Since the emergence of the Bitcoin payment system in 2009, cryptocurrency holders have been concerned about the security and privacy of transactions. The same bitcoin, despite all its popularity, is not completely confidential due to the peculiarities of the blockchain. And while the ability to trace the chain of transactions to the very beginning helps to avoid fraud, this breach of privacy confuses financial participants. In fact, in the Bitcoin system, it is enough to disclose one wallet address, and the confidentiality of transfers will be lost.
Initially, cryptocurrencies were developed with the aim of creating a single decentralized payment instrument for private transactions between users of payment systems. Crypto money is designed to get rid of the influence of banking systems and government structures. Accordingly, privacy is one of the main characteristics expected from a cryptographic currency.
The required level of privacy is promised by the Verge (XVG) cryptocurrency. Its developers have focused their efforts on creating an ideal virtual currency in terms of transaction privacy. In their developments, they used the principles of private Internet networks and successfully implemented them in blockchain platforms.
But how safe is it to use Verge? What if the XVG coin is a scam? What are the prospects for the Verge project in the future? To answer these and other questions, it is worth studying the history of the project and its features.
The Verge cryptocurrency is an altcoin, the developers of which have hardforked the Bitcoin blockchain and implemented the principles of the TOR and i2P private networks into it. Thus, a high degree of protection of personal data and information about financial transactions of transaction participants was achieved. The use of private networks made it possible to hide the IP addresses of users of the payment system and prevent tracking of transactions.
The counterparts of the Verge coin in the cryptocurrency market are the altcoins Monero and DASH, they were also developed to ensure the privacy of transaction participants. All three currencies entered the market in 2014 and are competing projects. The Verge coin has the following advantages over its competitors:
the platform continues to evolve, its developers actively cooperate with users of the payment system and promptly eliminate the identified shortcomings;
Verges development is sponsored not by private capital alone, but by investment from the international community;
Verge e-wallets are designed for all existing operating systems and types of devices, their protection is equally high;
SPV technology was introduced into the platform, which allows making transactions as quickly as possible;
the activities of developers are private and not controlled by government agencies or private investors;
the open source code of the platform allows you to create applications on its basis and implement the Verge payment system in any Internet resource.
The listed advantages of the project make it possible to highly appreciate the possibilities of Verge as a universal means of payment, which is able to oust less private and more volatile coins from the market.
The Verge cryptocurrency appeared in 2014. At that time, the name of the coin was DogeСoinDark. Surprisingly, Verge was developed as an experiment, a joke, its creators just wanted to show the possibility of developing and using a virtual currency with complete privacy of transactions. Therefore, the name of the altcoin was originally DogeСoinDark - a joking designation of the "dark" side of using virtual currencies.
At the beginning of development, no one seriously considered the prospects for the development of the project. Verge is a Russian project, and therefore changes in Russian legislation could seriously affect the operation of the platform. At that time, in 2014, the Russian government announced the development of a draft law on state regulation of virtual currencies. In fact, there were no changes in Russian legislation regarding the functioning of the mechanisms of the digital economy, so in February 2016 the project changed its pilot name to the representative name Verge and began to develop actively.
Like many cryptocurrencies, Verge relies on Proof-of-Work (PoW) technology to quickly confirm financial transactions. Low volatility of the coin is ensured by the emission of 16.5 billion tokens, and almost all tokens have already been mined, miners have about 2 billion coins left to mine. Therefore, the developers predictions that the altcoin stock will be exhausted by 2025 will not come true, the coin will obviously be mined earlier. The only thing that can slow down this process is the complication of the mining process.
Verge is an independent project, therefore fundraising for new developments on the Verge platform is carried out by launching multipools. Judging by the fact that the team periodically launches new updates and projects, the cryptocurrency community supports the currency and the Verge platform quite well. This is confirmed by the history of the growth of the altcoin rate.
The Verge coin hit the cryptocurrency market on October 28, 2014. Until the beginning of June 2017, the XVG altcoin rate remained in the range of 0.000011-0.000019 USD per coin, then a rapid growth began - on December 24, 2017, the coin was traded at 0.2619 USD. After that, the rate began to fall, making unpredictable jumps, but the value of the coin in relation to the original rate increased significantly. In January 2020, exchange rate fluctuations remained within the range of USD 0.0034–0.0037, and the market capitalization of the currency amounted to USD 58.3 million.
Perhaps the reason for the fall in the exchange rate was excessive confidentiality. The fact is that the identity of the developers is hidden, the project representatives work under pseudonyms and do not disclose their names. This policy is quite logical for a platform with complete transaction privacy, but it still negatively affects the overall image of the company.
The dynamics of the popularity of the Verge cryptocurrency over the past year has remained at the same level. The greatest interest in the XVG altcoin is shown in Australia, Norway, New Zealand, Spain and Singapore, and this currency is also actively traded by representatives of France and Canada.
The popularity of Verge can also be judged by the number of cryptocurrency exchanges on which this coin is traded. Traders buy and sell XVG on Binance, UPBit, FexPro, Cryptopia, Godex, BlockNet, Bittrex, HitBTC, Bitfinex, SouthXchange, Coinspot and Litebit. But most importantly, many online resources selling content or services accept XVG coins as a means of payment. The list of these resources is constantly growing, you can see it on the official website of the Verge project. By the beginning of 2020, the list of resources that accept the Verge altcoin as payment included the following:
kick ass coins;
R3BEL FITNESS LLC;
The popularity of the currency and its spread as a decentralized means of payment is explained by the fact that it has been on the market for a long time and maintains a predominantly stable exchange rate. Users are also attracted by privacy and high transaction speed.
The open source platform attracts investors and developers from all over the world. And since Verge is not being promoted through aggressive marketing campaigns, traders confidence in the predictions and announcements regarding this project is growing.
The main purpose of the XVG coin is to serve as a means of payment in private transactions. Of course, such a function of the altcoin forces many to classify it as a tool for conducting shadow business and accuse the project developers of aiding tax evasion. However, in reality, the confidentiality of calculations is not intended at all for this.
If we compare cryptocurrencies with ordinary fiat money, we can draw the following parallel: a public blockchain is an analogue of an open demonstration of bank payments.
In theory, the publicity of calculations leads to such consequences as loss of competitiveness, disclosure of trade secrets, and the emergence of vulnerability to the actions of fraudsters.
Therefore, the privacy of transactions is not needed to avoid taxation, but to keep information about transactions secret.
The importance of privacy has already been appreciated by other platforms based on the public blockchain, so some of them are preparing for a hard fork and a change in the functionality of payment systems. For example, Ethereum developers have expressed a desire to make adjustments to the code and provide new mechanisms for verifying transactions, protecting confidentiality, and maintaining privacy. This trend indicates the relevance of the creation and functioning of the XVG coin, as well as the prospects for using this altcoin.
Financial transactions in the Verge payment system are provided due to the Wraith protocol technology, which allows users to choose the appropriate protocol, thereby determining what type of transaction (hidden or public) will be carried out. The launch of the Wraith technology allows you to hide information about the nature of the transaction and its participants, but if desired, the user can disable this technology and the users operations will be tracked through the platforms blockchain.
The speed of transactions and their confirmation is provided by the technology of verification of simple payments (SPV), thanks to which the transaction speed in Verge payment system is 5 seconds, and its confirmation - 25 seconds. 6 thousand transactions are carried out in the system within a minute.
Thus, in addition to the advantage in the form of payment confidentiality, the Verge payment system wins over others also due to the speed of transactions.
Financial analysts highly appreciate the prospects for the development of Verge in the crypto industry and the digital economy in general. The following speaks in favor of the excellent investment prospects of the project:
the announced implementation of private smart contracts in the Verge blockchain;
work on expanding the platforms capabilities to 120 thousand transactions per minute;
increasing the list of companies accepting XVG coins as a means of payment;
availability of buying Verge tokens on most popular cryptocurrency exchanges;
open source platform.
The listed advantages of the Verge project give grounds to assume that the XVG coin rate will grow steadily over the next few years.
At the same time, numerous competitors in the cryptocurrency market and threats from the legislative branch cast doubt on the prospects for the development of Verge. Therefore, long-term investments in Verge are promising, but rather risky.