The Ardor team sees the potential for blockchain to be utilized in a variety of industries. They aim to make the process of setting up a blockchain easier for businesses, governments, research institutions and other organizations.
The team tackles issues they see with traditional blockchains such as blockchain bloat, customization issues and the lack of transactional tokens (single token dependency).
An example of single token dependency would be blockchains like Ethereum. ETH must be used to pay gas for all transactions. If you wanted to send some Chainlink tokens, you can’t pay the gas fee in LINK, you need to have some Ether in your wallet too. Ardor wants to fix this. Solutions to these problems are elaborated upon below.
If you were to look in a dictionary, the ardor definition would be “extreme vigor or energy.” The Ardor team tries to match this with zeal and passion. In a sense, they aim to be a tumult in the blockchain space.
What is Ardor?
Ardor is an open-source blockchain-as-a-service (BaaS) provider.
The Ardor platform allows businesses and institutions to set up their own blockchain without the need to code or secure it themselves. The term “Consensus-as-a-Service platform” is also commonly used to describe Ardor.
The Ardor project is based on a parent – child chain architecture. This architecture is often touted as one of the main selling points of Ardor. It sets it apart from most of its competitors.
The Ardor chain acts as a parent chain that provides security for the network and the interoperable child chains provide functionality. Thus, smart contracts run on the child chains. Child chains are often referred to as “transactional chains”.
Child chains differ from side chains as all child chains run on the same software packet. Check this out if you want to learn more about the differences between side chains and child chains. Ardor also has a built-in exchange for trading child chain tokens.
Ardor uses a Proof-of-Stake consensus algorithm. ARDR holders can utilize this algorithm to earn passive income by “forging”.
The ARDR Token
ARDR is the forging token for the Ardor parent chain. It acts as an “engine” to drive the platform.
Ardor token holders will forge blocks to include transactions completed on the child chains.
Forgers stake their ARDR to earn passive income. Forging requires 1000 ARDR and a node. The account also needs to have at least one outgoing transaction with 1440 confirmations.
Specific Blockchain Problems Targeted by Ardor
The Ardor team learned a lot by developing and maintaining NXT. The corporate entity, Jelurida, is responsible for developing ARDOR, NXT, and the IGNIS child chain.
NXT was one of the first Proof-of-Stake blockchains ever created. This experience provided insight and led Jelurida to identify several characteristics of NXT and existing blockchains that they considered fixable limitations.
The fact that blockchains swell in size adds a barrier to entry for new nodes coming online. Pruning data (like messages) from the blockchain reduces its size considerably. Ardor utilizes pruning to increase scalability.
Ardor’s parent chain stores transactions that affect the balances of the forgers. All other transactions by child chains are pruned, leaving behind a hash that proves their previous existence. New nodes joining the blockchain will only need to validate parent chain transactions and the transactions of each child chain for the past 24 hours.
Pruned data can be restored from archival nodes if needed.
Single Token Dependency
On NXT and Ethereum (and other traditional blockchains), the network’s native token is needed to interact with DApps built on the platform. For example, Basic Attention Token (BAT) is a token built on Ethereum. If you wanted to send BAT to a friend, you would also need ETH in your wallet to pay the gas fee. You are not able to pay the fee using BAT. ETH is always needed to send an on-chain transaction, including DApp interaction on the network.
Ardor gets rid of this need with a system of bundlers. These bundlers accept fees in child chain tokens and pay the forgers with ARDR. This mechanism is referred to as “bundling”. Thus, you are not required to use the native ARDR token to pay fees, you can use child chain tokens.
To clarify, if you want to send IGNIS (an Ardor token) to somebody, you can pay the fee in IGNIS. You don’t need to obtain ARDR.
It’s easy to clone a blockchain by copying the source code but securing the network is a bit more difficult. Doing development work for customizations is also an issue.
Ardor can be used to easily create custom child chains. Businesses would normally worry about securing the network, maintaining a network of servers, etc. Ardor simplifies the process and even offers help to institutions looking to build on Ardor.
To learn more about the history of Ardor and some of the child chains, check out our next article.
If you are a Spanish speaker and new to crypto, check out this article explaining blockchain.