We see things on crypto today that shows that we are on the experimental phase, some protocols are set to fail because they focus more on marketing than building something secure and useful. In this post I will give you some interesting features that can be found in the ERGO Platform.
The vision to this project was initiated back in 2017 based on several years of research and papers written by members of the core development team as well as other brilliant people in the space.
As they describe in their official website “Ergo is following the fundamental approach and use stable well-tested solutions, even if that leads to slower short-term innovations. Most of Ergo solutions are formalized in papers presented at peer-reviewed conferences and have been widely discussed in the community.”
Based on things like ZeroCoin, CoinJoin, Equihash, NiPoPow, Zero-Knowledge, Sigma Protocol, Scala Programming language, UTXO model etc, are a few things that makes this project unique.
Its consensus mechanism is the well known Proof of Work that Bitcoin uses but instead of using SHA-256 algorithm, Ergo uses an Equihash based algorithm called Autolykos. This one is a better version of the Equihash mining algorithm used in cryptocurrencies like Zcash but maintaining the ASIC resistant feature.
ASIC resistant is a pretty and important characteristic that should be considered on any proof of work network. Having this prevents the centralization on the mining equipment.
On January 2021 the chain is set to have a fork that would allow more people to mine ERGs more efficiently and easy. Like the Kushti (core developer team) said; ordinary gaming GPU would be enough, with 2+GB of ram.
If you didn’t know, Ergo is a platform for smart contracts based on the UTXO model (like Bitcoin and Cardano) instead of the Account model used on the Ethereum platform. This gives us a more secure and interoperable blockchain. The programming language use in Ergo is called ErgoScript which is a touring complete possible script unlike the Bitcoin script which is not and also based on the Scala programming language.
We can also have the ability to built smart contracts with certain level of privacy that other platform don’t provide. This is possible thanks to the zero-knowledge proof feature called Sigma protocols.
Ergo as a platform for smart contracts and DeFi dApps has a lot Bitcoin-like feature, being a possible store of value is one of them. The emission rate while being way much faster than Bitcoin, it contains some characteristics that prevent miners from not being profitable in the long run.
In 8 years since the inception all ERGs coins will be mined, but something called Storage Rent will provide miners not just to earn from the transaction fees but also from those coins that haven’t been move in 4 years or more. This is pretty handy for miners which can benefit from coins that are being lost forever or not move for some reason.
There’s a fixed supply of coins of 97.7 million Ergs and after 2 years since mainnet every 3 months the emission will drop by 3 Ergs which mean that all coin will be mined in 8 years as I said before.
Ergo also has a treasury system for further development. This treasury will take 4.43% of all ERGs mined for the first 2.5 years.
Other cool features
Ergo has something called, Light clients which allows us to have a full node capabilities without needing to have the actual full node that takes certain amount of space. This is a very efficient way of having full node wallets that can function even on smartphones. NiPoPows, which is also responsible for the light clients feature can also help with interoperability with other blockchains too. There’s the ability to create Oracle Pools which is a better way to provide off-chain data to smart contracts without using a token to pay for the service as well as have this data more decentralized than other protocols like Chainlink. It also has a voting mechanism built in that allows miners to change certain parameters on the network to meet certain level of demand adoption as time goes by while having a very efficient and fast scalability capabilities if needed.
Being a proof of work contractual money platform that brings you Bitcoin robustness and Ethereum functionality in a more efficient, decentralized and secure way is something that we can miss. If you are a developer, investor, miner or a crypto enthusiast you should definitely pay attention to ERGO.