Extended UTXO (eUTXO) Model
Ergo utilizes the Extended UTXO (eUTXO) model, based on Bitcoin's original UTXO model but with enhanced capabilities that enable more expressive smart contracts.
This revolutionary approach provides superior security, scalability, and composability compared to traditional account-based models.
"The eUTXO model represents a paradigm shift in blockchain architecture, combining the security of Bitcoin's UTXO with the expressiveness needed for modern DeFi applications."
Enhanced Privacy
UTXOs being one-time objects allow for formalized privacy measures, enhancing user confidentiality through advanced cryptographic protocols.
- One-time transaction outputs
- Stealth address support
- Ring signature compatibility
Superior Scalability
UTXO's inherent design supports parallel transaction processing, making it simpler to scale the network and handle high transaction volumes.
- Parallel transaction processing
- NIPoPoW compatibility
- Reduced computational overhead
Interoperability
UTXOs are well-suited for off-chain and sidechain protocols, enabling seamless integration with various solutions beyond the main chain.
- Sidechain support
- Cross-chain compatibility
- Layer-2 solutions
Predictable Costs
In Ergo, transaction costs are predictable and significantly lower than account-based models, eliminating the need for gas-like mechanisms.
- Fixed transaction fees
- No gas price volatility
- Transparent pricing
eUTXO and Smart Contracts
In the eUTXO model, Ergo allows smart contracts to utilize UTXOs as data inputs without modifying them. This means that nodes primarily verify transactions rather than balances, significantly improving efficiency.
By leveraging eUTXO, Ergo enables parallel computation and facilitates non-custodial atomic swaps, making it easier to perform complex operations securely and efficiently.
Furthermore, Ergo's Multi-Stage UTXO model enables the implementation of Turing-complete smart contracts through multi-stage protocols, providing unprecedented flexibility for DeFi applications.
Advanced eUTXO Features
Data Inputs
Read-only access to UTXO data without consuming them, enabling oracle integration and complex smart contract logic.
Multi-Stage Protocols
Complex smart contracts that span multiple transactions with sophisticated state management capabilities.
Atomic Swaps
Trustless cross-chain token exchanges without intermediaries or centralized exchanges.
Learning Resources
Explore these resources to deepen your understanding of the eUTXO model and its applications in Ergo.