Economics
Intermediate
Updated 1/15/2025
What is
Native Asset?
Tokens built directly into a blockchain's protocol (like ERG on Ergo), as opposed to smart contract tokens. Native assets have first-class support without wrapper contracts.
Native assets are tokens that exist at the protocol level of a blockchain, not as smart contract abstractions. On Ergo, all tokens (including NFTs) are native assets stored directly in boxes alongside ERG, with first-class support for creation, transfer, and burning. This contrasts with Ethereum where tokens (ERC-20, ERC-721) are smart contracts that must be interacted with through additional code. Native assets on Ergo are more efficient, secure, and can be handled uniformly by wallets and dApps without needing to understand individual token contracts.
Key Points
- Built into the blockchain protocol, not smart contracts
- Ergo has native multi-asset support in every box
- More efficient than contract-based tokens (ERC-20)
- Uniform handling by wallets and applications
- ERG is Ergo's native currency, other tokens are native assets
- Includes NFTs - all stored the same way
Use Cases
1
Creating tokens without deploying smart contracts
2
Building multi-asset applications efficiently
3
NFT creation and management
4
Understanding Ergo's token model vs Ethereum
5
Atomic swaps between multiple tokens
Technical Details
On Ergo, native assets are stored in box register R2 as a collection of (tokenId, amount) pairs. Token creation requires a special transaction that generates a unique tokenId from the box ID. Unlike ERC-20 tokens which require contract calls for transfers, Ergo native tokens can be transferred in the same transaction as ERG with no additional overhead. This enables atomic multi-asset swaps and simplifies wallet implementations.
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Frequently Asked Questions
Questions about Native Asset
Common questions about this topic
How do NFTs work on Ergo?
Ergo NFTs are native tokens with quantity of 1, making each unique. Unlike Ethereum where NFTs need smart contracts, Ergo NFTs are first-class protocol citizens. Mint for minimal fees (~0.001 ERG), trade on SkyHarbor marketplace, and enjoy full eUTXO security. NFTs can include rich metadata and royalties.
Explainer
Technology
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 can I do with Ergo?
Ergo supports a full ecosystem: trade on Spectrum DEX, use SigmaUSD stablecoin, mix transactions with ErgoMixer, collect NFTs on SkyHarbor, mine with GPUs, lend/borrow on DuckPools, bridge to other chains via Rosen, and build dApps with ErgoScript. It's a complete platform for decentralized finance and applications.
Explainer
Getting Started