Verge's network is protected by a proof-of-work consensus method similar to Bitcoin's, which Verge's code is based on. To be added to the blockchain, at least 51 percent of all complete nodes in the network must agree that a transaction is genuine and new blocks are created through the mining process. Users compete to solve complicated energy-intensive tasks. On the other hand, Verge supports five alternative mining algorithms, unlike Bitcoin. The development team claims that this increases the network's security by allowing more individuals to participate in the mining process.
Verge uses dual-key stealth addresses to maintain complete privacy in the system: an endless number of one-time destination addresses that senders can produce on behalf of recipients without any contact between them. Verge also uses a combination of TOR and I2P to mask IP addresses associated with certain transactions, such as physical locations.
Furthermore, the Verge blockchain supports atomic (cross-chain) swaps for peer-to-peer trading on DEXs across several blockchains. It also intends to allow smart contracts on the RSK blockchain via a two-way peg to Verge, which would benefit Verge miners (via merged mining).
Use of Native tokens in the ecosystem
Verge coins (XVG) are used as a private store of value and medium of exchange within the verge blockchain.