The rise of Bitcoin over the course of last few years was characterised by an unprecedented rise in the understanding and application of blockchain technology. The idea of storing information on a publicly distributed ledger that is secured cryptographically has drawn a lot of interest from businesses and developers alike. Needless to mention, blockchain technology holds a lot of potential in shaping this world and developers are beginning to realise its underlying potential. This has led to the emergence of a new model known as blockchain-as-a-service. In this article, we will take a look at Ardor - one of the leading names in this upcoming field.
What is Ardor?
Ardor is one of the leading blockchain-as-a-service providers. It essentially provides the blockchain infrastructure and support to institutions and businesses alike so that they can take advantage of the powerful blockchain technology, without having to invest and develop their own customised blockchain solutions.
In simpler terms, if a business is looking to leverage blockchain technology for its own applications, it can do so with the help of Ardor, instead of manually investing time and effort in developing their own solution from scratch. This not only eliminates the need for excellent programming skills but it also leaves the security and decentralisation aspect of the blockchain in the able hands of Ardor. All businesses have to do now is build their applications on the top of customizable, ready to use chains.
The Ardor Platform is built on top of the Nxt Project which is also aimed at making blockchain technology accessible to businesses. In a way, Ardor, through its platform, addresses and solves significant issues such as scalability, blockchain bloat, and customisation that Nxt faces.
In order to appeal to corporations and business entities, Ardor has developed a unique parent-child blockchain architecture. To understand how it works, let us consider the following scenario:
Assume that there are two projects - Project X and Project Y, that are looking to leverage distributed ledger technology for their respective applications. Project X is a prediction market platform while Project Y is a movie streaming platform.
Project X, for its development, will get in touch with the Ardor team and ask them to create a child chain for their platform. This child chain will enable Project X to develop its own customised tokens and services that go into operating a decentralised prediction market. Features like data cloud storage and asset exchange will be activated. At the same time, the security to Project X will be provided by the parent blockchain.
Project Y, on the other hand, doesn’t want its platform to be cluttered with the transactions of Project X. Furthermore, it wants to ensure that its speed isn’t impacted by Project X. So, it approaches Ardor and requests for a separate child chain that supports its movie streaming portal. The platform will feature a marketplace which customers can use to browse movies and pay with a token to unlock the content.
From this example, it is evident that these two projects don’t have a lot in common. Yet, they benefit from blockchain technology by having two, separate child chains that are linked to the main parent chain of Ardor. Not only this, but they will also benefit from the added security and scalability that comes with the Ardor’s parent blockchain, since all of them are on the same platform.
These child chains also solve the problem of blockchain bloat. Once the child chain transactions are confirmed, they are removed from the blockchain. As a result, the original blockchain remains to be light and efficient. Additionally, since child chains are being used for specific applications, the parent chain need not store any unnecessary information on it. These child chains can be as long as possible, depending on the information they are storing.
Therefore, companies can now go about utilising side chains to build their own applications, without having to worry about issues like bloat and scalability. Their performance will not be impacted by the other side chains.
The native cryptocurrency of the Ardor Platform is known as ARDR. You can think of it as a bridge between side chains and the main parent chain. ARDR tokens also play an important role in providing security for the child chains. The network employs proof-of-stake model to achieve consensus and for this purpose, ARDR tokens are crucial. Additionally, running an Ardor node requires little electricity and correspondingly, less expensive hardware. This implies that Ardor blockchain is energy efficient thus adding another layer of benefits over its competitors.
Where to buy ARDR tokens?
According to Coinmarketcap, the total supply of ARDR tokens is capped at 999 million. ARDR tokens are being traded on some of the leading cryptocurrency exchanges like Bittrex, Poloniex, HitBTC, LiteBit.eu, Upbit, et cetera. It is considered to be an alternative coin and therefore, it will have to be traded against Bitcoin.
Ardor wallets can be downloaded from the official website of the Ardor Platform. These wallets are available across Linux, Windows, and iOS.
Alternately, you can also look into hardware wallets like Nano Ledger S and Trezor to store your ARDR tokens.
As mentioned earlier, Ardor network utilises proof-of-stake algorithm to achieve consensus. Therefore, it is possible to mine ARDR tokens, but you will have to put up a fixed number of tokens. To get started, you need to download the wallet client from the official website and join any of the available mining pools.
ARDR Price Trends
As of May 16, 2018, the price of 1 ARDR token is 0.29 USD. Just like other altcoins, the value of Ardor tokens rose in the months of December and January. At the start of December, 1 ARDR token was trading at around $0.4 and the same by early January was moving closer to the $2 mark. This translates into an increase of more than 400%, thus surpassing every other traditional instrument in terms of returns.
This astounding rise was followed by an equally massive nosedive. By mid-February, the altcoin had lost all of its recently made gains and it was back in the $0.5 territory. Since then, the token has remained in that zone with slight variations.
Risks Associated with Investing in Ardor
The technology behind Ardor is definitely intriguing but it still has a long way to go. As for its native tokens ARDR, it is still a cryptocurrency at the end of the day and as seen in the price trends above, it is subject to a great deal of volatility. From an investment point-of-view, it is a risky investment.
Therefore, instead of putting your money in such a volatile instrument, you should look into other investment vehicles like mutual funds. They are relatively safer and can generate decent returns in the long run, if chosen wisely.
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