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Layer 1: On-chain Scalability in Ergo#

Layer 1, the foundational protocol layer of a blockchain system, is responsible for core functions such as transaction processing, consensus mechanisms, and security protocols. Ergo's Layer 1 is designed with a focus on scalability, incorporating features that boost transaction processing capacity and overall throughput.

Current Scalability Features#

Extended UTXO Model (EUTXO)#

Ergo utilizes an enhanced version of Bitcoin's UTXO model, known as EUTXO, which enables:

  • Turing Complete smart contracts
  • Parallel transaction processing
  • Higher throughput compared to account-based models
  • Efficient state management

Protocol Optimizations#

Recent developments have improved the protocol's efficiency through:

  • Removal of unused complexity from the Sigma protocol
  • Enhanced code readability and maintenance
  • Refined transaction ordering and mempool tracking
  • Regular node version updates addressing performance

Mainnet 5.0 and Beyond#

Just-in-Time Costing#

The introduction of Just in time costing in Node V5 has led to:

  • 5-10x increase in block capacity
  • Improved transaction processing capability
  • More efficient resource utilization

Miner Parameter Adjustments#

Developers are actively exploring:

  • Increased block size parameters
  • Enhanced transaction size limits
  • Optimized mining efficiency
  • Improved difficulty calculations through Autolykos updates

Future Scalability Enhancements#

Microblocks and the Ergo Block Extension Section#

Ergo's block structure includes extension sections containing:

  • Mandatory and arbitrary key-value data
  • Anchors for microblock creation
  • Support for service chains
  • Potential for generic sidechain implementation

These features enable:

  • Faster block generation times
  • Improved transaction throughput
  • Support for velvet or soft forks
  • Creation of Aspen-style service chains

Sub-Block Confirmation Protocols#

Ergo is actively developing sub-block confirmation protocols that will:

  • Group transactions into sub-blocks
  • Reduce confirmation times
  • Increase overall throughput
  • Improve transaction processing efficiency

This development is guided by EIP-15 and builds upon established research from platforms like:

Sharding#

Sharding represents a promising avenue for future scalability improvements by:

  • Partitioning the blockchain database into smaller segments
  • Enabling parallel transaction processing
  • Maintaining security while improving throughput

For detailed information, refer to:

Community-Driven Development#

Ergo Improvement Proposals (EIPs)#

EIPs serve as the primary mechanism for protocol enhancement through:

  • Community-driven proposals
  • Focused scalability improvements
  • Systematic implementation processes
  • Regular protocol updates

Node Version Updates#

Regular updates to the Ergo node software provide:

  • Bug fixes and performance enhancements
  • New scalability features
  • Improved difficulty calculations
  • Refined Autolykos implementation

Research and Development#

Ongoing research continues to explore:

  • Advanced sharding techniques
  • Novel consensus mechanisms
  • Improved transaction ordering
  • Enhanced mempool management

For the latest developments in these areas, refer to Flux: Revisiting Near Blocks for Proof-of-Work Blockchains.