Scalability
Advanced
Updated 11/26/2025
What is
Velvet Forks?
A soft upgrade mechanism that allows adding new features to a blockchain without requiring all nodes to upgrade simultaneously.
Velvet forks are a blockchain upgrade mechanism that enables backward-compatible protocol changes. Unlike hard forks (which split the chain) or soft forks (which require majority miner adoption), velvet forks allow new features to be added gradually. Nodes that don't upgrade continue to function, while upgraded nodes can use new capabilities.
Key Points
- Backward-compatible protocol upgrades
- No chain split or forced upgrades
- Gradual feature adoption
- Non-upgraded nodes remain functional
- Enables NiPoPoW deployment on existing chains
- Lower coordination overhead than hard forks
Use Cases
1
Adding NiPoPoWs to existing blockchains
2
Gradual protocol upgrades
3
Cross-chain bridge deployment
4
Light client support on legacy chains
Technical Details
Velvet forks work by embedding new data structures (like NiPoPoW interlinks) in blocks without changing consensus rules. Old nodes ignore this extra data while new nodes can use it. This is particularly useful for adding light client support to chains that didn't originally have it.
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Frequently Asked Questions
Questions about Velvet Forks
Common questions about this topic
How to get started with Ergo?
Start by getting a wallet (Nautilus for browser, Terminus for mobile). Back up your seed phrase securely offline. Get some ERG from a current exchange or verified venue, then make a small test transaction. After that, explore NFTs, mining, DeFi references, or the developer stack if you're a builder.
How-to
Getting Started
How to provide liquidity on Ergo?
Providing liquidity on Ergo depends on the current active DEX or AMM venue. In general, you deposit equal value of two assets into a pool, receive LP tokens representing your share, and earn a portion of trading fees. Spectrum Finance is historical/frozen since February 2024, so verify the active venue, contracts, liquidity depth, and withdrawal process before depositing funds.
How-to
DeFi
How to escape financial repression with Ergo?
Ergo provides tools for financial sovereignty: self-custody with no third parties, censorship-resistant transactions via PoW, optional privacy with Sigma Protocols, and programmable money without permission. Unlike VC-backed chains, Ergo has no central authority that can freeze funds or comply with sanctions. Your keys, your coins, your freedom.
Solution
Philosophy
Is Ergo a good investment?
This is not financial advice. Ergo has strong fundamentals: fair launch (no VC dump risk), innovative technology (eUTXO, Sigma Protocols, NiPoPoWs), active development, and a cypherpunk ethos. It's a smaller market cap project with higher risk/reward than established chains. Research thoroughly, understand the technology, and never invest more than you can afford to lose.
Comparison
Getting Started