Ark whitepaper - Point Click Blockchain

1 Introduction
1.1 State of the Industry
In 2008, Satoshi Nakamoto published a ground-breaking paper that presented the
first decentralized solution to solve the problem of double spending in digital
networks. The ensuing years witnessed a proliferation of projects driven by
innovators who understood the vast, transformative potential of blockchain
technologies. The exuberance that drove the initial growth of the decentralized
technology landscape has yielded to pragmatism and questions about adoption
and use-cases. Blockchain projects are now moving from experimentation around
decentralized technologies to complete solutions including consensus
mechanisms, identity, data structures, crypto-economic designs and smart
contracts. But to deliver truly world-changing results, blockchain technologies
must be easily accessible to developers, users, governments, and businesses alike.
1.2 Eliminating the Barriers to Entry
A core mission of the ARK project is to eliminate the barriers to entry into the
blockchain space posed by complex technology. By providing a user-friendly
communication layer to the open network of Web 3.0, ARK meets the needs of
enterprises, start-ups, and developers requiring sophisticated, decentralized,
application-centric blockchains. Blockchains built with ARK Core code, what we
call bridgechains, can interlink or work independently. Highly adaptable according
to specific needs, bridgechains enable users to exchange data, expand business
models, and develop novel use cases.
1.3 ARK as the Perfect Starting Point
The ARK Ecosystem allows blockchain developers to customize a sovereign
blockchain complete with required feature sets. ARK’s value proposition lies in the
array of services offered through the ARK Blockchain Platform. These services
include interconnection with different blockchains, seamless integration of custom
business logic, flexible development of tailored transaction types, and access to a
global, community support system - all rooted in an intuitive development
experience.

2 Blockchain Trilemma
2.1 Blockchains Have Problems
Extant blockchain platforms face a range of well-known and seemingly intractable
set of challenges. These include what is commonly known as the Blockchain
Trilemma, referring to the balance that blockchains strive to attain between:
Scalability (handling large volumes of transactions at high speed)
Security (guaranteeing the validity of transactions and protecting data)
Decentralization (distributing transaction validation among nodes to
eliminate a central point of control and to ensure accuracy and fairness).
The three properties are linked in that an increase in one generally entails a
tradeoff with the others. As an illustrative example, the Bitcoin network is
optimized for security and decentralization at the expense of scalability. This fact
was made amply clear in late 2017, when backlogged transactions on the network
resulted in exorbitant transaction fees. One approach that Bitcoin is taking to
resolve the issue is layer-two solutions like the Lightning Network.
Development of the ARK Technology stack began with consideration of the
trilemma and further reflection upon two crucially related challenges, namely:
Interoperability (enabling independent chains to exchange value and
information)
Sustainability (creating self-sufficient and self-governing environments).
2.2 ARK’s Approach to the Blockchain Trilemma
ARK uniquely addresses each aspect of the trilemma.
ARK achieves scalability through a multi-chain approach and ARK SmartBridge
Technology. Highly complex business processes can be run on a bridgechain with
only the results being transferred to the main chain, thus increasing efficiency
through interoperability.
Security is ensured through a modified version of the Delegated Proof-of-Stake
consensus mechanism, wherein token holders determine which nodes are
deemed worthy to secure each network, as explained in Section 4.
Decentralization is determined by the needs of the system architects of each
bridgechain. ARK’s flexible technology can expand to include thousands of nodes,
or contract to a few high-powered nodes capable of breakneck performance.
Developers using ARK technology hold the power to optimize each network as
needed.

Ark whitepaper - Point Click Blockchain