Bitcoin's Security Model + Smart Contract Power
Same UTXO security model as Bitcoin, but with full smart contract capabilities via ErgoScript
Sigma Protocols enable zero-knowledge proofs at L1, while Bitcoin has no native privacy
Storage rent ensures miner revenue beyond block rewards, solving Bitcoin's security budget problem
NiPoPoWs enable mobile wallets to verify blockchain without trusting third parties
| Feature | Ergo | Bitcoin |
|---|---|---|
| Consensus | PoW (Autolykos v2, GPU-friendly) | PoW (SHA-256, ASIC-dominated) |
| Launch & Distribution | Fair launch: No ICO, no premine, no VC | Fair launch: No ICO, no premine |
| State / Accounting Model | eUTXO (Programmable UTXO) | UTXO (limited scripts) |
| Smart Contracts | ErgoScript + Sigma Protocols | Bitcoin Script (very limited) |
| L1 Privacy | Programmable privacy (Sigma Protocols) | None at L1 (pseudonymous) |
| Demurrage / Storage Rent | Storage rent on inactive boxes (~4+ years) | None (state grows indefinitely) |
| MEV Resistance | MEV-aware design (eUTXO + local ordering) | Low MEV (simple transactions) |
| Fees & Finality | ~$0.01 fees; ~2 min blocks; stable PoW finality | Variable fees; ~10 min blocks; 6-conf finality |
| Light Clients | NiPoPoWs (trustless, ~1MB proofs) | SPV (trust-based) |
| Censorship Resistance | Strong (PoW, no validators to pressure) | Strong (PoW, large network) |
| Native Assets | Native L1 tokens (no wrapper contracts) | Limited (Ordinals, Runes) |
indicates advantage in that category. Last updated: 2025-11-26
Bitcoin's Script language is intentionally limited to simple spending conditions. While this provides security through simplicity, it prevents complex DeFi applications. Ergo's ErgoScript is a powerful, Turing-complete (within limits) language that enables sophisticated smart contracts while maintaining the security benefits of the UTXO model.
Full DeFi capabilities: DEXs, lending protocols, stablecoins, DAOs, and more - all on a UTXO-based L1.
Bitcoin transactions are pseudonymous but fully transparent on-chain. Privacy requires external tools like CoinJoin or L2 solutions. Ergo has Sigma Protocols built into the core protocol, enabling zero-knowledge proofs natively without trusted setup.
Optional privacy with selective disclosure - prove what you need without revealing everything.
Bitcoin's block rewards halve every 4 years, eventually relying entirely on transaction fees. This creates uncertainty about long-term miner incentives. Ergo's storage rent reclaims fees from dormant UTXOs, providing a sustainable revenue stream for miners indefinitely.
Protocol-level solution to the security budget problem that Bitcoin hasn't solved.
Join thousands of users who chose decentralization, security, and financial freedom.