Ergo was founded in 2018 by Alexander Chepurnoy and Dmitry Meshkov. Both the co-founders have a proven work record in the cryptocurrency market with involvement in various blockchain projects. Chepurnoy is Cardano founder Charles Hoskinson “favorite technologist” and has worked on top projects like Cardano and Chainlink. Hoskinson himself is a huge advocate of the project and attributes many of the functionalities to the massive experience of Chepurnoy.
Ergo aims to solve multiple problems that cryptocurrencies face. One of its major offerings is the improvement of smart contract technology. Smart contracts are essentially codes that perform a specific task on top of a blockchain. The use cases of smart contracts are numerous and it is this technology which powers decentralized application and finance.
What is Ergo?
The main objective of the Ergo protocol is to enable the use of financial contracts in a completely safe and secure manner. It also aims to eliminate the need of prior trust. Ergo utilizes a Proof-of-Work consensus mechanism and although there have been many questions raised reading the environmental sustainability of PoW consensus mechanism, the Proof-of-Stake consensus can be less than ideal for smart contracts. The network brings the security of PoW consensus to its smart contracts.
Moreover, it is the first blockchain to employ smart contracts in the same eUTxO model as Cardano which can contribute greatly to developers in Cardano’s network. Ergo describes itself as a self-amendable protocol which means it has the ability to absorb new ideas to bring improvisations in a decentralized manner.
Future outlook
Ergo’s network claims that it solves many of the problems that other smart contract platforms face. For example, it does not compromise on security for privacy. It can be regarded as a multi-faceted platform for smart contracts. Although it is not one of the well-known projects in the market that does not negate the unique offerings it has. One of the reasons why Ergo has been in the backdrop is because of the focus of the team on technical developments rather than marketing tactics.
Ergo is considered to be a good long-term investment. According to the predictions of Wallet Investor, the cryptocurrency is expected to be operating at a price level of $34 in a year’s time and propel towards $104 in five years’ time. Digital Coin Price expects Ergo to end the year with a price level of $26 while the price is expected to reach $63 by 2026.
At the time of writing, Ergo stands at a price level of $17.71 with a declining slightly in the daily timeframe.
