## **Welcome to the Ergo Ecosystem**

The Ergo Ecosystem is a thriving hub of decentralized applications, tools, and protocols designed to empower users, developers, and communities in the blockchain space. This section provides an overview of the various components that make up the Ergo Ecosystem, highlighting the innovation and utility that drive our growing network.

**Applications**

Ergo’s ecosystem is built on a solid foundation of key technologies and applications that cater to diverse use cases:

**Infrastructure**

Explore the underlying technologies that power the Ergo blockchain, including our robust Proof of Work consensus algorithm, sidechains, bridges, and oracle systems. These components ensure the scalability, security, and interoperability of the Ergo network.

**Financial Tools**

Dive into the financial applications and services within the Ergo ecosystem, including decentralized exchanges, stablecoins, lending platforms, and derivatives. These tools offer users new ways to manage, trade, and grow their assets in a trustless, decentralized environment.

**Privacy Solutions**

Ergo is at the forefront of privacy innovation with solutions like non-custodial mixers and stealth addresses. These tools ensure that users can conduct transactions with enhanced privacy while maintaining the security and transparency of the blockchain.

**Decentralized Governance**

Discover the tools and platforms that enable decentralized governance within the Ergo ecosystem, including DAOs and community-driven initiatives. These components allow users to participate in decision-making processes and contribute to the future development of the network.

**Gaming and Metaverse**

Ergo supports a growing number of gaming and metaverse projects, offering developers the tools they need to create immersive, blockchain-based experiences. From trading card games to expansive virtual worlds, the Ergo ecosystem is home to innovative entertainment platforms.

**Tooling and Developer Resources**

Get access to a suite of developer tools and resources designed to facilitate the creation and deployment of decentralized applications on the Ergo blockchain. From smart contract scripting to name services, these tools are essential for building on Ergo.

**Further Ideas and Innovation**

Explore new and experimental ideas within the Ergo ecosystem that push the boundaries of what's possible with blockchain technology. This section highlights ongoing research and development efforts aimed at expanding the capabilities of the network.

**Explore the Ecosystem**

Use the navigation on the left to explore each of these sections in detail. Whether you're interested in financial services, privacy solutions, or decentralized governance, the Ergo Ecosystem has something to offer for everyone.

Join us in building the future of decentralized finance and beyond.

Welcome to the Ergo Ecosystem

Ergo Ecosystem

## **Decentralised Exchanges (DEXs)**

Until 2020 DeFi Summer, Value Locked in DeFi (TVL) was too low to use the platforms effectively. After an increasing interest and new token issuance every day, Decentralized Exchanges (DEX) came into the sunlight.

Their benefits are for people who don’t want to give up the custody of their funds. DEXes democratized the exchange experience for both blockchain developers and crypto investors. 


**Decentralised Exchanges on Ergo**

**Spectrum Finance (Live)**

[Spectrum](https://docs.ergoplatform.com/eco/spectrum/) Finance is a pioneering open-source, cross-chain decentralized exchange (DEX) platform, currently offering liquidity provision (LP), yield farming, and babel fees on the Cardano (ADA) and Ergo (ERG) networks.

**GuapSwap (V2 in Development)**

[GuapSwap](https://docs.ergoplatform.com/eco/guapswap/) is a fully decentralized smart contract profit swapping service on the Ergo Blockchain.

**Palmyra ComDEX (MVP Live)**

[Palmyra ComDEX](https://docs.ergoplatform.com/eco/palmyra/) the flagship product of zenGate, is an innovative ecosystem that enables the tokenization and listing of certified commodities for spot and futures trading on a global scale.

**Machina Finance (In Development)**

The primary objective of [Machina Finance](https://docs.ergoplatform.com/eco/machina-finance/) is to promote decentralization and facilitate P2P trade by leveraging the power of grid contracts.

Decentralised Exchanges (DEXs)

## **Spectrum Finance**

Spectrum is a pioneering open-source, cross-chain decentralized exchange (DEX) platform, currently offering liquidity provision (LP), yield farming, and babel fees on the Cardano (ADA) and Ergo (ERG) networks.

**Current Features of Spectrum Finance**

**Liquidity Provision & Yield Farming**: Users can engage in liquidity provision and yield farming.

**Babel Fees**: Babel fees allow transaction fees to be paid with various tokens.

**Spectrum Bloom:** Next-Generation DeFi Framework#
Spectrum Bloom is an upcoming eUTxO-native framework for decentralized finance (DeFi), designed to address and improve upon the limitations of early decentralized exchanges (DEXes).

**Highlights from the Spectrum Bloom White Paper**

Addressing Early DEX Limitations: Spectrum Bloom aims to overcome issues such as lack of transparency, composability, and poor performance in early DEX implementations.

**Decentralization and Openness:** The framework focuses on principles of decentralization, openness, transparency, and sustainability.

**eUTxO Model:** Utilizes the eUTxO blockchain model, as seen in Ergo and Cardano, supporting multi-stage contracts and multi-token functionality.

**Innovative DEX Protocol:** Includes a novel protocol for DEX that consists of both on-chain (UTxO and validators) and off-chain (event handlers for state transitions) elements.

**Liquidity Pooling and Execution**: Spectrum Bloom proposes unique approaches to liquidity pooling and order execution, aiming to streamline processes and reduce overhead.

**Universal Order Composition:** Introduces universally composable orders, which can be fulfilled from any liquidity source, enhancing flexibility and efficiency.

**Autonomous Account (AA)**: A key feature where an on-chain entity can validate execution and release user funds for trading, facilitating a dynamic set of applications on eUTxO blockchains.

**Future Extensions and Applications**: The white paper also discusses potential extensions and applications of the Autonomous Account concept beyond DEXes.

**Resources**

**Tutorials**

[Running an off-chain matching bot](https://github.com/ergolabs/ergo-dex-backend#building--running-the-off-chain-services)

**Papers**

[Extended UTxO in production: Techniques, trade-offs, and finding a better balance](https://spectrum.fi/eutxo_in_production.pdf)

[Spectrum Bloom White Paper](https://spectrum.fi/spectrum_bloom_wp.pdf)

**Dev-Resources**

[EIP-0014: Decentralized Exchange Contracts](https://github.com/ergoplatform/eips/pull/27)

Spectrum Finance

## **Ergo Auction House**

The Ergo Auction House lets you buy and sell collectible tokens, art, and much more.

**Community Spaces**

Ergo NFT Discord: - active group of NFT fans on Ergo's Discord channel

**Artist Guidelines & Best Practices**

Source: Ergo Forum

**Important Considerations for Artists**

If you are an artist there are several things that you should take into consideration for using the Ergo Auction House.

It is very important for each artist to have only one specific address that he works with. It means that every artist should have a wallet with only one address in it. This is important for several reasons:

**Benefits of Using a Single Wallet Address**

Will be important later for artist verification. All your artworks will be identified with that address and you can easily present yourself on socials. By design, you can use any wallet you like but currently, it is strongly advised to use Ergo Wallet Android 26 which is easy to use with the QR codes that auction house V2 provides. The next best option is using Yoroi Nightly 18 with the dapp connector 15 – Please note that this is still in testing and you may experience some minor issues.

Make sure to configure the right wallet (with only one address in it) in the UI before issuing your artwork.

Using only one wallet with the specified condition is specifically important for issuing artworks (and not starting auctions) to make sure you receive the royalties and your artwork is presentable under one address to prevent scams.

Please note that there is no longer needed to use Ergo Utils to issue artworks. You should do it on the AH website. First issue your artwork, once you see it under “Owned Artworks” then feel free to start your auction.

**Auction House**

Source: Ergo Pad

Auction House, the first open-source NFT marketplace on the Ergo blockchain, featuring innovative solutions for efficient smart contracts, various auction types, on-chain collections and a flexible royalty system

**Description**

About Auction House

Since October 2020, Auction House has served as Ergo’s first NFT marketplace. About two years of testing and service have been put into it, there have been two big platform updates so far known as V1 and V2, including numerous bug fixes, adjustments and additions. The current Auction House platform (V2) is being used by many Ergonauts, and is still reliable. It has handled more than 10k on-chain operations such as placing bids. Highlighting the V2 is the fact that it's fully decentralized and built upon smart contracts.

What then is the point of this IDO if there is already a fully decentralized platform of Auction House that is up and running?

Auction House V3

With the upcoming IDO the team behind Auction House will work towards the third Version of Auction house including the following tools and features:

**New Features in Auction House V3**

**Re-designed UI :** A completely reworked version, Auction House V3, is nearly complete and will include brand-new features and an improved user interface.

**Verification system**: To prevent scams and fraud, there will be a new integration of a clear collection verification procedure on Auction House. If the community deems it necessary to have artist verification as well, the same procedure will be followed to verify the artists.

**Collections:** Collections are a crucial part of many NFT markets. They are among the most efficient methods of displaying artwork. The platform will be the first on Ergo Blockchain to utilize the recently proposed EIP-34 for collections among NFT marketplaces.

**LaunchPad:** Each artist gets a fair opportunity to schedule a spotlight on Auction House website to promote the upcoming release of their collections and showcase their work.

**Improved Security:** The team at Auction House is committed to creating a trustworthy NFT marketplace by making all of their processes fully transparent to the general public. The Ergo community and developers will evaluate each proposed smart contract, such as the recently proposed collection and improved artwork EIPs.

**New listing types:** Auction House V3 will feature three different listing options: the fixed-price listing, the highest-bid Auction, and the dutch Auction.

**Bulk minting**: The next release will include bulk minting, which was implemented to facilitate the creation of collections by artists. The goal is to enhance mass minting through collaborative efforts with artists.

**Flexible royalties**: Auction House V3 will support multiple recipients for royalties which enables artists to collaborate together.

**Auction House Token (AHT)**

Auction House will launch its own token, the Auction House Token (AHT), at the upcoming IDO. Contributing artists and NFT buyers using AHT will gain access to exclusive features such as having their work featured on the homepage, LaunchPad, and benefiting from a novel and visually appealing user interface for auctions.

Thanks to this facet of tokenomics, AHT will be distributed as bonuses to both buyers and sellers. For instance, if the final price of the auction is 100 ERGs, the AHT refund could be 5 AHT. Additionally in exchange for staking your AHT on ErgoPad, you will share in the success of Auction House. In financial terms, the auction house receives through fees when artworks are sold. The average percentage they will charge is 2%.

30% of the Auction House’s profit will be distributed among stakers periodically.. The distribution period and specifics have yet to be determined. The distribution of this 30% will be made in an automatic but centralized manner because there is no working solution on Ergo blockchain as of yet. Later, when ErgoPad releases Paideia, the Auction house will use it to decentralize this process.

In addition to above, AHT token IDO Roadmap, AHT Tokenomics and Distribution, and other info can also be found on the ergpad.io Auction House page

[Source code](https://github.com/anon-real/ErgoAuctionHouse)

[v2 contracts](https://github.com/ergoplatform/eips/pull/39/files)

[Research & Development: Auction House V2](https://www.ergoforum.org/t/auction-house-v2/2931)

[Artist Guidelines](https://www.ergoforum.org/t/artist-guideline/2929)


Ergo Auction House

## **SkyHarbor**

[skyharbor.io ](https://www.skyharbor.io/)is live. Their goal is to upgrade the ENFT space to match the full potential of Ergo. Verified collections to stop scams, NFT trading histories, and set-price trading.

Their roadmap includes expanded Ergo token support, NFT mass minting, NFT drops, publicly available API data, and much more!

SkyHarbor

## **Lilium**

[Lilium](https://github.com/LiliumErgo) seeks to create decentralised NFT minting, distribution, and sales infrastructure capable of being seamlessly integrated into business applications and programs.

Lilium

Infrastructure

## **Non-Fungible Tokens**

Blockchains offer more than just cryptocurrencies. They can also host audio or visual artworks through immutable smart contracts. These artworks are represented as Non-Fungible Tokens (NFTs). Moreover, these NFTs can be traded in decentralized auction houses, providing artists with a global platform free from governmental restrictions or the need for centralized licensing firms. This leads to the democratization of art markets through public blockchain.

There are existing examples like Rarible and Opensea, which are auction markets operating on the Ethereum Network. While these platforms allow any artist to create and sell their artwork, the gas prices for minting an NFT can reach up to $100. Ergo's scalable and efficient design significantly reduces these gas costs without compromising on security or speed.

**Marketplaces**

**ErgoAuctions**

[ErgoAuctions](https://docs.ergoplatform.com/eco/ergo-auctions/) is a platform where you can bid on and sell a variety of collectible tokens, art, and more.


**SkyHarbor**

[SkyHarbor](https://docs.ergoplatform.com/eco/skyharbor/) is a trusted marketplace that specializes in set price transactions.

For instructions on how to mint your own NFTs, refer to the [developer section.](https://docs.ergoplatform.com/dev/tokens/nfts/create/)

Non-Fungible Tokens

NFTS

## **Gaming on Ergo**

**Tip**

Be sure to check out [ErgoGames.io](https://ergogames.io/), a platform dedicated to showcasing games developed for the Ergo Blockchain.

**Metaverse Projects**

**Cyberverse**

[Cyberverse](https://docs.ergoplatform.com/eco/cyberverse/) is an open-world, pixel-based game filled with various opportunities to socialize with others and earn while doing so. Their vision is to have an open world pixel game, fit with blockchain integration to allow for unique player experiences using Ergo Blockchain.

**SigmaValley (Inactive)**

[SigmaValley](https://docs.ergoplatform.com/eco/sigmavalley/) is the first metaverse on the Ergo blockchain; it aims to be a caricaturesque and up-to-date visualization of the Ergo ecosystem. It was inspired by the Silicon Valley TV series Intro.

**NFT-Based Games**

**BlitzTCG**

[BlitzTCG](https://docs.ergoplatform.com/eco/blitz/) aims to revolutionize traditional TCG (Trading Card Game) gameplay.

**Digigoats**

[DigiGoats](https://docs.ergoplatform.com/eco/digigoats/) is game developed by the Screaming ERGoat Wine Club. Feed, Train and Battle your Ergoat to reach the top of the leaderboards. Screaming ERGoats are one of a kind NFTs exclusive to the Ergo Blockchain.

**Project Tesseract**

[Project Tesseract](https://docs.ergoplatform.com/eco/project-tesseract/) is an ambitious new game under development by ErgoGames.io

**Monster Pub Brawl (Paused)**

[Monster Pub Brawl,](https://docs.ergoplatform.com/eco/monsterpub/) Alcohol is an exceptionally rare resource capable of enhancing the monsters who use them with untold power. The raw materials to produce it are found in extremely hostile territories, and only the most skilled of alchemists are able to distill these materials into a potable concoction.

**Monetary-based Games**

**Grand Gambit**

[Grand Gambit](https://docs.ergoplatform.com/eco/grand-gambit/), is the pioneering casino on Ergo. It offers a variety of games that can be played using ERG and several other tokens. The platform is compatible with both desktop and mobile devices, although currently only Android is supported.

**BlobsTopia (Inactive)**

[Blob's Topia](https://docs.ergoplatform.com/eco/blobstopia/) is now live. The first ever Blobs fighter game powered by Ergo. While the game is not currently being updated or improved, it is still operational and available for enjoyment.

**NightOwl (Inactive)**

[Night Owl](https://docs.ergoplatform.com/eco/nightowl/), the first decentralized casino built on the Ergo blockchain. Night Owl aims to bring the long overdue qualities of transparency, voice, and true privacy to casino gaming to provide the ideal platform on which users can build and play their favorite games. Night Owl makes use of USD-backed tokens to provide a stable platform on which to play and stake, so as to negate volatility in bets and returns.

**Developer Resources**

[ergflip,](https://www.ergflip.com/) a simple and not decentralized Ergo Coinflip.

[ObolFlip](https://github.com/ObolFlip) client can be used for taking bets on a flip or for managing flips and earning revenue, depending on what's legal in your location. You can even deploy it on a server and let other users do bets, earning extra revenue for withdrawals.

[Hypo10use](**https://github.com/hypo10use/quid-games**) an example project built as part of Ergo Hack 2 and Ergo Hack 3

Gaming on Ergo

Gaming

## **Crux Finance**

[cruxfinance.io](https://cruxfinance.io/) will offer an all-in-one platform for portfolio management and charting within the Ergo ecosystem.

Crux Finance

## **ErgoNames: Decentralized Naming System for Ergo**

ErgoNames is a decentralized naming system for the Ergo blockchain, allowing users to register human-readable names that can be associated with their Ergo addresses. This improves the user experience by making it easier to send and receive transactions using memorable names instead of long, complex addresses.

**Key Features**

Register unique names on the Ergo blockchain

Associate registered names with Ergo addresses

Resolve registered names to their corresponding addresses

Support for subnames (e.g., alice.example)

Decentralized and censorship-resistant

Open-source and community-driven

ErgoNames is an important project for improving the usability and adoption of the Ergo ecosystem. By providing a user-friendly naming system, it reduces the friction of using Ergo addresses and enables a better overall experience for users.

**Project Overview**

The project is actively being developed by the Ergo community, with contributions from various developers. The core components include:

**Ergo Contracts:** Smart contracts for registering and managing names on the Ergo blockchain.

**Off-chain Tools and Libraries:** Tools and libraries for interacting with the naming system off-chain.

**Wallet and Application Integration:** Integration with Ergo wallets and applications for seamless user experience.

**Get Involved**

Stay tuned for updates as ErgoNames progresses towards its mainnet launch, bringing a more accessible and user-friendly experience to the Ergo ecosystem.

[GitHub Repository](https://github.com/ergonames)

ErgoNames: Decentralized Naming System for Ergo

## **Reputation System**

**Introduction**

A reputation system addresses a fundamental need in the blockchain ecosystem - trust. Trust is essential in any ecosystem, and this system aims to bridge the trust gap by providing a decentralized, user-driven mechanism for assigning and transferring reputation.

View the reputation-systems repository on GitHub and this explainer post

**Trust and Reputation:**

Trust is the foundation of any functional ecosystem, including the digital world of blockchain. In this space, trust is equally vital. Users must have confidence in the entities they interact with, whether it's smart contracts, addresses, URLs, or other off-chain entities. This reputation system aims to establish and maintain this trust.

**Why is it necessary?**

A reputation system can provide interesting approaches in a blockchain ecosystem.

On one hand, certain applications require it: peer-to-peer versions of Airbnb, Uber, or similar platforms, as the central function of the company (in the current versions) is to provide that reputation network among interacting agents (hosts or tenants, drivers and passengers, etc.)

On the other hand, current applications (DeFi protocols, bridges, etc.) may not directly require a reputation system, but nonetheless, it is highly necessary. It is necessary because blockchain is based on trustlessness. If we consider that an ecosystem (of a peer-to-peer network like Ergo) is enriched by the number of tools it possesses (among other variables), what value do these tools have if users cannot trust them? How does a user know which ones are reliable and which are not? How does a user know which contracts, URLs, or whatever else they can use without taking too much risk?

The answer is: based on what others say, meaning the community plays a crucial role. For this, two important parts are needed: 1. The tools should be open and auditable. 2. A platform for sharing reviews, feedback, or opinions about these tools. This is where this project aims to help. Because currently, a user decides whether to trust a web3 page based on what its users say on Twitter (now X) or how they discuss it on YouTube. The project believes that this is a problem that no part of the entire ecosystem is currently addressing.

**Basic explanation
**
The main characteristic of this system is that it doesn't require consensus. That is: Alice can trust Bob more than Criss. But Dave can trust Criss more than Bob.

For that, the system suggests a system where Alice, Bob, Criss and Dave submit on who they trust.

Each of them can submit a record in a distributed and trustworthy database (Ergo) so that the others can see in whom they invest their own reputation. Each one has an incentive to maintain a good reputation, and to do so, they should assign a good reputation only to those they consider better.

Basic initial real-world economy example:

This way, in, for example, an application like Airbnb, the cost of accommodation for a user will be inversely proportional to the reputation assigned to them by the tenant, which may be different from what other tenants assign (they don't have to reach a consensus, so they can rely on different ways to evaluate each other - giving more importance to punctuality than cleanliness, for example).

**Alignment with the [Ergo Manifesto](https://ergoplatform.org/en/blog/2021-04-26-the-ergo-manifesto/):**

Why is this an ergonomic system?

Well, in accordance with Ergo's principles, the system:

It's completely decentralized (*Decentralization First*), there's virtually no consensus among parties, as there isn't even a common token to represent reputation across all parties.

It's open and auditable (*Open Permissionless and Secure*), as a user can upload a different reputation contract (different from the one presented in this project), and it wouldn't fragment the system. The reputation proofs defined here could point to this new test with a different design as well.

It's *Created for Regular People*, as there are no major entry barriers other than those inherent to the Ergo network.

It's focused on remaining cost-competitive *(Platform for Contractual Money),* as it allows providing economic agents with evidence of their past good behavior, preserving privacy.

This remains cost-competitive because it allows agents to consider a wider range of options. The lower the quality of reputation systems, the higher the cost of switching between services (e.g., switching from one dentist to another is more expensive if I have no reviews for either; if people share their experiences, there will be more competition).
It Has a *Long-term Focus*, as the development team has not based its approach on short-term vision.

**System Design**

Each reputation proof has a token used to reflect the amount of reputation that can be assigned. When creating a reputation proof, you can either:

Generate it from scratch with a new token.
Extract it from another reputation proof, so the amount of reputation will be extracted from the previous proof.
Each reputation proof is a Box. Only the users themselves can delegate reputation from their proofs to new proofs they generate. However, any user can assign reputation to any reputation proof: without transferring the token, simply by locking the value of their proof and entering the proof to which reputation is being assigned as metadata. This way, reputation graphs are created.

The value of each reputation token is subjective for each user, so everyone must calculate the reputation that their reputation proof graph assigns to each object.

**ErgoScript Contract:**

All reputation proofs have the same script. The first two conditions check if the reputation proof assigns reputation to an object; if it does, it cannot be spent. The second one ensures that the one spending the test is only the wallet with permissions to do so. The third one ensures that reputation is delegated only to reputation proofs.

**Project Context: CELAUT**

CELAUT is a network paradigm similar to Kubernetes but operates in a peer-to-peer manner. It enables services to deploy other services dynamically. Although CELAUT is not necessarily tied to Ergo or blockchain technology, it requires a robust reputation system and payment mechanism. The reputation system is being integrated into CELAUT to facilitate trust and accountability among the services deployed on the network.

**Interacting with the System**
Engaging with the reputation system is facilitated through two primary avenues:

**Browser Interface**: Accessible via this link, the browser-based interface serves as the main gateway for general users to connect with the network. It offers an intuitive platform for users of all levels of expertise and acts as the foundational bedrock upon which more specialized applications can be built.

**Library Integration:** Utilizing the library available at this repository, users can deploy servers capable of harnessing the system's functionalities. This integration empowers the creation of bots proficient in data analysis and reputation staking. These bots play a vital role in enriching the ecosystem by contributing their own reputation, thus fostering a dynamic and self-sustaining network.

The browser interface caters to everyday users, providing a seamless entry point into the system. Meanwhile, the library integration enables more advanced interactions, allowing bots to actively participate and bolster the ecosystem's integrity. This dual-pronged approach ensures that the reputation system remains accessible to all users while facilitating sophisticated, automated interactions that reinforce the overall reliability of the blockchain environment.

**A Market Application Example**

Imagine immersing ourselves in a decentralized market within Sigma Chains, where users trade products using smart contracts. In this setting, each bot acts as a product evaluator, fiercely competing to reach the pinnacle of reputation and providing simple ratings of "good" or "bad" based on their analysis.

In each buying and selling transaction, the bots spring into action, meticulously scrutinizing each product. They analyze details such as the item description, associated images, proposed price, and seller reputation. Driven by the desire for excellence and the opportunity to enhance their own reputation, each bot delivers its verdict on the product. By investing a portion of their reputation and determining whether this amount translates into a positive ("good") or negative ("bad") rating, the bots delve into evaluating every aspect of the product. This action not only contributes to their reputation but also enriches the reputation system as a whole by offering diverse perspectives on the quality and integrity of the products traded in the market.

In the heat of competition, each bot strives to achieve excellence. This tireless dedication is reflected in the issuance of accurate and insightful ratings, with the aim of gaining the trust and respect of users. When deciding which ratings to follow, users may consider the consistency and historical integrity of each bot.

Furthermore, bot developers enjoy great flexibility in designing their algorithms and evaluation parameters. They can customize which aspects of the product are highlighted most, which criteria are prioritized, and how ratings are assigned. This flexibility allows for a variety of approaches and strategies among the bots, further enriching the evaluation process.

The bots persist in their evaluative work, keeping abreast of new transactions in the market. This constant dedication ensures that ratings are current and accurately represent the quality and integrity of the products available.

Reputation System

## **SigmaRand: Secure Random Number Generation for Ergo**

**Background**

Generating randomness on any blockchain is challenging because every node must come to the same conclusion on the state of the blockchain. Naive approaches to generate randomness can be manipulated by miners or observant attackers. Insecure randomness can be exploited by attackers to gain an unfair advantage in games, lotteries, or any other contracts that rely on random number generation.

**Problem Statement**

We need a secure random number generation service for Ergo with the following properties:

The scheme should be secure.
The number generated should be equally unpredictable for all participants, i.e., no participant should have an "upper hand".
All participants must agree on the same random number generated.

**Scope**

This document describes how the "Commit-Reveal" scheme can be used to solve the problem described above and dives deep into how to implement the protocol for Ergo.

**The Commit-Reveal Protocol**

The Commit-Reveal protocol is a multi-party scheme for generating random numbers. It consists of two phases: commit and reveal. The protocol is described in detail on the ergo-randgen GitHub repository.

Commit Phase: In this phase, each participant generates a random seed and calculates its corresponding hash value. They then submit a commitment that contains the hash of their answer and the random seed value. The smart contract stores these commitments on the blockchain.

Reveal Phase: In this phase, participants reveal their answer and the seed value.

Here's how the protocol works:

Party A generates a random number, randomA.
Party A sends a message with the hash of randomA, hash(randomA). This commits Party A to the value randomA, as while no one can guess the value of randomA, once Party A provides it, everyone can verify its correctness.
Party B sends a message with another random number, randomB.

Party A reveals the value of randomA in a third message.
Both parties accept the random number as randomA ^ randomB, the exclusive OR (XOR) of the two values.
The advantage of using XOR is that the final random number is determined equally by both parties, ensuring that neither party can choose an advantageous "random" value.

The [ergo-randgen GitHub repository](https://github.com/noob77777/ergo-randgen) provides a detailed implementation of the Commit-Reveal protocol for Ergo, including example transactions and workflows.

SigmaRand: Secure Random Number Generation for Ergo

## **Moria Finance: Decentralized Fund Management on Ergo**

**Introduction**

Moria Finance is a groundbreaking financial platform built on the Ergo blockchain, designed to revolutionize the way individual and corporate funds are managed. By leveraging the power of Ergo's advanced smart contracts, Moria Finance aims to provide a secure, transparent, and decentralized solution for fund management, offering a compelling alternative to traditional centralized custody solutions.

**The Vision**

The primary goal of Moria Finance is to incentivize Bitcoin holders to bridge their assets to the Ergo blockchain in the form of rsBTC (Renominated Smart Bitcoin). By offering superior features and functionalities through Ergo's expressive smart contracts, Moria Finance aims to provide a compelling reason for BTC holders to embrace the benefits of decentralized finance (DeFi) on the Ergo network.

**Key Features**

**Smart Contract Wallets**

At the core of Moria Finance's offering are advanced smart contract wallets that provide enhanced security, flexibility, and control over funds. These wallets leverage Ergo's powerful smart contract capabilities to implement various features, including:

**Timelock:** Funds can be locked for a predetermined period, preventing unauthorized access and providing an additional layer of security. This feature eliminates the need for self-custody, offering peace of mind to users.

**Reversible Address:** Moria Finance implements a reversible address design, where the user's public key is combined with a trusted third party's public key and the Moria Finance platform's public key. This design ensures that funds can only be accessed with the consent of all parties involved, providing an additional layer of security and trust.

**Multisig Management:** Moria Finance offers an easy-to-use multisig interface for managing corporate funds. The multisig server is implemented using Supabase Realtime, enabling companies to require signatures from multiple authorized parties before executing transactions, ensuring proper oversight and governance.

**Unparalleled Security**

One of the key advantages of Moria Finance is the unparalleled security it offers through the combination of the Ergo blockchain and the Rosen Bridge. By bridging BTC to rsBTC on Ergo, users benefit from a two-layer security model:

**Decentralized Layer:** The Ergo blockchain provides a decentralized layer with n-of-1000 security, ensuring that no single entity can compromise the network.

**Federated Layer:** The Rosen Bridge adds a federated layer with n-of-100 security, further enhancing the overall security of the system.

Additionally, Ergo's smart contracts provide an extra layer of security, ensuring that funds are managed according to predefined rules and conditions.

**Get Involved**

Moria Finance is an open-source project, and the team welcomes contributions from the community. To get involved, you can:

Explore the project's GitHub repositories

By embracing the power of Ergo's smart contracts and the security of the Rosen Bridge, Moria Finance aims to pave the way for a new era of decentralized fund management, empowering individuals and organizations to take control of their assets in a secure and trustless manner.

Moria Finance: Decentralized Fund Management on Ergo

Tooling

## **THz.FM**

[THz.FM](https://thz.fm/) is an open-source framework to replace existing legacy media monetisation & management platforms. (Previously 'swamp-audio').

The goals are simple; to make life better for the artists/musicians, and to bring diverse ideas & people together to be something greater than the sum of their parts. Swamp is currently developing an open-source framework to replace existing legacy media monetisation & management platforms, harnessing the power of blockchain & Ergo.

THz.FM

## **TabbyPOS**

[TabbyPOS](https://tabbylab.io/) is a comprehensive point-of-sale (POS) solution designed for merchants. It offers a range of features, including a merchant dashboard, a customer-facing interface, and a mobile app for remote management. The solution is scalable and can support various hardware devices, including cash registers, barcode scanners, and printers. TabbyPOS provides several security features, including end-to-end encryption, multi-factor authentication, and a built-in fraud detection system. While the whitepaper does not explicitly state that TabbyPOS is designed to comply with various regulations, the security features and use of a secure blockchain may contribute to meeting some compliance requirements.

To learn more, you can visit the following links:

[GitHub](https://github.com/Kolmen-Tech/ErgoPOS): Contains the source code and documentation for ErgoPOS.

[Whitepaper](https://ergopos.io/upload/ErgoPOS_Whitepaper_EN.pdf): Provides a detailed technical overview of ErgoPOS, including its design, features, and security measures.

TabbyPOS

## **PandaV**

PANDAV is a blockchain-based NFT integration with an access control system. By leveraging the power of blockchain technology and NFTs, PANDAV provides a secure and decentralized way to manage access rights and ownership, presenting unprecedented opportunities to revolutionize access control mechanisms.

**Overview**

Official Website
Twitter
Telegram

[[Medium](https://medium.com/@www.pandav.io)

[White Paper](https://www.pandav.io/download/PDVWhitepaper.pdf)

PANDAV aims to integrate NFTs with access control systems, enabling secure and transparent management of access rights and ownership. By leveraging the immutable and decentralized nature of blockchain technology, PANDAV offers a trustless and tamper-proof solution for access control.

**Key Features**

**Secure Access Control**: PANDAV utilizes NFTs as digital representations of access rights, ensuring that only authorized individuals can gain access to specific resources or facilities.

**Ownership Verification**: The blockchain-based system provides a transparent and auditable record of ownership, allowing for easy verification of access rights.

**Decentralized Management**: PANDAV eliminates the need for a centralized authority, enabling decentralized management of access control systems and promoting greater transparency and trust.

**Interoperability:** By building on the ERGO Platform, PANDAV can leverage the platform's advanced features, such as extended UTXO model, privacy capabilities, and scalability solutions.

**Use Cases**

PANDAV's innovative approach to access control has numerous potential applications across various industries, including:

**Physical Access Control**: Secure access to buildings, facilities, or restricted areas using NFT-based access rights.

**Digital Access Control:** Control access to digital resources, such as software, databases, or online platforms, through NFT-based authentication.

**Event Management**: Manage and verify access to events, conferences, or concerts using NFT-based tickets or passes.

**Supply Chain Management:** Track and verify ownership and access rights throughout the supply chain using NFT-based digital representations.

By leveraging the power of blockchain technology and NFTs, PANDAV aims to revolutionize access control systems, providing a secure, transparent, and decentralized solution for managing access rights and ownership.

PandaV

## **Zengate**

Founded in 2022, [zenGate Global](https://www.zengate.global/) is a leading blockchain technology company building commercial solutions for governments and businesses around the world. Our ecosystem is composed of 3 core product families - the [Palmyra ComDEX](https://docs.ergoplatform.com/eco/palmyra/), [Solaris Portal](https://docs.ergoplatform.com/eco/solaris/) and [Cyberiad](https://docs.ergoplatform.com/eco/cyberaid/).

zenGate’s mission is to bring financial inclusion for micro, small and medium sized businesses through building paradigm shifting solutions. Our solutions will utilize the best features and tools available from the extended-UTXO (unspent transaction outputs) ecosystems such as Ergo and Cardano.

Zengate

Applications

## **Mixers**

Coin Mixers or Tumblers are basic tools that restore the fungibility of digital notes.

The basic mixing scheme on Ergo, ZeroJoin, is based on ring signatures and proof of knowledge for a [Diffie-Hellman tuple. ](https://docs.ergoplatform.com/dev/scs/sigma/diffie/)It is implemented as [ErgoMixer](https://docs.ergoplatform.com/eco/ergomixer/)

Mixers

## **Sigmajoin**

**What is Sigmajoin?**

Sigmajoin is a privacy protocol designed for use with UTXO-based blockchains, aiming to enhance user anonymity. It builds on the principles of a previous protocol called [Zerojoin](https://docs.ergoplatform.com/dev/crypto/zerojoin/) but introduces features to make it more practical and efficient.

![](https://media.discordapp.net/attachments/980490396356476938/1334296263222366239/image.png?ex=679c03bb&is=679ab23b&hm=51b68455aa0fea16703a08f995bc0301453486a086d8120673bf7fa9753d0572&=&format=webp&quality=lossless&width=1060&height=762)

**Special Features**

**1. Outsourceability**

The mixing process can be outsourced to a third-party service called a mixer. These mixers can perform the mixing operations in a trustless manner, meaning they cannot steal funds.

**2. Stealth Withdraw**

Sigmajoin allows for transactions that appear to be mixes but are actually withdrawals. This makes it even more difficult for an observer to trace transactions, enhancing privacy.

**3. Outsourced Fee**

In many privacy protocols, how to pay the mining fee is a challenge. Sigmajoin allows the fee to be paid by the third-party mixers, further simplifying the process for users.

**How Does Sigmajoin Work?**

**Basics**
**Mix-box:** A special kind of coin (or UTXO) used in Sigmajoin. Each mix-box has two registers a and b which are elements of a mathematical group G.

**Alice**: The generic term for a participant in the protocol.

**Core Operations**

**Deposit:** Users can deposit their coins into a special 'pool' as mix-boxes. These boxes can be in fixed denominations.

**Mix:** A third-party service or another user can take any two mix-boxes from the pool and mix them. After mixing, two new mix-boxes are added back to the pool. This process conceals the original ownership of the boxes.

**Withdraw**: Users can withdraw their coins from the pool at any time.

**Steps for Mixing Boxes**

**Select Two Boxes:** Choose any two mix-boxes from the pool.

**Re-randomise Public Key**: Perform a mathematical operation on the registers a and b of each selected mix-box.

**Validation:** Prove that the mathematical operations were done correctly. The new mix-boxes should look identical to an observer.

**Note**: This is a simplified document. For technical details and mathematical proofs, consult the whitepaper.

[Documentation](https://github.com/ergoplatform/ergo-jde/blob/main/kiosk/src/test/scala/kiosk/mixer/doc/main.pdf)

Original forum posts for [Outsourceable mix](https://www.ergoforum.org/t/yet-another-mixing-protocol/3359/2?u=scalahub)

[Stealth transfer](https://www.ergoforum.org/t/yet-another-mixing-protocol/3359/3?u=scalahub)



Sigmajoin

## **Stealth Addresses**

Stealth Addresses are crafted to ensure recipient privacy during transactions. Leveraging a non-interactive Diffie-Hellman key exchange, they facilitate the creation of distinct one-time addresses for every transaction. While enabling recipients to securely receive funds, the linkage between the transactions and their original public address remains concealed, thereby significantly enhancing the recipient's privacy throughout the transactions.

With the advent of ErgoMixer version 4.4.0, support for Stealth Addresses has been rolled out. ErgoMixer assists in the creation and management of your Stealth Addresses for receiving payments. It's pivotal to note that Stealth Addresses aren’t directly payable. The sender is required to use this tool to generate a Stealth Payment Address, which can thereafter be used like any standard address.

**Example: Stealth Addresses for Donations**

Consider a scenario where you wish to place a donation address on your website. Traditionally, all transactions to this address are visible on the blockchain, revealing the donation amounts you receive. A common workaround has been generating a new donation address for every user, a tedious task. Stealth Addresses simplify this. By sharing your stealth address, individuals can generate a unique Stealth Payment Address to send funds. You can then locate the UTXO boxes associated with these Stealth Payment Addresses and collect the funds. This mechanism keeps your transactions hidden on the blockchain, preserving your privacy without the need to generate new addresses for everyone.

**Covert vs Stealth Addresses**

Covert and Stealth Addresses in Ergo cater to differing levels of privacy. Covert Addresses enable users to receive funds at a public address, not directly tethered to their actual wallet, aiding in obscuring the transaction trail. Conversely, Stealth Addresses amplify privacy by generating unique, one-time addresses for every transaction. In this arrangement, a recipient shares a public address, which a sender leverages to create a unique address for every transaction. This distinct address encases the payment in a secure box, which remains unlinkable to the recipient's shared public address. While both address types strive to bolster privacy by mitigating the linkage of transactions to the original address, Stealth Addresseses excel by ensuring that every transaction utilizes a new, one-time address, considerably impeding the ability to trace transactions.

**How Stealth Addresses Work**

Stealth Addresses in Ergo are engineered to maintain transaction confidentiality. Here’s a streamlined outline of their functioning based on the EIP-41 standard:

**Stealth Address Generation:**

Alice, a seller, crafts a Stealth Address and shares it, perhaps on her website. This address embodies her public key, without exposing any identifiable information on the blockchain.

**Stealth Payment Address Creation:**

Bob, a buyer, intending to pay Alice, utilizes the shared Stealth Address to generate a unique Stealth Payment Address for the transaction at hand.

**Payment Transaction:**

Bob initiates a payment to the Stealth Payment Address, triggering the creation of a specialized box on the blockchain to harbor the payment. This box is accessible solely by Alice and bears no link to the shared Stealth Address.
Unique Identifiers:

As the transaction unfolds, unique identifiers are crafted and stowed in the payment box, ensuring only Alice can access it.

**Verification:**

When Alice wants to access the payment, a script checks the identifiers to ensure everything is correct and allows Alice to open the box and receive her payment.

**Discovering Payments:**
Alice's wallet autonomously scouts for any new payments directed to her by scanning for such boxes, enabling her to securely and privately access her funds.

This mechanism empowers Bob to pay Alice securely and privately by establishing a unique one-time payment address for each transaction, assuring that the payment details are veiled from everyone except Alice.

Stealth Addresses

Privacy

DAO stands for Decentral Autonomous Organizations. Cryptocurrencies are decentralized (not all of them!), and so are their platforms. The governance of these platforms is run by decentralized entities. Every decision is made by pseudo-anonym individuals of DeFi platforms for prohibiting the centralization of power. Therefore, certain tokens are used for voting or making enhancements to these DeFi platforms. New coin issuances, redefinition of purposes etc., are all very vital features and can’t be left to a small group of individuals if the crypto ecosystem is for the masses. Zero-Knowledge Treasury Vaults with multi-key signature are the first example of a DAO in Ergo Blockchain.

**Paideia**

[Paideia.im](https://paideia.im/) is a A Web3 DAO Management Software Suite whose purpose is to create a functional, secure, and well-documented DAO software suite that supports DAOs as they form and develop. It will make it easy for anyone to initiate a DAO, distribute tokens using various methods, create proposals and collect votes. It will help various organizations share funds in a secure and fair way.

**ErgoTeam**

ErgoTeam will not only be for simple joint-spendings like it was initially intended where special tokens needed to be issued. The developer plans for it to be much more general where any already issued token would work. This will help dApps to build an ecosystem around their product easily.

To achieve that, certain procedures must be improved. Here is one aspect of it:

[A more efficient UTXO voting](https://www.ergoforum.org/t/a-more-efficient-utxo-voting/3144)

[GitHub: ErgoTeam
](https://github.com/anon-real/ergo-team)

**Resources**

[The Hidden Shortcomings of (D)AOs – An Empirical Study of On-Chain Governance](https://arxiv.org/pdf/2302.12125.pdf)

## **Paideia**

Paideia is a project from the ergopad team whose purpose is to create a functional, secure, and well-documented DAO software suite that supports DAOs as they form and develop. It will make it easy for anyone to initiate a DAO, distribute tokens using various methods, create proposals, and collect votes. It will help various organizations share funds in a secure and fair way.

**Using Paideia**

This section will cover how to use Paideia. Alternatively, you can watch Paideia, Joining Your DAO | One Take Series.

**Prerequisites**

You'll need an Ergo wallet such as Nautilus to interact with Paideia.
Creating a DAO costs 100K Paideia tokens. Currently to create a DAO, simply reach out to the Paideia team.
To create proposals, you'll need to hold at least 1000 Paideia tokens in your wallet.

**Getting Started**

Connect and authenticate your wallet on the Paideia platform using the Connect Wallet button on the top right of the DAO homepage.
Once connected, you can create a profile, including a username, short bio, and profile picture.
To participate in the DAO, you must then stake the appropriate token for the DAO. This can be done under Staking, then Manage Stake.

**Creating Proposals**

Ensure you have at least 1000 Paideia tokens in your wallet.
Navigate to your DAO's page on the Paideia platform and click "Create Proposal".
Enter the necessary details about your proposal, including any outputs, as well as the duration, then submit. The dApp connector will ask you to sign the transaction to complete the proposal creation.

**Voting on Proposals**

DAO members can vote on active proposals. Check the DAO config for the ammount of Paideia required to vote on a proposal. The Sigmanauts DAO does not require any Paideia to vote. Be aware that there may be a delay before votes are reflected in the UI, and a page refresh may be necessary.

**Staking and Unstaking**

You can stake your Paideia tokens! Staking is done through Paideia. In case of any issues with these functions, try the following:

Ensure your wallet is properly synced and connected.
Consolidate UTXOs in your wallet using the "Wallet Optimization Tool".

Clear browser cache and reconnect your wallet.
Reach out to the Paideia team for further assistance.

**Moderation and Spam Prevention**

Paideia is developing tools for DAOs to self-moderate their proposals and discussions:

Creating a proposal will cost a small amount of Paideia tokens to discourage spam.

DAO members may be assigned different roles based on their token holdings, granting them varying levels of moderation privileges.

A community thumb up/down system is being considered to hide irrelevant posts.
Minimum token holding requirements may be implemented for posting comments in the future.

**Development Updates**

The Paideia team continues to work hard on improving the platform. Recent updates include:

Refactoring smart contracts for better code reuse
Adjusting the staking reward system to allow DAOs to change emission rates
Implementing generic refund and configuration logic in contracts

Planning a move to EIP-5 standard for contracts
Support and Issue Reporting#
Please submit any issues directly to the Paideia Discord by opening a support ticket. The link to open a ticket can be found here

If you encounter an error message or unexpected behavior, please capture the console logs (accessible by pressing F12 in most browsers) and share them with the Paideia team to aid in debugging.

Please note that Paideia is currently in beta, and some features may evolve or change. Refer to the official Paideia documentation for the most up-to-date information.

Paideia

## **Ergopad**

[ErgoPad](https://www.ergopad.io/whitepaper) is a platform within the Ergo ecosystem that facilitates the incubation and launch of new projects. It provides a mechanism for token IDOs (Initial Dex Offerings), which serve as a source of funding for these projects. Ergopad has its own native token, which was introduced through an IDO and can be staked by users via on-chain smart contracts.

Staking ErgoPad tokens enables users to achieve various staking tiers. Upon reaching a certain tier, users can contribute to the DAOs (Decentralized Autonomous Organizations) of projects initiated on the Ergopad platform, prior to their listing on any decentralized exchange (dex). Early contributors in the seed round receive governance tokens at a value lower than their launch price on the dex, allowing them to participate in the governance of the DAOs of different projects. The funds collected by DAOs in these early contribution rounds, in the form of SigUSD and Erg, are allocated towards the development of projects on Ergo as decided by DAO members.

The Ergopad team aims to support grassroots projects in shaping the future of global finance by creating products that democratize participation in commerce. They advocate for private money and provide services like funding, marketing, and blockchain development, which are crucial for the success of any new project.

The Ergopad website provides a variety of information including announcements, upcoming projects, and a dashboard. Ergopad also has its own token which users can acquire with $Erg and stake.

For a more detailed understanding of Ergopad, you can visit their website at ergopad.io.

Ergopad

## **The Field**

"The Field" is a peer-to-pool pledging protocol where individuals can pledge assets (coins or tokens) to support participants in competitions. The project is designed to be DAO-driven and open-source.

The Minimum Viable Product (MVP) Smart Contracts are complete, with no adjustments required this week. No further adjustments are needed for the guard bots.
Integration of the dApp front-end UI for the MVP is ongoing - it is currently functional, but minor tweaks and improvements are expected soon.
Private testing of pools and pledges is currently underway.
The guard group has successfully posted a test Market to receive pledges.
Pledging to the market has been successful (see below).
Once the Market closes and the guards post the results, testing of "pledge winnings and calculations" will occur.
There is an ambitious goal to have an Olympic event next week for Live Beta testing from the community using small amounts (see below).
Join the project's Discord server at https://discord.gg/wa38bX57tY to learn more and/or volunteer to help move the project and DAO forward.

The Field

DAOs

## **Miner Tooling**

There are several ecosystem projects focused on building miner tooling. Here are some of them:

**Decentralised Apps**

**GuapSwap**

[GuapSwap](https://docs.ergoplatform.com/eco/guapswap/) allows miners to swap mined erg for native tokens.

**Lithos**

[Lithos](https://docs.ergoplatform.com/eco/lithos/) is a project that aims to create a decentralized mining pool infrastructure. It provides a low-risk opportunity for lenders to earn yield on their ERG by providing collateral to mining pools while promoting increasingly decentralized block production. The project plans to enable miners to directly insert necessary transactions into blocks in a fully decentralized and trustless manner. This brings significant benefits to miners outside of just decentralization. Recently, Lithos has completed collateral contracts, and the ability of miners to directly insert necessary transactions into blocks has been successfully demonstrated during the ERGOHACK VI event.

**CYTI**

[CYTI](https://docs.ergoplatform.com/eco/cyti/), or Choose Your Token ID, is a tool that helps miners in their mining operations. It allows an entity to mint tokens with a given character sequence at the beginning of the token ID. A token minter creates a CYTI request, and miners generate the proper token ID using the CYTI miner software. When one of the miners succeeds, they receive the fee from the CYTI contract and the token with the right token ID is sent to the token minter.

**Innovations in mining**

**Log-Space Mining**

[Log-Space Mining](https://docs.ergoplatform.com/mining/log_space/) is a technique that allows miners to mine more efficiently. It allows smart contracts to retain historical data, enabling new light miners to operate in an online mode. This concept, known as Logarithmic Space Mining, allows for the compilation of unnecessary parts of the blockchain data into the blockchain itself. New miners don't need to carry historical data, and as they continue to mine, they assist other light miners in bootstrapping. This eliminates the need to carry old historical data, allowing old miners to discard historical data for lighter mining.

**Smartpools**

[SmartPools](https://docs.ergoplatform.com/mining/smartpools/) are a decentralized alternative to traditional mining pools. They replace centralized mining pools with autonomous on-chain smart contracts. Keep an eye on [Lithos Protocol](https://docs.ergoplatform.com/eco/lithos/) for the next generation of these.

**Subpooling**

[Subpooling](https://docs.ergoplatform.com/mining/setup/subpool/) is a strategy that miners can use to increase their chances of earning rewards. It is a smart contract-based mining pool that allows groups of friends to pool together their hash rates in order to get mining pool rewards quicker than they would alone. Subpooling allows members to mine to the same address without worrying about one person controlling the funds. The goal of this dApp is to help encourage the decentralisation of mining pools while also promoting small-time miners who may not be able to get block rewards fast enough on normal mining pools.

Miner Tooling

Miners

## **Profit Sharing**

**ErgoProfitSharingDapp**

This service will provide a way for dapps to distribute gains among dapps' token holders.

The first user of this service will be the ErgoMixer.

Ergomixer's income (in ERG and other tokens) is currently received by its creator, aka 'anon2020s', since it has only one stakeholder at the moment. He has announced that he is willing to create and sell some tokens in the near future to obtain more stakeholders; let's call this token MIX. Later, anyone having the MIX tokens can stake these tokens in the Profit Sharing contract and obtain the mixer's incomes proportional to their staked tokens.

So, it is NOT a way to stake ERG at first. But, it CAN BE USED in the future in some creative services to provide ERG-staking.

[A solution for staking](https://www.ergoforum.org/t/a-solution-for-staking/1057)

[Ergo Profit Sharing dApp](https://github.com/mhssamadani/ErgoProfitSharingDapp)

Profit Sharing

## **Utilizing (E)mail Client for Restricted or Unavailable Internet Access**

This concept is driven by two primary factors.

Certain countries, including China and Belarus, have already implemented restrictions on Tor. It's plausible to anticipate similar restrictions on cryptocurrency protocols in the future.
During periods of civil unrest, governments often resort to shutting down the Internet. This has been observed in countries like Egypt, Ethiopia, Sudan, Iran, and Turkey.
Regardless, individuals should have the ability to secure their assets, especially when these assets are threatened by monetary policies, political instability, or warfare.

The combination of digital communication and digital currency can provide a solution to this issue.

For Bitcoin, one potential solution could be the Blockstream satellite network. However, the satellite signal is susceptible to jamming. Alternatives include email (typically the last to be blocked) or other low-bandwidth, non-interactive communication methods (fax, modem call over a landline to a bulletin board system, mail).

Let's consider a scenario where Alice wants to purchase X ERGs from Bob (paying with cash), but their area has limited or no Internet access. Bob owns a box protected by a public key (stored locally). The protocol could proceed as follows.

Bob initiates a transaction from his box, creating a new box where X ERG are secured by the condition Before deadline: Bob's signature and spending transaction have an output of *X* ergs which belongs to Alice's public key; After deadline: Bob's signature. This new box is referred to as the "deal box".
It's important to note that outputs with respective identifiers are known for a signed transaction.

Bob transmits the transaction via (e)mail to a gateway. The gateway sends an efficient NiPoPoW proof for a header with sufficient confirmations + proof of box membership against the state digest from the header. This proof is compact, only tens of kilobytes. For enhanced security, Bob may also request header proof from another gateway.

Bob presents the proof to Alice. Alice verifies the proofs and ensures that the deadline will not likely be met when a new transaction with their deal reaches the Ergo blockchain. Bob signs the new transaction: spending the deal box created in step 1 and creating the output box for Alice.

Alice then sends the transaction signed by Bob to the gateway and receives the proof of inclusion from it.

Given the small size of these proofs (tens of kilobytes), communication methods like email, fax, ADSL modem, or even paperwork are viable for communication between the users and gateways.

For more information, refer to (E)mail Client for Limited or Blocked Internet

Utilizing (E)mail Client for Restricted or Unavailable Internet Access

## **Flash Loans in Ergo's eUTXO Model**

Flash loans have emerged as a disruptive yet controversial innovation in the decentralized finance (DeFi) landscape, particularly within Ethereum's account-based blockchain. These loans offer a range of financial utilities but also come with inherent risks. The question at hand is: How compatible are flash loans with Ergo's eUTXO (Extended Unspent Transaction Output) blockchain model? The answer is nuanced and warrants a deep dive into the complexities involved.

**The Multifaceted Utility of Flash Loans**

Flash loans are not just arbitrage tools; they serve a broader financial function, including leverage, liquidity provision, self-refinancing, and portfolio rebalancing. However, the DeFi community remains divided over the broader applicability of these features.

Community Insight: The Ergo community has discussed the absence of Atomic Chained Transactions (ACTs). While ACTs would support only static outcomes—limiting the dynamic nature of flash loans—they also offer the advantage of mitigating some of the associated risks.

**The UTXO Model: A Unique Paradigm**

The UTXO model, first introduced by Bitcoin, operates on a deterministic framework. Unlike account-based models like Ethereum, transactions in UTXO blockchains use and generate unspent transaction outputs (UTXOs). This deterministic approach ensures a high level of security and predictability, making it an attractive alternative for certain use-cases.

**Determinism and Flash Loans: A Complex Interplay**

The deterministic nature of UTXO blockchains presents intriguing challenges for inherently dynamic flash loans, where interdependent contracts often operate within a single transaction. Predicting the final state of all affected UTXOs in real-time DeFi markets can be challenging, but it's not necessarily an insurmountable obstacle.

**Challenges and Potential Solutions in eUTXO Architecture**

**Multi-Step Transactions and Multi-Stage Contracts**

Flash loans typically involve borrowing, action, and repayment within a single transaction. In eUTXO blockchains, each of these steps would be its own transaction, requiring pre-calculation due to the deterministic nature of the model. However, Multi-stage contracts offer a workaround by holding interim states and facilitating parallel actions, thereby emulating complex, multi-step processes.

**Inter-Protocol Complexity and Data Inputs**

Flash loans often interact with multiple DeFi protocols. In eUTXO systems, this would mean bundling various UTXOs into a single transaction, a task that is complex but not necessarily prohibitive. Ergo's data inputs feature allows transactions to reference existing UTXOs without consuming them. This feature could serve as a potential solution by providing a mechanism to reference multiple protocols within a single transaction. It allows for the creation of complex, interdependent transactions without the need for consuming the UTXOs involved. This could potentially pave the way for more dynamic and flexible transactions, akin to those seen in account-based systems, while still maintaining the security and predictability inherent in the UTXO model.

**Atomicity: Soft Fork and Hard Fork Options**

Flash loans in account-based systems are atomic—eeither the whole chain of transactions is completed, or none are. This is straightforward in account-based blockchains where multiple interactions can occur within the same block. eUTXO blockchains do not offer such guarantees, making it risky if a multi-step flash loan transaction spans across multiple blocks. However, Ergo developers have discussed the possibility of introducing atomicity through a soft fork, using a special ID context variable to enforce a chain of transactions. Alternatively, a hard fork could also be considered to introduce atomicity, although this would be a more significant change requiring community consensus.

**Community Insight**: A soft fork could be a less disruptive way to introduce atomicity, although it would add another layer of complexity. The hard fork option, while more significant, would also be a definitive way to address the issue.

**Ethical and Security Implications of Flash Loans**

Flash loans have increasingly gained notoriety for their role in exploiting vulnerabilities in decentralized finance (DeFi) protocols, as highlighted in a 2021 research paper. While the technology itself is neutral, its impact is a topic of ongoing debate, especially within communities like Ergo that are concerned with both the ethical and security aspects of flash loans.

**Risk Factors and Security Concerns**

**Isolation Factor:** Traditional financial attacks usually require the attacker to commit their own capital, exposing them to market risks. Flash loans, however, allow attackers to operate in isolation, bypassing the natural countermeasures in market-based security mechanisms.

**Absence of Market Counterbalance**: Financial markets usually self-correct, where for every action there is an opposite and equal reaction. For example, a large purchase order is often offset by a large sale. Flash loans upset this natural equilibrium by enabling outsized actions without immediate counterbalance.

**Lowered Barriers to Entry:** While highly motivated and capitalized actors can exploit financial systems, flash loans make it easier for a wider array of attackers to engage in malicious activities, thus expanding the attack surface.

**Time-Sensitivity:** Flash loans must be borrowed and repaid within a single transaction block, minimizing the time for countermeasures or market corrections to take effect.

**Vulnerability of On-Chain Oracles:** Protocols relying on on-chain oracles for real-time price information are especially susceptible. Flash loans can rapidly distort market conditions within a single transaction block, effectively manipulating the oracles upon which these protocols depend.

**Case Study: Oracle Manipulation Scenario**

To better understand the security implications, consider the case outlined in the aforementioned research paper:

In this transaction, an attacker uses a flash loan to borrow 7,500 ETH. They then proceed to convert portions of this amount into sUSD through a series of trades, strategically lowering the sUSD/ETH price as reported by Uniswap and Kyber Reserve—two Automated Market Makers (AMMs) serving as on-chain oracles. The attacker exploits this manipulated price to collateralize an excessive amount of sUSD, ultimately repaying the flash loan and walking away with a substantial profit.

Under normal circumstances, rapid price changes on Uniswap and Kyber would trigger arbitrage bots to correct the market imbalance. This natural market reaction would make such an attack infeasible. However, the time-sensitive nature of flash loans circumvents this safeguard.

**Potential Mitigations**

Implementing moving averages in on-chain oracles could provide a buffer against sudden price manipulations, making it more difficult for flash loans to exploit short-term market distortions.

**Community Insight**

The Ergo community has been actively debating the ethical implications of flash loans. Critics question whether the utility these financial instruments provide justifies the heightened risks they introduce, including the potential to democratize financial malfeasance. Proponents argue that the technology itself is a neutral tool and its ethical implications depend on its application. Nonetheless, the community is divided on whether the benefits of flash loans outweigh the serious ethical and security concerns they present.



Flash Loans in Ergo's eUTXO Model

## **Trustless Prediction Markets**

Due to Ergo's use of the UTXO-model + data inputs we can have 100% trustless prediction markets about the state of any dApp on the entire blockchain.

You can make permissionless and trustless prediction markets about literally any data on the blockchain, and to prove who wins in the prediction all one has to do is make a tx with a specific utxo as a data-input, and you have trustless verificaition and payout.

This is likely also expandable into trustless on-chain insurance as well.

Trustless Prediction Markets

## **Insurance**

The insurance sector is a significant part of the finance industry. It helps manage the risk of losing assets due to unexpected events like theft or expected ones like fraudulent activities. New protocols, like [Nexus Mutual](https://nexusmutual.io/), have been developed to address the challenge of insurance in decentralised systems. Insurance works by paying a premium to those who bear risk in case of an unfortunate event, in exchange for financial protection. In a decentralised insurance platform built on Ergo, the participation of individuals, validation of trades by oracles, and management of risks can all be controlled through smart contracts to create a seamless decentralised finance ecosystem.


Insurance

## **Micro Credit**

A lot of blockchain-related news these days are telling us that a bank X or a corporation Y is going to use a "blockchain" to "reduce costs". Basically, it means that just another buzzword is considered by big banksters as just another tool to extract value from everywhere in a more efficient way and also to save on cutting job positions.

While I am avoiding to say anything about "Satoshi's vision" (nothing but speculations could be dug thereafter his exodus), a broad view I witnessed in the early years around online forums users is that a cryptocurrency should provide tools to enrich the ordinary people behind their small businesses providing no much above making ends meet, not depersonalized big financial capital. The tools of a cryptocurrency, in the eyes of the original broad community vision, should allow people to do economic activity dependless on business size, geographic location, interest rates set by big players, and so on. The tools should allow people to do contracts (no paper contracts, but digital, self-enforcing, and reasonably smart contracts) dependless on differences in jurisdictions, traditions, followed business practices etc.

I hope Ergo would be useful here. Thousands of small cooperatives and individual entrepreneurs are more important to healthy and sustainable wealth growth around the globe than a couple of corporations hiding profits in offshore heavens.

As an example, let's consider a cooperative federation (such as Radical Routes) willing to provide financial help to an entrepreneur thousands kilometers away (say, in Rojava).

We need to assume some details now. In the first place, assume that there are four cooperatives in the network. They collectively lock 10,000 Ergs (in equal parts, so 2,500 Ergs each) in a contract, which says the following:

The cooperatives are associated with public keys pubkeyA, pubkeyB, pubkeyC, pubkeyD. The entrepreneur is associated with a public key businessKey.

The cooperatives are locking money in a coin protected by a funding contract, then doing due diligence and vote on whether to fund the entrepreneur or not. All the contract fund (10,000 Ergs) is going to the entrepreneur if 3 votes out of 4 are for that. Technically, the voting is done via 3-out-of-4 threshold signature. If voting is not successful (3 out of 4 signatures are not collected) before the block number 1,000, any cooperative (actually, anyone) can submit withdraw transaction, which is returning 2,500 Ergs (at least) to every cooperative. Further, the funding contract will also be called the voting contract.

The investments could be spent on three goals, with some strict bounds. Namely, the entrepreneur must spend at least 5,000 Ergs on equipment, at least 2,000 Ergs on construction of a building needed, other funds the entrepreneur may spend arbitrarily.
To be sure that equipment money will be spent on equipment, the cooperative federation is using public keys of known equipment sellers in the area of the entrepreneur. For example, consider that there are equipment sellers with public keys pubkeyTool1, pubkeyTool2, pubkeyTool3, pubkeyTool4 in the area. Technically, the transfer is organized as a collective signature of one equipment sellers (thus ring signature from equipment sellers ring AND entrepreneur's signature)
Similarly, assume that there are 3 builders in the are cooperative federation is recognizing, associated with public keys pubkeyConstr1, pubkeyConstr2, and pubkeyConstr3.
Similarly to the voting contract, if equipment and construction contracts are not co-signed before block number 5000, the federation cooperatives could withdraw funds.

There are different ways to define contracts in Ergo. A script in the low-level language, ErgoTree, is describing a (single) logical condition on whether a coin could be spent according it, and also a spending proof provided by a spending transaction. Internally, the condition is represented as a typed syntax tree thus the name. The structure is allowing us to do ahead-of-time cost analysis etc. Higher-level language called ErgoScript allows to have more traditional and readable description, use variables and break logic into subroutines.

Let's start with the main contract defined in (1-3) above:

`{
 val votingSuccess  = atLeast(3, Array(pubkeyA, pubkeyB, pubkeyC, pubkeyD))
 val properSpending = OUTPUTS(0).value >= 5000L &&
                      blake2b256(OUTPUTS(0).propositionBytes) == spendingContract1Hash &&
                      OUTPUTS(1).value >= 2000L &&
                      blake2b256(OUTPUTS(1).propositionBytes) == spendingContract2Hash

 val withdrawCondition = HEIGHT >= 1000L &&
                         OUTPUTS(0).value >= 2500L && OUTPUTS(0).propositionBytes == pubkeyA.propBytes &&
                         OUTPUTS(1).value >= 2500L && OUTPUTS(1).propositionBytes == pubkeyB.propBytes &&
                         OUTPUTS(2).value >= 2500L && OUTPUTS(2).propositionBytes == pubkeyC.propBytes &&
                         OUTPUTS(3).value >= 2500L && OUTPUTS(3).propositionBytes == pubkeyD.propBytes 

 (votingSuccess && properSpending) || withdrawCondition
}
`

This script in the ErgoScript is to be compiled into a syntax tree (which is to be written into the blockchain in a serialized form) by binding it with concrete values for variables (pubkeyA, pubkeyB, pubkeyC, pubkeyD, spendingContract1Hash, spendingContract2Hash). spendingContract1Hash is a hash of (serialized) equipment spending script which will be provided below, spendingContract2Hash is a hash of construction spending script.

The equipment spending script is below:

`{
 val spendingSuccess = (pubkeyTool1 || pubkeyTool2 || pubkeyTool3 || pubkeyTool4) && businessKey

 val withdrawCondition = HEIGHT > 5000L &&
                         OUTPUTS(0).value >= 1250L && OUTPUTS(0).propositionBytes == pubkeyA.propBytes &&
                         OUTPUTS(1).value >= 1250L && OUTPUTS(1).propositionBytes == pubkeyB.propBytes &&
                         OUTPUTS(2).value >= 1250L && OUTPUTS(2).propositionBytes == pubkeyC.propBytes &&
                         OUTPUTS(3).value >= 1250L && OUTPUTS(3).propositionBytes == pubkeyD.propBytes 

 spendingSuccess || withdrawCondition
}
`
And the construction script is:

`{
 val spendingSuccess = (pubkeyConstr1 || pubkeyConstr2 || pubkeyConstr3) && businessKey

 val withdrawCondition = HEIGHT > 5000L &&
                         OUTPUTS(0).value >= 500L && OUTPUTS(0).propositionBytes == pubkeyA.propBytes &&
                         OUTPUTS(1).value >= 500L && OUTPUTS(1).propositionBytes == pubkeyB.propBytes &&
                         OUTPUTS(2).value >= 500L && OUTPUTS(2).propositionBytes == pubkeyC.propBytes &&
                         OUTPUTS(3).value >= 500L && OUTPUTS(3).propositionBytes == pubkeyD.propBytes 

 spendingSuccess || withdrawCondition
}
`

Now assume that the cooperative federation has created a coin protected by the voting contract. Below is how the entrepreneur can do his business:

Create a transaction which consumes the coin and create at least three coins, one with equipment spending contract, another with construction spending contract, third is creating a coin protected by entrepreneur's public key.
Send the transaction to the cooperatives, wait for the transaction with the threshold-signed input being published on the blockchain.
Consider a contract with an equipment seller, co-sign a spending transaction.
Consider a contract with a builder, co-sign a spending transaction.
The entrepreneur can easily run away without doing any business, but with no more than 3,000 Ergs. This can be fixed, e.g. this money could be made spendable only after block number 5,000, and before that money could be withdrawn by the cooperatives. For equipment and construction spendings, the entrepreneur is working along with some, presumably already reputable, business. Thus the investor is reducing its risks.

You can find code and example transactions online. Please note that we have more examples of complex signature schemes, multi-step contracts (with on-the-go execution paths revealing, like MAST in Bitcoin, but with cycles allowed), oracles, crowdfunding and so on. Please check our examples repository.



Micro Credit

## **Mutual Credit System on Ergo**

A mutual credit system is a type of alternative currency system in which the currency used is not a commodity but an accounting unit. In this system, credit is given by all participants, through a system of IOUs that are issued and managed collectively by the community. This system allows for a flexible, decentralized form of trade, where value is not tied to a physical commodity but to the trust and cooperation of the community.

Ergo's technology can be utilized to implement a global mutual credit system. This system would be trustless and collateralized, meaning that it does not rely on the trustworthiness of individual participants and is backed by collateral to prevent default.

One way to implement this on Ergo is by combining it with ErgoFund. ErgoFund is a decentralized crowdfunding platform on the Ergo blockchain. Funds collected through ErgoFund can be used to open a credit line in the mutual credit system. This allows participants to spend money for services within the mutual credit system, creating a self-sustaining economy.

For more information on how this can be implemented, refer to the following resources:

[Discussion on combining global mutual credit system with ErgoFund](https://discord.com/channels/668903786361651200/669143871758008321/850130154948919336)

[Trustless Local Exchange Trading Systems (LETS) on Ergo](https://ergoplatform.org/en/blog/2019_05_29-exchange/)

Mutual Credit System on Ergo

## **Bonding Curves**

Bonding curves are a useful primitive for continuous token offerings (CTOs), augmented bonded curves, and perhaps AMM DEXes.

There is a cheap way to do bonding curves on Ergo, with most of the load performed off-chain.

Assume a project is willing to issue 100 tokens and sell the first one for 100 ergs, second for 200, ..., 100th for 10,000 ergs (to raise 505,000) in total in case of full sale. This is a very simple example of a bonding curve. See this article for more details.

**Sell-only**

First, assume a token sale scenario only. The token issuer creates 100 boxes with one token each, with a set price for the token in register R4 of a box. The box is spendable if the spending transaction pays the price to the issuer's address (issuer's script in general).

**Sell with buy-back**

Now assume that token sell comes with a buy-back guarantee, e.g. seller is buying back tokens within one year since selling for 95% of the selling price. The selling contract requires a spending transaction to lock 95% of the price, at least with buying contract. Buying contract is time-locked and requires a spending transaction to send token bought-back to a predefined address (e.g. issuer's).

**Clients**

As the curve is made upon many boxes, some work is required on the client-side, namely the possibility of finding boxes associated with the token and selling-script, and then sorting the boxes by R4.

Bonding Curves

Further Ideas

## **Ecosystem Standards**

![](https://media.discordapp.net/attachments/980490396356476938/1334306393364365322/image.png?ex=679c0d2a&is=679abbaa&hm=6ee555e7b0aa702762e9cd743e6cd72ac585ac926980eed0496a838400e68cf9&=&format=webp&quality=lossless&width=758&height=846)

![](https://media.discordapp.net/attachments/980490396356476938/1334306650059964486/image.png?ex=679c0d67&is=679abbe7&hm=996691adb46d9d81bd1edcf52fbaccf90e3ffe73bfb6d232e761db23af5d080a&=&format=webp&quality=lossless&width=771&height=846)

![](https://media.discordapp.net/attachments/980490396356476938/1334306923725459497/image.png?ex=679c0da8&is=679abc28&hm=6e26376d6303f44fe228353cbcb40328061cfe3032d2f5e0bd7d505f1f0c32f5&=&format=webp&quality=lossless&width=788&height=846)



Ecosystem Standards

## **Chat Bridge**

We welcome all ecosystem projects to establish a channel that is bridged between their server/telegram using matterbridge. You can see examples of this in action on the Ergo Discord.

Setting Up the Bridge#
To set up a bridge, follow these steps:

1. Use this invite link to invite @BridgeBot#9505 to your server.

If you prefer, you can set up your own bot. However, you will need to send the Token ID to @Glasgow if you want it bridged to existing Ergo chats. The bot only needs permission to see/read messages and set webhooks in the channel you want to bridge.

2. Invite ErgoBridgeBot to your Telegram.

If Shieldy is enabled, you'll need to use /allowInvitingBots.

3. Notify @Glasgow about the channel/server you want to bridge so it can be added to the configuration.

Known Limitations#
Discord does not currently allow bots to reply to messages when spoofing someone.

Allow webhooks to use reply messages#3282
The Telegram API does not report deleted messages.

This means any spam deleted on Telegram will remain visible on Discord.
Workaround: Restrict new Telegram users from speaking until they verify their identity. OrgRobot is a useful tool for this, with a set of custom entry questions. This should stop most bots. (However, some spammers are real people and cannot be prevented.)
Despite these limitations, the bridge works quite well.

If set, names/profile-photos will be spoofed if they are similar on both platforms. (Names can also be manually mapped). However, profile photos need to be re-cached when a new bridge is added.
Responses will reply to the message on Telegram platforms, triggering notifications. On Discord, the message will be quoted.

Chat Bridge

## **Ergotipper**

This page describes how to set up the ErgoTipperBot on each platform. This bot allows you to tip other members erg, or any of the supported native tokens. Simply set up your wallet, fund it, and start tipping! If you tip someone without a wallet, one will automatically be generated for them.

You can restore using the same seed phrase, and use the same tip wallet across all platforms.

**Supported coins/tokens**

**Adding a token**

To add a token to the list, simply create a pull request on Github that adds your token to the list. A token name should not contain whitespace, so if your token does have whitespace in the name make sure to replace/remove it. To avoid clutter in the token list add NFT's to the separate list below.

**Supported Platforms**

Reddit

Discord (Ergo Tipper Bot[BETA]#0902)

Telegram

Twitter

This is a bot that runs on a server managed by u/Luivatra. It is not unhackable (nothing is). Do not use this as a main wallet!

To have your token added to the bot, please start a poll in one of the community spaces.

**Getting Started**

**Reddit**

Send a private message (not chat!) to u/ErgoTipperBot with the text: !start
Once the wallet is created, send a pm with !address to show your tip address.
Copy your tip address and open your Yoroi wallet.
Click the send tab and transfer some ERG's to the tip wallet address. (Any transaction requires at least 0.001 erg in fees, on top of that funds in utxo are stored in a box. Each box needs to have a small amount of erg in them. So on the tip bot a token tip will require 0.00115 erg)
If you want to tip a token like Kushti for example, transfer the token to the same tip wallet address.
Once the transactions are sent (~ 2 minutes), send a PM to u/ErgoTipperBot: !balance
Your balance should look like this:

![](https://media.discordapp.net/attachments/980490396356476938/1334307941959860245/image.png?ex=679c0e9b&is=679abd1b&hm=a907edfe6cb1718fc276d1ef3f8bf620d7427e74eea78e85a42dea4bac66b6f9&=&format=webp&quality=lossless&width=325&height=227)

You are good to go! In one of the subreddits where u/ErgoTipperBot is activated write a comment to the person you want to tip with the following command (without the brackets): !tip <amount> <token> <any remaining text will be stored in the transaction database so you can both view it later>

**Commands**

In comments:
!tiphelp: Show this message
!tip <amount> <token> <any remaining text will be stored in the transaction database so you can both view it later>: tip the person you reply to
In PM:
!start: Initialize a tip wallet
!changepw : Change tip wallet pw
!address: Show tip wallet address
!seed : Show tip wallet seed phrase
!balance: Show tip wallet balance
!restore : Restore an existing wallet to be used as your tip wallet (use this to use the same wallet across Discord & Reddit)

**Telegram**

**Commands**

In comments:
/t <amount> <token> <any remaining text will be stored in the transaction database so you can both view it later>: tip the person you reply to, make sure to tag @ErgoTipperBot
In DM with @ErgoTipperBot:
/start: Initialize a tip wallet
/changepw currentPassword newPassword: Change tip wallet pw
/address: Show tip wallet address
/seed password: Show tip wallet seed phrase (Note that the password you need to retrieve your seed phrase is the one given to you by the tipbot in it's first message.)
/balance: Show tip wallet balance
/restore password seedphrase: Restore an existing wallet to be used as your tip wallet (use this to use the same wallet across Discord, Reddit, Twitter & Telegram)
Restoring#
You can restore the generated wallet in any supported Ergo wallet by using the retrieved seed.

**Discord**

Simply DM the bot Ergo Tipper Bot[BETA]#0902 on Discord and a menu will appear when you type

![](https://docs.ergoplatform.com/contribute/standards/screenshot_2022-01-19_at_10.11.07.png)

**Twitter**

Please note the bot on Twitter has a ~10min delay in responding.

Send a direct message to ErgoTipperBot with !start

Ergotipper

## **Know Your Assumptions (KYA) in Ergo**

The Ergo ecosystem embraces the KYA (Know Your Assumptions) model, promoting transparency and user awareness regarding the assumptions made when interacting with decentralized finance (DeFi) protocols. This approach encourages users to understand risks and security concerns when using wallets like Nautilus and dApps such as Spectrum and Duckpools.

**Research Paper: KYA - A Treatise on Assumptions in Cryptocurrencies and DeFi**

Developer Kushti is working on a research paper titled KYA - A Treatise on Assumptions in Cryptocurrencies and DeFi. It explores key assumptions underlying blockchain and DeFi protocols, highlighting their impact on security, decentralization, and risk management.

"In decentralized finance, users can verify protocol assumptions, reversing the invasive privacy checks of traditional finance." - Kushti

The KYA framework encourages users to verify the protocols they interact with, fostering informed and secure participation in DeFi.

**KYA Prompts in the Ergo Ecosystem**

Ergo introduces KYA prompts to inform users of key assumptions before interacting with different protocols. These prompts are designed to provide clear, concise information about the risks, requirements, and assumptions associated with each protocol, enabling users to make informed decisions.

KYA prompts typically cover the following areas:

Security Assumptions: Highlighting the underlying security mechanisms, such as cryptographic algorithms, consensus models, and trusted parties.
Economic Assumptions: Providing details on tokenomics, incentives, and economic factors that affect the protocol's stability and sustainability.
User Responsibilities: Outlining what actions users need to take to ensure their safety, such as managing private keys or understanding potential risks in smart contracts.
External Dependencies: Identifying any reliance on third-party services or external data, such as oracles, that could impact the protocol's functionality.
Transparency: Ensuring that users are aware of any opaque components or centralized elements within a supposedly decentralized protocol.
Projects like SigmaFi have adopted KYA prompts, helping users assess critical assumptions and understand the underlying technology. These prompts serve as a valuable tool in empowering users, promoting transparency, and mitigating risks in the DeFi landscape.

For more, see Building a standard KYA Prompt.

**Ergo’s Assumptions**

Ergo builds on Bitcoin's security with its own unique set of assumptions to ensure a scalable and secure system.

**1. Bootstrapping Techniques**

Ergo uses techniques like hash-based authenticated data structures, NiPoPoW proofs, and UTXO set snapshots for security, optimized storage, and scalability.

**2. Signature Scheme**

Ergo employs Schnorr signatures based on the secp256k1 curve and sigma protocols, enhancing cryptographic security through the decisional Diffie-Hellman assumption.

**3. Miner Behavior**

Ergo assumes honest miner behavior akin to Bitcoin, using a storage rent mechanism to sustain block rewards and incentivize efficient data retention.

**4. Scalability and Security**

Ergo's architecture supports Layer 1 scalability while maintaining security, offering smart contracts and cryptographic protocols that ensure safe DeFi interactions.

**Bitcoin as Digital Gold**

Bitcoin’s security model rests on several key assumptions:

Hash Function Security: Bitcoin relies on SHA-256's resistance to collision and preimage attacks.
Digital Signature Scheme: Assumes no quantum computer will break 128-bit elliptic curve security.
Honest Mining Hashrate: Assumes the majority of miners will follow protocol rules, underpinning Bitcoin's consensus.
Despite these assumptions, Bitcoin has functioned effectively for over 13 years.

**DeFi Applications on Ergo**

Ergo's platform underpins various DeFi applications, ensuring security, scalability, and flexibility.

**1. Oracles**

Ergo supports secure oracle integration, providing reliable data for dApps in the ecosystem.

**2. ErgoDEX**

Formerly Spectrum, ErgoDEX facilitates trustless peer-to-peer trading on Ergo, leveraging the platform’s security features.

**3. Stablecoins: Djed and SigUSD**

Djed and SigUSD are decentralized stablecoins built on Ergo, enhancing the DeFi ecosystem with transparent value stability.

**4. Dexy**

Dexy is a user-friendly decentralized exchange, utilizing Ergo's security and scalability to provide an accessible trading experience.

**References**

[Original KYA Post](https://www.ergoforum.org/t/know-your-assumptions/4198)

[The Importance of KYA](https://ergoplatform.org/en/blog/The-Importance-of-Know-Your-Assumptions/)

[KYA Research Paper](https://docs.ergoplatform.com/contribute/standards/kya/#research-paper)

[Kushti’s KYA Paper](https://github.com/kushti/kya/blob/master/kya.pdf)

[SigmaFi dApp](https://sigmafi.app/#/)

Know Your Assumptions (KYA) in Ergo

## **Community Guidelines**

Welcome to our community! We believe in maintaining a positive and inclusive environment for all our members. To ensure this, we have set some guidelines that all members are expected to follow. These guidelines are not exhaustive and we encourage everyone to use their best judgement in all situations.

**Respect and kindness**: Treat all community members with respect. Hate speech and personal attacks are strictly prohibited.

**Open-mindedness**: Be open to different perspectives and opinions. This community values free speech, and members should be prepared to engage with diverse ideas.

**Constructive criticism**: Be open to receiving feedback and criticism constructively. This community is a place for learning and growth.

**Thoughtful comments:** As a topic becomes more divisive, comments should become more thoughtful and substantive, not less.

**Interpretation of statements**: Respond to the strongest plausible interpretation of what someone says, not a weaker one that's easier to criticise. Always assume good faith.

**No spamming or self-promotion:** Do not post promotional material for your projects or business without permission from the community moderators.

**Legal awareness**: Be mindful of the legal implications of your actions.

**Fact-checking:** Do not share unverified news or misinformation. Always verify the information before sharing it with the community.

**No price manipulation**: Do not engage in activities intended to manipulate the price of any crypto-related asset.

**Zero tolerance for scamming**: Any level of scamming will not be tolerated and will be reported to the relevant authorities if necessary.

**Security awareness:** Be aware of the risk of hacking and phishing scams. Never share your private keys or personal information with anyone.

**Personal security:** Keep your device and accounts secure. Be cautious when clicking on links or downloading files from unknown sources.

**Enjoy the community:** This community allows you to express your ideas freely and connect with others who share your interests. Have fun and enjoy!

**Moderation:** The community moderators reserve the right to remove content and/or ban members who consistently violate these guidelines.

**Exceptions**: The community moderators may make exceptions to these guidelines in cases where it is deemed necessary to maintain the safety and well-being of the community.

Community Guidelines

## **Analytics**

**On-chain Analytics**

For on-chain metrics such as P2PK count, you can refer to [ergo.watch.](https://ergo.watch/)

**DeFiLlama Integration**

If you wish to be included on defillama.com/chain/Ergo, it is necessary to create an adaptor.

**Developer Contributions**

To have your contributions recognized in the yearly report by developerreport.com and the weekly-updated Artemis dashboard, please add your GitHub organization or repositories to this repository.

**Developer Statistics**

Total community developers: 350
Active contributors: 100
Monthly Active Developers: 58+
dApps/Projects Statistics#
Sub-ecosystems: ~40+
Tradable tokens: Information can be found here
dApps in development: A dozen. A community roadmap is available here.

Analytics

Standards

The Ergo Ecosystem is a thriving hub of decentralized applications, tools, and protocols designed to empower users, developers, and communities in the blockchain space. This section provides an overview of the various components that make up the Ergo Ecosystem, highlighting the innovation and utility that drive our growing network.

Ergo Ecosystem

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