Verge (XVG) is a cryptocurrency that helps you make private and anonymous transactions. It is one of many altcoins that offer this service, though it stands out from most of them in that it actually provides privacy and helps make anonymous transactions from within the platform itself.
Most cryptocurrencies maintain a transparent ledger and make it simple for anyone to know your entire history if they know your wallet address. Verge solves this issue with its network. However, people have been misled using the FUD tactics, and one recent post even goes as far as calling Verge indistinguishable from a scam. It’s time people got their facts right.
Clarifying the uninformed arguments against Verge (XVG)
- Wraith protocol is more than stealth transactions
According to the post attacking Verge, stealth transactions are wraith protocol. This is just a part of what wraith protocol is. Wraith protocol is Verge’s proprietary protocol which facilitates private transactions. Users can choose to use the wraith protocol whenever they want to switch from the public blockchain to the private blockchain. It uses I2P and Tor to obfuscate addresses and hide IP of the parties involved. Stealth transactions usually refer to the obfuscation of blockchain addresses, which are good for protecting the identity of the receiver. However, wraith protocol also hides the IP address of the sender, which adds to the privacy and anonymity.
It is being implemented in different phases, with the development team having completed Tor integration and also enabling Verge to support stealth addresses. The next release will connect all Verge wallets to Tor nodes. The code is available on Github.
- Verge isn’t defenseless against surveillance techniques
Verge (XVG) is accused of being unable to stop legal authorities from using deanonymizing techniques to uncover the names behind transactions. Techniques like blockchain analysis help people construct a transaction history for an address which they can use to get to the user. It does take some time, but it is possible. The author of the post says stealth addresses might help against it, but Verge’s wraith protocol (which is more than stealth addresses) is not available yet.
Now, using blockchain analysis does help in getting to the end user. But if people have knowledge of your IP address, it is far easier to get to you. This is why Verge will use IP obfuscation to hide your IP address when you make private transactions. To put things into perspective, it is something Monero is also trying to implement now because of the security and privacy it provides.
- Stealth addresses to add to the security
The author of the post claims that stealth addresses only hide the identity of the receiver but not the sender. This isn’t as useful as it sounds initially, and the author isn’t wrong in saying that. But their main point of contention is that Verge isn’t the first cryptocurrency to use stealth addresses, so there’s nothing to get excited about. Again, this fact is absolutely correct. But those in the crypto community will agree that the longer a technology has been around, the stronger it is considered.
Stealth addresses have been in use by other cryptocurrencies for a few years. Verge has only now started implementing them. But the fact that they are using a technology that has been around meaning it is more secure as compared to when it was first launched. The passage of time provides valuable feedback from within the community and helps solve the issues that are identified. So Verge using stealth addresses is indeed a good move since it is something that is backed by developers. Combining it with IP obfuscation, as Verge plans to do, will surely help make transactions private and anonymous.
- Tor is very helpful when using for the entire blockchain
Tor helps you anonymize yourself as you go to the destination address through a series of obfuscation nodes. However, Tor users will know that they are vulnerable to malicious entry and exit nodes. These are called ‘clear nodes,’ i.e., nodes where the Tor hidden traffic becomes visible, and people can see the activity. Someone monitoring exit nodes can see what someone is accessing. They just don’t know who it is. By using injection attacks, finding that is possible. So if someone were to use Tor exit nodes to make bad transactions, the blockchain network could burn them all.
But Verge (XVG) is protected against this malicious exit nodes strategy. With Verge’s next release, there won’t be any Tor entry or exit nodes. All nodes, including network nodes, will be Tor nodes, so there’s no point of failure. The author also claims that one can use Tor without using Verge, which is entirely true. However, if you do that, then you will be susceptible to the kinds of attacks mentioned above. To prevent them you would need the entire blockchain to use Tor nodes.
- Privacy through Wraith Protocol will surely be Opt-out
The post calling Verge as a scam says that even when the wraith protocol is made available for all users, most people will choose not to use it. The common user will not choose to make all transactions private and will only use them when they see fit. This means that the privacy-enhancing feature that Verge aims to provide will become opt-in rather than opt-out, where people have to decide not to use a privacy-enhancing feature rather than deciding whether to use it. The author says that this would lead to a very small group of users using the private transactions, which will draw attention to them because of sticking out from the general crowd.
This is again a valid point, but there’s one thing that’s wrong with it. Verge doesn’t make private transactions default, but it does recommend all users to use it as the default. Moreover, it plans to use methods to make it an opt-out feature to enhance the overall privacy of the transactions. While Verge concedes that it will still mean that there will be a large pool of users choosing not to make private transactions, the pool of users choosing to do so will also be considerably large. This tackles the problem of them becoming vulnerable because of sticking out due to their small numbers.
Verge (XVG) is a cryptocurrency that wants to enhance the privacy and anonymity of transactions. It has been the target of uninformed accusations recently. Some of it is because the source code behind the network is not very easily available. But if you look for it, you will find it. When you find it, you will realize that what Verge is saying is true. It is doing all that it says and is one of the most secure and private cryptocurrencies you will find.
Their developer community is quite active and vocal, and Verge is always willing to listen to peers for advice and suggestions. In fact, they have set aside a fund for donations to tackle some of the issues which developers have raised. Some of these issues are wraith protocol enabled iOS wallets, a partnership with large companies, Ledger Nano wallet integration and support, and better marketing tactics.