Verge(XVG)白皮书.pdf
1. IntroductionBitcoin was developed and released in 2009 in response to an inherent flaw in the way transactions were processed on the Internet. In his whitepaper, Nakamoto explains that Commerce on the Internet has come to rely almost exclusively on financial institutions serving as trusted third parties to process electronic payments. While the system works well enough for most transactions, it still suffers from the inherent weaknesses of the trust based model [1]. Since its original inception in 2009, Bitcoin has been rapidly adopted into todays modern marketplaces. A primary issue with Bitcoins rapid adoption is the increase of demand on the original blockchain to handle varying degrees of large transactions. With increased demand comes increased transactional waiting periods, and this has resulted in higher transactional fees in attempts to try and speed-up transaction confirmation times.The core innovation behind Bitcoin is its decentralized structure. Unlike traditional fiat currencies, Bitcoin has no central control, no central repository of ination, no central management, and no central point of failure. However, one of the challenges facing Bitcoin is that most of the actual e-services and e-businesses built around the Bitcoin ecosystem are centralized. Due to the centralized nature of the current system, e-commerce is ran by individuals in specific locations that utilize vulnerable computer systems, that are susceptible to legal entanglements. Verge is one of the truly decentralized currencies available today due to its standing commitment to building off of the core fundamentals of Bitcoin, while bringing an entirely new layer of anonymity to realization.2. Tor IntegrationTor, derived from an acronym for the original software project name The Onion Router is an IP obfuscation service which enables anonymous communication across a layered circuit based network. Tor directs internet traffic through a free worldwide volunteer overlay network consisting of more than seven thousand relays to conceal a users location and usage from anyone conducting network surveillance or traffic analysis. The layers of encrypted address ination used to anonymize data packets sent through Tor are reminiscent of an onion, hence the name. That way, a data packet s path through the Tor network cannot be fully traced. Tor s use is intended to protect the personal privacy of users, as well as their freedom and ability to conduct confidential communication by keeping their Internet activities from being monitored.Onion routing is implemented by encryption in the application layer of a communication protocol stack, nested like the layers of an onion. Tor encrypts the data, including the next node destination IP, multiple times and sends it through a virtual circuit comprising successive, randomly selected Tor relays. Each relay decrypts only enough of the data packet wrapper to know which relay the data came from, and which relay to send it to next. The relay then rewraps the package in a new wrapper and sends it on. The Final relay decrypts the innermost layer of encryption and sends the original data to its destination without revealing, or even knowing, the source IP address.Because the routing of communication is partly concealed at every hop in the Tor circuit, this eliminates any single point at which the communicating peers can be determined through network surveillance that relies upon knowing its source and destination.3. I2P IntegrationI2p was originally built to provide hidden services which allow people to host servers at unknown locations. I2p provides many of the same benefits that Tor does. Both allow anonymous access to online content, make use of a P2P-style routing structure, and both operate using layered encryption. However, I2p was designed to be a network within the internet,see figure 2.1 with traffic staying contained in its borders. I2P pers packet based routing as opposed to Tors circuit based routing. This provides the benefit of permitting I2p to dynamically route around congestion and service interruptions in a manner similar to the internets IP routing. This provides a higher level of reliability and redundancy to the network itself.The first time a client wants to contact another client, they make a query against the fully distributed “network database“ - a custom structured distributed hash table DHT based off the Kademlia algorithm [2]. This is done to find the other client s inbound tunnels efficiently, but subsequent data between them usually includes that ination so no further network database lookups are required.Emphasise something else hereRather than relying on a centralized set of directory servers, like Tor, I2p uses two distributed hash tables to coordinate the state of the network. Distributed hash tables or DHTs are a distributed and often decentralized mechanism for associating hash values with content. The primary advantage to DHTs are their scalability. A successful decentralized P2P network requires good scalability of its services to ensure the size of content or transaction sharing can continue to grow as required. Additionally I2P does not rely on a trusted directory service to get route ination. Instead, network routes are ed and constantly updated dynamically, with each router constantly uating other routers. Lastly, I2p establishes two independent simplex tunnels for traffic to traverse the network to and from each host as opposed to Tors ation of a single duplex circuit see figure 1.1.I2p is a highly obfuscated tunneling service using ipv6 that anonymizes all Verge data being sent over the network. Each client application has their i2P “router“ build several inbound and outbound “tunnels“ - a sequence of peers that pass data in one direction to and from the client, respectively [2]. In turn, when a client wants to send Verge data to another client, the application passes the message through one of their outbound tunnels targeting one of the other client s inbound tunnels, eventually reaching the destination.4. Electrum Electrum s strength is speed and simplicity, with low resource usage. It uses secure remote servers that handle the most complicated parts of the Verge network and also allows users to recover their wallets with a secret seed phrase. Additionally, Electrum offers a simple and easy to use cold storage solution. This allows users to store all or part of their coins in an offline manner. Moreover, Electrum is one of the only wallets to provide native Tor and i2P support. By integrating Electrum with Tor and i2P, one can achieve anonymity while using the desktop/mobile wallet. Both IP address and transaction ination is secured and does not leak to the connecting servers; increasing user privacy.Electrum enables multi-signature support, which requires more than one key to authorize a Electrum transaction. Standard transactions on the Verge network could be called Single-signature transactions [4], because transfers require only one signature - from the owner of the private key associated with the Verge address. An Electrum transaction, with multi-signature support, requires the signatures of multiple people before the coins can be transferred. Verge then requires multiple different party addresses to be provided in order to do anything with them. Here is an exampleOne Electrum wallet is on your primary computer, the other on your smart phone - the coins cannot be spent without a signature from both devices. Thus, an attacker must gain access to both devices in order to steal your coins Key Features of an Electrum WalletDet erm inist ic Key Generat ion Inst ant OnLocally signed Transact ions Freedom and PrivacyIf you lose your wallet, you can recover it from its seed. You are protected from your own mistakes.The client does not download the blockchain, it requests blockchain ination from a server. No delays, always up-to-date.Your private keys are not shared with the server. You do not have to trust the server with your coins. The Electrum server does not store user accounts. You can also export your private keys, meaning YOU own your address.5. Multi-Algorithm SupportVerge is a multi-algorithm cryptocurrency that is designed to enable people with different types of mining devices to have equal access to earning coins. It is one of the only cryptocurrencies to support 5 hash functions combined on one blockchain. This results in increased security and a wider range of people and devices that can mine Verge hence equal distribution of Verge is ensured for everyone. The total supply of Verge is 16.5 Billion coins. What makes Verge stand out from other cryptocurrencies are the 5 Proof-of-Work algorithms that run on its blockchain, namely Scrypt, X17, Lyra2rev2, myr-groestl and blake2s. All 5 algorithms have a 30-second block target block time. The difficulty is influenced only by the algorithms hash rate. This allows improved security and protection against 51 attacks.6. Android Tor I2PVerge sits at the forefront of innovation in the mobile cryptocurrency space. We have pioneered and developed two very unique and first of their kind android wallets. One of which operates exclusively on The Onion Router Network Tor and the other operating exclusively on The Invisible Internet Project i2P. The Verge Tor and I2p wallets are built around the premise of anonymity. The wallets have no built-in ability to connect to or broadcast user ination over Clearnet. Transactions are completed via Simple Payment Verification SPV, a technique described in Satoshi Nakamotos paper that allows for the wallet to verify transactions through proof of inclusion; a for verifying if a particular transaction is included in a block without downloading the entire block similar to how an Electrum wallet functions.SPV allows for nearly instant payment confirmations because it acts as a thin client that only needs to download the block headers, which are drastically smaller than full blocks. The Verge Tor and i2P wallets also have built in security features such as a 4 digit pin code and biometric locking options for an added layer of physical security. Additionally, the Verge Tor and i2P wallets are able to handle P2P QR code scan transactions with instant verification. Clients are able to also import QR codes from paper wallets to pull balances from cold storage if required.7. P2P Plat-Integrated PortalsPeer-to-Peer P2P transaction support for Telegram, Discord and Twitter is supported by Verge, Slack and Steam integrations are currently in development, and is slated to be released to the public in the month of August. Telegram is a free cloud-based instant messaging service that supports Android, iOS, Windows Phone, Windows NT, macOS and Linux. Telegram uses a symmetric encryption scheme called MTProto. The protocol was developed by Nikolai Durov and other developers at Telegram and is based on 256-bit symmetric AES encryption, RSA 2048 encryption and DiffieHellman key exchange. Discord is a proprietary freeware VoIP application that has widespread adoption in the crypto community. Like Telegram, Discord has support on Windows, macOS, Android, iOS and has a browser accessible web client. Implementing Verge P2P capabilities on these plats allows users to send and receive funds on the fly, no matter where they are regardless if they have an actual wallet installed or not.P2P is an online technology that allows users to transfer coins via the internet or mobile device. To do this, consumers use an online application, or in this case a bot to designate the amount of coins to be transferred. The recipient is designated by just their username and once the transfer has been initiated by the sender, the recipient then receives a notification to use the online bot. that he has received a payment at a newly established deposit address. The user is then allowed to tweet or message the bot with a simple command such as withdraw and is then prompted with a set of instructions on how to receive their newly acquired Verge. This service does not require any additional ination past the amount you want to send and who to send to. No privacy ination such as IP addressing, location, name is retained during this process. Your personal identity outside of initiating the transaction remains completely anonymous.Verge is one of the only cryptocurrencies to already offer P2P solutions for Telegram, Discord, Twitter and Internet Relay Chat IRC with Reddit, Slack and Steam support coming at a future date. These P2P offerings allow users to transfer Verge to anyone on the same social plat as them. 8. Wraith ProtocolWraith Protocol makes it possible to choose between a public or private ledger for the first time in cryptocurrency history, while staying anonymous in both cases. Through this innovative new system, users who value transparency and accountability, e.g. merchants, have the option to have transactions viewable on the blockchain. On the other hand, it also provides an option to those who prefer transactions to vanish entirely. Wraith Protocol allows for complete anonymity to be maintained while providing a safe and secure of sending and receiving Verge coins without transactions being traceable on a publicly accessible ledger. The update includes stealth Addressing and the latest TorSSL integration that will take our core QT users off of clearnet, and migrate them to exclusively operate on the latest Tor network. Also included are the capabilities to designate which ledger a user wishes to transact across, public or private. With elegant simplicity, the Wraith Protocol update will enable users to toggle a switch within the Core QT wallet that allows them to transact via stealth addressing with an additional layer of IP obfuscation through the Tor Network.What is Wraith ProtocolDeep DiveLets start by taking a look at some of the basics and key concepts associated with the Key agreements, The Diffie-Hellman algorithm and Elliptic-curve cryptography.What is a Key AgreementA Key agreement scheme is a procedure by which two or more parties agree upon a value from which they can subsequently derive one or more keys for use in symmetric encryption. Neither party completely determines the key value on their own. Instead, they both contribute to the final key value and most important, anyone who observes the exchanges between the two parties cannot tell what the final result will be. It is important to note that in their basic , key-agreement schemes are anonymous, they do not tell either party the identity of the other party.What is the Diffie-Hellman algorithmThe original Diffie-Hellman key agreement scheme is based on multiplication of integers modulo a large prime number, specifically numbers greater than one and less than p, where p i