Private Cryptocurrencies: Verge
Verge is an open-source, decentralized cryptocurrency, claiming to offer completely anonymous transactions. This feature is achieved by obfuscating the location and IP address of the transacting participants using TOR and I2P network layers.
What is Verge?
Verge is a fork of Dogecoin, created in the year 2014, and a rebranded version of Dogecoindark. This transformation took place in 2016. Interestingly, even to this day, nobody knows who created Verge, as the founder still goes by his username “Sunerok”. This is very similar to the case of Bitcoin’s creator, who is only known by his pseudonym “Satoshi Nakamoto”.
Verge ensures anonymity by use of multiple anonymity-centric networks such as The Onion Router (TOR) and Invisible Internet Project (I2P). TOR protects users’ identities by bouncing their communications over a distributed network of relays and tunnels spread across the globe. Although anyone can view the various transactions occurring on the Verge public ledger, the use of TOR and I2P network layers hide the location as well as IP addresses of the transacting participants..
Since popular public ledgers and common cryptocurrencies like bitcoin often face challenges in protecting participants’ complete anonymity, cryptocurrencies like Verge that offer unique ways to hide users’ identities have led to increased use and popularity of such private ledgers.
Much like any other cryptocurrency, Verge coin can be used to send and receive funds between wallets. Also, you can send funds to family members living in a different country where 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. However, if you were to transfer funds using Verge coin, your transaction would reach the recipient 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
Verge’s blockchain is really fast (30 seconds vs Bitcoin’s 10 minutes) and pretty scalable (100 transactions per second vs Bitcoin’s 7). Furthermore, the cost to send a transaction is about 0.01 XVG. Nonetheless, it is also important to not that the Verge is not the only blockchain to offer privacy — projects like Monero and Zcash all do the same thing with Monero’s technology actually being more private than Verge, but, in turn, their transactions are also more expensive.