Scaling to New Heights With Ardor

Ardor Logo

Elevator Pitch

In order for Blockchain technology to grow, it needs to become easier for businesses to utilize the full force of the chain while still maintaining a high level of security. Ardor attempts to give businesses the full force of the blockchain by creating secure child chains which businesses can customize for their own use. Their claim is their technology is fully scalable, which means that they will not have the same problem of Ethereum as it grows. In their own words, they are a “scalable blockchain platform.”

Problems Ardor Solves

Ardor gives businesses access to a full-fledged network of the blockchain, which can be separate from the parent chain for all cases but still secure. Most cryptocurrency platforms are limited by their need to rely on a single cryptocurrency for transactions. Ardor is different, and tokens within the Ardor platform can make transactions between themselves without holding any ARDR tokens.

Another major flaw with Bitcoin and the other blockchains is that they require a large amount of processing power. This is because they have to store every transaction that has ever happened within their nodes. Ardor combats this by only storing bundles of each transaction in its child chains. This way, the size of the Ardor blockchain is significantly smaller and the transaction speed for the businesses are faster than otherwise.

Lastly, Ardor gives businesses the potential to customize their own child chain. This increases the potential use case for the chains, as businesses can have the chain as private as they want. Furthermore, businesses from various industries can use the technology because of the customization and it would not be limited to a single industry use.

Why is the scalability problem important?

Ardor makes it possible to buy CrypoKitties without reducing processing speed

Ethereum witnessed a slowdown in its transaction speed during the CryptoKitties fiasco a few months previous. This was because of the design of the Ethereum network, as it stores all transactions within a single chain. Every node that accesses the blockchain would need to store the entire chain, and when CryptoKitties was a big craze, the entire network was jammed. Businesses using, or thinking about using Ethereum for their platform are limited by the speed of the transactions. This is Ethereum’s scalability problem, and they are having difficulties in improving it.

In the business world, speed is everything. By making their child chains not store every transaction in the parent chain, Ardor solves the scalability problem. Their transactions are much faster because of the reduced need to store data in the parent chain. This is also where Ardor hopes to generate more revenue by providing a bundling service, to store the data in the parent chain for businesses.

Customization of the Child Chains

Another monetization strategy for Ardor is by providing the customization services for businesses. This is lucrative, as different companies will have different needs and would be willing to a good amount of money to have a blockchain which is customized for their own benefit. There are also several other methods through which Ardor hopes to monetize

Monetization Plan


There are three primary revenue streams for the Ardor Blockchain:

  • Creating Child Chains for companies, and customizing the chain for their preferences
  • Consulting for companies on how to fully utilize the power of the blockchain
  • Licensing private blockchain for enterprise

Beyond these, Ardor hopes to extract value from secondary sources associated with its platform. This would help increase the value for the Ardor token which has different use cases depending on the purpose.

The Ardor Token

Ardor Logo

Ardor uses its token to ensure there is a consensus between all chains and to make sure that the parent chain and the child chain are secure. To bundle data from the child chain to the parent chain, bundlers have to use the Ardor token which also creates an increased value for the coin.

The beauty of Ardor is the various tokens which it has, as it really allows for independent transactions to take place without the need to hold Ardor. In fact, any token can be pegged to another currency, including to a fiat currency. This has the implication of providing a stable market for transactions. The first fiat backed token was released as AEUR, and its pegged to the Euro.

Coin Distribution

Ardor is a fork off of its parent Next, and hence it did not distribute the coin directly. Each holder of NXT 1.0 received Ardor in return. Ardor also uses Proof of Stake to establish consensus, which means that the distribution of the coin is decided by the original owners, and mining is not in the traditional way which bitcoin uses. This is much more stable and cost-effective than the Proof of Work allocation method.

The Team

Vitalik Butarin
Vitalik is a marketing genius

Ardor has not received as much publicity and backing as Ethereum, even though the technology is arguably more superior. This is because the developers lack the marketing capability of Vitalik Butarin. A majority of their team is composed of legal experts and software engineers. They need a business minded individual to really market the technology to businesses.

Nevertheless, the team is very smart when it comes to their technical knowledge. Lior Yaffe is a software engineer by trade, and he is the MD for Jelurida (parent company). Petko Petkovis is another co-founder, who is the core developer. He has a vast repertoire of technical knowledge which no doubt comes in handy at Jelurida. Lastly, their lead software architect is Tomislav Gountchev who has a stellar academic resume having studied at Cambridge and UC Berkeley. He also cofounded Nabble, and worked at multiple other tech start-ups.

Decentralized Voting and Governance System

Ardor allows for a decentralized network even within the child chains, as there will be secure and anonymous voting within the chains. This bodes well for the security of the network.

Why Ardor Could Fail?

Ardor lacks major partnerships, which hinder the companies growth. They need another person in charge of raising awareness who has the capacity to beat Vitalik at his own game. Only then can the company really grow and reach its full potential. We will have to wait and see if Ardor becomes bigger. The value of the coin will depend on their partnerships and growth.


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4 thoughts on “Scaling to New Heights With Ardor

  1. Agree. What they only needs are major partnership. I think their solution for scalability problem is smart and people will reconize it’s value soon. But they don’t have marketing genius like Vitalick or Steve Jobs. I thinks it is only their problem.

    1. Very valuable contribution! Congratulations! At the moment Ardor fights with blunt weapons, but Ardor is also only 1 month old. If you look at which spheres Ethereum started in, there is hope that this brilliantly thought-out project will find someone to sharpen their weapons.

      Kind regards

  2. “Lastly, Ardor gives businesses the potential to customize their own child chain.” – I would not be so optimistic with those child-chains.

    Lior Yaffe’s (Jelurida) at #general Slack channel (1st Feb, 2018): “Child chain issuers will need to have a clear business plan and sign an agreement with Jelurida.”.

    As you see the decentralized project (Ardor platform) is centrally managed and it is up to Jelurida to judge who can appear on the platform and who not. This approach is a threat: if something bad would happen to the company it can have a bad influence on the Ardor.

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