Privacy has always been a key selling point for digital currency investors. However, as regulations have increased, so has the ease with which authorities are able to link individuals with their “anonymous” blockchain address.
This uncovering is performed through a process known as blockchain analysis, which involves searching for transactions to and from a known address on a chain explorer. Additionally, addresses can be searched on forums or registries where personal information might be linked to the address via user accounts.
The entire task involves a bit of sleuthing, but it is a reality that could happen to any unsuspecting user. That being said, there is an entire array of currencies attempting to create truly invisible transactions with upgraded anonymity features, surpassing even Bitcoin in order to combat these practices.
Dash, Monero, Zcash…Verge?
Initially forked from DogeCoin as DogeCoinDark in 2014, Verge is a decentralized Proof-of-Work consensus blockchain that is entirely community-sourced with no pre-mine or ICO. It utilizes multi-algorithm mining support to ensure equal distribution of coins and has blazing fast transaction speeds compared to many of its competitors.
Although the chart shows Verge to be a public chain, Sunerok, the project’s lead developer and the rest of the team, have announced the release of a new update called Wraith Protocol. This enhancement proposes a complete elimination of transaction address information from the block explorer, granting users the ability to conduct 100% untraceable transactions on the chain, satisfying a perceived weakness for Verge user privacy. Prior to this upgrade, the project had already integrated Tor and i2P (IP address anonymity grids), which enabled them to create a unique TOR-Android Wallet that offers mobile IP anonymity.
With the release of Wraith Protocol, Verge will have one of the most secure transaction networks available, but that might not even be the most exciting news. The team has also been working on implementing a smart contract system to pair with the network, further differentiating the currency from its competition as no other coin has the ability to offer anonymous smart contracts at this point in time.
Strong consolidation, awaiting breakout or break down confirmation.