Ergo offers a lot of use cases. During the first phase of development, lots of implementations have been explored with Ergo Contracts (ErgoScript / ErgoTree) with no off-chain parts or UI developed. After the launch of the SigUSD stablecoin, Ergo NFT Auctionhouse, Oracle Pools and soon ErgoDEX, we would like to share the possibilities of Ergo with you.
1. Crowdfunding
You can create crowdfunding projects on top of Ergo. From ICOs to charity drives, any kind of idea, material, cause, protocol, or action can be funded via Ergo contracts. Bookkeeping and control distribution is easier and more secure therefore it’s the most effective way of conducting a DAO structure. It’s also convenient for funders because ErgoScript design allows for buy-back support and zero-knowledge timed releases. This means users will be in control of the whole project during the crowdfunding phase.
2. Loans
Over-collateralized loans are very popular in crypto right now. Because of extreme volatility, users can face huge losses when using these platforms. Ergo can offer more complex solutions for borrowing arrangements. For example, oracles might be arranged with time-weighted data so that flash liquidation would not be a problem. If there is a dispute time to resolve the liquidations during extreme volatility, borrowers will be protected against this problem. Another interesting idea is “interest-free loans,” so interest-bearing loans are not necessary. To incentivize lenders, a personalized profit riding mechanism can be implemented so they will have another option from gaining only a fixed interest rate.
3. Privacy
Ergo is not a privacy-oriented blockchain, but the smart contracts built on Ergo offer different privacy options. ErgoMixer is a Non-Custodial Coinjoin service in which users can interact with their wallets to enjoy a modicum of privacy. It is a decentralized app so you do not have to give up the custody of your funds to use it. It will soon be tokenized too, but we will update more on this later.
Ergo also offers Layer 2 anonymity solutions so that developers can build side-chains to create private networks when needed.
4. Business
A business, whether small or big, is an enterprise that is running for-profit. This enterprise consists of individuals working toward the same objective as well as shareholders, those who contribute on a financial level. So when examined separately, every individual in a business has different responsibilites, authority and equity. Who has keys to which case? Who holds which powers until when? Who has access to whose information and who will get paid when? These questions all pertain to the “governance” issues of a business. With decentralized blockchain, governance can be tackled easily and securely.
5. Trustless Local Exchange Trading Systems
LETS are implemented on the exchange actions of small-scale local communities. They enable closed communities to form a programmed financial system without the need for trusted 3rd parties. For example, Alice wants to buy apples from Bob. Both parties must first define the currency for their exchange and the price of the apple before completing any authorization of exchange for that particular asset. Governments take care of these problems on a national level but when creating a local economic system, account tracking would be complicated and centralization would still be a problem. Trustless LETS can be implemented in a village so that everyone can participate in a decentralized and fair economy where the local currency is used to exchange goods.
6. E-Mail Clients
The Internet’s effect on our current world is immeasurable and considering that we’re hurtling towards an ever more digital world, it is vital that the internet grow democratically. Even if an internet connection is not provided in your area of residence, it is still possible to access internet services using satellite network broadcasts. Satellite internet access liberates the individual and removes their dependency and need for institutional internet infrastructure. Other low-bandwidth and non-interactive means of communication (fax, calling over a landline, mail) can also be used to verify the exchanges that have been done on the blockchain. Essentially, blockchain offers light finance that gives people ease of access.
7. Lotteries
Fair lotteries require the need for audits and examination experts, however one must trust these intermediaries and brokers when purchasing a lottery ticket. Furthermore, if one is using an online lottery platform, they can not possibly know if the algorithm is fair or whether they may be a target of fraud. With blockchain, the randomness of the contracts can be verified by an examination of the source codes. People who run the nodes of a casino on the blockchain can profit from all the interactions with this platform. The randomness of winners can be guaranteed with Proof of Activity schemes and node runners will be incentivized to prove reliability to the platform. Additionally, the lottery design can also be implemented for Airdropping tokens.
