Thread by @ergoplatformorg

🔔What are NIPoPoWs?

This thread is intended to describe and simplify one particular innovation on the #Ergo #blockchain: NIPoPoWs.

#NiPoPoW stands for Non-Interactive Proof of Proof of Work. Let’s break this down one piece at a time.

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PoW sitting at the end of #NIPoPoW signifies that this concept is grounded in a proof of work consensus mechanism

Ergo relies on #miners to solve cryptographic puzzles that give them the right to verify transactions and add blocks to the #blockchain

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Po in the center of NIPoPoW stands for Proof of.

Having proof of proof of work means using cryptography to abstract away from the blockchain in a mathematically verifiable way.

In other words, PoPoW is a lightweight, yet provably accurate, representation of the blockchain

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NI stands for non-interactive.

Non-interactive means that applications operate on the back end of a program without the participation or permission of another user.

Non-interactive applications are like automated vending machines, ready to be used by anyone.

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🔔Why do we need NIPoPoWs?

The most obvious application for NIPoPoWs is to reduce the size of a #blockchain. #Bitcoin’s blockchain is over 300GB.

Due to its smart contracts, #Ethereum’s blockchain is almost a terabyte!

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Anyone wanting to run a node will have to own a sizable hard drive and wait between 1 and 5 days for the node to sync.

NIPoPoWs will allow super light clients to sync to the #blockchain with less than 1MB of data.

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This reduction of data also implies a reduced technological requirement.

NIPoPoWs will enable limited technology to operate with limited data service, and achieve the same security level as running a full node.

This has the potential to revolutionize the industry.

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This lightweight approach has other benefits as well.

The first is known as log space #mining, which means that each block being added to the blockchain only logarithmically increases the size of the #blockchain.

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Second, NIPoPoWs will enable super efficient operation of side chains.

These will allow new protocols to be built on top of the Ergo #blockchain, which can be verified by #miners without causing congestion.

This technology will be a foundation of Ergo’s scaling approach.

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Third, and perhaps most technologically spectacular, are velvet forks.

This development enables the blockchain to be upgraded without the consequences of traditional hard or soft forks; velvet forks allow upgrades to be backwards compatible.

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🔔How do NIPoPoWs work?

A #NIPoPoW is essentially a data compression technique, and it’s all about super blocks.

Proof of Work blockchains reach consensus by allowing miners to compete for the right to mint new blocks of data onto the #blockchain.

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In a rare and random occurrence, some blocks are much more difficult to solve than others.

These blocks, known as super blocks, have more zeros in their solution than average blocks.

This makes them easily identifiable and available for other uses.

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In a NIPoPoW, super blocks are used to host data from every block between it and the last super block.

Data is stored in the block header and then used as a key that can access and confirm any information held by any of the blocks that contributed data to the super block

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Wallets, dApps, and users can rely solely on super blocks to securely and reliably interact with the #blockchain.

Since they only have to sync with the super blocks, they can avoid downloading the entire #Ergo blockchain and improve efficiency by 80%.

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For more information on NIPoPoWs, see the full article below.

👇
ergoplatform.org/en/blog/2022-0…

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