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Is Verge the Next BIG Cryptocurrency? Read this Beginner’s Guide to Find Out

Is Verge the Next BIG Cryptocurrency? Read this Beginner’s Guide to Find Out

2017 was one of the best years not just for Bitcoin but hundreds of other cryptocurrencies. But as the digital currencies started gaining mainstream attention, regulatory bodies all over the world began to tighten the noose around the crypto industry. As a result, a large number of investors started focusing on digital currencies built to deliver privacy.

While Monero is probably the most popular privacy-focused crypto token, there are now several others that are created to offer anonymity to the users. One such popular cryptocurrency is Verge (XVG). Founded in 2014 as DogeCoinDark, Verge uses a host of advanced technologies like I2P and Tor to offer anonymous transactions.

Several cryptocurrencies managed to grow by 1,000% to even 10,000% in 2017 but XVG’s growth was something extraordinary. It started 2017 around $0.000019 per XVG and reached $0.38 in December 2017. So, in about 12 months, XVG gained almost 1,582,000%. In other words, if you had made an investment of $100 in XVG in December 2016 and sold the same around its high of $0.38 in December 2017, you could have been a millionaire by now.

But 2017 is long gone and the crypto markets has somewhat crashed since January 2018. So, is XVG still a good investment now? Can it get as big as Bitcoin or other top cryptocurrencies in future? Knowing about what XVG is, how it works, the team behind the project can help you make a better decision.

What is Verge (XVG)?

As per Verge’s official website, Verge is a “secure and anonymous cryptocurrency with a focus on privacy”. While there are now various crypto projects built around this concept of privacy and anonymity, XVG is one of the few that can actually deliver what they promise.

What sets Verge apart from hundreds of other crypto projects is the fact that it is one of the few projects that are entirely community led and open source. No foundation or company is behind the project and the team members are from many different parts of the world. Verge was introduced as DogeDarkCoin in 2014, taking inspiration from other popular cryptocurrency Dogecoin. The project was rebranded in 2016 and renamed as Verge.

In the past two years, the project has moved towards legitimacy in order to make it eligible for mass adoption. But how does Verge plan to deliver this anonymity and privacy? Three words- I2P, Tor and Wraith Protocol! Let us try to understand these technologies to have a better idea of how XVG actually works.

What is I2P?

I2P is a modern day solution for anonymous connections. While Tor can provide circuit routing based on the directory, I2P provides dynamic routing of the information packets. Like Tor, I2P does not need any directory and this helps in reducing network interruptions and congestion.

I2P works by dividing the routing process in two different tunnels, one for incoming and other for outgoing. This means that information sent to another website or computer uses a different path and the information received by your website or computer uses a different path. This also means that if anyone tries to see this information, they would only be able to see half of it.

Verge takes advantage of this I2P on its network and allows users to route their transactions through I2P or Tor. However, no matter what you select, IP anonymization is available for all the transactions.

What is Tor?

Tor or “The Onion Router” is already a very popular scheme for anonymizing IP addresses. The technology is named as such because it actually wraps your information in multiple encrypted layers. Rather than routing the internet connection from a single ISP, the connection is bounced between multiple relay computers of its P2P network.

Due to this, the IP address of the information you send is changed multiple times making it almost impossible for anyone to know about the original sender. With this technology, the nodes never know the entire route the information would take. As a result, the information quickly turns untraceable and anonymous. However, it makes use of a directory for identifying path connection which is not used by I2P.

What is Wraith Protocol?

Unlike most other cryptocurrencies, Verge allows the users to select between its public and private blockchains. The transactions on public blockchain offer speed and transparency while private transactions cannot be viewed on the public ledger.

This is accomplished by combining stealth addresses and Tor. With the help of Stealth addresses, funds can be sent to address that are generated only for a single use. The funds can only be redeemed by the actual recipient. Even Monero uses Stealth addresses to offer privacy to its users. However, the cryptography of Monero is more complex and there are also other features which ensure more privacy than Verge.

The cryptography used by XVG is almost similar to the Elliptic Curve used by Bitcoin and is known as Elliptic Curve Diffie Hellman cryptography. It enables senders and receivers to agree and share transaction signatures and keys without letting anyone else know about it.

Verge Mining

Now that you know how Verge offers privacy and anonymity, let us have a look at how you can mine XVG.

Like most of the other cryptocurrencies, Verge too is based on blockchain and has a PoW (Proof of Working) mining algorithm. But while most of the cryptocurrencies use a single algorithm, like SHA-256 or Scrypt, XVG has 5 different algorithms- X17, Scrypt, Blake2s, Myr-Goestl, and Iyra2Rev2.

This is because, the use of high-end mining rigs known as ASICs has made mining of a lot of cryptocurrencies, including Bitcoin, a somewhat centralized activity. Only the companies or mining groups who could afford such expensive mining rigs and the electricity costs can mine such digital currencies profitably.

So, as XVG uses 5 different algorithms, many different types of mining hardware can be used to mine XVG. You can even use your desktop computer or laptop for XVG mining. Verge blocks are mined every 30 seconds and the block time is equally divided between all the 5 algorithms. Maximum supply of XVG would be 16.5 billion coins and out of this, 9 billion coins have already been mined in 2014. From 2015, only 1 billion XVG can be mined in a year.

Team behind Verge

As mentioned above, Verge is a 100% open-source project and the core team is spread throughout the country. Even the official website of Verge only provides the username of the team members. As per the website, Sunerok is the creator of Verge and also the Lead Developer of the project. Marvin, StanFaas, EdwinB89, and Sourcedexter are some other important members of the development team.

Even the blackpaper of Verge has only been signed by the team members with only their usernames. However, there are links to the social media profiles of all of their team members available on the Verge website. Moreover, many of the team members often upload videos on the official Verge currency channel on YouTube.

DDoS Attack on Verge

Verge cryptocurrency has been a target of DDoS attacks not once but twice in the past few months. The first attack was in April 2018 when hackers stole more than 250,000 XVG’s. The hackers were able to exploit a particular glitch on the Verge blockchain to mine several blocks simultaneously using the Scrypt algorithm. A hard fork of the Verge blockchain was soon announced after the hack to avoid such attacks in future.

However, about 20 days later the hackers used another glitch to steal more than 35 million XVGs. While there haven’t been any DDoS attacks since May 2018 and the XVG developers claim that all the glitches are now fixed, the attacks did affect the reliability of the project.

Partnerships and Future Plans of Verge

In April 2018, Verge announced a partnership with MindGeek, a Canadian IT company which owns a number of adult entertainment portals like PornHub, Brazzers, and more. It is said that the company has a daily revenue of more than $500,000.

While the Verge community was expecting a partnership with a company like Amazon, Walmart, or Alibaba and most were disappointed with the MindGeek announcement, it is still one of the most crucial partnerships for Verge as it takes them a step closer to their goal of mass adoption.

The partnership was soon followed by another partnership with TrafficJunky, one of the largest online advertising networks. Since then, many new partnerships like TokenPay, MoreFun, etc. have been announced. There were also reports that XVG would be partnering with Spotify but the music streaming portal has denied these reports. You can also visit the Vendors section on XVG’s website to check the list of vendors who currently accept XVG. There are more than 100 vendors listed here.

Apart from the partnerships, Verge also has some very popular supporters like John McAfee who is one of the most popular names in the crypto community. Several other crypto experts too support the technology behind XVG.

Moreover, Verge also announced the beginning of its atomic swap with almost all the top cryptocurrencies. This interoperability of the XVG blockchain can make it a preferred option for users who want to swap their cryptocurrency to another cryptocurrency.

Rootstock, another crypto project, is aiming to add another sidechain on the Verge blockchain for processing smart contracts. The project is aiming to process 2,000 transactions every second with the help of off-chain settlement just like the Lightning Network.

Price Fluctuation of Verge

As per CoinMarketCap, Verge currently has a market cap of $337,046,554 and is the 37th largest cryptocurrency. Its current price is $0.0223 with a 24-hour volume of $3,311,420 XVG and a circulating supply of 15.05 billion XVG. While it reached a high of $0.38 in December 2017, it has fallen considerably since the beginning of 2018.

But the massive fall is not just limited to XVG. The entire market has been struggling since the beginning of 2018 and Bitcoin, the largest of them all, has fallen almost 70% from its December 2017 high of $19,000.

Verge is actually doing much better than many other crypto projects. With several new partnerships and integrations, XVG is expected to rise again and even surpass its previous high. But for this to happen, the entire crypto market too needs to recover from its current lows.

Should You Invest in Verge?

Most crypto investors generally focus on two important factors when selecting a cryptocurrency- the technology behind the coin and the team. If these are the two factors that you consider as well, Verge is definitely a great investment. It is one of the cheapest cryptocurrencies with a solid technology and a transparent team behind it.

Whether or not Verge will be the next big cryptocurrency is a topic of discussion but there is no denying the fact that at its current price of $0.0223, XVG can be an excellent investment opportunity for people who have missed the previous crypto rally. However, you should know that it could take several months or even years for XVG to make any significant upward movement.

Where to Buy XVG?

XVG is a popular cryptocurrency and is now available on several top exchanges like Binance, Fex, Bittrex, Upbit, HitBTC, Cryptopia, LiteBit, Yobit, and Bitfinex. There are also several official XVG wallets for desktop computers and mobile phones which you can use for storing XVG after the purchase.

Conclusion

While Bitcoin made the blockchain technology popular, not every individual wants their monetary transaction accessible to everyone. It is crypto projects like Verge that such individuals would prefer over something like Bitcoin as they allow them to keep their transactions anonymous and private.

No matter if you believe in the technology behind XVG or are looking for a reliable cryptocurrency that can help you earn handsome returns, this can be an excellent time to invest in Verge as the crypto markets are currently going through a major downtrend. However, one should avoid investing all of their money in Verge or any other currency for that matter.

Divide your investment across a few solid crypto projects and hold for at least a year or two to improve your chances of making some decent profits.

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