Verge is a cryptocurrencies with the focus on privacy, which aims to keep transactions anonymous and impossible to track while allowing high performance and fast confirmation times.
The good Thing about the project is to be open source and lead by a community. So There are no companies or foundations behind Verge. In fact, the central team signed the whitepaper with the names of users, showing that the community is committed to privacy, anonymity and decentralization.
But the project did not begin with the name we now know, but as DogeCoinDark in 2014. In February 2016, In the case of moving away from both the Doge meme and the connotation that Dark represents.
DogeCoinDark changed his name to finally be called Verge. For the past two years, the currency has directed its plans to legitimize market-based mass adoption.
Of Course It does not target the same market as Bitcoin, as Verge seeks to be the best private currency. On The latter we will focus on this entry, knowing what measures has been implemented by Verge to achieve the long-awaited privacy. We will also see the technology behind all this and make the project so interesting.
Anonymous user Connections
Verge lash out the problem of lack of privacy changing how users connect to the network.
Let’s take the example of the Internet we all know, which is quite simple. In the case of sending information between computers we use an Internet service provider (ISP) or another intermediary to facilitate the sending of the message.
When we send a message our ISP can see our unique identifier on the Internet, the IP address. The ISP needs to have the IP address of the target computer so that it can route the message.
This is good for normal internet traffic, but it is not anonymous. As time passes, an ISP learns a lot about the IP addresses it is contacting. They Also know where you’re sending messages.
In some cases registering with an ISP associates the identity with your IP address, causing multiple anonymity and privacy issues. Verge Utiiza two approaches, Tor and I2P, to address the anonymisation of the connection.
What is TOR?
We will Not go into very much detail of how a Tor network works, but we will try to give a complete explanation.
Tor is known for providing an anonymous IP address scheme. THE name is an acronym for The Onion Router, although it does not sound very good in Spanish, because the Tor network envelops the message in multiple layers of encryption.
Instead of routing the message by a single ISP, Tor rebounds the connection between many relay computers on the point-to-point Tor network.
This changes the IP address of the message several times that makes it difficult to track who the sender is. With Tor No node knows the full path to take a message, so it becomes anonymous and impossible to trace quickly. To be able To establish the connections a directory of services identifies the paths of the same.
Tos is a point-to-point network. Where each user that connects to it acts as a relay node for other messages that are bouncing within the network.
Verge uses this technology for the anonymous transmission of user connections in the blockchain. Making it harder for an interaction to be linked to an IP address.
What is I2P?
The Next-generation solution for connection anonymisation is I2P. While Tor provides directory-based circuit routing, I2P allows dynamic routing of information packets. There is No directory in I2P, so receptive routing of the network can prevent congestion and interruptions.
I2P divides the routing into two separate tunnels, one outgoing and the other incoming. This means that the messages you send to another computer or website follow a different route from the messages you receive in response.
Anyone who hears would only see half of the message’s history, like listening to only half of a phone call you don’t know who’s talking or who they’re talking to.
Tor was designed as a portal for anonymous access to the ordinary Internet. I2P provides a more robust experience, leading to the creation of a private network on the Internet. I2P is an authentic dark web, with applications written specifically for I2P.
Verge clearly takes advantage of I2P’s technology for its network. You Have the option of routing your transactions through Tor or I2P, but the IP anonymisation is standard in Verge. As the entire block chain of Verge is anonymous, the entire community becomes much harder to track.
Verge uses is Electrum’s purse, originally designed for Bitcoin. Something good about Electrum is that it supports the integration of both Tor and I2P. It will Also work as a secure offline token storage.
If you need to send XVG, the Verge token, you can sign the transaction with your private key offline. When It is signed, you can transmit it by means of an online device without it having access to your private key.
Electrum also supports password recovery and multi-signature, which means you may need several confirmations to send a transaction, which increases security.
Finally the wallet Electrum connects to decentralized servers which index the blockchain. You Do Not need to operate a full node or download the entire transaction history from blockchain.
Verge is also used with two Android purses. One for Tor and another for I2P. Wallet wallets have security measures such as PIN code and biometric blocking. They Also support QR codes that serve to view paper wallet balances.
Verge does not work with unique algorithm, it also does so with 5 projects while obtaining a consensus of the algorithm that will finally be used. So The miners can extract XVG in five different ways.
Although They are all test work algorithms, some favor ASIC hardware, while others are compatible with the mining with graphics cards.
The algorithms are Scrypt, X17, Lyra2rev2, MYR-Groestl and Blake2s. Not the only one to have implemented something like that, Digibyte is the pioneer in this field of multiple algorithms.
And The reason is simple, the benefits of having multiple algorithms are reflected in a high decentralization, as multiple types of mining rigs can be used to get XVG.