Introduction
Launched in 2019, Ergo is a project that boasts a programmable blockchain with an energy efficient and stable mining protocol. ERG currently trades at $8.34 per token with a capped supply of 97 million. Since not all tokens have been released yet, the current market cap of ERG is $268 million.
Overview
Ergo is a proof-of-work (PoW) smart contract platform notable for its lack of a pre-mine or an initial coin offering, its research-driven approach, and its connection to the Cardano network. It is a secure blockchain with decentralized finance (DeFi) features. It’s goal is to combine Ethereum’s best features with those of Bitcoin. Ergo has modified the legacy PoW consensus protocol to use Autolykos, a self-developed unique PoW consensus protocol.
Ergo hopes that Autolykos will mitigate the threat of mining pools controlling more than 51% of a network’s computational power, threatening decentralization and security. Ergo’s distinct approach to PoW is best exemplified by its storage rent implementation, which aims to reintroduce stagnant and lost coins into circulation in order to support the sustainability of future mining rewards.
When ERG first went public in October 2018, it was worth about $1.78. The cryptocurrency spent much of the next year trading between $1 and $3, with a spike to more than $5 in February and another spike to an all-time high of $44.06 on July 1, 2019. Following that, it plummeted, reaching an all-time low of $0.09398 on March 13, 2020. However, the market bloomed in early 2021, and ERG followed suit, reaching a high of $19.60 on 18 May. Following that, a market crash caused the coin to fall to $3.97 on July 20. This was followed by a recovery, with ERG trading at $19.25 on September 2nd. For the most part, it was all downhill from there and the coin closed 2021 at $4.83.
Background
Tokenomics
Market Cap: $81,682,643.68
Circulating Supply: 58,638,426 ERG
Supply Cap: 97,739,925 ERG
All-time High: $44.06 July 01, 2019-96.83%
All-time Low: $0.09398 March 13, 2020 1383.88%
Features and Functionality
ERGO is a decentralized blockchain platform that aims to provide secure, efficient, and programmable financial contracts and applications. It is designed to be a self sustaining and resilient platform that supports smart contracts and decentralized applications while prioritizing security and scalability.
Risks and Challenges
- Most major crypto exchanges haven’t listed Ergo yet because not a lot of people know about Ergo yet so its trading volume is low.
- It uses proof of Work: Proof of work itself might get targeted by public since it’s already pretty demonized when you look at general population vs Bitcoin mining.
- Ergo have many Competitors like: CryptoDiscover , Coindelta , and Global Blockchain Academy.
Advantages of Ergo
- Ergo is a programmable blockchain without gas fees
- Efficiency and Reliability
- Ergo has a strong team behind it.
- POW is no longer an issue for Ergo as it has been proven to be good for the environment and grid balancing.
Conclusion
Ergo is a project that combines a modified version of the Proof of work protocol with smart contracts. The modified PoW protocol is more energy efficient due to its limited mining size and resistance to large mining pools and mining equipment. With this PoW protocol, Ergo has miners who process and validate transactions. Once the block rewards are reduced to zero, the incentives will be sourced from transaction fees and storage fees. The Ergo programmable blockchain does not require gas or transaction fees like Ethereum, thereby lowering the entry threshold for developers looking to develop applications on the platform.
