What is a u-coordinate within Elliptic Curve Diffie-Hellman using the Montgomery ladder I am trying to understand the below paragraph.


  Elliptic curve Diffie-Hellman is often calculated using the Montgomery
  ladder. This gives a simple and efficient calculation that is
  naturally resistant to timing side channels. The Montgomery ladder
  also allows each party's public key to be a Montgomery u-coordinate.
  Using a single coordinate instead of the whole point makes public keys
  smaller without the expense of point decompression.


I read about Elliptic curves and Montgomery ladder at Wikipedia. Can someone please explain this paragraph in naive language.Also please answer below questions.


What is Montgomery u-coordinate.
A brief explanation of requirement of point decompression.
Montgomery form and ladder

People are typically introduced to elliptic curves in Weierstrass form, namely the points $(x,y)$ that satisfy $y^2 = x^3 + ax + b$. Specifying $a$ and $b$ pick out a particular curve.

There is an alternative representation of elliptic curves, called the Montgomery form:

$Bv^2 = u^3 + Au^2 + u$

Peter Montgomery introduced this form in his 1987 paper. Here, the points are $(u,v)$ pairs and specifying $A$ and $B$ pick out a curve. You can convert from one form to the other. The $u$ here is the u-coordinate you referred to.

Why is this useful?

When doing scalar multiplication on elliptic curves over a field $\mathbb{F}_p$, you have to do a lot of modular divisons / inverses. However, in Montgomery form, $u$ and $v$ are projective coordinates. What this gets you is letting you postpone expensive division operations for as long as possible, giving nice speedups. So think of $u$ as a ratio of two coordinates, similar to (not equal to!) $x/y$.

Very roughly, the Montgomery ladder is doing a "double-and-add" operation on a point in projective space. The input to the ladder is a scale factor $k$ and the u-coordinate, and the output is only the u-coordinate of the scaled point. That's why the Montgomery ladder is called a single-coordinate ladder. If necessary and if you have both $u$ and $v$, you can compute both coordinates of the scaled point, but if you only need the scaled $u$, you get this quickly without having to spend time computing the "baggage" of the other coordinate, like with point compression and decompression. 

Point Compression and Decompression

See Section 2.3 for a description of the calculation to do point compression and decompression. The basic idea is it's better to carry one number around than two if you can, so take $(u,v)$ in projective space and combine the two coordinates into a "compressed" value $\tau$ which can later be "decompressed" into $(u,v)$ or $(x,y)$ form. These compression and decompression operations involve taking modular square roots and modular inversion which are expensive. The Montgomery ladder lets you avoid this computation.