Ardor Whitepaper

Tuesday, May 8, 2018
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Contents I. Executive Summary ...1 II. Brief History ...2 III. Technological Overview ...6 IV. Business Talk ...27 V. Crowdsale Details ...33 VI. Our Accountability with Your Contributions ...41 VII. Testimonials ..43 VIII. Team and Supporters ...47 IX. Legal ...52

This document gives a detailed overview of the Ignis 1 crowdsale* and the Ardor platform. • Executive Summary • Brief History This document gives a detailed overview of the IGNIS crowdsale and the Ardor platform. The • Technological Overview aim of the document is not only to present the technical innovation and use cases • Business talk of the upcoming platform, but also to outline the business strategy and development roadmap of Jelurida. The terms and conditions for the IGNIS crowdsale are available • Crowdsale details in a separate document and, due to their legal significance, are integrated in the wallet itself. • Our accountability with your contributions • Testimonials Ardor is a blockchain-as-a-service-platform that The Ignis child chain will be completely unrestricted • Team and Supporters evolved from the time-tested Nxt blockchain. It is and decentralised with all features and functionality currently successfully running on a testnet and will which currently exist on the Nxt blockchain. Multiple • Legal be launched in Q4 2017. The unique parent-child additional child chains can be created on the Ardor chain architecture of Ardor, with a single security platform for various organizations, such as public chain and multiple transactional chains, enables entities, enterprises, consortiums, research institu- three fundamental advantages - reducing block- tions, and financial service providers. The platform chain bloat, providing multiple transactional tokens, technological innovations make it possible for large and hosting ready-to-use interconnected block- corporations and SMEs to have a child chain with chains. To kickstart the Ardor project and allow it to ready-to-use features, instead of creating their own compete with the rapidly-growing blockchain blockchain and developing features from scratch. market, the development team behind Nxt and Ardor Child chains can be implemented in a cost-effective decided to conduct a crowdsale for 50 % of IGNIS – way without compromising their security, which is the token of Ignis, the first Ardor child chain. Jelurida guaranteed by the parent Ardor chain. will be the corporate entity that will be responsible for the development of Ardor and Nxt platform. *Please note that the IGNIS crowdsale that is scheduled to commence on 5 August 2017 will distribute JLRDA tokens at ‘I owe you’ basis. The IGNIS tokens will be distributed to JLRDA token holders at 1:1 ratio when the Ardor platform is launched.

II. Brief History 2 • Executive Summary • Brief History Amidst the rush of multiple clones of Bitcoin Implemented in Java, the leading industry stan- • Technological Overview being created in 2013, Nxt was introduced as a dard language for corporate applications, the • Business talk second-generation cryptocurrency, expanding Nxt platform allows for fast prototyping and the the use of blockchain beyond supporting a cur- rapid development of new features. Existing fea- • Crowdsale details rency and a simple transfer of value. Nxt is the tures include creating and trading assets, listing • Our accountability with first blockchain protocol to use an entirely and buying of digital goods, creating polls with your contributions Proof-of-Stake instead of Proof-of-Work consen- very flexible vote counting options, setting up sus mechanism, so its power consumption and conditional transaction execution, assigning • Testimonials hardware requirements are very low. Ever since properties to accounts, sending encrypted mes- • Team and Supporters the launch, the platform has been running sages, registering aliases, and many others. The securely with 100% uptime and has experienced relative ease with which such new functionality • Legal no systematic failure. Actively used in produc- has been added regularly by the development tion and in a state of constant development, the team every few months during the last three Nxt platform has been able to stand the test of years proves the well-designed and flexible time due to its advanced architecture and solid architecture of the platform. In addition, the rich design. Being open source, it has also been sub- and comprehensive Nxt API which supports over jected to multiple code reviews by independent 200 request types has allowed various projects to experts from various backgrounds. be built on top of Nxt. Wait a second... You must be wondering why we are talking about Nxt and not about Ignis. Well, there is a connection between them so please continue to read further to learn about how we came to Ardor and Ignis.

II.1. Existing blockchain technologies have limitations 3 • Executive Summary • Brief History Over the course of the development of Nxt, we identified a few problems • Technological Overview that we needed to address. • Business talk • Crowdsale details a. Single Token • Our accountability with Single Token All platform features, as well as the block generation process, your contributions require the use of the native token known as NXT. • Testimonials Blockchain Bloat NXT is not only required for the payment of transaction fees to • Team and Supporters the network and for the transfer of value, but also for all trans- • Legal actions involving the use of the blockchain e.g. pricing of asset Cloning Issues exchange ask/bid orders, prices of digital goods listed on the marketplace, exchange rates of monetary system currencies, and the transfer of assets over the blockchain. This makes it difficult to develop applications which use the blockchain transparently, as ideally, users should not be required to have NXT in order to transact and shouldn’t need to denominate the value of assets and currencies in NXT.

b. Blockchain Bloat 4 • Executive Summary Why do all nodes need to be burdened with storing and reprocessing all transactions? • Brief History • Technological Overview Blockchain bloat is a common problem across all rising number of transactions per second. At the blockchain platforms, including Nxt. It is due to current transaction processing rate bloat is not • Business talk the fact that every node needs to store all trans- yet a problem for Nxt, and we have already come • Crowdsale details actions ever processed since the blockchain was up with several innovative solutions to reduce it • Our accountability with started. New nodes are also required to re-pro- even more. One such solution is the prunable cess all data when they download the blockchain data function which allows for the removal of your contributions for the first time. This is a security requirement some data like messages from the blockchain, • Testimonials stemming from the trustless design of block- thus reducing its size, yet when needed automat- chain platforms. Being a proof-of-stake crypto- ically restoring such data in a trustless manner • Team and Supporters currency, the balance of an account (its stake) at from archival nodes. However, bloat is a serious • Legal a given blockchain height determines, in a pseu- issue that must be solved in a fundamental way do-random manner, whether this account is in order for a blockchain platform to be eligible to generate (forge) the next block. For a future-proof and truly scalable. node downloading the blockchain from scratch, the only way to verify that the next block it is downloading was indeed generated by a legiti- mate account (i.e. having sufficient stake), is to make sure that it calculates and verifies each account balance as it downloads the blockchain by processing all old transactions it encounters during the download. This represents a process- ing bottleneck that will only get worse as the blockchain size increases, especially with the

5 c. Customization Issues • Executive Summary • Brief History Cloning is simple, but maintenance is not! • Technological Overview Many organizations need a custom blockchain with • Business talk its own transactional token and customized func- tionality for their needs. To achieve this with the Nxt • Crowdsale details software, an organization needs to create a clone - • Our accountability with i.e., a completely separate blockchain, running your contributions a modified version of the software, but not linked in any other way to the original Nxt blockchain. Doing • Testimonials so requires the setup of servers to process transac- • Team and Supporters tions and to secure the network, as well as complex development work for the customizations. In addi- • Legal tion to being a burden for most small-to-medium businesses, this lowers the system security, as com- pared to the main public Nxt blockchain. Such a clone is also bound to lag behind the latest public chain software in terms of feature development and security upgrades, since implementation of cus- tomized blockchains is a complex matter, especially if one is not very experienced with the Nxt software.

III. Technological Overview 6 • Executive Summary With Ardor, network security tokens and transactional tokens are separate • Brief History The above-mentioned problem led the Nxt multiple child chains responsible for the operational • Technological Overview developers to work on a new solution, start- transactions such as creating assets, voting on polls, ing from Q2 of 2016, which gave birth to the sending messages, etc. • Business talk Ardor protocol. In the Nxt blockchain, it is the • Crowdsale details NXT token that serves this dual purpose, Child chains transactions are reported to the parent being used both to determine forging stake, chain using a new process called “bundling”. The bun- • Our accountability with i.e. the right of an account to generate blocks, dlers package multiple child chain transactions into a your contributions and to execute all kinds of value-transfer single ChildChainBlock transaction on the parent transactions, i.e. represent a unit of value. In chain. The bundlers pay the transaction fees in Ardor • Testimonials Ardor, a separation of these two functions is and receive the transaction fees in the child chain • Team and Supporters used to achieve much greater flexibility by coin. • Legal allowing multiple other transactional tokens to be used and exist independently; in effect The first child chain of the Ardor platform is called allowing child chains to exist and run on the “Ignis”. Ignis will inherit all features found on the Nxt same network while operating largely inde- blockchain. These features will also be available on pendent of each other. other child chains, though restrictions can be placed by the child chain creators if a certain feature is not III.1 Ardor: Briefly Explained desired. Unlike “side chains” and other blockchain-re- lated technologies, the Ardor parent chain and child The Ardor platform is based on the stable and chains like Ignis are based on the same source code reliable codebase of Nxt, which has been run- and share the same security guaranties. ning successfully as a public blockchain since November 2013. Every existing function of the III.2 Solutions Through Ardor Nxt blockchain will be supported by Ardor. In addition, Ardor has a unique design com- Recall the three problems we explained in section posed of a single parent chain responsible II.1. The Ardor platform brings the following for network security and processing, and solutions to these problems:

Blockchain Bloat Solutions Single Token Dependency Solutions BaaS solutions 7 Structural The Ardor parent chain only stores Users of an Ardor child chain will A business that needs its own block- • Executive Summary transactions which affect the only deal with the child chain token chain does not have to maintain its balances of the forgers (proof of both for transfer of value and trans- own network of servers, run forging • Brief History stake block validators). All other action fee payment. and worry about system’s security. • Technological Overview transactions by child chains are pruned, leaving only a cryptographic • Business talk proof (hash) that proves their previ- ous existence. • Crowdsale details • Our accountability with Functional A new node joining the blockchain When assets or currencies are issued Organizations use proven technolo- your contributions will only need to validate the parent on top of a child chain, users of these gy with the ability to request chain transactions, which represent tokens pay transaction fees denomi- customized features tailored to their • Testimonials only a small proportion of all, and nated in the child chain coin, just as needs installed by the core develop- the transactions of each child chain they would for any other transaction ment team itself. • Team and Supporters for the past 24 hours, not the full on the child chain. • Legal transaction history. In addition, a For certain applications, a business new node will load a snapshot of the Users of child chains may not even entity managing a child chain may current blockchain state (account be aware that they are using a block- choose to cover transaction fees for balances, properties, aliases etc) chain within the Ardor network their users by serving as the transac- from one of the existing nodes. through the API. tion bundler to make sure that the child chain transactions are includ- Individuals or entities which need ed in the parent chain. the full transaction history for their own book keeping can still store it by setting up an archival node which maintains the full transaction histo- ry based on various conditions. These entities will then still be able to prove that a given transaction, while no longer stored on the block- chain, was present there in the past.

Blockchain Bloat Solutions Single Token Dependency Solutions BaaS solutions 8 • Executive Summary Result We estimate that this design can A white label solution making inno- Secure and convenient private • Brief History reduce the number of transactions vative blockchain features easily blockchain solutions with direct stored on the blockchain at a ratio of available for organizations and their support available from the core • Technological Overview up to 1:100 without compromising user base. development team. • Business talk network security. • Crowdsale details • Our accountability with your contributions Long term In the future, Ardor child chains may Tokens do not have to be a fixed In the future, we will make the child even run on their own subnet where amount and child chain owners can chain creation process automatic, • Testimonials R&D all nodes except one are disconnect- opt to implement inflation or defla- allowing every business or user to • Team and Supporters ed from the rest of the Ardor plat- tion models, and even more compli- launch a child chain on their own. form, thus providing the ability to cated distribution mechanisms. • Legal componentize the blockchain into domain specific sub-blockchains and prevent the need for every blockchain node to process all blockchain transactions.

III.3 Ardor and NXT feature comparison Here is a technical comparison between the Nxt and the Ardor platforms: 9 • Executive Summary Functionality Nxt Ardor • Brief History • Technological Overview Blockchains Single chain One parent chain with multiple child chains • Business talk • Crowdsale details Transaction The same token (NXT) is used for Only the parent chain token (ARDR) • Our accountability with tokens establishing the consensus and is used in the proof-of-stake consen- providing the security of the block- sus, and thus provides security for your contributions chain, as well as for the basic unit of all child chains. Child chain tokens value in all transactions are used as transactional units of • Testimonials value only. • Team and Supporters • Legal Transaction fees Transaction fees are paid in NXT On each chain transaction fees are only, requiring users to always have paid in the native token (coin) of that NXT in their accounts. chain. End users do not need to own ARDR tokens. Features Asset Exchange, Monetary System, All these features are preserved in Ardor, Aliases, Messaging, Digital Goods and are available on each child chain. Store, Voting System, Shuffling, Data Cloud, Phasing, Account Control, A child chain can optionally be restrict- ed not to enable some features. Account Properties The parent chain supports a limited subset of features, as it is intended to be used for consensus establishing only and not for everyday transactions.

Functionality Nxt Ardor 10 • Executive Summary Each passphrase maps to a single The same mapping of passphrases to Accounts • Brief History account. Passphrases can't be account numbers is used as in Nxt. changed, and there is no wallet file Accounts are global across all child • Technological Overview to store. chains, and an account can have balances in each of the existing child • Business talk chain coins, as well as in Ardor. • Crowdsale details Holdings There is a single coin (NXT), and Each chain has its own coin. Assets • Our accountability with unlimited user-issued Assets and and MS currencies can be issued on your contributions Monetary System currencies. any child chain, and are available for trading globally. Assets or MS curren- • Testimonials cies can optionally be restricted* to some child chains only. • Team and Supporters • Legal Trading Assets and MS currencies can Assets and MS currencies can be be traded for NXT only. traded on any child chain, with price denominated in the corresponding coin.

11 Functionality Nxt Ardor • Executive Summary • Brief History Coin Exchange N/A A new feature, Coin Exchange, allows trad- ing of child chain coins to each other, and • Technological Overview also to the parent chain coin (ARDR). • Business talk • Crowdsale details • Our accountability with Dividends Asset dividends can be paid in NXT Asset dividends can be paid in any only. of the child chain coins, by simply your contributions issuing the payment transaction on • Testimonials that child chain. Additionally, paying dividends in another Asset or in MS • Team and Supporters currency has been implemented. • Legal Asset quantity Assets are issued with a fixed A new transaction type has been number of shares. Shareholders can added, allowing the asset issuer to delete shares, but no new shares can create new shares, in order to be issued. perform stock split or capital increase corporate actions.

12 Functionality Nxt Ardor • Executive Summary Crowdfunding Crowdfunding feature is available in Crowdfunding feature is available on all • Brief History the Monetary System, but the funds child chains, and on each child chain the must be collected in NXT only. funds are collected in the corresponding • Technological Overview coin. Reserve and claim transactions must happen on the child chain the currency • Business talk was issued on. • Crowdsale details • Our accountability with Shuffling Shuffling of NXT, Assets, and MS On each child chain, shuffling of the corre- currencies is available. sponding coin, or any Asset or MS Currency, your contributions is supported. • Testimonials • Team and Supporters Alias names are unique within each child Aliases Alias names are globally unique. • Legal chain only. MS Currencies Currency codes and names are Currency codes and names are unique globally unique. within a child chain only. Pruning Pruning is available for plain and Pruning and retrieving of all prunable data is encrypted messages, and for tagged available as in Nxt. In addition, the child chain data (data cloud feature). Pruned transactions themselves are designed to be data are retrieved automatically on prunable and will not need to be stored perma- nently or re-downloaded by every new node. demand from designated archival The actual pruning of transactions will be imple- nodes. mented later.*

13 Functionality Nxt Ardor • Executive Summary • Brief History Transaction identifiers Transaction IDs are 64-bit longs, The 64-bit transaction IDs are no longer and are globally unique. guaranteed to be globally unique for child • Technological Overview chains. 256-bit transaction hashes (sha256 digests) are used instead as transaction • Business talk identifiers. • Crowdsale details Block generation A "forging" process is used to create The same forging algorithm is used as in • Our accountability with new blocks, with the probability of Nxt, dependent on ARDR account balances your contributions block creation dependent on the only. account NXT balance (stake). • Testimonials • Team and Supporters • Legal Bundling N/A A new process, "bundling", is used to group child chain transactions into a parent chain transaction ("child chain block"), which is then included in the parent chain. Any account can play the role of a bundler. The bundling process also performs the exchange of fees paid by users in child chain tokens into ARDR fees accepted by the block forgers.

14 Functionality Nxt Ardor • Executive Summary • Brief History Same voting models as in Nxt, but phasing Phasing Transaction execution can be made • Technological Overview conditional, subject to approval is possible on child chains only. Approval using various voting models. transactions can be on a different child • Business talk chain from the phased transaction, and the by-transaction voting model also supports • Crowdsale details linking to a transaction hash on a different • Our accountability with child chain. your contributions • Testimonials Composite Phasing Not available, conditional transac- The new "Smart Phasing" feature allows • Team and Supporters tions can use only one voting model the conditions for the execution of a • Legal at a time. phased transaction to be combined using AND, OR, and NOT Boolean operators, in a composite voting model. In this way declarative smart contracts can be built on top of the already available voting model primitives. By-Property N/A A new "by-property" voting model has been added, making the execution of a Voting Model phased transaction conditional on its sender account having a specified property set. This can be combined with the new Asset Control feature, to allow only autho- rized or KYC-verified accounts to transact with some asset.

15 Functionality Nxt Ardor • Executive Summary Account Control Accounts can be restricted to use Same as in Nxt, but accounts under phas- • Brief History phasing only (mandatory approval). ing-only restriction cannot submit transac- tions on the parent chain, as those cannot • Technological Overview be phased. • Business talk • Crowdsale details • Our accountability with The asset issuer can impose a phasing-only Asset Control N/A your contributions restriction on all transactions affecting the asset. This allows enforcing shareholder • Testimonials agreements that require shareholder approval, or board of directors approval, • Team and Supporters on all transactions with company shares.* • Legal Peer Networking HTTP based, also with WebSocket Completely re-written and optimized, support, transmitting JSON format- using native Java sockets and binary mes- ted data between peers. sages between peers. Block and transac- tion propagation has been significantly improved, by exchanging and caching information about currently available blocks and transactions between peers and only propagating the missing data pieces.

16 Functionality Nxt Ardor • Executive Summary API HTTP query APIs, returning JSON Mostly unchanged, except: • Brief History formatted response. 1. A "chain" parameter has been added to each API that is child chain specific. • Technological Overview 2. 64-bit long transaction IDs have been • Business talk replaced with 256-bit hashes. 3. All prices and rates that were previously • Crowdsale details defined relative to the smallest indivisible holding amount ("QNT") are now defined • Our accountability with relative to a unit of the holding (share). your contributions • Testimonials Scalability Transactions are stored in the block- All child chain transactions will be possible • Team and Supporters chain permanently, and need to be to prune completely, without affecting re-downloaded and re-processed by blockchain security, thus allowing the • Legal every new node, which after months blockchain size to be kept much smaller. A and years of operation becomes a new node joining the network only needs significant bottleneck. to download the parent chain transactions, followed by the latest snapshot of the current system state.* * Functionality marked with asterisk is planned to be implemented in a future Ardor release. All other functionality is already implemented and currently being tested on a testnet blockchain.

17 III.4 Forging and Child chains • Executive Summary • Brief History With the Ardor platform, the single block- All transactions that change ARDR balances • Technological Overview chain architecture is replaced by a combina- are recorded on the forging chain, and there- tion of one forging chain, on which transac- fore downloading and re-processing the • Business talk tions are denominated in one token (ARDR), transactions from the forging chain provides • Crowdsale details and multiple child chains, each having its exactly the same proof-of-stake security as own transactional token. the Nxt platform. However, all transactions • Our accountability with that only modify child chain token balances, your contributions The forging chain supports a very limited set or any other account holdings (such as assets of allowed transaction types, such as trans- or currencies), are not recorded on the forging • Testimonials fer of ARDR from one account to another, chain, but only on their corresponding child • Team and Supporters trading of ARDR to each of the child chain chains. Thus, the removal ("pruning") of • Legal tokens and back, leasing ARDR balances to those child chain transactions, after they are other accounts for the purpose of forging, no longer needed, does not affect the block- and a special type of "ChildChainBlock" chain security, as validity of ARDR account transactions. The forging power of each balances can always be verified in a trustless account depends on its ARDR balance, in manner by each node. exactly the same way it depends on the NXT balance on the Nxt platform, with the entire consensus model remaining unchanged.

Forging vs Bundling 18 • Executive Summary Forgers Bundlers • Brief History • Technological Overview • Business talk • Create Ardor chain blocks consist- • Create child chain blocks (a special type ing of Ardor transactions. of Ardor transactions), consisting them- • Crowdsale details selves of child chain transactions. • Collect fees from bundlers and • Our accountability with from Ardor transaction senders, all • Collect fees from child chain transaction your contributions in ARDR. senders, in native child chain coins. • Testimonials • The ability to forge depends on the • Pay fees to the forgers, in order to have effective ARDR balance of the forg- their child chain block included in an • Team and Supporters er's account. Ardor block. • Legal • Forgers can decide which transac- • Anyone can run a bundler, provided they tions to include or exclude from their have enough ARDR to pay fees to the block. forgers. • Forgers can control in what order • Bundlers can decide which transaction to transactions in their block are include in the child chain block, and how processed, but the default is based much in fees, if any, in the native token, to on transaction arrival timestamp. charge for each. • ARDR fees are fixed, determined • Bundlers cannot control in what order based on transaction type and child transactions within a child block are parameters, and cannot be changed processed. by the forgers.

III.5 Transaction Validation 19 • Executive Summary The validity of child chain transactions and Each node running the Ardor blockchain validates the • Brief History account balances (in native tokens) must also transactions from all child chains before they are • Technological Overview be ensured by the platform, and this is done pruned. A node downloading the blockchain from • Business talk by anchoring them to the forging chain by scratch will no longer be required to fully validate means of the above ChildChainBlock transac- child chain transactions that have already been • Crowdsale details tions. This special transaction type contains, pruned as they will only verify their hashes and Child- • Our accountability with as an attachment, a list of one or more trans- ChainBlock transaction signature. However, this does actions belonging to a single child chain, i.e. not lower the overall blockchain security as it can still your contributions transactions denominated in that child chain verify that the accounts that forged the blocks con- • Testimonials native token, with their execution affecting taining them were eligible to forge at that time, and only account balances and holdings on that therefore those transactions must have been validat- • Team and Supporters chain. In effect, such an attachment rep- ed by all up to date nodes while their data was still • Legal resents a "block" on the child chain, although available, in order to get included in the currently-win- no actual forging (block generation) is done ning (best difficulty) blockchain fork. on child chains. Those attachments are linked to the ChildChainBlock transaction by means All transactions from all chains must be processed by of a cryptographic hash only, thus allowing all Ardor nodes and these nodes carry all child chain the transaction signature verification to be transactions for the last 1440 blocks, until their expira- performed even after the actual content of tion deadline, or phasing finish height, whichever is the attachment has been pruned after some longer. Child chain transactions will be pruned com- time. This is building upon the design and pletely on nodes not configured to archive them technology already implemented and in pro- longer than this minimum retention period, but those duction use on the Nxt platform. in the form that do, known as archival nodes, can opt to store one of prunable messages and prunable data or more child chains longer or indefinitely. (data cloud), together with a network of spe- cial-purpose archival nodes to store them.

20 • Executive Summary In addition to forging chain transactions and Periodically, each node will calculate a snapshot of blocks, each node needs to store the current the state of all derived objects, and a hash of this • Brief History state of all accounts, as represented by bal- snapshot will be included in the current block by its • Technological Overview ances in native child chain tokens, asset and forger. All nodes that are up to date and on the same monetary system balances, account proper- fork already have exactly the same state, and thus will • Business talk ties, aliases, and all other objects and account be able to verify this hash (and reject the block if inval- • Crowdsale details holdings that are created as a result of trans- id). A protocol will be defined by which nodes that are • Our accountability with actions. Any state that might be needed for out of date, or downloading the blockchain from validation of future transactions must be scratch, are able to request the latest snapshot from your contributions kept. But once the rolling fork resolution limit up to date nodes, validate it based on its hash being • Testimonials of 720 blocks has passed, older state (i.e. the included in the blockchain, and download it in a values of such balances and holdings) no decentralized manner. In this way such nodes will • Team and Supporters longer needs to be kept. Such state is being catch up with the latest system state, bypassing the • Legal removed ("trimmed") even now, however in need to re-process all old transactions, that are the current system a node that downloads the already pruned. blockchain from scratch is reprocessing all past transactions, thus re-creating each past state and trimming it as it goes along. In the Ardor platform, those old transactions will also have been pruned, so re-creating past state in order to arrive at current state will no longer be possible. To solve this issue, snap- shots and snapshot propagation will be implemented.

21 • Executive Summary The snapshot data itself does not need to If the fee in native token offered by a transaction propagate through the network when the sender is too low by current market rate, when • Brief History snapshot hash is calculated. Each node that is converted to ARDR, no one will be willing to • Technological Overview up to date already has the state of all child bundle such transaction into a ChildChainBlock, chains, so it can generate such a snapshot for and the sender must resubmit the transaction • Business talk itself. It must only validate that the hash the with a higher fee. If a child chain token loses • Crowdsale details forger calculated for the snapshot indeed value completely and no-one is willing to • Our accountability with matches its own snapshot. exchange it to ARDR, transaction processing on that child chain will naturally stop - unless some- your contributions Fees on child chains are denominated in the one interested in keeping it alive is willing to sub- • Testimonials chains native tokens, but the forging chain sidize it, creating ChildChainBlocks and paying block forgers still accept fees in the forging the expected ARDR fees to the forgers, while get- • Team and Supporters token (ARDR) only. To convert fees collected ting worthless (by free market rate) native • Legal in child chain tokens to ARDR, the role of tokens in return. "bundlers", or ChildChainBlock creators, has been introduced. Any account can serve as a Child chains compete with each other for inclu- creator of a childchain block, provided it is sion into a block, since at the end the forgers will willing to accept the fees (in native token) still look at the fee/size ratio for each transaction collected from the transactions in the Child- and will want to maximize their forging profits, ChainBlock, and in exchange pay the required subject to main chain block size and transaction fee (in ARDR) to the forging chain block forger. numbers limits. This establishes a market rate for child chain token to ARDR token.

Ardor Sequence of Events 22 • Executive Summary • Brief History • Technological Overview (paid in BTC) • Business talk • Crowdsale details • Our accountability with your contributions • Testimonials • Team and Supporters • Legal Legend AT Ardor Chain Transaction BT Bitcoin Chain Transaction BCCB Bitcoin ChildChainBlock IT ICCB Ignis Chain Transaction Ignis ChildChainBlock * Prospective pegged child chain

III.6 Comparison between Side Chains and Child Chains 23 We would like to emphasize that side chains and Ardor child chains are not the same. The differences are described below: • Executive Summary • Brief History • Technological Overview Side Chains Ardor Child Chains • Business talk • Crowdsale details Structure Side chains are independent block- "Child Chains" of the Ardor platform chains that have a kind of "pegging are tightly integrated into the main • Our accountability with mechanism", where at least one of the Ardor parent chain. All transactions chains (main chain and side chain) is are processed and secured by the your contributions "aware" of the other chain and both parent chain forgers. This makes • Testimonials tokens are pegged at a set ratio. Side cross-chain transactions possible. chains need their own network secu- Pruning will be enabled on child • Team and Supporters rity and block processing. chain transactions in order to significantly reduce blockchain • Legal bloat by pruning the transactions on regular basis from the blockchain. Transactions executed between the Child chains serve as the transac- Function locks and unlocks of the main chain tional chains of the parent-child tokens don't bloat the main chain. architecture, as the parent chain As the technology of a side chain is retains minimal features. connected to its main chain, it can be used to build on the develop- ments of the main chain and intro- duce new features to the market.

Side Chains Ardor Child Chains 24 • Executive Summary Risk Side chains are responsible for their Child chains rely on the Ardor parent chain for own security and could be attacked their security, as long as the parent chain has • Brief History if there is not enough mining power enough forging power all child chains are secure. • Technological Overview to secure it. • Business talk If the main chain is compromised, • Security is provided by the Ardor parent chain • Crowdsale details Advantage the side chain can still operate, and therefore all child chain cooperate to secure though its peg will likely lose the same network; • Our accountability with significant value. • Child chains can access the same global entities, your contributions such as assets and currencies; • Child chain tokens can be securely traded on the • Testimonials blockchain; • Simple to setup (blockchain development skills • Team and Supporters not required); • Legal • Multiple features pre-installed (can be disabled on launch if desired). Use cases • Staging for main chain • Pegged chains; developments; • Simple blockchain as a service solution; • Realistic Testnet (funds at risk); • Semi-private blockchain; • Semi-centralized chain; • Prototyping and research. • Pegged chains. The initial design was published by Ardor launch scheduled for Q4 2017. Implemented by Blockstream in 2014, but the implemen- tation is blocked by the lack of native support for SPV proofs in Bitcoin (which may not be added at all). Rootstock workaround this by sacrificing decen- tralization (still work in progress).

III.7 Pegged Child Chains 25 The ability of child chain tokens to have their indepen- dent market value, without this affecting the security of • Executive Summary the whole platform, allows one important use case that • Brief History deserves further mention - the creation of Pegged Child • Technological Overview Chains. • Business talk Third party businesses can peg the value of their child • Crowdsale details chain token to a fiat currency, or to other cryptocurren- cy, thus allowing all transactions on this child chain to • Our accountability with be effectively denominated in that external currency. your contributions When such pegged child chains are added to the Ardor Platofrm, users will have the choice of pricing their • Testimonials asset ask/bid orders in fiat, selling their marketplace • Team and Supporters goods with prices in fiat, asset issuers will be able to • Legal pay dividends calculated in fiat, etc. This opens the door to conducting seemless transactions with fiat over the blockchain. Furthermore, the existence of multiple child chains pegged to different external cur- rencies will allow users to trade them for each other using the Coin Exchange functionality, effectively using Ardor as a decentralized foreign exchange ("forex") platform.

III.8 Why Do We Need Ignis? 26 a. A fully decentralized child chain • Executive Summary While the Ardor platform can have multiple child chains child chains and vice versa. IGNIS can also be traded • Brief History with similar features, only the Ignis child chain will be for any other child chain coin as well as ARDR using the • Technological Overview created with no restrictions. Other child chain creators Coin Exchange feature. would have the ability to set certain restrictions, for • Business talk example disabling the decentralized Marketplace • Crowdsale details feature should they prefer to have a centralized market- c. How to access the features of Ignis child chain? place for their business. They may also choose to set • Our accountability with overall goals or other rules that not everyone may agree IGNIS is the native operational token of Ignis - the first your contributions with, as well as possibly control the supply or future child chain of Ardor. In order to access the features of distribution of the coins used on their child chain. The the Ignis child chain, users will require the IGNIS • Testimonials Ardor platform will be capable of supporting permis- tokens. In short, IGNIS is the entry point to Ardor – an • Team and Supporters sioned child chains that can impose further restrictions innovative platform built on the solid proven founda- • Legal on their users such as KYC, AML, personal data protec- tion of the Nxt blockchain. IGNIS gives access to the tion, time-limited data retention, local securities trad- rich functionality of the platform and the unrestricted ing laws for asset issuers, etc. But the Ignis child chain features of the permissionless Ignis child chain, such will be permissionless, available to the general public, as asset exchange, coin exchange, account properties, with no restrictions on who can transact on it. messaging, aliases, marketplace, voting, conditional transactions, composite phasing, etc. b. Increased tradability of the token The interoperability of the Ardor platform and the organic connection between all child chains which will exist on the platform will allow the users of Ignis to have easy access to the other child chains and benefit from the services they may provide inside the plat- form. While every child chain uses its own coin, objects such as assets are global so that assets issued using the Ignis child chain can still be traded on all other

IV. Business Talk 27 • Executive Summary IV.1 Revenue Sources b. Consulting • Brief History • Technological Overview Jelurida has identified three primary revenue Jelurida will provide consulting services such as streams based on the Nxt and Ardor blockchain modification of the existing features or building • Business talk protocol. The revenue sources will help Jelurida custom functionality to fit the needs of each • Crowdsale details to be a self-sustainable project in the medium to client. With this service, the changes applied are long term. done by the creators of the platform itself, so it is • Our accountability with done in an efficient and secure manner. Other your contributions a. Child Chain Creation and Customization consulting services will also be available, such as the verification of potential use case applications • Testimonials The unique structure of the Ardor platform will with our technology at a high technical level. • Team and Supporters allow the creation of customized child chains Consulting not only for businesses but also for with their own native tokens. Though each child large range of organisations and public authori- • Legal chain will come with all features that will be ties about the potential benefits of integrating found on the Ignis child chain, some features can the blockchain technology in their operations. be disabled and additional ones needed for a specific child chain can be developed. Even after the future implementation of user-created child c. Private Chain Licensing chains, Jelurida will still be able to provide child chain creation services, if heavy customization is Both Nxt and Ardor, after it launches in early Q4 required, such as child chain coin inflation or the 2017, will be available for organizations to license ability for the child chain creator to generate for private chain solutions. Though it is open more child chain tokens. Paid maintenance and source, if changes are made and closed sourced, support of the child chains will be a part of this a license from Jelurida would be required. service. Revenue sharing with businesses which Private chain licensing will help enterprises not extract revenue from their child chains (such as only to have a secure private blockchain solution, pegged to real currencies or BTC child chains) is but also to have one directly supported by the another possible income source. core developers of the technology, all while being

28 able to keep their changes closed source. Part • Executive Summary of this service are the charged per blockchain instance runtime licenses, maintenance and sup- • Brief History port. • Technological Overview • Business talk In addition to these sources of revenue, we will also explore other secondary sources: • Crowdsale details • Our accountability with your contributions • Testimonials Secondary revenue sources • Team and Supporters • Legal Custom Archival Whitelabel Bundler Plugin Node Wallet services Development Services Creation

29 • Executive Summary Wait a second…Why Bundler service? • Brief History This is to make sure that the transactions of a child • Technological Overview chain are included in the parent chain. Of course, any user on any child chain can be a bundler, but • Business talk some businesses could prefer to outsource this task to a service provider. The same applies • Crowdsale details to tasks like running archival nodes • Our accountability with your contributions • Testimonials We will also explore other potential monetiza- • Team and Supporters tion areas: • Legal - Paid premium services on the Ardor platform like in-wallet ads or charging for promotion of certain child chain services in the wallet itself; - Integration of exchanges and payment provid- ers in the wallet to allow conversion of child chain coins to other crypto currencies, pegged to fiat or BTC child chains etc., and revenue sharing with them.

IV.2 Targeted Industries 30 • Executive Summary • Brief History Cryptocurrency AND MUCH Public Organizations Supply Chain and Finance MORE • Technological Overview • Business talk ... White Label Secure Voting Parts Tracking • Crowdsale details Token Creation Transparency Design Verification • Our accountability with Pegged Child Chains Identity Verification Logistics your contributions Asset and Currency Public Notary Tokenization • Testimonials Dividend Payments • Team and Supporters • Legal The financial and banking sectors have undoubtedly been in the last years some of the most eager industries to embrace the advantages of the blockchain technology. Cross-border transactions, mirror accounts, trade finance, money transfer, digitalized payments and insurance tracking can all benefit from the distributed and trustless nature of the blockchain. Ardor, being written in Java, scalable and secure, is the perfect choice not only for the above-mentioned use cases but also, thanks to its rich functionality, for asset and securi- ties issuance, management, trading, and dividend payments.

Payment providers, exchanges, and money trans- For example, if KYC or AML procedures are 31 mitters can create a pegged to a fiat currency required or personal data retention or protection child chain, can provide asset and currency toke- need to be in place, the platform has to be able to • Executive Summary nization, allowing their clients to transact easily implement that too. The Ardor blockchain is using • Brief History on the blockchain in their national currency. various transaction types which can be easily built upon or modified to address such conditions and • Technological Overview In fact, not only big financial institutions can use proof of that is the variety of features already • Business talk blockchain such as Ardor in their operations. Due implemente, tested, and proven on the Nxt block- to its scalability and the parent-child architecture chain. • Crowdsale details the energy and hardware requirements for using • Our accountability with a child chain are so minimal that practically even Other use cases of the Ardor platform can be logis- your contributions SMEs can digitalize their company’s internal pro- tics, parts tracking, mobile roaming, recording of cesses for transparency, security and efficiency system logs events, recording of donations to • Testimonials while the extremely flexible voting feature can be non-profit organizations, traditional crowdfund- • Team and Supporters used to facilitate the shareholders meetings. ing, financial return based crowdfunding etc. • Legal Public authorities, on both local and national Speaking more generally, every time when people level, are also experimenting with integrating or organizations need to do business together but blockchain technology in various sectors like they do not trust each other, every time when a tracking of government payments, digital identi- system without single point of failure has to be ty management, real estate or IP recording, used or immutable ledger is needed, there is a notarial services and not in the last place - for room for blockchain technology and the Ardor optimizing the highly expensive old-fashioned platform fits such needs perfectly. and not so secure way of voting. Legal profes- sionals can use it for time stamping of docu- ments, proof of existence, secure messaging, dig- ital signatures etc. For all these use cases a highly adaptable, flexible and cost-efficient blockchain architecture is needed in order to satisfy the diversity and complexity of the tasks ahead.

IV.3 Timeline 32 • Executive Summary Technical Roadmap • Brief History From Nxt to Ardor • Technological Overview • Business talk Technical Enhancement Nxt Light/Roaming Ignis ICO Infrastructure • Crowdsale details Digital Goods Store, Balance Leasing, Client Modes, on NXT, Smart Phasing Encrypted Messages, Alias Transfer Ardor Development on Ardor • Our accountability with Starts 2013 2015 2017 Nxt Initial Release Ardor Public Resolve any issues discovered your contributions Token distribution Offline transaction signing, Testnet Launch post-launch and ensure stability and implementation Account Ledger, Cross-chain coin exchange, • Testimonials of Proof-of-Stake Peer Services ChildChainBlock transactions, bundling, peer networking layer • Team and Supporters Pruning Feature Alias System Graphical Installer Dynamic Fees, implemented Funding Monitor • Legal on mainnet Q4 Q1 Q2 Q3 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2014 2016 2018 Voting System, Ardor Snapshot Extensive Load Pruning Feature Phasing, Logic Testing of NXT activation on testnet Prunable Messages Ardor in research Testnet Launched phase Arbitrary Message and Asset Exchange Nxt Mobile App, Ardor Mainnet Coin Shuffling, Ardor Development Launch Account Control, Technical Enhancement Data Cloud Spawn of child chains Major refactoring, and necessary use database for storing migration derived tables instead of in-memory data

V. Crowdsale details 33 • Executive Summary • Brief History IGNIS and ARDR will be allocated to user accounts From the remaining 500 M (five hundred million) in the Ardor genesis block. Their distribution will IGNIS, 440 M (four hundred and forty million) will • Technological Overview be based on a one-time snapshot conducted over be offered to the general public in the IGNIS • Business talk the Nxt blockchain, the "Ardor Genesis Snapshot", crowdsale (conducted using JLRDA tokens at ‘I • Crowdsale details to be performed at least two weeks after the end of Owe You’ basis ), and 60 M (sixty million) will be the last round of the IGNIS crowdsale and shortly kept by Jelurida. The funds raised during the • Our accountability with before the Ardor launch. IGNIS crowdsale will be used for the further your contributions development, maintenance, advancement, and • Testimonials V.1 IGNIS distribution world-wide promotion of the Nxt and Ardor blockchain platforms, as well as protecting the • Team and Supporters The total amount of IGNIS coins issued will be intellectual property of the code base. equal to half of the amount of NXT coins existing • Legal on the Nxt blockchain at the time of the Ardor Genesis Snapshot, plus 500 M (five hundred mil- V.2 Crowdsale infrastructure lion). As already promised, approximately half of The token sale itself will be conducted on the Nxt the IGNIS coins will be reserved and distributed blockchain platform. A "controllable currency" automatically to the NXT holders based on their called JLRDA will be issued and offered for sale in account balances at the time of the Ardor Genesis several consecutive rounds. The price of the Snapshot, at a ratio of 1 NXT : 0.5 IGNIS. JLRDA tokens will be denominated in NXT and will increase at each round, with full details in the table below. Each round will last for one week and there will be at least a one-week break between subsequent rounds. *JLRDA tokens give the right to receive IGNIS tokens at the time of the Ardor launch. JLRDA tokens are not transferable or tradable between accounts and for 1 JLRDA, the crowdsale participant will receive 1 IGNIS at the time of Ardor Genesis Snapshot.

34 Being a controllable currency, the JLRDA tokens Purchasing JLRDA tokens will require NXT. Users • Executive Summary will not be tradeable or transferable between will be able to exchange other cryptocurrencies user accounts. The purchased JLRDA currency to NXT conveniently within the Nxt wallet using • Brief History units will only serve as a proof of ownership and the integrated ShapeShift and Changelly third • Technological Overview initial IGNIS balance for the Ardor Genesis Snap- party exchanges, subject to availability. • Business talk shot. A controllable currency was chosen to pre- vent trades from happening while the token sale • Crowdsale details is ongoing so that purchases of JLRDA directly • Our accountability with contribute to funding the development of the platform. your contributions • Testimonials • Team and Supporters Dates JLRDA Tokens for Sale Price of 1 JLRDA in NXT • Legal Aug 05 - Aug 12 60,000,000 0.40 Aug 26 - Sep 02 80,000,000 0.55 Sep 09 - Sep 16 100,000,000 0.76 Sep 23 - Sep 30 100,000,000 1.05 Oct 07 - Oct 14 up to 100,000,000 1.45

35 For 1 JLRDA token the participants in the IGNIS crowd- • Executive Summary sale will receive 1 IGNIS coin at the time of the Ardor Genesis Snapshot. 44% • Brief History • Technological Overview The last batch of 100 M JLRDA tokens will be reduced by up to 20 M tokens allocated by Jelurida for promo- • Business talk tional and marketing use. Jelurida will keep as NXT 6% • Crowdsale details 20% (but not more than 40 M NXT) of the NXT coins • Our accountability with collected in the crowdsale. Jelurida will convert the rest of the collected NXT to fiat or BTC, but reserves your contributions the right to do so in portions, or at a later time • Testimonials depending on market conditions. • Team and Supporters In case any batch is sold out before the end of the des- • Legal ignated time frame, the next round will still start as scheduled. If any batch is not sold completely at the end of the designated time frame, the remaining unsold JLRDA tokens will be added to the next batch. If not all of the JLRDA tokens are sold by the end of the last batch, Jelurida reserves the right to decide what to do with the unsold amount depending on the out- come of the crowdsale. Note: Due to the high market volatility, Jelurida reserves the right to postpone or modify the schedule of the ICO if the market conditions change significantly.

V.3. Roadmap of the Utilization of the Money 36 The contributions raised by Jelurida will be used for Level 2 - €2 million to €5 million the research and development of the Ardor block- • Executive Summary chain platform and subsequent child chains, the Benefits: • Brief History maintenance of the Nxt blockchain, and for business development and marketing. In this section, we • Nxt blockchain maintenance for at least 3 years • Technological Overview underline the business setup that we will be able to after the IGNIS crowdsale • Business talk construct based upon the contribution from the IGNIS • Porting of features to Nxt where possible and not crowdsale. depending on the parent-child architecture. • Crowdsale details • Support for existing community tools and services • Our accountability with We propose the following plan depending on the total • One representation office for meetings with contribution which we receive: users/clients of the Ardor/Ignis Blockchain your contributions • Attendance in some blockchain conventions and • Testimonials conferences • Development of the ability for automated child • Team and Supporters Level 1 - up to €2 million chain creation, still primarily done by Jelurida • Legal Benefits: Team: • Nxt blockchain maintenance for at least 1 year • 3 server-side developers (security or critical bug fixes only) • 2 sales engineers/consultants • Migration assistance for projects on Nxt to Ardor • 2 sysadmins/quality assurance /support • 1 developer • 1 UI and mobile expert Team: • 1 cryptographer • 1 legal advisor • 3 senior developers • 1 business development specialist • 1 sysadmin/quality assurance/support • 1 consultant/sales engineer • 1 legal advisor

Level 3 - €5 million to €10 milliion 37 Benefits: • Executive Summary • All level 2 benefits • Brief History • Child chain subnet research and development, to allow child chain transactions to be processed by • Technological Overview dedicated subnet of nodes for even greater scalability • Business talk • Additional support for user-created child chains • Crowdsale details • Parent chain pruning research and development to reduce growth caused by the parent chain itself • Our accountability with • Provisioning of blockchain nodes on major cloud your contributions providers • Further development and attention on the UI of • Testimonials the core wallets, including mobile versions • Team and Supporters • Further support for existing community tools and services • Legal Team: • 5 sales engineers/consultants • 4 developers • 3 server-side developers • 2 quality assurance • 2 support representatives • 2 legal advisors • 2 business development specialists • 1 cryptographer • 1 human resource manager • 1 UI and mobile expert • 1 managing director • 1 sysadmin

Level 4 – €10 million to €20 million 38 Benefits: • Executive Summary • All level 3 benefits • Brief History • Additional focus on R&D • Technological Overview • Develop or acquire additional technologies such as: • Business talk - Decentralized storage • Crowdsale details - Zero-knowledge proofs • Our accountability with - Ring signatures - Directed acyclic graph (DAG) implementations your contributions • Formal partnerships with educational and research institutions • Testimonials • Expansion of consulting services and partnerships with other consulting service providers • Team and Supporters • Expansion of significant business presence in the worldwide market • Legal Team: • 5 sales engineers/consultants • 1 director of research and development • 4 developers • 1 cryptographer • 3 server-side developers • 1 human resource manager • 2 legal advisors • 1 UI and mobile expert • 2 business development specialists • 1 managing director • 2 quality assurance • 1 sysadmin • 2 support representatives

Level 5 - Between €20 million and €50 million 39 Benefits: • Executive Summary • All level 4 benefits • Brief History • Further research and implementation, where possible, of new technologies • Technological Overview • Incubator and accelerator partnerships • Business talk • Comprehensive support for startups using Ardor • Crowdsale details • Fully licensed in-house pegged child chains • Our accountability with • Promotion of academic research and development in blockchain and cryptocurrency • Two physical offices (one in a financial hub) your contributions • Testimonials • Team and Supporters Team: • Legal • 5 sales engineers/consultants • 1 cryptographer • 4 developers • 1 human resource manager • 3 server-side developers • 1 UI and mobile expert • 2 legal advisors • 1 managing director • 2 business development specialists • 1 sysadmin • 2 quality assurance • 2 support representatives • 1 director of research and development

40 Please note that we will not collect more than €50 M • Executive Summary net, excluding all IGNIS crowdsale related commis- • Brief History sions, marketing, legal and organizational expenses. • Technological Overview If we reach €50 M: 50% of any remaining unsold IGNIS • Business talk (excluding the 60 M IGNIS already reserved for Jeluri- • Crowdsale details da) will be distributed proportionally to all other IGNIS • Our accountability with holders at the time of the Ardor Genesis Snapshot your contributions including both IGNIS crowdsale participants and NXT • Testimonials holders, the other 50% of the unsold IGNIS being kept byJelurida. • Team and Supporters • Legal If the amount collected exceeds €50 M we will not conduct the remaining batches of the sales schedule, however any NXT already collected in excess of the 40 M NXT reserved for Jelurida will still be sold. If we do not reach €50 M, Jelurida will keep all remaining unsold IGNIS.

41 VI. Our Accountability with Your Contributions • Executive Summary • Brief History • Technological Overview We believe that we have to be transparent with 3. Percentage of contributed amount spent on the contributors to the IGNIS crowdsale as well marketing and PR expenses, in one fiscal year, • Business talk as the wider community. So, we will make sure commencing from the date of the conclusion of • Crowdsale details that all parties are informed on how we have the IGNIS crowdsale or the last report end date; spent the contributed resources which we will be • Our accountability with collecting through the IGNIS crowdsale. There- 4. Percentage of contributed amount spent on your contributions fore, we propose to prepare a Business Report further research and development, in one fiscal • Testimonials that will include information regarding how we year, commencing from the date of the conclusion have spent the contributed money towards the of the IGNIS crowdsale or the last report end date. • Team and Supporters development of the company and its technolo- • Legal gies at the end of each fiscal year. We will disclose the following information in the Busi- ness Report to the public on our website: 1. Percentage of contributed amount spent in the preceding year, commencing from the date of the conclusion of the IGNIS crowdsale or the last report end date 2. Percentage of contributed amount spent on product development, in one fiscal year, com- mencing from the date of the conclusion of the IGNIS crowdsale or the last report end date;

42 How we propose to divulge the information • Executive Summary • Brief History The information will be delivered to the public through the Jelurida official website (https://www.jelurida.com/). • Technological Overview • Business talk • Crowdsale details When the information will be divulged • Our accountability with The first Business Report will be communicated to the your contributions public within the first quarter of 2019. The first Busi- ness Report will pertain to the information on the • Testimonials Cloning Issues fiscal year commencing from the fourth quarter of • Team and Supporters 2017 until the third quarter of 2018. The Business report will be communicated on a rolling basis, annu- • Legal ally, until the contributed amount has been exhaust- ed by 80% by Jelurida SA. Who will prepare the Business Report The Business Report will be prepared by an indepen- dent third party appointed by the Jelurida SA. The appointment of the independent third party by Jelu- rida SA for the purpose of the preparation of the Business Report will be final. No dispute regarding the same will be entertained.

43 VII. Testimonials • Executive Summary • Brief History • Technological Overview Bitswift wants to ensure the security and longevity of their tokens. By migrating them to a secure blockchain infrastructure such as Ardor, the Bitswift team can focus on • Business talk utility applications for the Bitswift tokens rather than on blockchain infrastructure • Crowdsale details dealings which is a beast of its own. Through migrating to the Ardor platform we inherit a wealth of options for our tokens, most notably a fully featured API from • Our accountability with which we can build out applications to provide extended utility for our tokens. your contributions • Testimonials Paul Busch, Founder of Bitswift (Future Child Chain on Ardor) • Team and Supporters Janus tokens are moving to the Ardor platform as we consider it a natural evolution • Legal of the project. Increased focus on business with the Ardor Blockchain aligns with our company goals of building a multi-industry business empire. The Janus Project Team (Future Asset on Ardor) The nice part of Ardor is that it is creating something completely new again and fixes issues that most blockchains have, like blockchain-bloat. A motherchain with multi- ple child chains. Forging with Ardor for many blockchains is brilliant and could gain much attention and brings mining to a new level. Peter Farla, Founder of FarlaWebMedia and Linkbuilding.io, Commu- nity Member since 2013

44 The unique design introduced by the core developers will make it easier for a lot of business and consumers to interact with the blockchain. Knowing that there is a development team working for more than two years on the • Executive Summary concept I am passionate about, I really want to see what the Ardor network can host. • Brief History Ruben Bueno Castro, Writer at Nxter Magazine, Community Member since May 2014 • Technological Overview • Business talk Ardor's (child) chains improve scaling even further, by making most transactions prunable. It will allow for cheap • Crowdsale details transactions without compromising security, so that many new exciting applications will become economically viable. • Our accountability with your contributions Brangdon, Community Member since April 2014 • Testimonials Ardor is ahead of the times. I think in the long term it will be important not only to prevent blockchain bloat, but • Team and Supporters also to offer a simple way creating new blockchains while its users should not worry with the technical difficul- • Legal ties. With the Ardor platform it now becomes possible for basically every business to set up its own blockchain without having to worry about security issues. This altogether is quite exciting I think. Neomadra, Community Member since March 2014 Simply put, the Nxt developers know what there are doing and they always deliver on their promises. I've followed the team since the early beginning of Nxt’s existence and the project has advanced the abilities of secured decentralized applications tremendously. Nxt is also a green blockchain technology and I like this. I'm totally staggered. The Ardor platform is the natural expansion of Nxt where blockchain scalability is addressed. Contrary to the Bitcoin scaling solution currently on the table, Ardor's solution improves the global decentraliza- tion of the network instead of reducing it. The ideas of multiple fully featured child chains is also extremely wel- comed as this increases the synergy around the Ardor platform. Sincerely, you got to take a deep look at this seri- ous and impressive project! Sebastien256, Community Member since December 2013

45 Ardor is taking NXT to the next level. Based on more than three years of experience with NXT, the core team showed successfully all its genius by developing new concepts that overcome present shortcomings of classic • Executive Summary cryptocoins. Handling blockchain bloat, scaling, shorter transaction times, implementing smart transactions • Brief History (without neglecting security issues), and separation of forging tokens from transactional tokens come to my mind. • Technological Overview • Business talk eu58 Community Member since Q1 2014 • Crowdsale details The solved blockchain-bloat problem is a really big thing, not only for NXT/Ardor but also for crypto as a whole. I • Our accountability with am sure that will lead Ardor to a top position in the BaaS branch. your contributions • Testimonials Logan, Community Member since Q1 2014 • Team and Supporters I am excited because I believe it solves a simple, but hard problem: scaling and onboarding. Just this month, it • Legal turned out a lot of value was at risk due to a problem with one smart contract in Parity. Ardor should allow such initiatives to enter crypto with less risk. Bas Wisselink, Nxt Foundation Founder and Advisor, Community Member since December 2013 I love that the tech has been working without a hitch since the beginning. That track record is unusually good. But the great community of Nxt is really above all else what kept me around. The altcoin space in general is very toxic and full of spammers (see BitcoinTalk). I imagine that got especially developer-types attracted, that then spawned a lot of good projects off- and around Nxt. The use case for the child currencies is so perfect for busi- nesses and community projects: They can use the infrastructure of Ardor without users having to get the Ardor currency. Thomas Veil, Community Member since Q1 2014

46 After almost four years, I still don't know any active cryptocurrency platform that can beat Nxt in versatility and accessibility. It can do many things, in a simple way, using a great API, and it works. The Nxt community has been • Executive Summary also exceptional as think tank and nursery for many cool projects in crypto. A great place to be these years. Ardor • Brief History is literally a new dimension in the ecosystem. And Nxt is a terrific blueprint for custom blockchains . • Technological Overview Joan Manel Vilaseca, Nxt Foundation Partner, Community Member since December 2013 • Business talk • Crowdsale details NXT was, is, and will remain, the ultimate blockchain. But as every blockchain, it is limited by blockchain size, which means, in term of long term business planing, despite all you can hear around the blockchains these days, • Our accountability with due to transactions competition, only business dealing with very high value transactions (or very rare) are safe your contributions to organize activities around blockchains. The lower, the value of the transactions, the shorter, the duration where any activity can survive with the use of blockchains (unless it plans for a decrease of usage frequency). • Testimonials With childchain pruning, Ardor is the NXT answer to this limit, it widen the scope of usability, because it largely • Team and Supporters increases the time any business can consider to be able to benefit from the blockchains. In short, Ardor is a cru- cial step toward mainstream blockchain adoption. It is the step of the dream team that already deployed the • Legal ultimate blockchain which is running without a single record of incident for nearly 4 years! Websioux, Community Member since December 2013

VIII. Team and Supporters 47 • Executive Summary • Brief History • Technological Overview • Business talk • Crowdsale details • Our accountability with your contributions Kristina Kalcheva Lior Yaffe Legal Expert Software Engineer • Testimonials • Team and Supporters Kristina Kalcheva is a legal specialist and a co-founder Lior Yaffe, co-founder and managing director of Jelu- of Jelurida. She has a Master of Law and International rida has B.A. in computer science from the Technion • Legal Relations Degree from Sofia University and has been in Haifa. He has 20 years of experience in design, working as a legal advisor for seven years. development and deployment of enterprise applica- tions for large corporations. Before establishing She has experience with private, national, European, Jelurida, Lior lead the development and product and International Law. Her professional skills are in the management of a leading mainframe integration area of Human Rights and Intellectual Property Rights product at Software AG. protection on both national and international level. Lior is a true believer in Blockchain technology and its potential to change the world. Part of her job in the company is to explore the different open source licensing models and their enforceability in practice. In the last two years her professional interests are also focused on researching the various possibilities and use cases of applying blockchain technology in real life areas and the arising legal challenges along the way.

48 • Executive Summary • Brief History • Technological Overview • Business talk • Crowdsale details Petko Petkov Tomislav Gountchev Software Engineer Software Engineer • Our accountability with your contributions Petko Petkov is a software developer with experi- Tomislav Gountchev is a server-side Java developer ence in financial software, productivity tools and with more than 15 years of professional experience. • Testimonials games. He has BSc in Informatics and MSc in He has a scientific background, having obtained • Team and Supporters Electronic Governance from Sofia University. a B.A. in Natural Sciences from Cambridge Universi- Petko began his career in 2006 as a mobile Java ty, and a Ph.D. in Chemistry from UC Berkeley. After • Legal academia, Tomislav made a career switch and developer. He later switched to server-side Java worked as a software engineer for e-commerce com- software, and for two and a half years worked on panies in the Silicon Valley, NexTag and eBay, with a system for e-invoicing. In 2011, he returned to particular interest in Java search engine technology. mobile development, and since then he is writ- Later he co-founded Nabble, a website for hosted ing mostly platform-independent C++ and Java public forums, where he spent several years as a for Android. Outside his day job he has been senior Java engineer, responsible for the design and dealing with various other technologies includ- implementation of multiple backend components. ing JavaScript, Java SE and Python. Being gener- He briefly worked as an R&D software engineer for ally interested in social science, he started an open source enterprise CMS company exploring the crypto world in 2013, and later in the Netherlands, before becoming interested became contributor to the Nxt project. in blockchain technology.

IGNIS Crowdsale Supporters 49 • Executive Summary Primary Translations • Brief History • Technological Overview Chinese Translation – Ryan He German Translation – Andreas • Business talk French Translation – Gabriel Francesh • Crowdsale details Japanese Translation – Ryochi Watanabe and Taiichi Fox • Our accountability with Spanish Translation – Ruben Bueno Castro and Jose your contributions • Testimonials The team is complemented by the constant support from the Nxt Foundation, Nxter Magazine, as well as Nxt and • Team and Supporters Ardor community members. Jelurida also gives special • Legal thanks to Jean-Luc, a long-time volunteer contributor and developer of Nxtand Ardor. We would also like to thank Andrii for his support in designing this whitepaper.

Service Providers 50 • Executive Summary • Brief History KPMG has been one of our earliest partners who helped Jelurida SA to navigate the Switzerland’s legal framework. • Technological Overview They helped Jelurida SA to make the legal structure for the • Business talk launch of the IGNIS crowdsale, coordinated contact with the SICOS coordinated with various partners of the regulatory and tax authorities and supported Jelurida SA in • Crowdsale details crowdsale, assisted with drafting of the whitepaper the drafting the legal opinion (both legal and regulatory) from a business and marketing perspective (non-le- • Our accountability with and in finalizing the legal aspect related to the whitepaper. gal and non-technical part) and has been the key your contributions partner for all PR and other strategic activities. Wintertaling Corporate M&A: Our lawyers and notaries in • Testimonials the Netherlands advising Jelurida BV on Dutch corporate, • Team and Supporters organizational, Intellectual Property protection and licens- ing related matters. They also help us research the legal • Legal aspects of the blockchain and distributed ledger technology. STP TaxLawyers: Our Dutch tax lawyers, advising us on all AGAVON corporate and IP related tax matters, both national and Agavon has provided consultation services primarily international. STP TaxLawyers ensures that we are compli- focused on business strategy and related content of the ant and optimized from an international tax perspective. whitepaper as well as advisory services on other related areas of the operation of Jelurida. They have also assist- Andrii Savdeiev: A graphic/motion designer who served ed with the overall execution of the Ignis crowdsale. businesses and individuals all over the world and in count- less industries. His specialties include designing all kinds of marketing visual assets as well as the animated videos.

Community Outreach Services 51 • Executive Summary • Brief History • Technological Overview • Business talk • Crowdsale details ChainsHome L.D Studio • Our accountability with ChainsHome provided outreach services to the Chi- L.D Studio provided media creation, editing, and your contributions nese community for the promotion of Nxt and Ardor consultancy services primarily targeted to the exist- • Testimonials by aiding in the direct communication with the com- ing and prospective Chinese community in order to munity such as through meetups and events. improve communication and understanding. • Team and Supporters • Legal Inaction Technology Kotoba Translation Inaction Technology provided community outreach Kotoba Translation provided the Korean trans- services to the Chinese community as well as aided lations for our documents and other content to with communication such as through their website make our technology and offerings more acces- ardorfans.org for the promotion of the Ardor platform. sible to the Korean community and market.

52 IX. Legal • Executive Summary • Brief History • Technological Overview • Business talk General information IGNIS token is aware that national securities laws, which ensure that investors are sold • Crowdsale details The JLRDA token is a temporary technical coin, investments that include all the proper disclo- • Our accountability with which only gives you the right to receive the IGNIS sures and are subject to regulatory scrutiny for token. The IGNIS token will allow access to the investors' protection, are not applicable. your contributions services provided by the Ignis child chain on the • Testimonials Ardor blockchain platform. The sale of JLRDA Any person purchasing any JLRDA token and token and the IGNIS token is final and non-re- IGNIS token, expressly acknowledge and repre- • Team and Supporters fundable. sent that (s)he/it have carefully reviewed this • Legal white paper and fully understand the risks, costs The JLRDA token and the IGNIS token do not have and benefits associated with the purchase of the legal qualification of a security, since they do JLRDA token and the IGNIS token as indicated in not give any rights on dividend or interest. The the white paper and in the terms and conditions. JLRDA token and the IGNIS token are not shares and do not give any right to participate in the gen- Knowledge required eral meeting of Jelurida SA. The JLRDA token and the IGNIS token cannot have a performance or a The purchaser of JLRDA token and the IGNIS particular value outside the Nxt and Ardor/Ignis token undertakes that (s)he/it understands and blockchain respectively. The purchase and use of has significant experience of cryptocurrencies, JLRDA token and the IGNIS token shall therefore blockchain systems and services, and that (s)he/it not be done for speculative usage or investment fully understands the risks associated with the purposes. The purchaser of the JLRDA token and Token Sale as well as the mechanism related to the use of cryptocurrencies (incl. Storage).

Jelurida shall not be responsible for any loss of Important disclaimer 53 JLRDA token or IGNIS token or situations making it impossible to access JLRDA token or the IGNIS This white paper shall not and cannot be consid- • Executive Summary token, which may result from any actions or omis- ered as an invitation to enter into an investment. • Brief History sions of the user or any person undertaking to It does not constitute or relate in any way nor • Technological Overview acquire JLRDA token and the IGNIS token, as well should be considered as an offering of securities as in case of malicious third party (hacker) attacks. in any jurisdiction. The white paper does not • Business talk include nor contain any information or indica- • Crowdsale details Risks tion that might be considered as a recommenda- • Our accountability with tion or that might be used to base any invest- Acquiring JLRDA token and the IGNIS token and ment decision on. The JLRDA token and the your contributions storing it involves various risks, in particular that IGNIS token are just a currency token and are not • Testimonials Jelurida SA may not be able to launch its opera- intended to be used as an investment. tions and develop its blockchain and provide the • Team and Supporters services promised. Therefore, and prior to acquir- The offering of JLRDA, IGNIS, NXT and ARDR • Legal ing JLRDA token and the IGNIS token, any User token on a trading platform is not changing the should carefully consider the risks, costs, and ben- legal qualification of the token, which remain a efits of acquiring JLRDA token and the IGNIS token simple means for the use of the Nxt, Ardor and within the crowdsale and usage of the Ignis wallet, Ignis blockchain and is not a security. and, if necessary, obtain any independent advice in this regard. Any interested person being not in Jelurida is not to be considered as advisor in any the position to accept nor to understand the risks legal, tax or financial matters. Any information in associated to the activity (incl. the risks related to the white paper is given for general information the non-development of Jelurida network and purpose only and Jelurida does not provide with operations) or any other risks as indicated in the any warranty as to the accuracy and complete- Terms & Conditions of the crowdsale, should not ness of this information. acquire JLRDA token and the IGNIS token, at this stage or ever later.

Jelurida Swiss SA will be an operative entity of its affiliate shall be held liable for any direct or 54 managing the Ignis blockchain and Ardor block- indirect loss or damages caused by such changes. chain. Therefore, Jelurida is not a financial inter- • Executive Summary mediary according to Swiss Law and is not Jelurida SA will do its best to launch its opera- • Brief History required to obtain any authorization for Anti tions and develop Ardor and Ignis blockchain. • Technological Overview Money Laundering purpose. Any person undertaking to acquire JLRDA token and the IGNIS token acknowledge and under- • Business talk Acquiring JLRDA token and the IGNIS token shall stand that Jelurida SA does not provide any guar- • Crowdsale details not grant any right or influence over Jeluirda antee that it will manage to achieve it. They Swiss SA organization and governance to the acknowledge and understand therefore that • Our accountability with Purchasers. Jelurida SA (incl. its bodies and employees) your contributions assumes no liability or responsibility for any loss Regulatory authorities are carefully scrutinizing or damage that would result from or relate to the • Testimonials businesses and operations associated to crypto- incapacity to use the JLRDA token and the IGNIS • Team and Supporters currencies in the world. In that respect, regulato- token, excepted in case of intentional miscon- • Legal ry measures, investigations or actions may duct or gross negligence. impact Jelurida SA’s business and even limit or prevent it from developing its operations in the Representation and warranties future. Any person undertaking to acquire JLRDA token and the IGNIS token must be aware that By participating in the Token Sale, the purchaser the Jelurida SA business model, the white paper agrees to the above and in particular, they repre- or terms and conditions may change or need to sent and warrant that they: be modified because of new regulatory and com- • have read carefully the terms and condi- pliance requirements from any applicable laws tions attached to the white paper; agree to their in any jurisdictions. In such case, purchasers and full contents and accept to be legally bound by any person undertaking to acquire JLRDA token them; and the IGNIS token acknowledge and under- • are above 18 years old or have reached the stand that neither Jelurida SA nor any age in which are qualified to enter into a contrac- tual relationship in the country of residence;

• are not a US citizen or resident; • purchase JLRDA tokens because s(he)/it 55 • have full authorization to act on behalf of wish to have access to the IGNIS child chain and • Executive Summary the legal entity which will purchase the JLRDA the whole Ardor blockchain platform and to use • Brief History token and the IGNIS token, if acting on behalf of their various functionality and/or because an legal entity; s(he)/it wish to support the further development • Technological Overview • live in a jurisdiction which allows the Jelu- and marketing of the Ardor platform and/or • Business talk rida SA to sell the JLRDA token and the IGNIS because s(he)/it wish to facilitate development, token through a crowdsale without requiring any testing, deployment and operation of block- • Crowdsale details local authorisation; chain-based or related applications; • Our accountability with • will not use the crowdsale for any illegal • are not purchasing JLRDA token and the activity, including but not limited to money laun- IGNIS token for the purpose of speculative your contributions dering and the financing of terrorism; investment or usage; • Testimonials • have sufficient knowledge about the • waive the right to participate in a class • Team and Supporters nature of the cryptographic tokens and have action lawsuit or a class-wide arbitration against significant experience with, and functional the Jelurida Swiss SA and its Affiliate Parties. • Legal understanding of, the usage and intricacies of dealing with cryptographic tokens and curren- Governing law and arbitration cies and blockchain-based systems and services; • are familiar with all related regulations in All the disputes, controversy arising from or the specific jurisdiction in which s(he)/it is based under the crowdsale shall be resolved by arbitra- in and that purchasing cryptographic tokens in tion in accordance with the Swiss Rules of Inter- that jurisdiction is not prohibited, restricted or national Arbitration of the Swiss Chambers of subject to additional conditions of any kind; Commerce in force on the date when the Notice (Participants cannot contribute to the Token Sale of Arbitration is submitted in accordance with if there are applicable legal restrictions in their these Rules. The arbitration panel shall consist of country of residence. It is the responsibility of one arbitrator only. The seat of the arbitration each participant to know these laws and take shall be Lugano, Switzerland. The arbitral pro- them into consideration before their participa- ceedings shall be conducted in English. tion in the Token Sale) Copyright © 2017 Jelurida Swiss SA