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babel fees, scaling, token integration, and misc fixes
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4 changes: 2 additions & 2 deletions docs/dev/protocol/scaling/layer0.md
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In addition to these, Ergo also supports **[Logarithmic space mining](logspace.md)**, which enables the existence of *light miners*. Similar to light clients, light miners can bootstrap using block headers without downloading the entire blockchain. This feature can be integrated into Ergo through a velvet (soft) fork, further enhancing the scalability of the network.

## Weak Blocks
## Sub Blocks

In the quest for Layer 0 (L0) scalability improvements, one of the most promising advancements is the introduction of "weak blocks." These are essentially block candidates with lower proof-of-work difficulty, serving as temporary placeholders that facilitate faster transaction confirmations and optimize network bandwidth. For end-users, this translates into quicker, weakly confirmed transactions—often within 20 seconds—while also making better use of network resources. For a more in-depth look at weak blocks, their advantages, and their role in Ergo's scalability strategy, see this [page](weak-blocks.md).
In the quest for Layer 0 (L0) scalability improvements, one of the most promising advancements is the introduction of "subblocks." These are essentially block candidates with lower proof-of-work difficulty, serving as temporary placeholders that facilitate faster transaction confirmations and optimize network bandwidth. For end-users, this translates into quicker, weakly confirmed transactions—often within 20 seconds—while also making better use of network resources. For a more in-depth look at weak blocks, their advantages, and their role in Ergo's scalability strategy, see this [page](sub-blocks.md).

## State Bloat Management

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- Sub Block Confirmation Protocols
- Microblocks
---

# 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.

## Mainnet 5.0 Activation and its Impact
## 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](jitc.md) in Node V5 has led to:

The introduction of the [*'Just in time costing'*](jitc.md) update in Node V5 has led to a substantial increase in Ergo's block capacity. This enhancement has amplified the network's transaction processing capability by an estimated 5-10 times.
- 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

Ergo's Layer 1 also sets the stage for potential scalability improvements through techniques such as Sharding, and the implementation of Sub-Block Confirmation Protocols and Microblocks.
### Microblocks and the Ergo Block Extension Section

Ergo's [block](block.md) 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](link-to-eip-15) and builds upon established research from platforms like:

- [Bitcoin-NG](https://www.usenix.org/system/files/conference/nsdi16/nsdi16-paper-eyal.pdf)
- [Flux](https://www.usenix.org/system/files/atc20-li-chenxing.pdf)




### 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:

- [On the Security and Performance of Blockchain Sharding](https://eprint.iacr.org/2021/1276)
- [Sharding and Atomic Composability on Ergo](../atomic-composability/#sharding-and-atomic-composability)

## 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

**Sharding** is a scalability technique that partitions the blockchain database into smaller segments, known as 'shards.' Each shard can process transactions and smart contracts independently, enabling parallel transaction processing and significantly boosting blockchain scalability. Although not currently integrated into Ergo, sharding is a promising area for future development.
### Node Version Updates
Regular updates to the Ergo node software provide:

For an in-depth understanding of sharding, refer to the paper [*' On the Security and Performance of Blockchain Sharding'*](https://eprint.iacr.org/2021/1276). For additional context, visit this page on [sharding and atomic composability on Ergo](../atomic-composability/#sharding-and-atomic-composability).
- Bug fixes and performance enhancements
- New scalability features
- Improved difficulty calculations
- Refined Autolykos implementation

### Sub-Block Confirmation Protocols and Microblocks
## Research and Development

Ergo's scalability is further augmented by its *extension sections* within blocks, which can contain **mandatory and arbitrary key-value data**. Specific anchors embedded in these sections facilitate the creation of microblocks, akin to the Bitcoin-NG model. Additionally, it opens up the possibility to generate Aspen-style service chains or generic sidechains through velvet or soft forks.
Ongoing research continues to explore:

Platforms such as [Bitcoin-NG](https://www.usenix.org/system/files/conference/nsdi16/nsdi16-paper-eyal.pdf) and [Flux](https://www.usenix.org/system/files/atc20-li-chenxing.pdf) demonstrate Microblocks and Sub-block confirmation protocols. By utilizing Ergo's *extension sections*, these strategies can markedly enhance the blockchain's throughput. Microblocks enable faster block generation times, thereby improving transaction throughput.
- Advanced sharding techniques
- Novel consensus mechanisms
- Improved transaction ordering
- Enhanced mempool management

These topics continue to be the focus of intense research as of 2023. For a comprehensive understanding, refer to the paper *[Flux: Revisiting Near Blocks for Proof-of-Work Blockchains](https://eprint.iacr.org/2018/415.pdf)*.
For the latest developments in these areas, refer to [Flux: Revisiting Near Blocks for Proof-of-Work Blockchains](https://eprint.iacr.org/2018/415.pdf).
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