It’s been known as one of the most innovative cryptocurrencies ever built. Here’s a rundown of what you have to know before you buy it.
For crypto investors, it is always interesting to find out a smaller altcoin with the potential to grow. Ergo (ERG) truely fits that description.
It improves on elements of the two market leaders, Bitcoin (BTC) and Ethereum (ETH). And it has ties to another top-five cryptocurrency in Cardano (ADA). Last however not least, Ergo has gained over 1,800% in 2021, much more than double any of those coins.
Despite all that, Ergo is nonetheless well outside the top 100 biggest cryptocurrencies. Some will tell you that it could eventually reach the top 10. That means it can additionally be a suitable time to buy, after you learn more about this cryptocurrency.
1. Ergo is a programmable blockchain without gas fees
As a programmable blockchain, Ergo gives a platform where developers can create decentralized applications (dApps). It’s comparable in that respect to Ethereum, which was the first and is moreover presently the largest programmable blockchain.
There’s a key difference between Ergo and Ethereum, however. Ergo does not have gas (transaction) fees. Ethereum does, and its gas expenses are based on how busy the network is. Due to how popular Ethereum is, gas fees are very expensive.
The lack of fuel fees on Ergo is advisable for developers, who can more precisely predict the value of creating dApps on Ergo.
2. It has numerous functional dApps, with more on the way
There are all sorts of use cases for Ergo, on the other hand let’s look at a few of the methods it’s already being used. Here are some of its current dApps:
• SigmaUSD: A decentralized stablecoin that is pegged to the U.S. dollar.
• Ergo Auction House: An auction house for non-fungible tokens (NFTs).
• ErgoMixer: The first non-custodial, noninteractive mixer in the cryptocurrency space. A mixer allows customers to send tokens in batches of transactions and mixes those tokens together. This makes every user’s transaction more difficult to trace than it would be if the crypto was despatched directly from one wallet to another.
Ergo additionally has a decentralized exchange and a crowdfunding platform in development.
3. It makes use of a proof-of-work model
Like Bitcoin, Ergo makes use of a proof-of-work model for mining new coins and validating transactions.
Proof of work entails miners the use of devices to solve complicated mathematical equations. It’s in particular secure, on the other hand it has raised environmental concerns. In Bitcoin’s case, its proof-of-work model has led to mining farms using big quantities of energy.
Ergo has made some changes to alleviate this issue. Its mining algorithm, called Autolykos, is designed to be resistant to each large mining pools and ASICs, the devices used to mine Bitcoin. Those modifications make it a more efficient proof-of-work model. They additionally allow anybody to mine Ergo using a computer with a graphics card.
4. Ergo has a strong team behind it
The Ergo team brings quite a bit of cryptocurrency knowledge and experience. Core developer Alexander Chepurnoy has been involved in Bitcoin on the grounds that 2011 and has developed cryptocurrency software since 2013. He cofounded Ergo with Dmitry Meshkov, who has a PhD in physics and over a decade of software development experience.
Chepurnoy and Meshkov both worked in research at IOHK, an engineering and research organization that builds blockchains and cryptocurrencies. IOHK was instrumental in creating the cryptocurrency Cardano.
5. Ergo has collaborated with Cardano
While Ergo and Cardano are separate projects, they have labored together and appear to have a mutually really useful relationship. In 2020, Ergo announced that it was partnering with Cardano on a decentralized finance (DeFi) project.
Ergo is moreover the first blockchain to adopt smart contract language using the same model as Cardano. This means dApps on Cardano can use smart contracts that require proof of work for security features it offers, as an alternative of being limited to the proof-of-stake model.
6. It follows a research-driven approach
Slow and steady isn’t the most popular approach amongst cryptocurrency projects, however it is the one Ergo favors. Its team does lots of research before code implementation.
This method has its pros and cons. A more patient development process means that Ergo can come up with much better solutions to the problems it desires to solve. There’s also a smaller probability of issues. However, it also risks losing ground to different projects that increase at a faster pace.
7. Most major crypto exchanges have not listed Ergo yet
Buying Ergo is not the best system right now, as it is not one of these cryptos that you can discover on any exchange. Here are a few of the exchanges that do record Ergo:
If Ergo continues to grow, it can get listed on the most famous cryptocurrency exchanges. There’s a desirable chance that would lead to the rate going up. If you suppose Ergo is a desirable investment, it is really worth studying how to purchase it now so you can get in early.
There’s a lot to like about Ergo as a cryptocurrency investment, particularly when you consider its modern size and how much better it could be. You can nevertheless be cautious about how much you buy if you choose to invest. No cryptocurrency is a positive thing. But Ergo is one to consider, and if nothing else, it is really worth putting on your watchlist.
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