In short, Ergo combines some of the best aspects of Bitcoin with the best of Ethereum . It describes itself as a blockchain protocol “built to be an efficient and secure financial contracts platform with radically new DeFi functionality.” (Decentralized finance (DeFi) is an umbrella term for various applications that cut the middleman (banks) out of various financial transactions.)
Ergo uses a similar mining model to Bitcoin to create and validate new coins. But it limits the size of the computers that can mine, so there’s no danger of creating the same carbon-intensive mining farms we’ve seen with Bitcoin.
Ergo is a programmable blockchain like Ethereum. This means, among other things, that it can host decentralized applications (dApps). But, unlike Ethereum, it doesn’t charge gas (transaction) fees.
Ethereum’s gas fees change depending on how congested the network is, so it’s difficult to predict the costs of dApp development. In contrast, coders know exactly how much it will cost to develop their dApp on Ergo’s network.
Ergo has smart contract capabilities (tiny pieces of self-executing code that sit on the blockchain). And its coding language, Ergoscript, makes it possible to create more complex, and more secure financial contracts. This could make a big difference to the decentralized finance and stablecoin industries. Once Ergo makes its way to major exchanges i think this coin will gain the traction it deserves…