Today, tech media outlets are talking about the addition of tools by fiat/crypto exchange Simplex related to the Ardor blockchain and attached Ignis and Nxt child chain protocols.
What's so great about this winning combination? Essentially, Ardor's structure and child/parent setups drive more types of modern digital asset processes. Through that model, users will be able to benefit from the key functionality that the Ignis and Nxt chains provide, in an ecosystem that shows off the power of open source systems to innovate in DeFi.
All of that rests on the previous work of the Jelurida company that began in 2016 in the Netherlands, and now operates in various countries around the world. Jelurida maintains both Ardor and Nxt and helps to provide stability for this sector of the fintech marketplace.
As for Nxt, which was built in 2013, the blockchain, which is a child to Ardor’s parent chain, provides features like coin shuffling and an Nxt marketplace that innovates e-commerce with unique buying and selling assistance. Nxt, which is an open-source blockchain, also uses a pure proof-of-stake consensus model. For its part, the coin shuffling capability is described by Nxt as "a privacy feature which enables users to mix NXT, assets or currencies quickly and efficiently with other users' funds by creating a random mapping between the existing user accounts and new recipient accounts provided by the users."
Ardor’s framework is intended to reduce blockchain bloat, provide multiple transaction tokens and host ready-to-use blockchains with excellent KYC/AML capability. For example, one way these chains are slated to reduce the ballooning data trail of blockchain activity is by applying a process called data pruning, where some key efficiencies can reduce the sizes of data sets around verifying ongoing blockchain action. Instead of every node storing all past actions in a redundant way, the use of data pruning and associated strategies is a sort of "compression algorithm" for blockchain’s immutable ledger that will turn heads as more of the world’s wealth holders turn toward the cryptocurrency environment.
All of this happens as these companies continue to grow and expand around the world. With so much chaotic exchange activity, including aggressive actions by regulators, innovations of this kind will flourish when they reach the double objective of establishing regulatory compliance and demonstrating the features that will make it easier for more investors to jump on the blockchain bandwagon. The new collaboration between Jelurida, Simplex, and others is an excellent example of how this works: by redesigning proof of stake procedures, installing more sophisticated chain relationships in a network and overhauling how consensus stakeholders work, these actions will pave the way for more robust DeFi world we are going to see in the future.