KuCoin AMA: Ergo is the future of smart money

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From 16:00-17:11 (UTC) on August 30, 2021, Ergo held an AMA event in the KuCoin telegram group, indicating that Ergo will be the future of smart money.

Project introduction

Ergo is a UTXO-based blockchain using Proof of Work (PoW) consensus. In this respect, it is similar to Bitcoin. But unlike Bitcoin, similar to Cardano, Ergo uses the so-called “extended UTXO (eUTXO) model”, which means UTXO has the ability to contain arbitrary data and complex scripts. In this way, Ergo supports advanced financial contracts similar to the Ethereum account model.

Ergo has built advanced encryption functions and disruptive new DeFi functions on a solid foundation laid by ten years of blockchain theory and development. Ergo is designed and implemented by a team of experienced developers and researchers. They have academic works and doctoral degrees in cryptography, compiler theory, blockchain technology, and encrypted electronic cash. The team also has a solid background in the core development of cryptocurrency and blockchain frameworks such as Nxt, ScoreX and Waves.

Guests:

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Alexander Chepurnoy – Co-founder and core developer of Ergo 

Alex (Kushti) has been active in the blockchain industry since 2011. He has written more than 20 academic papers and has more than 15 years of software development experience. He is the co-founder of ERGO. He was the co-founder of smartcontract.com (now Chainlink) and the core developer of NXT. He was also one of the first employees of IOHK as a senior researcher and head of the Scorex team.

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Joseph Armeanio – Ergo Business Development Manager

Joseph has been involved in cryptocurrency investments since 2013. He is passionate about anti-economic frameworks and social welfare tools. As a business expander, he has established partnerships and educational partnerships with the cryptocurrency industry, created opportunities for research, and promoted the adoption of Ergo tools by the public and non-profit sectors.

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Mark Glasgow – Head of Ergo Community Management 

Mark joined the Ergo Foundation on behalf of the community and has more than 15 years of working experience in decentralized communities.

Interactive Q&A

Q: In short, what are the main features of Ergo In the crowded market environment Ergo how to stand out from the other block chain projects ?

Joseph: What makes Ergo stand out from most blockchains in the industry is its functionality . Before “DeFi” became a buzzword, Ergo was designed and built to run financial contracts. ErgoScript is a flexible language, even when compared with other eUTXO blockchains, the functions it provides are unique.

Notable main features include our native stablecoin SigUSD, NFT auction house, ErgoMixer mixer and oracle. We are currently researching and developing more smart contract frameworks, NiPoPoW, side chains and Layer 2 solutions.

Ergo continues to build and improve financial contract toolkits. Ergo’s mission is simple and clear, not trying to focus on a single goal or slogan. We want to broaden the boundary of possibilities in eUTXO and proof of work.

The issuance of ERG is based on the principle of fairness, and there is no ICO or pre-mining. This is done to allow fair distribution of tokens. We are still in the early stages of the issuance cycle and only mined 1/3 of the maximum supply of 97,739,924 ERGs.

ARK : Ergo is one of the industry’s most complex ingenious protocol, it absorbs been fully tested and ready-made idea in formal scientific papers in. Its main focus is to provide an efficient, safe and simple way to implement financial contracts that will continue to be useful for a long time. Ergo is a self-correcting protocol that allows oneself to absorb new ideas and self-improve in a decentralized manner in the future. It adopted some novel ideas, such as NiPoPoW and “storage lease fees”-it is worth noting that only 6 years from now, the total supply (approximately 97 million ERGs) will be fully mined-after that, miners Will rely on storage lease fees and transaction fees for rewards.

But as Alex said recently, “There is no doubt that Ergo will be the only Kunpeng in the cryptocurrency world, and the future is boundless.”

Alex: Actually, there are not so many attractive proof-of-work blockchains, and Ergo is truly unique among them.

Q: The oracle is an important function of the blockchain. You can to tell you interpret what oracle pool of applications and how they will on Ergo achieve ?

Joseph: The oracle is an interesting problem in blockchain. The protocol is measured based on objective facts and based on the security of its encryption framework. Since proper network assumptions are used in the design, the assurance level of a correctly constructed system is very high.

The oracle is more subjective facts and depends on the participants. This “subjective fact” creates an attack point in decentralized finance, and we have already seen the vulnerability being exploited.

The oracle pool model on Ergo was jointly researched and developed by Ergo and Emurgo (one of the founding entities of the Cardano blockchain). The goal is to use the stages of game theory, economic counter-incentives, and data aggregation to create a model to strengthen the oracle’s defenses against known attacks.

Can a truly decentralized oracle maintain a high degree of assurance? At Ergo, we think it is possible.

Most API data is easily available and free. However, how do you transplant it to the blockchain in a decentralized way and steadily ensure that it will not be manipulated? This is an interesting question. I think Ergo’s solution is one of the best frameworks in this field.

Mark: The oracle in the blockchain acts as a messenger agent, connecting two different data sources, while protecting the reliability of information. This is indeed a valuable job, because many people and decentralized applications rely on these data points to ensure continuous operation. In addition, since decentralized finance does not use middlemen, the accuracy and speed of the oracle are more important for maintaining a functioning blockchain ecosystem. The oracle maintains the internal and external communications of the application and ensures its consistent and robust operation.

A real-world example is the sigmausd.io stablecoin, which uses the ERG/USD oracle pool, which is refreshed every 12 minutes. When such a large amount of collateral is pledged, the accuracy and reliability of these data points are critical.

The design of the Ergo oracle pool is more efficient and more programmable than using multiple single oracle data points, as we have seen in the oracle design of Chainlink. On the contrary, Ergo uses the oracle pool and the pool of oracle pools to establish the confidence level structure. Therefore, it is faster, cheaper, and more beneficial to the end user.

Alex: In addition, the oracle pool is a consensus protocol that uses native tokens (ERG) as incentives. There are many worries about the economics of LINK tokens, and there is no such problem in the prediction pool!

Q: The highly anticipated ErgoDEX will be released soon. What is so special about it ?

Alex: ErgoDEX will unify the order book DEX and AMM DEX (thanks to Ergo’s extended UTXO trading model). In addition, it also allows contracts to be embedded in orders, which can be used for token sales with unique attributes, such as token sales with repurchase guarantees, and can easily trade derivatives.

Mark: The advantage of ErgoDEX lies in its developers. They have many years of experience building on Ergo, one of the most complex and ingenious blockchains in the industry-Ergo uses an eUTXO model similar to Cardano’s implementation.

The ErgoDEX Beta version is now online on the Ergo blockchain, allowing the system to conduct actual combat tests and iterative improvements based on real-world data-and finally run locally on the two blockchains of ERG and ADA , allowing cross-chain exchanges, shared liquidity and many others to be Discovered applications (using the uniqueness and innovation that comes with Ergo).

For example, an article on the official website on August 19, 2021 described a feature mentioned in the Ergo white paper-allowing investors to obtain security and refunds when participating in ICOs.

Joseph: ErgoDEX is a project that strives to promote the realization of decentralized exchange capabilities on UTXO.

The first unique feature of ErgoDEX is the ability to have both an order book and AMM DEX in one application. This will allow users to trade on any interface they like. This duality will enable providers to use AMM DEX to provide liquidity for order book DEX. For a DEX, this shared liquidity model is unique. Decentralized exchanges use it to encourage users to provide liquidity and provide traders with more extensive flexibility in the way they trade.

The second unique feature of ErgoDEX is the long-term plan for cross-chain liquidity between ErgoDEX implementations on multiple blockchains. This will allow users to take full advantage of the unique features of a particular ecosystem.

Q: NFT is currently a hot market. How does Ergo stay relevant in this fast-growing field?

Mark: Due to its low cost, Ergo has attracted a large number of great artists into this field (a tribute to ergnomes.io and his wonderful series).

In the future, it will be possible to exchange trustless NFTs with Cardano, and it should help bridge the two communities.

Alex: In addition, Ergo allows simple DeFi combinations (again thanks to eUTXO), so you can easily bid from ErgoMixer and implement more other features.

So this is not just about the Ergo auction house, but about the entire ecosystem.

Ergo Auction House is now getting a new contract that allows royalties and other cool new features.

Q: While reading your project, I learned that ErgoScript is a language written from scratch. Compared with other contract languages, what aspects of it are unique, and what applications can it produce that we have not yet seen?

Alex: Not only ErgoScript, but the entire extended UTXO model of Ergo is indeed unique when it was introduced. ErgoScript allows simpler contracts (compared to Ethereum) in many cases, which also benefits the unique combination of security, logic and encryption protocols, etc.

Mark: ErgoScript is a powerful and protocol-friendly cryptocurrency scripting language. The program in ErgoScript is used to specify the conditions under which currency can be used. The language supports a non-interactive zero-knowledge proof called the Σ (Sigma) protocol and is flexible enough to allow ring signatures, multi-signatures, multiple currencies, atomic swaps, self-replicating scripts, and long-term calculations.

Due to the high flexibility of the ErgoScript programming model and eUTXO, many different protocols will be possible on layer 2, each of which solves scalability issues in specific areas (such as simple payment transactions).

The Ergo blockchain can be considered as the general settlement layer for many Layer 2 protocols and applications.

The application that excites me the most is probably LETS. The Local Exchange Trading System (“LETS”) facilitates transactions between members by providing local currencies and a catalog of supply and demand. LETS can be thought of as a mechanism that can promote the speed of trade, goods and services outside of the existing monetary system, enabling us to create a sustainable local economy.

Joseph: I think the most attractive aspect of ErgoScript, which is unique to Ergo, is the read-only data input UTXO. This is a UTXO box that can broadcast data on the chain without destroying and recreating it.

This reduces computational costs and makes DeFi on Ergo more economically competitive.

Alex: Another nice feature is the good support for contract templates and the composability of standard and non-standard logic (applicable to financial instruments with unique attributes).

Q: I want to talk about Ergo’s GPU mining plan. Market sentiment seems to be moving in the direction of PoS . Alex, when PoS yet when pop you in the NXT pioneered the use of the PoS . What makes your back PoW adopted as a consensus model of ?

Alex: As we all know, PoW verification is simpler, and it also achieves uncensorable, transparent and relatively fair distribution, especially when using anti-ASIC algorithms. Ergo uses the anti-ASIC algorithm Autolykos2. At present, thousands of miners are getting new ERG every day, so it actually achieves fair distribution.

Joseph: The biggest benefit GPU mining brings to miners is the ability to use hardware to generate cash flow. It does not require direct investment in the project and establishes competition between PoW chains to maintain relevance.

Mark: PoW has been tested in actual combat, and everything in life needs to be weighed. For the creation of contract coins, PoW is a winner in many aspects.

Joseph has been working to introduce new mine pool to accept leaving ETH count of force, and the user is the coolest report on Autolykos algorithm has large numbers (translation: At press time, according to miningpoolstats website data show that the former top ten Ethernet Square Four mining pools have launched ERG mining, including Ethermine.org, the second largest mining pool in Ethereum, Beepool.com, the fifth largest mining pool in Ethereum, and Nanopool, the sixth largest mining pool in Ethereum (currently the largest ERG mining pool). Mining pool), Ethereum’s eighth largest mining pool 2miners.com ).

Autolykos is written in Scala and has a high memory footprint—still at the top of the profitability rankings, and it won’t overheat.

Q: Ergo uses the Sigma protocol. Can you tell us more about the Sigma protocol?

Alex: Sigma protocol (also known as generalized Schnorr proof) is a subset of zero-knowledge proof, known for its efficiency, composability, and ability to be used as a signature through standard simple conversion.

Thanks to the Sigma protocol, Ergo supports flexible multi-signatures (thresholds, ring signatures, etc.). Unlike Bitcoin multi-signature, it does retain zero knowledge (the signer is unknown, only the signature ring), and it is also efficient. Implementation is different.

ErgoMixer is a unique non-supervised and non-interactive privacy application that uses the Sigma protocol behind the scenes to destroy the output-input linkability of transactions. It is formalized in published papers, and its implementation is now very stable. Please also check the unique method of avoiding privacy leaks, as mining fees need to be paid through special tokens and the “Master Box” model (in the paper).

Mark: The Sigma protocol allows a true peer-to-peer system, while considering privacy. At present, no one else can build a trustless LETS system that does not disclose the signer’s multi-signature, establishes a trustless payment network, or has a true ring signature that preserves zero knowledge.

Q: You have established a very close relationship with the Cardano Foundation. Ergo itself is independent of the block chain, but you can just Ergo provide some of Cardano block chain shared partnerships insight ? Cardano founder Charles Hoskinson even called Ergo ” the spiritual successor of Bitcoin .” You think he words is what is intended ?

lex: Not yet, but some announcements will be made soon.

Mark: Both Ergo and Cardano are derived from similar foundations and similar principles, but they start from different perspectives. Ergo’s goal is to develop the UTXO field side by side with Cardano in the next few years, and it has many novel features and ideas. As they become more interconnected in the next few years, many blockchains will adopt these features and ideas.

This is due to the spirit and grassroots community behind Ergo (and UTXO model + innovation). If Bitcoin was born today, it would not be Cardano, ETH, or XRP — it would be Ergo. (Charles Hoskinson’s original words)

oseph : I put “Bitcoin spiritual successor” as a challenge to remain open and willing to cooperate with everyone. The early days of Bitcoin were about decentralization, because Bitcoin was not that monetized. At that time, the focus and intention of cryptocurrency were different. Many great thinkers and dreamers believe that this technology can do something for our world.

This industry needs more of this mentality.

Alex: Ergo does start from the first ethics and design principles of Bitcoin, but it also develops in all aspects, supporting stateless clients, economical storage rental fees, efficient SPV guidance (via NiPoPoW), sigma protocol, and more powerful contracts and many more.

Free questions in the KuCoin community

Q: Where can I buy your tokens and how can I buy them?

Mark: You can buy it on KuCoin!

Q: Charles Hoskinson, the CEO of Cardano, said he likes Ergo. Can we see Cardano and Ergo unite in the future? Or other projects combined with Ergo. 

oseph : You will have to wait for the announcement.

We are currently also cooperating with Waves, Graviton, Pirate, Komodo, Etho Procol, Turtle Network, Dragon Chain, Signum, Bittube and Polarity. Ergo is part of BPSAA. Please check their website.

Ergo is always willing to cooperate with projects in the cryptocurrency field. The ultimate goal is to advance this technology. I hope to spend less energy on the infighting between projects/personnel, so as to make more innovations.

It will accelerate the development and use of the tools we are building.

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/kucoin-ama-ergo-is-the-future-of-smart-money/
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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