Sidechains on Ergo

Sigma Chains and NiPoPoWs enable secure, scalable, and interoperable sidechains on Ergo, supporting cross-chain DeFi and rapid innovation.

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What are Sidechains?

Sidechains are independent blockchains connected to Ergo via two-way pegs, enabling asset transfers, new features, and scalability. Sigma Chains provide a flexible framework for building secure, programmable, and interoperable sidechains.

Security & Interoperability

Sigma Chains use NiPoPoWs and robust consensus to enable secure cross-chain communication and trust-minimized asset transfers.

  • Two-way pegged asset transfers
  • NiPoPoW-based verification
  • Robust PoW security

Fast Confirmations

Sub-blocks and ordering blocks enable near-instant transaction confirmations and improved user experience.

  • ~2s onchain confirmations
  • Cooperative mempool
  • Rapid failure detection

Programmability

Sidechains leverage ErgoScript and the eUTxO model for advanced smart contracts and DeFi applications.

  • ErgoScript support
  • Customizable chain logic
  • DeFi & cross-chain dApps

Economic Sustainability

Storage rent and demurrage ensure long-term viability and incentivize active participation.

  • Storage rent for sustainability
  • Demurrage to stimulate activity
  • Miner & ecosystem rewards

Recent Developments

Explore recent advancements in sidechain technology through the ErgoHack VII project, which focuses on implementing sidechains in Ergo.

What is a Sidechain?

A sidechain is a separate blockchain connected to a main chain via a two-way peg, enabling asset transfers and new functionalities while enhancing scalability and flexibility.

Sigma Chains: A Framework for Sidechains

Sigma Chains provide enhanced programmability, cross-chain compatibility, and economic sustainability for Ergo sidechains.

Programmability

Support for complex smart contracts, enabling DeFi, digital identities, and more.

Cross-Chain Compatibility

Seamless interactions between Ergo and other blockchains, enhancing liquidity and interoperability.

Economic Sustainability

Incorporates storage rent and demurrage for long-term viability.

Non-Interactive Proofs of Proof-of-Work (NiPoPoWs)

NiPoPoWs enable sidechains to efficiently and securely verify the state of the main chain, supporting lightweight clients and reducing computational burden.

Efficient Block Verification

Allows sidechains to verify main chain block headers efficiently, negating the need for full blockchain downloads.

Scalability & Security

Supports scalability solutions and provides a security mechanism for off-chain transactions.

Implementing Two-Way Pegged Sidechains

Sigma Chains facilitate two-way pegged sidechains, enabling asset transfers and state synchronization between Ergo and sidechains.

  1. Initiating the Transfer: Users lock assets into a contract on the Ergo main chain.
  2. Operating Independently: The sidechain issues corresponding assets and operates under its own rules.
  3. Secure Asset Return: The sidechain burns tokens and provides proof to the main chain to unlock original assets.

Security & Data Considerations

  • Robust Consensus Mechanisms: Prevent fraud and ensure transaction integrity.
  • Data Storage on Main Chain: Critical data is stored on the main chain for verifiability and security.

Conclusion

Sigma Chains and NiPoPoWs provide a powerful, flexible framework for sidechains on Ergo, enhancing programmability, sustainability, and cross-chain compatibility for a robust blockchain ecosystem.