This Cryptocurrency Lost 200 Days Worth Of Transactions

Blockchain technology is a digitized encryption method to confirm transactions.

Using distributed digital ledgers, it increases the visibility and transparency of transactions made throughout a supply chain and between members of a network. What's more, the data is continuously reconciled.

Because participants can see the history and transfer of assets, fraudulent transactions are easier to identify.

Boasting of an iron-clad defense system that supposedly couldn't be hacked, blockchain also requires transactions that are going to be recorded to pass proper verification before being added.

This makes false operations even easier to detect.

And because it is decentralized, blockchain has no central administrator, meaning that management and authorization is spread across the network. This way, there should be no single point of failure present.

But still, just like any other forms of technology, blockchain does have some weaknesses.

Read: How Blockchain Can, And Cannot Prevent Fraud By Using Distributed Ledger Technology

Verge is a decentralized open-source cryptocurrency which offers various levels of private transactions.

Created back in 2014, originally with the name DogeCoinDark before rebranded to Verge Currency in 2016, the cryptocurrency follows Bitcoin's principle, in which it uses a transparent ledger to allow anyone to view all of its transactions.

But it does that by still protecting user identities and locations.

Verge does this by integrating both Tor to not expose IP addresses, and also by using stealth transactions, formerly known as Wraith Protocol, to hide the value of transactions.

But here, it was announced that Verge has been hit by a huge blockchain reorganization, resulting in more than six months worth of transactions and balances vanishing.

What this means, the privacy-focused blockchain network experienced a significant block reorganization, which replaced all transactions done through its network dating as far back as July 2020.

According to Coinmetrics COO Antoine Le Calvez, who was one of the first to notice the reorganization, he shared a screenshot on Twitter showing that at least 560,000 blocks had disappeared on February 15.

As a result of this, XVG has dropped by almost 15% to $0.0224 in an instant following the news.

This has resulted in it moving out of the top 100 cryptocurrency.

Because of the reorganization, any user who received or purchased XVG tokens since July 2020 may have lost their entire balance.

In this case, thousands of balances may have simply evaporated.

Despite being described as potentially the largest reorganization that has ever happened to a top 100 cryptocurrency, the developers claim that it can be fixed.

Related: Privacy-Focused Cryptocurrency Suffers 51% Attack: 300 Blocks Were Rolled Back