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Glossary
General
State Channel
General
Beginner

What is

State Channel?

A scaling solution that allows parties to conduct off-chain transactions while maintaining the security guarantees of the main blockchain.

A scaling solution that allows parties to conduct off-chain transactions while maintaining the security guarantees of the main blockchain.

Related Infographics

Ergo Blockchain: Introduction & Fundamentals

Ergo Blockchain: Introduction & Fundamentals

High-level introduction to the Ergo blockchain: PoW smart contracts, eUTXO, Autolykos and Sigma Protocols.

Fair & Secure: VC Chain vs Ergo at a Glance

Fair & Secure: VC Chain vs Ergo at a Glance

How Ergo's fair PoW launch and Autolykos design differ from typical VC chains.

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Ergo Oracle Pools: A Trust-Minimised Oracle Model Explained

Learn how Ergo's decentralized oracle pools minimize trust assumptions through on-chain aggregation, permissionless participation, and transparent data storage in eUTXOs.

NiPoPoWs: Trustless Light Clients & Bridges on Ergo

Learn how Non-Interactive Proofs of Proof-of-Work (NiPoPoWs) enable lightweight blockchain verification, stateless clients, and trustless cross-chain bridges on Ergo.

Frequently Asked Questions

Questions about State Channel

Common questions about this topic

How to get started with Ergo?

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.

How-to
Getting Started

Is Ergo a good investment?

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.

Comparison
Getting Started

What is storage rent on Ergo?

Storage rent is Ergo's solution to state bloat. Boxes (UTXOs) that remain unspent for 4+ years can have a small fee deducted by miners. This incentivizes cleaning up unused state, provides long-term miner revenue after emission ends, and keeps the blockchain sustainable. Lost coins eventually return to circulation instead of being locked forever.

Explainer
Technology

What is storage rent on Ergo?

Storage rent is Ergo's mechanism for long-term sustainability. Boxes (UTXOs) that remain unspent for ~4 years pay a small fee, which goes to miners. This prevents state bloat, recirculates lost coins, and ensures miners have income even after emission ends. It's like paying rent for blockchain storage space.

Explainer
Technology
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