@Grayman What do you think about this?
Ergo Through the Lens of a Bitcoin Maximalist
In this blog post I look at Ergo through the lens of Only the Strong Survive, an opinion piece by bitcoin maximalists Allen Farrington & Big Al. I paraphrase sections of their paper to uncover how Ergo looks based on some of the rationales behind bitcoin maximalism.
Bitcoin maximalists believe the benefits of Layer 1 (L1) blockchain technology are fully realized by Bitcoin. These L1 luddites want further cryptocurrency innovation to focus on building on top of Bitcoin through through Layer 2 (L2) solutions such as Lightning Network.
From the paper:
There are a handful of interrelated characteristics that constitute the real innovation of Bitcoin and that delicately balance to give it unprecedented functionality. These are:
i) The proof-of-work algorithm
ii) The difficulty adjustment
iii) The native unit of (only) monetary value
iv) The lack of a founder or acknowledged leader
v) The economic incentive created for distrusting individual actors to achieve distributed consensus, unforgeably and immutably. This all allows Bitcoin to realize endogenous value as an asset grounded in its security, and endogenous provision of security as incentivized by this asset.
Compared to Ergo:
i) Ergo is a democratic blockchain with an ASIC-resistant proof-of-work algorithm, Autolykos, that maintains the ethos of 1 CPU = 1 vote. Hashpower = voting power. The miners own our network
ii) Autolykos has difficulty adjustment.
iii) Ergo has the native coin ERG.
iv) Bitcoin has the anonymous founder Satoshi Nakamoto. Satoshi is the largest holder of BTC, with 1.1 million of the 21 million maximum supply of Bitcoin. Mr. Nakamoto made suggestions for the future of the protocol in the months following public release. Satoshi left behind ideas for Bitcoin’s future, some of these ideas were not implemented by later developers. For example, Satoshi believed that block size limit should increase to improve scaling. This improvement was never realized due to the poor leadership of a third party and as a result Bitcoin transactions cost several dollars instead of several cents. After Satoshi’s disappearance the for-profit company Blockstream hired Bitcoin core developers and used their influence to prevent an increase in block size past 1 MB. The limited in block size is the reason L2 solutions are needed to scale transaction volume. The most popular L2 scaling solution for Bitcoin is the Lightning Network. The first transaction on the Lightning Network occurred in 2017 on Litecoin by an employee of Blockstream…
Ergo’s founder and core developer is cryptocurrency innovator Alex Chepurnoy, known by his handle Kushti. Kushti is a leader in the Ergo ecosystem through his suggestions for improvements to the protocol. His leadership (and the leadership of other Ergo developers) is overwhelming wanted by the community. Recently Kushti proposed EIP27, an alteration to the ERG emission schedule. Ergo miners approved this proposal with over 90% of the hashpower voting yes on EIP27. If Satoshi had maintained a similar level of involvement Bitcoin may have won the block size war.
Bitcoin maximalists purport that Bitcoin doesn’t have a leader. El Salvador recently adopted BTC as legal tender and is using the Chivo wallet for transactions. The Chivo wallet uses the Lightning Network and El Salvadorians cannot transact directly on the Bitcoin blockchain. The 1 MB block size limit of Bitcoin limits the freedom of users by incentivizing centralized L2 solutions such as Lightning Network. The code of a cryptocurrency is the constitution that limits the power that can be exerted on people using a given blockchain. On Ergo the constitution provides a comparatively more robust suite of L1 solutions that benefit from decentralization.
v) Ergo has this same value proposition.