What is
A data structure that efficiently summarizes and verifies large datasets using cryptographic hashes.
Merkle trees organize data into a binary tree where each leaf is a hash of data, and each node is a hash of its children. The root hash summarizes all data, enabling efficient proofs that specific data exists without revealing everything. Ergo uses Merkle trees for transaction verification and AVL+ trees for authenticated state.
Common questions about this topic
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from an exchange (Gate.io, KuCoin) or DEX (Spectrum). Make a test transaction. Then explore: try DeFi on Spectrum, check out NFTs, or dive into the technology if you're a builder.
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
On Spectrum Finance, select a pool, deposit equal value of both tokens, and receive LP tokens representing your share. You earn a portion of all trading fees. Withdraw anytime by returning LP tokens. Be aware of impermanent loss if token prices diverge significantly.
Building DeFi on Ergo starts with understanding the eUTXO model and ErgoScript. Unlike account-based chains, Ergo's box model provides deterministic execution, no MEV by design, and predictable gas costs. Use Oracle Pools for price feeds, and leverage existing patterns from Spectrum Finance and SigmaUSD.