really big if its Rootstock protocol becomes a reality. This will mean that Verge can be used for things other than just financial transactions!
If you want to use Verge FOR financial transactions, though, and are looking to purchase some of the coins for yourself, there's no better place to do it than on Binance. The cryptocurrency exchange in question is the leading platform for exchanging Verge coins - the process would look a little something like this:
- Register on Binance;
- Choose to purchase Verge coins (XVG);
- Decide on your payment method of choice;
- Check if everything is correct, and your wallet is all set up;
- Make the purchase!
I would also love to hear thoughts on whether you think the price of Verge will continue to grow in 2020, or whether you think other privacy blockchains are a better investment. Also, if you're actually interested in the Verge coin, make sure that you only purchase it from some reliable exchanges, and store it in high-end wallets!
The content published on this website is not aimed to give any kind of financial, investment, trading, or any other form of advice. BitDegree.org does not endorse or suggest you to buy, sell or hold any kind of cryptocurrency. Before making financial investment decisions, do consult your financial advisor.