What is Ergo?
Ergo a Proof of Work (POW) cryptocurrency that aims to develop and revolutionize blockchain technology. The Ergo platform aims to develop and provide services for financial contracts on the blockchain. The Ergo platform includes the ERG cryptocurrency and ErgoScript, a scripting language used to build features on the Ergo blockchain.
How does Ergo work?
Thanks to the user-friendly ErgoScript programming language, each Ergo token stored in smart contracts has a layer of protection. It specifies when the token can be used, by whom and under what conditions. ErgoSript uses the Sigma protocol as the building block for zero-knowledge proofs.
In practice, this means that the sigma (Σ) protocol revolves around a 3-layer verification mechanism to secure the coin contract:
- The message is sent from verifier to verifier, this is the first message.
- Random challenge coming from verifier.
- The message sent from the verifier to the verifier, is the second message.
Based on these sigma protocols, ErgoScript makes it easier to deploy smart contracts. In addition, Ergo also supports light nodes. These are blockchain software packages that do not need to keep an entire copy of the blockchain nor need to run 24/7. Thus, they make Ergo very mobile-friendly as the need for storage space and computing power is greatly reduced.
In addition, the ErgoScript programming language is specially designed to be the best tool for code generation for decentralized finance. Specifically, the coin contract is designed to be Turing complete but reduces the possibility of spam attacks thanks to its early estimation feature.
Finally, like Tezos (XTZ), Ergo (ERG) is a self-modifying blockchain that is easily upgraded in the future. Ergo has no limit on the size of a block. Based on network demand, it can shrink or grow, but its growth rate is limited to a certain rate to prevent an explosion in a short period of time.