Ardor coin is an extremely powerful tool that hopes to propel businesses. Here at BlockchainBiome, we are going to share a complete Ardor coin review, we look at the origins, pros, and cons, and gain some of the useful information about whether Ardor coin is worth investing or not. The Ardor Coin Review provided below is a comprehensive effort and aims to provide all the details you need to understand the technology.
Ardor coin was created with the intention of powering businesses. Ardor is an innovative service that aims to exploit the potential of Blockchain by providing it as a service that enables businesses. Simply put, Ardor is a Blockchain-as-a-service platform. Ardor is composed of an interesting parent chain and child chain concept. Before we get to the details pertaining to Ardor, let us see what Blockchain as a service is.
Blockchain as a service (BaaS)
Blockchain as a service, or, BaaS for short, allows users to create their own blockchain apps, smart contracts and blockchain enabled functions and provides a cloud-based solution that they can use to do so. The users do not have to worry about having to maintain any aspect of the cloud since the service provider takes up the responsibilities involved with keeping the infrastructure operational and agile. As one would have figured out, it is based on Software as a Service (SaaS).
Technical complexities and computational overheads often pose serious problems to companies and organizations that plan on implementing businesses that incorporate blockchain. Blockchain as a service, aimed at the removal of these hindrances to these companies. The BaaS provider is responsible for setting up a functional blockchain network for businesses and is also responsible for taking care of any problems that may arise in the infrastructure.
Blockchain as a service has ensured that several businesses, that were initially reluctant on using blockchain, use the powerful technology of blockchain to carry out what they wanted to achieve. As a result, blockchain as a service not only leads to the growth of businesses and industries but also results in the growth of blockchain itself.
What is Ardor Coin?
To understand this, we will have to back up a little bit. Ardor was built as an enhancement to the existing blockchain Nxt. Both Nxt and Ardor were creations of their parent company, Jelurida.
Ardor is largely believed to be a version of Nxt that aims to eliminate the limitations that Nxt had. Nxt is a public blockchain that has a lot of operations and functionalities built into it. The users of this blockchain would, therefore, need not to worry about finding ways to incorporate these functions externally. Nxt claims to be the first pure proof of stake blockchain. What’s proof of stake? How’s it different from Proof of Work? Read on to find out.
Proof of work vs Proof of stake
Proof of work requires immense computational power. Blockchains that use proof of work, like the traditional blockchains, rely on nodes in the network to solve a cryptographic puzzle to validate transactions in the network. Proof of work is built in such a way that it can only be solved by brute force due to its cryptographic properties. Proof of work involves nodes trying to solve the puzzle in a process called mining. The node that solves the puzzle the fastest is rewarded with a reward, which, generally is the cryptocurrency of the network. Nodes that involve in this process of determining the solutions are called miners. Proof of work is built in such a way that it is computationally expensive and difficult to solve, but, easy to validate.
Proof of stake blockchain, on the other hand, has validators instead of miners. Nodes in proof of stake blockchain deposit a certain amount of cryptocurrency as stake. The validators in the network are responsible for validating or forging a new node into the network. These validators are chosen randomly, but, the nodes with higher stakes tend to have higher chances of being selected for the validation. The node that validates the transaction or the block gets the reward.
You may ask, is proof of stake better?
If yes, how?
Proof of stake is, indeed, better, the answer to why it is better is simple. Proof of stake ensures fraudulent transactions are not added to the network. If a validator adds a fraudulent transaction to the network, the validator node loses all its stake. Also, proof of stake does not involve solving any puzzle, which, results in lesser computational requirements. Intuitively, this also means that proof of stake is easier to set up.
Ardor Coin Review: The Origins
Coming back to the origins of Ardor, Nxt was proven to have certain problems associated with it. Ardor tried to convincingly solve these problems. Ardor consisted of one single parent chain, which, served as the main chain and all nodes added subsequently were the child chains. To start the Ardor project, a crowd sale of IGNIS– the tokens of the first child node of Ardor, Ignis, was carried out. This is similar to the Initial Coin Offering (ICO) where initial coins of the blockchain network are sold to a crowd in order to obtain the funds that enable the development of the blockchain. In the case of the Ardor project, 50% of IGNIS were offered.
In the Bitcoin blockchain, had 50% of the coins been up for Initial Coin Offering, the entire value of that 50% would now equal approximately 37 billion USD! This is why ICOs generally do well, the tokens or coins are sold to the users who are led to believe that the value of the currency will grow. It is like investing in stocks.
Nxt was a public blockchain with private versions created for individual organizations and business. On the other hand, Ardor had a public blockchain and smaller child chains added on to the system for each business or organization. Ardor had all the features of Nxt as well. So, every organization that had a child chain on Ardor already had the operations and functionalities that were built into the network. The first child node of Ardor was Ignis, which, had all the functionalities and properties of Nxt.
Parent chain and child chains
The Ardor network consisted of only a single parent chain. This parent chain was responsible for network security and processing. The first child chain was Ignis and the network had several child chains. The various child chains were responsible for operational transactions which included voting on polls, creating assets and sending messages, etc.
The child chains reported to the parent chain using a process called bundling. The bundlers are responsible for packaging several child chains into one ChildChainBlock transaction on the parent chain. The bundlers pay the fees in Ardor and receive fees in the child chain’s coin or cryptocurrency.
Problems of Nxt
Jelurida observed a few problems during the course of their development of Nxt. They recognized these problems and intended to address them. These problems were:
- Single Token
- Blockchain Bloat
- Customization Issues
Nxt had a native token called the NXT. Everything on the Nxt network required NXT. All features and blockchain generation required NXT. All transactions that use the blockchain required NXT and the users were forced to use NXT to sell products on the marketplace or to exchange bids. This would cause a lot of inconvenience to businesses since businesses would not necessarily be fond of denominating their assets in NXT. Businesses would need the flexibility of using their own currency.
Blockchain Bloat is a serious problem that seems to exist in most blockchain networks. Each block in a blockchain generally consists of information of all previous transactions that have taken place in the network. The initial few blocks on the blockchain would consist of very few transactions but as the blockchain grows with new additional nodes, it becomes difficult to manage the blockchain. A validator in proof of state blockchain will need to validate a new node by downloading the entire blockchain and carrying out processing on this blockchain. This causes a processing bottleneck as the blockchain grows. This is a serious issue that Jelurida wanted to rectify.
Most companies and businesses possessed the need to have their own blockchains with their own versions of operations and functionalities built into the network. The blockchain provided by Nxt did not provide the necessary customizations and the private chains were generally hard to maintain. These businesses using the private chains needed their own servers and were responsible for their own security.
How Ardor Coin intended to solve these problems
Solution to Blockchain Bloat
Instead of holding all transactions, the Ardor coin blockchain holds only those transactions that affect the balance of the forgers. Forgers are the validators in proof of state blockchain. They validate the blocks that get added to the blockchain. All transactions that do not affect the balance are pruned, that is, they are removed.
A new node that is added to the network will only need to validate the parent chain transactions. Therefore, the processing of only a part of the transactions takes place.
Solution to Single Token problem
The users of the child chain in Ardor coin would need to only carry out transactions in the currency of the child chain. The child chain tokens could be used to exchange bids. This eliminated the single NXT token problem.
Solution to Customization issues
Businesses that had their own child chain on the network did not have to worry about having their own servers and maintaining them. Ardor allowed organizations the ability to request customized features that suits their business needs and allow for a great degree of customization.
ARDR and forging
There exists a single forging chain in which transactions are carried out using the token ARDR. The child chains, on the other hand, use tokens of the child chain, which, could be any cryptocurrency.
The forging power of a node in the forging chain depends on the stake. All transactions that involve the exchange of ARDR are stored on the forging chain. All transactions that modify child chain tokens are stored only on the child chains and not on this forging chain. This, therefore, makes it easy to remove these child chains in a process called pruning, when they are no longer needed.
Ardor Coin process
Ardor coin consists of forgers and bundlers. Forgers validate new nodes on the forging chain while bundlers merge multiple child chains into a ChildChainBlock transaction that is stored on the parent chain.
Consider the child chains to be in Bitcoins, then Bitcoin child chains would be bundled by the Bitcoin bundler. Similarly, the child chains having IGNIS will be bundled into one transaction by the Ignis bundler. The forging chain then carries out the forging of all new nodes on it using ARDR.
Pros of Ardor Coin
Moving ahead in this Ardor coin review let’s see some of the advantages,
- Ardor is proof of stake network where validation and forging of new blocks are carried out by nodes with higher stakes. As discussed earlier, this means that lesser fraudulent transactions are added, and lesser computational power is needed.
- Removes blockchain bloat. Only relevant child chains are kept on the network. Therefore, not all transactions need to be downloaded and processed while forging new nodes.
- Ardor is known to be highly secure. The parent chain is responsible for security and the entire network is functional and secure.
- Ardor is a Blockchain as a service platform, and very few such services exist. This means that there is a certain degree of uniqueness to it.
Cons of Ardor Coin
- The credibility of the developers is unknown.
- The technology is still new, and support is relatively low. It is unlikely that it will see drastic growth.
- Ardor coin is not backed up by any known large organizations or groups. There is no support by any organization given to Ardor.
Should I invest in Ardor Coin?
Ardor’s current value is $0.054679. Its potential profit percentage is +250% and the potential price is said to go up to $0.191465.Considering these values, investing in Ardor cannot be considered to be too risky, so, it is certainly worth a punt.
Wrapping up Ardor Coin Review
Ardor is certainly in its burgeoning stages. As a result, it is hard to tell whether it can have sustained growth. However, there can be no denying that Ardor has a lot of potentials. With its Business as a service model, it is likely to do well. It offers businesses a great degree of customization and allows businesses to expand through blockchain technology. It is hard to see any wrong with Ardor Coin, as of now.
To learn more about Ardor, you can visit Jelurida’s website for its whitepaper:
Ardor Coin Review
Deposits and withdrawals Fees8.8/10
Ease of Use8.9/10
- Lesser fraudulent transactions.
- Lesser computational power.
- More customized.
- Highly secure.
- No blockchain bloat.
- Relatively new.
- The credibility of developers.
- No backing from large organizations.