Blockchain alone is already a complicated topic in itself and every day new blockchain innovations and concepts are added that need some explanation to be understood. We have Smart contracts, Smart assets, Side chains and now, Child Chains by Ardor.
In this article, we answer: What is Ardor? And what are Child Chains? Stay with us and get Ardor 101.
What is Ardor?
Ardor is a blockchain-as-a-service cryptocurrency platform that was developed from the Nxt open-source blockchain technology.
The Ardor coin ARDR is used on the network as transactional token and generation of new ARDR coins will be through the proof-of-stake consensus algorithm, just like it works on Nxt.
Developers Lior Yaffe and Jean-Luc worked on the project for two and half years before the stable version was released on November 24, 2017.
How does it work?
Ardor is built with a uniquely new parent-child chain feature that provides a single security chain and a number of transactional chains (child chains).
When a transaction is reported on the child chain, it is relayed to the parent chain (Ardor) using a process called “bundling”.
- Validators referred to as bundlers, package several of these into one ChildChainBlock transaction on the Ardor parent chain.
- The bundles then pay the required transaction fees on the Ardor network.
- The bundlers then receive the transaction fee as indicated in the child chain.
What else do we need to know about Ardor?
- The ARDR token is the only one used in the PoS consensus and thereby ensures there security for all child chains.
- All the available Child chain tokens on the network will be used as units of transactions or purposes of value only.
- Every child chain has transaction fee paid in that particular child chain’s token coin.
- End users on the network do not have to own any ARDR tokens
Key features offered by the Ardor cryptocurrency
Users of the Ardor crypto will have access to these features that are also available for all child chains.
|Monetary(coin value) system||Asset exchange|
|Digital goods store||Messaging|
|Shuffling||Account control and properties|
What does the Ardor cryptocurrency offer?
The Ardor technology is designed to enable three very important blockchain advantages:
- a reduction in blockchain bloating
- provision of multiple tokens for multiple transactions
- to host interconnected and ready-to-use blockchains
What does the Ardor platform aim at solving with its technology?
The Ardor crypto has a few solutions they aim to solve issues of blockchain technology. Here they are those:
- Blockchain bloating – the crypto uses pruning to archive all child chain transactions to leave their cryptographic proof (hash) only
- Single token dependency – the platform users will only need to use their child chain token for both transaction fee payments and transfer of value.
- Solutions to BaaS problems – the Ardor cryptocurrency aims at ensuring that any business venture running its own blockchain does not face the challenge of having to maintain network servers, run mining (forging) nor have difficulties with monitoring system security.
What are child chains?
A child chain is a “light” blockchain created on the parent Ardor chain and which you can customize in various ways to suit your needs and then deploy it as your own blockchain.
A child chain is operated with its own native token, something that allows it to act as a unique and separate entity. However, the child chain is synced into the architecture of the main Ardor chain.
Transactions on the child chain are validated by all the nodes on the ARDOR network. To solve blockchain bloating issues that may arise, the Ardor network will “prune” and archive data from the child chains. The pruned information can still be accessed when needed.
Ardor has a current market capitalization of $1,011,906,568.
As of January 23, 2018 Ardor has a daily trading volume of $ 53,974,900 at a price value of $1.01/ARDR
- Circulating supply: 998,999,495 ARDR
- Maximum supply: 998,999,495 ARDR
The Ardor crypto coin trades at an estimated $ 43million daily volume. Just like any other cryptocurrency, the coin has experienced price volatility.
Similarly, its market capitalization has steadily gained value to hit the 1 billion mark in just under one and a half years.
The Ardor coin hit its highest price mark on January 16, 2018 when it traded at $ 2.18 before dropping again to trade at $ 1.12 by close of day on 22 January, 2018.
The positives from the Ardor market is that its daily trading volume and market cap have seen leaps over the years.
Ardor’s rise in 2017 was necessitated by an increase in interest in its pilot Child chain project and the Nxt blockchain platform. Jelurida, the company behind Ardor, has also overseen a number of promising partnerships that seek to enhance the Baas project and Child chains.
What are the prospects of ARDR in 2018 and beyond?
ARDR is projected to hit a peak price of over $4 by end of the year. In between, the price will stabilize in Q2 of 2018 and peak up when new services launch between July and September.
For those who wish to go long on Ardor, the coin is predicted to be on the rise at a slightly profitable rate of $2.5 every year. By 2020, ARDR could trade at between $ 10 and $15.
The question for many of us is this: Can Ardor be mined?
Ardor utilizes the Proof-of-stake consensus protocol to validate transactions on its network. All the Ardor crypto coins are in circulation and therefore, unlike what happen in mining, Ardor uses the term forging.
- Transactions on the Ardor chain are completed in the ARDR token. If it’s on the child chain, then the native token of that particular child chain is used.
- Anybody with an account and a balance of ARDR can participate in forging.
- Forging blocks on Ardor is similar to what is done on the NXT network.
- The node with the most tokens stands a better chance of finding and validating a block.
- A forger is rewarded after validating a block of transactions.
- The reward is the total amount of fees collected on that block.
If you want to mine/forge Ardor, follow this simple guide. It works similar to what we do when forging on the NXT blockchain.
- Purchase bitcoins and exchange them for NXT coins at a reputable site.
- Convert your NXT coins to ARDR tokens
- Sign up for an account with Ardor and login.
- Deposit your ARDR coins to your Ardor account wallet. The recommended minimum is 1400 coins.
- Enable Forging and the “mining” process is on.
Ardor mining pool
A mining pool simply refers s to a group of like-minded miners who decide to pool their mining equipment/computational power so as to have a greater chance of a successful mine.
- Miners in a pool share profits in a pay-per-share strategy.
- Mining pools are more common in proof-of-work protocols but less so in proof-of-stake algorithms like Ardor.
However, anyone can join an Ardor mining pool if they have an Nxt or Ardor account.
Before joining a given mining pool, it is advisable to find out a few things about that pool. Here are the parameters that can guide you in choosing a mining pool.
Parameters to check before joining an ardor mining pool
- Hashrate – ensure that you find out how the pool calculates profits depending on the computational power
- Joining fees – you must be aware of how much you are required to pay to join. Avoid exorbitant pools
- Reputation – it’s important to consider the pool’s reliability, support and overall rating in the mining community.
- Safety – you should find out if there are any security measures that are in place to safeguard the pool.
It’s not yet clear why, but for some unknown reason, not many wallets support ardor. However, there a few options in the market that you can explore.
Ardor Original Wallet
This web-based wallet is developed by the NXT team.
It is one that you can easily be downloaded and installed on a PC.
The Ardor original wallet is user-friendly and safe for all Ardor transactions.
The Ardor wallet on mobile
It is a mobile-based wallet with the same functionality as the Ardor Original. You can download it on the official Ardor site. It is easy to use and offers encrypted security.
Free Wallet’s ARDR wallet
The ARDR wallet can be downloaded or used as a web-based wallet. It comes synced and enhanced with blockchain technology.
You can enhance security by verifying email or phone number.
Free Wallet offer offline cold storage for security against web threats.
Ardor cryptocurrency is a fascinating platform that can change the way institutions and SMEs interact with the blockchain technology. The ability to have a child chain for virtually any project will be something to watch going forward.