Enter a new era of PoW with Ergo

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Ergo and its founder Alex Chepurnoy

The essence of technology is iterative development. We draw lessons from our past work and use this as a basis for designing the future. We will carry forward the energy, information and experience of the past. Without the accumulation of past successes and failures, the current technology will no longer exist. Iteration and innovation are the two key elements of technological progress.

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Ergo is led by a senior team in the blockchain industry. Chief core developer Alex Chepurnoy has been active in the blockchain industry since 2011. At the beginning of 2013, he devoted himself to the development of various services related to Bitcoin and cryptocurrency transactions.

Alex’s rich experience brings great foresight. His broad vision and deep understanding of the technology involved are the driving force behind the development of Ergo.

When he first entered the blockchain industry, Alex was engaged in various services related to Bitcoin. Ergoscript was written by him from scratch, not a fork or other version of Bitcoin. Ergo runs an advanced extended unspent transaction output (eUTXO) model.

This eUTXO model is relatively new, and currently Ergo, Cardano and Nervos blockchains use this model. The extended UTXO model is built on the advantages of the UTXO model and supports smart contract functions. Extending the UTXO model is the next iteration of the technology, which will bring revolutionary functions that were previously impossible to achieve.

Alex used to be the core developer of NXT, which is a revolutionary blockchain system in the development of Proof of Stake (PoS). Interestingly, Alex, as the core innovator of PoS development, then set out to create a PoW blockchain. This seems counterintuitive, because marketing today conveys the following message to people: PoS is the outlet of the future.

In 2014, Alex worked at smartcontract.com. Perhaps as you know, smartcontract.com was later renamed Chainlink. The blockchain system cannot perceive external information. In order to create smart and flexible contract functions, the blockchain must adapt to market fluctuations. Ergo can broadcast information to its native network, and it can also communicate across multiple blockchains. The oracle data finally makes the smart contract truly “smart”.

Ergo provides a new model for oracle data. This model has more advantages. dApp (decentralized application) developers can more easily access oracle data and are more adaptable to perpetrators who broadcast inaccurate data. Sex.

The future of blockchain is multi-chain. Ergo provides a variety of tools to provide information and world-class privacy features for cooperative projects.

Decentralized technology is an evolving technology. Understanding and adapting to new features and functions is essential for the long-term development of any blockchain project. Alex himself has published more than 20 academic papers. This means that when exploring new and innovative features, Alex can read and understand emerging concepts, and use this as a basis for design. This maintains Ergo’s reputation as one of the most technologically advanced PoW projects in the blockchain field.

Look at oW from a long-term perspective

Bitcoin, the world’s most famous cryptocurrency, has turned 12 this year. The decentralized network effect has changed our world. Any user who has the right hardware can participate and mine with the PoW algorithm. UTXO trading model began to be adopted in the real world. Within ten years, millions of computers have joined the Bitcoin network.

Ethereum was born after Bitcoin, followed by the smart contract revolution. Smart contracts implement complex transactions and transaction agreements designed to execute, control, or record related events. This prompted the development of decentralized applications. Based on the concept of decentralization, its goal is to add logic to eliminate trusted intermediaries.

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If ordinary investors pay attention to the current cryptocurrency market, there will be an overwhelming amount of projects and information. They are often affected by the “next trend”, such as the next great product worth buying, a company to invest in, or a cryptocurrency worth holding.

Market sentiment and sentiment fluctuate. Many investors spend a lot of time and energy trying to catch up with the latest trends. Please be cautious before entering the venue and learn to think twice before proceeding.

The first fact is that we are in the early stages of blockchain and distributed system technology on the scale of time.

Although Bitcoin is still dominating, PoW is losing popularity relative to the newer and untested distributed consensus model.

Some people think that PoW is outdated. A large part of it is affected by the marketing of the PoS project.

On the other hand, it is because the innovation speed of old projects (Bitcoin/Ethereum) is very slow.

“The most common use of blockchain technology is in financial contracts. Unfortunately , innovation has stagnated and its adoption has stalled. We believe that one of the main problems is that people must rely on third parties. By eliminating these middlemen, while maintaining the same We believe that Ergo has opened the door to embrace blockchain technology for more people.”  Alex Chepurnoy

The author hopes that every reader will realize that we are in the early stage of blockchain technology with only 12 years of history. We are indeed in the initial stages of development. Blockchain technology will continue to exist. Therefore, we should take a long-term view.

Why use P oW

PoW is an emerging technology, and the technical level will improve over time. However, the reality is that many PoW systems are not innovative. These systems will not improve and adapt to the environment over time. The blockchain market is in a period of rapid development.

Ergo’s design is based on a self-correcting protocol, which has the ability to adapt to the environment and self-evolve. This allows it to integrate new technologies and promote self-improvement in a decentralized manner.

PoW has a unique advantage that has not been imitated. The first is security. Cryptography is built on security. The security of PoW has been proven, and PoW is the gold standard of security .

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For the comparison between PoW and PoS, please refer to the article “Why Proof of Stake Is Less Secure Than Proof of Work”.

The second point is privacy. Ergo uses a non-interactive zero-knowledge proof protocol called the Sigma protocol. Ergo also uses Ergomix, a non-interactive mixer.

The third point is the light client. In the 12 years since the birth of Bitcoin, ordinary consumers have spent much more time on their mobile phones than traditional computers. The light client creates a way to make it easier for ordinary users to obtain full node security on mobile devices. The proof of non-interactive proof of work (NiPoPoW) will establish a way of ensuring security in mobile clients. In time, this should be possible in wearable devices such as smart watches.

Long-term benefits of Ergo mining

Ethereum is redesigning its underlying protocol, transitioning from PoW to PoS system. I hope this work goes well (Annotation: Original publication date March 22, 2021).

But the author believes that Ethereum abandoning their huge network of miners is like killing chickens to get eggs to chase the trend. Any user can join the network mining, which is one of the original intentions to promote decentralization and encourage users to participate in the distributed system. Ergo is still committed to advancing PoW.

One of the unique points for Ergo is the concept of storage rental fees.

The initial issuance of Ergo coins to miners is relatively fast. However, the ability to recover lost coins provides additional means of income for miners. It is also beneficial to extend the life cycle of the network and create a sustainable ecosystem. Anyone who understands market cycles will recognize the phenomenon of alternating prosperity and depression. This additional revenue stream from miners will help increase profitability and encourage users to stay active.

Essentially, storage lease fees are a mechanism for paying miners to host inactive/non-profitable data. The economy is built on the rate of currency circulation. Higher circulation speed and liquidity can promote economic growth.

Last year, Ergo adopted a mining pool. This move lowered the barriers to entry, allowing miners to use mining software to maximize their hardware. Mining in the mining pool allows small miners to form a joint effort to produce blocks together.

The stablecoin igmaUSD and its benefits to miners

The miners who maintain the network are the lifeblood of a robust PoW system. The decentralized system will have various participants to make the system grow. Designers must adopt appropriate incentives to meet the needs of the community. Ergo is built on a solid technical foundation; the decentralized financial market is built on a historical foundation.

Traditionally, the central bank held gold as a reserve backing currency. Currency is used as a stable medium of exchange for the entire economy. In the case of stability or asset support, this banking system can promote business development.

We have broken away from the system where money needs to be endorsed by some kind of article. The banking system operated by global reserve currencies only has a 0% reserve requirement.

Governments around the world are constantly injecting liquidity into the global economy. Global central banks are creating currency and debt at an unprecedented rate. This debt will add a heavy burden to countless generations, otherwise the debt will reach the point of default and restructuring.

Digital assets are market substitutes for fiat currency inflation pressures. The “law” in the code creates scarcity on a predictable digital currency issuance schedule. The digital currency in Ergo is ERG. Miners consume electricity and create this safe electronic asset.

In the global economy, gold is produced by miners and sold to various participants. Some gold mine owners may sell their ore/refined products to the open market, create OTC contracts or sell them to the central bank for reserve.

Ergo has entered the public market through the exchange. OTC, dark pools and decentralized exchanges (DEX) are being developed for private P2P sales. SigmaUSD represents the third option, which allows miners to obtain liquidity.

The economics of cryptocurrency mining is similar to transaction economics. Some miners use Tuncoin to establish long positions, and they are project-oriented. They discovered the projects they believed in and provided critical network infrastructure, maintenance, and development.

Other miners act as freelancers: they provide key services for profitable projects. They usually don’t buy coins, and they continue to cash out in the open market to pay for production costs.

Learn about extension TXO

The extended UTXO model is relatively new. When this new technology is introduced, there will always be waves of adoption. For developers, Ergo provides them with an excellent opportunity to experiment and build using this new model.

On the PoW protocol, all developers need to do is start mining ERG. As their work pays off, they can begin to develop ways to utilize these assets, thereby bypassing the market. In essence, this process is to use the technology developers already have, rather than directly spend money to participate.

Ergo provides a variety of tools and smart contract functions, which are open source and free to use. This enables developers to use extended UTXO for learning and development with a lower barrier to entry.

The above concepts are part of the original motivation to promote PoW. PoW enables users all over the world to use its computing power resources and development skills to create value. The innovative technology provided by Ergo is built on a solid foundation of past experience.

Disclaimer: The copyright of this article belongs to the original author, and the content written only represents the original author’s point of view, and does not make investment and financial advice.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/enter-a-new-era-of-pow-with-ergo/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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