sigma-chains

docs/uses/sidechains/sigma-chains.md

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+# Sigma Chains: The Future of Programmable Proof of Work on Ergo
+
+Welcome to the Ergo Platform documentation. This section introduces and explains Sigma Chains, a groundbreaking innovation designed to revitalize and expand the potential of Proof of Work (PoW) within the Ergo ecosystem. Sigma Chains represent a significant leap forward in making PoW cryptocurrencies more versatile, sustainable, and integral to decentralized finance (DeFi) applications.
+
+## Introduction to Sigma Chains
+Sigma Chains are a new series of blockchains backed by ASICs and empowered by Ergo's Sigma programming model. They aim to bring innovative functions, new options for existing miners, and support existing ASIC product lines while revitalizing Proof of Work. 
+
+### Key Features of Sigma Chains
+
+- **Programmability:** Unlike traditional PoW cryptocurrencies, Sigma Chains support complex smart contracts and DApps, enabling a wide range of applications from DeFi to digital identities. Sigma Chains utilize the ErgoScript language, which is flexible, Turing-complete, and prioritizes security.
+
+- **Cross-Chain Compatibility:** Sigma Chains are designed to facilitate seamless interactions between Ergo and other blockchain networks, enhancing liquidity and interoperability within the blockchain ecosystem. They enable trustless value pegging between chains.
+
+- **Sustainability:** Sigma Chains introduce storage rent and demurrage to ensure long-term economic sustainability. Storage fees serve as additional rewards for miners while stimulating coin circulation.
+
+- **Security and Decentralization:** Maintaining the robust security model of PoW, Sigma Chains benefit from decentralized consensus mechanisms, ensuring network integrity and resistance to censorship. Sigma protocols enable true peer-to-peer privacy.
+
+## Architecture of Sigma Chains
+
+Sigma Chains utilize a layered architecture that allows for the development of complex applications while maintaining the security and integrity of the blockchain. 
+
+- **Sigma Protocols:** At the heart of Sigma Chains, Sigma protocols enable the construction of advanced cryptographic operations like ring signatures, multi-signatures, and zero-knowledge proofs, providing the foundation for secure and versatile smart contracts.
+
+- **eUTXO Model:** Sigma Chains use the extended UTXO model, which implies UTXOs with the ability to contain arbitrary data and sophisticated scripts. This enables superior privacy, scalability, interoperability, and cost predictability compared to account-based models.
+
+- **Efficient Light Clients:** Sigma Chains support Non-Interactive Proofs of Proof-of-Work (NIPoPoWs), allowing users to run contracts on common devices like mobile phones without centralized intermediaries. 
+
+- **Miner Adjustable Parameters:** Many network parameters are adjustable through decentralized voting among miners, including computational costs, block size limits, and storage fees. This allows miners to steer the long-term economic stability of the network.
+
+## Applications and Use Cases
+
+Sigma Chains open up a multitude of possibilities for application development and deployment on the Ergo platform. Some promising use cases include:
+
+- **Portable Algorithmic Stablecoins:** SigmaUSD and Dexy stablecoins can be deployed across Sigma Chains, offering decentralized stable assets.
+
+- **Portable Options Trading:** Sigma Chains enable the creation of fully hedged option contracts on various tokens.
+
+- **Portable P2P Bonds:** SigmaFi facilitates peer-to-peer lending through overcollateralized loans represented as smart contracts.
+
+- **Portable Project Incubators:** Platforms like ErgoPad can be deployed on Sigma Chains to enable community-driven project funding and governance.
+
+## More Information
+
+To learn more about the vision and technical details of Sigma Chains, check out this [informative presentation](https://docs.google.com/presentation/d/e/2PACX-1vQMR27WLXAQ5NiuBb2EJ5wadU8DoJEzJmsrp_oqVNKmPOAATdF6Cjw9IKaW2InO0Xqr85xTI4luPPUE/pub?start=false&loop=false&delayms=3000&slide=id.g195421e485f_0_87)
+
+
+Additionally, watch this in-depth video where Ergo core developer Alex Chepurnoy and Ergo Foundation member Joseph Armeanio discuss the future of Proof of Work and how Sigma Chains can revitalize the concept: [**Sigma Chains | Revitalizing Proof of Work**](https://www.youtube.com/watch?v=Jj_Hg222s9Y_)
+
+

mkdocs.yml

@@ -200,6 +200,7 @@ nav:
       - Sidechains: 
         - uses/sidechains.md
         - Sub Blocks: uses/sidechains/subblocks.md
+        - Sigma Chains: uses/sidechains/sigma-chains.md
         - ErgoData: uses/ErgoData.md
         - SentientChain: uses/sentientchain.md
         - PoUW: uses/pouw.md