What is Ardor?
Ardor is a blockchain-as-a-service (BaaS) provider. It provides the blockchain infrastructure for businesses and organizations to take advantage of blockchain technology without having to invest in developing custom blockchain solutions. Instead, Ardor provides a main chain that handles blockchain security and decentralization. It provides ready-to-use customizable substrings, out of the box, for various business applications.
The developers of Ardor are the same company behind the open source Nxt project. Ardor goes beyond Nxt to address the critical issues of blockchain bloat, scalability, and customization.
First, we should take a detailed look at Ardor, its foundation at Nxt, and its first subchain project, Ignis. While the project has a lot of potential to advance blockchain as a service to new levels of availability and accessibility, its success depends on how much traction the development team can generate for the future. early applications. Nxt has struggled to get the wide acceptance that developers had hoped for, outside of a few key examples like BNP Paribas and Accenture, and Ardor offers a turning point for the development team to generate excitement. encourage.
To understand Ardor, you need to know about Nxt
Before we dive into what makes Ardor unique, it’s worth taking a look at the Nxt platform and its origins. Ardor has earned the nickname Nxt 2.0, because it relies heavily on Nxt core programming. In fact, Ardor will contain almost all the features of Nxt plus additional advanced capabilities.
Nxt started in 2013 and was one of the first ICOs ever to launch a cryptocurrency. Although the initial ICO only raised $6,000 in donations, the Nxt founders stuck with the project. Nxt was one of the first projects to write new blockchain code from scratch, without borrowing any code from Bitcoin. Its open source code is written in Java and it is also the first blockchain to fully implement proof of stake.
Nxt is designed for testing and the goal is to enable companies and other entities to implement their own blockchain solutions using APIs, create new coins on the Nxt blockchain and even clone / edit the source code Nxt. The development team has created different functions that can be activated when a new token is created. These include asset creation, trading, blockchain voting, and market creation. Nxt strives to make it easy for companies and organizations to create new tokens and start using them right away.
Problems with Nxt
Nxt is a respected, verified and established blockchain technology with a relatively long history and an experienced development team. However, as blockchain usage increases in the coming years Nxt and other blockchain technologies will face some fundamental issues with payments, scalability, and customization.
The first and simplest issue is the use of native tokens for transaction fees. Nxt uses a tamper proof of stake system, which means the total supply of tokens has been created and new tokens cannot be generated with each block.
Instead, those who verify blocks receive a portion of the transaction fees paid on the network. As such, transaction fees need to be paid in NXT. Even if you created a new currency that is independent of Nxt, you still need to own NXT to pay miners, diluting the value of your coin. The same is true for currencies that use the Ethereum protocol, ERC20 to build on top of the Ethereum blockchain. They pay fees in Ether.
Most blockchain technologies, including Nxt, are also experiencing some form of blockchain bloat. The root of this bloat is the need to download the entire history of the blockchain to run a full node on the network. The storage requirements to operate a full node increase as more transactions take place.
Soon, running a node on the blockchain can mean downloading hundreds of gigabytes of transaction data to get your node up and running, creating a serious bottleneck for adding new nodes. While Nxt has implemented some pruning that is involved in verifying transactions, the system downloads a complete copy of the transaction history which is not permanent.
Blockchain as a service solution that incentivizes customization, new asset creation, and trading platforms faces a challenge when it comes to helping customers maintain their systems. While it is relatively simple to create a copy of the Nxt blockchain, doing so will also require separate servers and ongoing maintenance to keep the custom system running smoothly.
Replica will lag behind security protocol and software updates, and Nxt will have to invest too much effort in providing ongoing support for custom solutions based on Nxt.
How Ardor works and solves those problems
Ardor includes every feature supported by the Nxt blockchain, but it changes the architecture of how new blockchains are implemented. It separates security from functionality by creating multiple chains. The Ardor main chain is a thinned-down bare-bones blockchain built for speed and security.
When you want to do a new project on Ardor, you create something called a substring. The substring contains all functions and customizations supported on Nxt. However, it is still linked to the main chain and derives security and decentralization from using the main chain for verification.
This new structure allows to implement substrings and features in minutes or hours. Since the blockchain infrastructure is already in place with the Ardor main chain, the subchain can quickly adopt custom use cases. These subchains still receive all the speed, security, and usability upgrades of the main chain, as they are all integrated on one platform.
Ardor solves the problem of blockchain bloat with a transaction pruning system. In the future, it won’t be a package to keep a complete copy of the transaction history, only recent transactions involved have brought the blockchain to this point. Ardor will also support active storage nodes to keep a full transaction history if needed.
To solve the native token problem, Ardor uses a system of packets, nodes on the network that accept fees paid in subchain tokens. These packages then pay validators to the Ardor main chain in ARDR, essentially acting as a conversion clearinghouse for transaction fees. This means that the end user can initiate a transaction with the child token and pay the transaction fee in the child token.
In theory, users could be unaware of Ardor’s existence. This commitment to infrastructure development is what makes it so difficult for Ardor to generate buzz and press attention. However, if it gains traction, Ardor could be the foundation for endless new blockchain applications.
Ignis: The First Subchain Built on Ardor
To test Ardor’s capabilities and as an example of a working subchain, the Ardor developers created Ignis. Ignis will implement all the customizations coming from the Nxt codebase. Essentially, Ignis is a proof of concept designed to be the first of many subchains on the Ardor platform. The Ignis ICO has raised $15 million in development funding.
In the future, equity trading platforms, digital file transfer services, private enterprise blockchain applications, and other applications may use the Ardor subchain. Ardor’s strengths are its quick time to set up and widely customizable, making it a great choice for companies looking to leverage blockchain without the resources to devote to development. custom.
There are only nearly one billion ARDR coins in circulation. Because Ardor uses proof of stake instead of proof of work, no new coins will be issued. Proof of stake offers various advantages although it also has some disadvantages.
The ARDR price largely follows the same model as Bitcoin and other cryptocurrencies. There was a spike around January 2018 and a gradual decline for the rest of the year.
There was a small increase in the price of ARDR in May 2018. Several events may have caused this peak. There were two ICOs announced on the Ardor platform, and the project also launched a Chinese version of its website, which may have opened ARDR to many Chinese investors.
Ardor is doing some pretty important work when it comes to thinking about new ways to structure blockchain infrastructure and secure. If done correctly, the end result can be a solution that any business can implement. It will require extensive technical expertise or ongoing maintenance.
However, there are now many other development platforms that offer stiff competition for Ardor. The team has a lot of work to do if they want to take the lead.
Ultimately, the next year or two will likely prove to be the most important times for Ardor. If the project can prove itself as a viable development platform for a few key projects, it could prove to be a good long-term bet.
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