What is Ergo, and what does it have to offer the world? There is some buzz around and about the Ergo community, but you need to know these seven things before buying the token.
Spoiler alert: Ergo stands out from the crowd of upcoming cryptocurrencies because the project is built on a different ideology. You will agree that actions speak louder than the words of a whitepaper ever could.
2017 saw the inception of the ICO mania. This means most are in it for the money, not what the network can do for the world. ICOs are unregulated, but they rake in tons of money, we’re talking billions here. The 2017 ICO mania was a drastic flip from the funding initial ICOs raised.
And before the world knew it, cryptocurrencies became a way for many developing teams to make money. Bitcoin was built on a different ideology than this like Ergo aims to emulate.
Ergo stands out from the crowd of upcoming cryptocurrencies
The premier cryptocurrency came through a vision of what the world would be if finance were decentralized. This dream is becoming an amazing reality; ask the refugees, human rights activists, journalists, and every other group that has benefited from decentralized finance.
Since then, many other tokens have come forward with great ideas for building on the blockchain technology that Bitcoin set the pace for. Solana, for instance, is renowned for low transaction fees. Mona is a project that brings fashion and fashion NFTs to the DeFi or Web 3.0 space.
This is how to know if a cryptocurrency is legit. It must offer something to the blockchain, something of value.
The seven things you should know about Ergo are not only facts that make it stand out but may also be the factors that boost its chances of success.
One – what is Ergo, and why Ergo? You need to know the reason behind the coin’s existence, apart from what it can do for the world or you.
Ergo was founded by Alex Chepurnoy, a blockchain developer with a vision to revolutionize the blockchain and change cryptocurrency precedents like the ICO mania.
It is a blockchain, like Bitcoin. And like Bitcoin, Ergo uses the proof-of-work protocol, which uses puzzles to record transactions on the blockchain. However, Ergo takes things a step further – it makes the blockchain programmable.
This means you can develop apps and complex smart contracts on the Ergo blockchain but cannot do them on the Bitcoin blockchain.
Developers can use the ErgoScript programming language to bring their decentralized finance visions to life. The language is easy to understand and fast; speed is essential when building anything on the blockchain.
Non-Interactive Proofs of Proof of Work is one of the applications Ergo offers. It is also one of the network’s improvements to the crypto sphere.
NIPoPW is a step up from Bitcoin’s application-specific integrated circuit or ASIC. The ASIC was the major problem with Bitcoin, and it still is.
Bitcoin mining requires a significant condition of energy which isn’t good for the environment. Ergo took the proof of work mechanism and improved it.
Why Ergo was built in the first place
Let’s understand why Ergo was built in the first place. Alex Chepurnoy discovered the technology needed to make cryptocurrency an environmentally sustainable option while increasing its use cases in ways that many other projects have been unable to.
In other words, Ergo came into existence from long and in-depth research about the blockchain. It is safe to imply that whatever project is built from studying the blockchain for several years will consider the problems with it and find a way to make up for them.
NIPoPW protects the environment by reducing the number of uncle blocks that can be created and ensuring that less energy is required to mine Erg tokens. In contrast, mining Bitcoin can consume as much power as a country.
This development means you can mine Erg with a graphic card. Mining Bitcoin, on the other hand, requires massive energy and lots of technology which an average person cannot afford.
Everyone’s included. Developers, miners, and investors have unlimited access to the Ergo blockchain and community.
What is Ergo?
So, what is Ergo? Environmentally conscious and non-capitalist are two ways to describe it. It has a vision, not just a fundraising aim or number.
Everyone benefits from Ergo. This is the second thing you should know before buying Erg tokens.
The platform was built for developers. If you understand how cryptography and blockchains work, you can join the Ergo blockchain to build applications for others.
Or, if you have an awesome idea that could revolutionize something in your desired field, you can go for it with ErgoScript.
You can also make money as a miner, even though money making is not all Ergo is about. Mining is no longer reserved for people with the funds; for fifty dollars and an outstanding brain, you can increase your income and standard of living.
However, the Autolykos programming software ensures that large mining pools are avoided. Large mining pools don’t have the best environmental effect because of the massive energy generated.
And frankly, just a few nodes can get the job done. So, ASIC-resistant technology means that when people mining the block reach a significant number, no more will have the ability to join.
Ergo has many promising benefits to offer the world, so investors may get good returns on their money. Investing in a cryptocurrency shouldn’t be done on a whim – if you don’t understand, support, and envision the future of the token and its possibilities, don’t invest.
Top thing to know about Ergo
The third thing to know about Ergo is that Erg is the native token for the Ergo cryptocurrency projects. You may buy into it if you believe in the projects the network wants to bring to life. This is what investing is about – the token provides a value that solves a present problem and will be helpful in the future.
Otherwise, the value will not grow with demand. Demand and supply are among the most significant factors that affect the growth of a token, and if the network fails to offer value to the blockchain ecosystem or crypto sphere as a whole, the demand for the coins won’t shoot up the price.
One Erg token is currently trading at $4.89. This relatively low price gives a long-term investor a dope and cheap entry – a floor price.
No one knows how much one Erg will be tomorrow, but you can catch a clue by looking to the left of the chart. History shows whether a coin will be great or not, but so does the value it offers.
Two other tokens are associated with the Erg network. One is a stablecoin, while the other is the reserve currency, and both can be mined by you.
The stablecoin exists so that you can save your money without a bank’s third-party services. To truly bypass the centralized system, the storage of money must have a decentralized ideology.
No single entity must be in control, but that innovation has been challenging. It appears there must be a custodian, someone in charge of the money, which defeats the purpose.
But SigUSD and SigRSV allow you to save money entirely at your behest. It is truly a decentralized system that will enable you to buy and hold any of the network’s three tokens. You can get your money without the help of a third party.
The SigUSD is the stablecoin for the network, and you can use it to save money you don’t plan on spending. Or, you can transfer it to someone elsewhere; you can do whatever you like because it is in your control.
SigRSV is the reserve currency. It is reserved as a loss-preventive measure for investors of SigUSD. When the price of the token goes below 1 USD, SigRSV is the token that ensures your funds stay intact, thereby mitigating loss.
How many tokens are in circulation?
The major exchange platforms have not listed Ergo yet, so buying it may not be the most straightforward task. However, you can find what you want on KuCoin and Gate.io.
How many tokens are in circulation? Glad you asked because this is the fourth thing you should know about Ergo. There is a max supply of 58,638,426 Erg coins in circulation, and it can help you make a buying decision.
This is not investment advice, but this circulating supply is right – it doesn’t have a watery value because what’s in existence isn’t unlimited, thereby increasing the chances that scarcity will drive demand and supply.
Number five on the list of things to know before you buy Ergo is that the project has many DeFi apps up and running already like they said they would.
With NFTs booming, an auction house is needed, and Ergo aims to provide one. It’s a place where you can visit, explore NFTs, and choose your pick.
On the website that hosts the Ergo Auction House, you can list your audio and video NFTs, buy or sell, and even mint on the platform. You can call it a digital marketplace for NFTs because that’s what it is.
Through ErgoDex, the Erg network has achieved one of its top programs regarding cross-chain liquidity. It partnered with Cardano to create a decentralized exchange or DEX that allows you to transfer liquidity between two blockchains that are not the same.
That eliminates the need for wrapped tokens, which compromises the protocol’s safety. With ErgoDex, you don’t need to use wrapped tokens, which means everything the network needs to help you transfer your money from one coin to another, is already available.
People lose money when they are not careful enough with it. However, that is not the only way to lose your funds.
You can charge the protocol with the service of taking care of your tokens when they are not in use. Let’s say you are not interested in staking, yield farming, and other activities from which liquidity providers can benefit when using the network.
Instead of leaving your coins untended and possibly at the risk of cyber theft, the Ergo Storage Rent Feature can help you ensure that the chances of losing your funds reduce drastically. This hands over your tokens to miners – they are custodians of your coins but will collect a minimal amount for the service.
That way, when you don’t check on your wallet for four years, you will have specialists from the Ergo ecosystem protecting them for you by the fourth year.
Those coins will be re-added to the Ergo liquidity pool if inactive for four years. You will pay storage fees after the fourth year, but you can bypass them by unlocking your coins before the fourth year.
Speaking of which, you don’t need to pay gas fees for your transactions on the Ergo blockchain. That’s what makes Ergo different. Other blockchains, including Bitcoin, charge you a fee to make transactions.
However, the network proclaims that they only take 4.43 percent of the revenue raised. It is used to manage the blockchain; the remaining 95.57 percent of it goes into improving the network and its services.
Number six – the developing team behind Ergo. If the team of a crypto project chooses to be anonymous or fails to mingle with its growing community, it raises questions. Of course, networks like Bitcoin and Shiba Inu have been able to survive with anonymity, but coming from emerging tokens, it is risky and scary.
Best believe it but many cryptocurrency rug pulls have occurred in the space of ten years and have therefore created more skeptical investors. However, it seems unlikely that Alex Chepurnoy and Dmitry Meshkov would abscond with your funds; look them up, and you will find everything you need to know about the pair.
Finally, the seventh thing to know about Ergo is that it exists to improve the blockchain, and it does that in many ways. For instance, the speed required to mine one Bitcoin is not the fastest, but it doesn’t provide a plan B for miners discovering one block simultaneously.
This means that if two Bitcoin miners find the solution to a hash around the same period, the fastest of the two gets the reward, and the other party loses everything. It doesn’t matter that they have used considerable energy to secure the transaction; it goes out the door.
This type of transaction is called an uncle block; it is of no use, and Ergo has foreseen this and hopes to improve it or even make it impossible to lose that amount of energy for nothing. At the end of the day, the environment loses, the miner loses, and everything is in vain.
Ergo intends to improve the blockchain such that there will be a considerable time between the period it takes to complete one hash.
You can call it ASIC resistance, and it helps conserve energy.
Ergo also has mechanisms against double-spending. Let’s say you intend to perform a transaction but cannot complete it because of a network problem or a mistake. If you try again, what are the odds that the transaction didn’t eventually get processed the first time?
The Ergo network already saw that coming and provides a timed-payments option. The network ensures that if a transaction is not recorded within a specific timeframe, it goes to dust, and only the one that meets the time-stamp requirement will be valid.
What are you especially considering before buying Ergo? Investors look out for diverse factors, and your investing style is unique to you. But you will want to do your research before, and this is an excellent place to start because it gives you pointers on what to look for.