Verge Blackpaper v3.0 has been released and Wraith Protocol, the upcoming major update to Verge Currency, is approaching. So what is Wraith Protocol? How does it work? What does it mean for Verge? To paraphrase Dan Ariely, Wraith Protocol “is like teenage sex: everyone talks about it, but nobody really knows” what it is.
But before we start answering all those questions, it is important to take a step back and go over the basic concept of the “ledger”.
What is a ledger?
Simply put, a blockchain ledger is similar to a database where all transactions are recorded. In the case of Bitcoin, the ledger is public, meaning that all transactions can be openly seen and linked to your public address through the blockchain explorer. Alternatively, ledgers can also be private, whereby transaction data is hidden and cannot be viewed.
Up until now, both types of ledgers were mutually exclusive, e.g. they could not coexist on the same blockchain. What does this imply for the user? In practice, one has to choose a specific cryptocurrency, depending on the application and task at hand. In other words, the user faces a trade-off between transparency that a public ledger provides and anonymity achieved with a private ledger.
One might fairly ask: why compromise between privacy and transparency? Wouldn’t it be easier to have both ledgers run on the same blockchain, so that the user doesn’t have to switch back and forth between the existing solutions?
Wraith Protocol solves this problem by providing you with the power of choice.
What is Wraith Protocol?
Wraith Protocol is a technology that allows the user to seamlessly switch between public and private ledgers on the Verge Blockchain. For the first time, users are now free to choose which ledger they want to utilize.
To break it down, when Wraith Protocol is turned ON — the transaction data is hidden and not visible via the blockchain explorer.
In a circumstance where transparency is required, Wraith Protocol would be turned OFF, allowing the transaction data to be viewable on the public ledger.
In addition, Verge provides total obfuscation of IP addresses in both cases, thanks to the most advanced version of TOR integrated in the Core Wallet. In combination with Wraith Protocol it makes Verge the only truly untraceable cryptocurrency.
How does Wraith Protocol work in practice? As all great things in life, it’s simple. When the user initiates a transaction with the Core Wallet, the switch button is set to “ON” and the private ledger is leveraged. Set it to OFF and the public ledger is active. The process is illustrated below:
What does it mean for the future of Verge?
When transparency is essential, a public ledger offers the solution. These cases include merchants, charging customers for daily purchases, who prefer to have an observable ledger for accounting purposes, etc.
On the other hand, a private ledger also has its purpose. First of all, privacy is a basic human right and carries intrinsic value in itself. Secondly, a private ledger can be used for commercial purposes, such as conducting business transactions and handling of sensitive information. Think of a business owner who wishes to keep some of his activity unseen by competitors to stay ahead of the curve. Another instance would be an NGO operating in a hostile political environment and receiving financial support confidentially.
Ultimately, Wraith Protocol provides the end user with choice, flexibility and unmatched security. Verge’s high volume, low fees, ultra fast transaction speeds and smart contracts functionality have created the perfect recipe for mainstream adoption, while putting your privacy first. As Edward Snowden once said,
“Bitcoin is great, but if ‘it’s not private, it’s not safe’”
The implementation of BIP65 on the Verge Blockchain makes it possible to exchange Verge Currency via atomic swaps, thereby eliminating trusted third parties.
Finally, to provide an additional level of security, this update also includes 2-way encrypted p2p chat functionality in the core wallet, which protects the end user against methods of surveillance such as stylometry. We call it Visp.
Stay tuned for the official release announcement & check out the updated Verge Blackpaper v3.0 for more technical details on Wraith Protocol!
The Verge Team
P.S. Check out our latest post to learn about the team behind Verge, our vision and where Wraith Protocol fits in the overall Verge mission!