Ergo is a blockchain protocol created to provide ordinary people with an efficient, easy, and secure way to implement financial contracts and build dApps. Ergo’s primary focus is to make financial contracts efficient and secure so that people could use them in a decentralized manner without any prior trust.
Ergo blockchain features include contracts in the multi-stage extended UTXO model, Autolykos, ErgoScript, and an innovative fee model with a mandatory storage-rent component. The consensus protocol of Ergo is Autolykos based on the Proof-of-Work (PoW) algorithm to guarantee security and access to mining. Autolykos is an ASIC resistant GPU mineable algorithm. ErgoScript is an alternative coding language, which makes it possible to create more complex and more secure financial contracts and is safe against heavy validation attacks.
The Ergo platform has its native token Ergo or ERG, which is important for the platform’s stability and security. It is subdivided into the smallest units, nanoErgs. A nanoErg is one-billionth of an ERG.
Users can acquire tokens by mining. To start mining you need an Ergo wallet, a compatible GPU, and a pool. The Ergo token is set up in a way that helps to prevent mining farms from shadowing people which means that users do not need expensive GPUs to mine it. Simple commodity hardware can easily mine Ergo. In other words, a regular user with a smartphone can join the network and use Ergo as a fully-fledged node.
However, the easiest way to acquire Ergo is to buy it. You can buy or trade ERG coins on such exchanges as Bitcoin.com, Changelly PRO, KuCoin, Gate.io, BiKi, and ProBit Global against BTC and USDT. Users can store ERG tokens on a desktop Ergo wallet with multisig and scripts support, Ergo wallet for Android devices, and Yoroi wallet.
With Ergo, there was no ICO or pre‐mine. Tokens are mined through a non-linear Proof‐of‐Work (PoW) algorithm called Autolykos v.2, which does not require access to private keys. Ergo does not have a block size limit. The block size can increase or decrease based on demand. However, it is limited to a certain growth rate to prevent overgrowth in a short period of time. The block interval is 2 minutes. Miners perform memory-hard computations and when a correct solution is found, they broadcast the block along with the solution and become eligible for the reward. After that, the rest of the network verifies the solution.
Ergo token emission is planned to be completed within 8 years. After that miners will only be able to receive ERG from fees. The final ERG supply will be 97,739,925 coins and no additional inflation will apply.
For 2.5 years since the launch, a portion of mining rewards has been allocated to the Treasury to support development and marketing. The total amount of Ergs received by the Treasury is 4.43% of the total monetary base.
The Ergo native token is used by developers to pay storage rent and transaction fees. Storage rent will ensure mining stability and provide miners with long-term revenues after the token emission finishes. If output remains in this state for 4 years without being moved, miners may charge storage fees from obsolete boxes. This can prevent a decrease in circulating supply due to lost keys and forgotten coins. Besides, it encourages miners to secure the network and incentivizes consumers to purchase, use and save ERG coins if they want to continue using applications on Ergo.
Ergo’s team and partners
Ergo is designed by a strong team of researchers and developers with experience in compiler theory, cryptography, blockchain technology, core development, and cryptographic e-cash. Alexander Chepurnoy is the co-founder and lead developer of Ergo. He also publishes academic papers as an IOHK researcher. Dmitry Meshkov was the Ergo co-founder till October 2019. He led a full cycle of cryptocurrency project development till its release. He has also published several research papers at peer-reviewed conferences. Alex and Dmitry have been involved in several projects, including IOHK (a technology company).
Among the Ergo partners are some of the top exchanges and cryptocurrency data aggregators. Ergo has established strategic cooperation with Cardano on a DeFi project. Apart from the collaborative research, Ergo and Cardano are also partners of EMURGO, a technology company that provides Yoroi wallet for them. Ergo and Graviton have teamed up to improve interoperability between networks, provide wider liquidity mining opportunities and expand their global reach and value.