Launched in 2009, Bitcoin is the first ever fully featured cryptocurrency. It was developed by a pseudonymous individual or group of individuals called Satoshi Nakamoto as a substitute for our traditional economies.
Bitcoin was a challenging a project both in terms of technology and design. Because earlier attempts to create virtual currencies failed miserably.
All the virtual currencies that preceded Bitcoin was centralized. Which means the founding companies controlled and regulated those currencies. Just like our governments do with the fiat currencies.
But Bitcoin tried to take the things in a different direction. Instead of reigning over Bitcoin “himself”, Satoshi made the whole cryptocurrency decentralized.
So by design in Bitcoin, each and every investor has the right to control it in some way. And the concept of decentralization proved to be a success for Bitcoin.
Because it eliminated the need for trusting a third party and allowed individuals to become their own banks.
But a lot has changed since the days of Bitcoin’s inception. It grew very rapidly to reach new heights. Bitcoin also inspired thousands of other cryptocurrencies to launch.
One of those cryptocurrencies is Verge. Verge aims to be the next generation of Bitcoin. So let us find out how Verge plans to beat Bitcoin in its own game.
Here is an answer to a question asked by you – Should I Invest In Bitcoin in 2018?
- 1 WHAT IS VERGE CRYPTOCURRENCY?
- 2 FEATURES OF THE VERGE CRYPTOCURRENCY (XVG)
- 3 WHAT MAKES VERGE BETTER THAN BITCOIN
- 4 FINAL THOUGHTS
WHAT IS VERGE CRYPTOCURRENCY?
Verge is an open-source and community driven peer to peer cryptocurrency. Often people dub it as the “Bitcoin on steroid”. Rightfully so, because of its Bitcoin-like features but with further improvements.
Verge started as DogecoinDark – a privacy-focused cryptocurrency. Don’t let the name fool you. It was never a hard-fork of the Dogecoin. Verge was developed from scratch by a decentralized team of contributors.
DogecoinDark was rebranded to Verge in 2016 as it was on the verge of a “blast-off”.
Since then Verge captured a lot of attention and have continuously grown.
The main goal of the Verge cryptocurrency is to become an altcoin suitable for everyday use. And it plans to achieve it by fixing the loopholes of Bitcoin.
Verge or XVG, its trading name, also have in-built security and anonymity features. This puts it on the list of other privacy-oriented cryptocurrencies like Zcash, Monero etc. But in my opinion, Verge is better than those two in some aspects.
FEATURES OF THE VERGE CRYPTOCURRENCY (XVG)
Let’s talk about the features of the Verge cryptocurrency in details.
ANONYMITY AND SECURITY
I believe the most important feature of Verge is its in-built anonymity and security features. Verge offers its privacy features in two layers. First of all, there is the Tor or anonymous layer. And above that, we have the optional Wraith layer.
As most of you know Tor or The Onion Router is a widely used anonymity service. Tor obfuscates your IP address and protects you from traffic analysis and surveillance. It conceals the identity of a user by separating the identification from the routing part.
Tor encrypts your connection and bounces the communications randomly through a network of relays around the world. These relays are hosted by volunteers from all around the globe. It is also impossible to track a connection back to you when using Tor.
So by implementing the Tor layer, Verge anonymizes your connection. So no one on the network can see your actual IP and find out your identity.
The optional layer called the Wraith layer is somewhat similar to Zcash Z-Address feature. It provides you with a private wallet address. These stealth addresses can be used only one-time and after that, they are automatically discarded by the system.
Using this protocol you can easily hide your actual wallet address. The cryptocurrencies associated with these addresses are also “burned”. This ensures that the coins are never linked back to your account.
Another great feature of Verge is its amazingly fast settlement speeds. Verge does this by reducing the block generation window to a mere 30 seconds.
It also employs Simple Payment Verification (or SPV). This minimizes the time required to verify transactions. According to the official website, Verge transactions take about 5 seconds to settle.
In my own experience, I have also found Verge to be extremely responsive and fast. So I will say the dev team is not lying.
As I mentioned above, the main goal of Verge is to become a privacy-focused everyday cryptocurrency. They have got the privacy front covered with their unique approach. But what about being the cryptocurrency for everyday use?
They are dealing with this problem by reducing the transaction speed as well as the fees. Verge reduces the transaction fees by having a large number of units.
There will be a total of 16.555 billion XVG in circulation. This approach has ultimately reduced the fees for each transaction. And has made Verge suitable for micro as well as “macro”-transactions.
Most of the other mineable cryptocurrencies can usually be mined using only a specific hashing algorithm. But Verge has taken a different approach in this regard too.
Instead of sticking with a single algorithm, Verge supports a handful of algorithms.
These algorithms are – Scrypt, X17, Groestl, Blake2s, and Lyra2REv2. This approach helps in eliminating hardware dependency. It also prevents the whole mining process from becoming centralized.
MASS ADOPTION FRIENDLY
The Verge development team has taken another approach to making it suitable for day to day use. They have done it by making their cryptocurrency ready for mass adoption.
Verge can be accessed by anyone having an internet connection and a PC or even an Android smartphone.
The smartphone wallet makes Verge very easy to use and user-friendly. Verge is also available on a handful of popular exchanges. So it is relatively very easy to buy.
Verge cryptocurrency is following a proper roadmap and trying its best to stick to it. Next, in line, it has the goal of incorporating smart contracts too!
WHAT MAKES VERGE BETTER THAN BITCOIN
One question that I receive very frequently is how Verge fares up against the market veteran Bitcoin. And this article was solely written for answering this question.
So let’s find out!
BETTER SECURITY AND ANONYMITY THAN BITCOIN
As you may already know Bitcoin doesn’t provide any privacy features at all. When Bitcoin was launched the main goal was to create a cryptocurrency.
At first, it was widely believed that Bitcoin transactions were anonymous. But soon cryptocurrency enthusiasts and security experts showed that it is not.
One can easily hunt down a person from his Bitcoin transactions. So it is a very critical flaw in Bitcoin’s protocol.
Verge is better than Bitcoin in this regard due to its Tor and Wraith layer of protection.
FASTER TRANSACTION SPEED THAN BITCOIN
When Bitcoin was first launched it performed optimally as the there were not a lot of users. But now that there are more users than ever on Bitcoin’s network, it has slowed down very alarmingly.
Currently, a Bitcoin transaction can take as much as one hour to process.
But on Verge, the transactions are settled within 5 seconds on an average. So Verge is better in this regard also!
EXTREMELY LOW FEES THAN BITCOIN
Because of the congestion in Bitcoin’s network the transaction fees are higher than ever too! It can take anywhere between $12 to $25 on an average for a single transaction.
This renders Bitcoin unusable for processing micro-transactions.
As I mentioned above, Verge deals with the problem of transaction fees in a different manner. And using that method Verge has been able to keep the fees to a bare minimum.
On an average, it only costs a few cents for a Verge transaction to get settled.
BETTER MINING OPPORTUNITIES THAN BITCOIN
Bitcoin uses SHA-256 as its hashing algorithm. The SHA-256 mining space is heavily dominated by overly powerful ASIC mining rigs.
This makes it very hard for new miners to join in on the mining process.
Verge has been able to handle this with their multi-algorithm approach. Verge has also employed memory-intensive ASIC resistance algorithms, except for Scrypt.
So the Verge mining is still extremely profitable, less competitive and easier to get in. And I believe it will remain this way in the near future too.
*Although the mining rig states that it is for mining Zcash. You can use it to mine Verge XVG and you can get hashrates of 461500.0 Kh/s running on Verge-Lyra2REv2 (XVG). Profit of $1,483.77 per month.
MORE ROOM FOR GROWTH THAN BITCOIN
It is quite evident that Bitcoin has reached its apex. Only the price of Bitcoin can go up at this point, not its performance.
But then again Bitcoin’s price growth will not be as rapid as Verge’s. Because Verge is still fairly new in this industry. And they have a lot to offer. Even tech mogul John McAfee thinks this too.
Currently, Verge or XVG has $1.6 billion USD market capitalization in total. On an average, each XVG unit costs about 10 cents. So it can prove to be a great investment for newcomers.
But be very careful when investing in cryptocurrencies. The latest dip in price was another demo of how rapid the market can change. So invest the money you can afford to lose.
This brings us to the end of another article. I hope I was able to analyze both the cryptocurrencies from a neutral point of view. I am a big fan of Bitcoin myself and have great respect for it.
But I believe it’s about time we start paying more attention to the altcoins. Because they are the future of cryptocurrencies.
This was our comparison between Verge & Bitcoin. Hope you liked it!!!!