Arweave

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Discover Arweave's fundamentals and latest news.

This content was generated by Whalee (BETA), an AI crypto assitant that analyses cryptocurrencies. Informations can be incomplete and/or erroneous. Please always double check and DYOR.

What is Arweave?

Arweave (AR) is a blockchain protocol that enables permanent data storage with a single, one-time fee. It uses a novel blockchain-like structure called the blockweave, which allows for cost-efficient and scalable on-chain data storage. The native token, AR, is used to pay data upload fees and reward miners. Arweave aims to provide a decentralized and reliable data storage service, with applications including the preservation of important data and hosting decentralized web apps.

How is Arweave used?

Arweave (AR) is used in several ways within the Arweave ecosystem:

  1. Data Storage Fees: Users pay a one-time, up-front fee in AR tokens to store their data permanently on the network. This fee is different from recurring payments on traditional storage platforms.

  2. Miner Incentives: AR tokens are used to incentivize miners to store and maintain data on the network. Miners receive a mix of fees, block rewards, and rewards from the "storage endowment" for their services.

  3. Transaction Fees: AR tokens are used to pay for transaction fees, which are mostly allocated to the storage endowment. This endowment grows over time and is used to pay miners for their services, ensuring sustainable miner economics.

  1. Wrapped AR (wAR): AR tokens can be wrapped to create wAR, which is compatible with the Ethereum network, allowing for interoperability between the two blockchains.

  2. Content Moderation: Miners can analyze and refuse to store certain data, and network gateways can filter data based on legal requirements, ensuring a level of content moderation on the network.

  3. Permaweb Applications: AR tokens are used to support various applications on the permaweb, such as archiving websites, storing files, and creating profit-sharing communities.

Overall, the AR token plays a central role in maintaining the decentralized data storage network and incentivizing miners to ensure permanent and reliable data storage.

How do I store Arweave?

To store Arweave (AR) tokens, you have several options:

  1. Arweave App Wallet: This is a web-based wallet that allows you to manage your AR tokens securely. You can follow a step-by-step guide to generate a cold wallet, ensuring your keys are never exposed to an internet-connected computer before you intend to use your tokens.

  2. ArConnect Wallet: This is a browser extension that provides a user-friendly interface to manage your AR tokens. You can add multiple wallets and switch between them easily. It also allows you to view and transfer assets and see your latest transactions.

  3. Ledger Hardware Wallet: Ledger offers a secure hardware wallet solution for storing AR tokens. You can purchase a Ledger Nano S Plus or Ledger Nano X, which stores your private keys offline, making them resistant to malicious attacks. You can manage your AR tokens using the Ledger Live App.

  1. Other Wallets: There are additional wallets available, such as Finnie, which are also capable of storing AR tokens.

It is recommended to use an Arweave wallet to securely store your private keys and prevent malicious applications from draining your wallet or signing transactions without your consent.

How to buy Arweave?

To buy Arweave (AR) tokens, follow these steps:

  1. Choose an Exchange: Select a reputable cryptocurrency exchange that supports Arweave (AR) trading. Some popular options include MEXC, Uphold, KuCoin, and Binance.

  2. Create an Account: Sign up on the chosen exchange by providing your email address, mobile number, and country of residence. Create a strong password and ensure account security with two-factor authentication.

  3. Verify Your Identity: Complete the Know-Your-Customer (KYC) process by uploading a valid photo ID and providing personal information. This step is mandatory for most exchanges.

  1. Add a Payment Method: Link a payment method such as a credit/debit card, bank account, or third-party payment services like Simplex, Banxa, or Mercuryo.

  2. Buy Arweave (AR): Use your added payment method to purchase Arweave (AR) directly or buy a stablecoin like USDT first and then exchange it for AR on the spot market.

  3. Store Your Arweave: Once purchased, you can store your Arweave (AR) in your exchange wallet or transfer it to a personal crypto wallet for safekeeping.

Remember to always follow the specific guidelines and fees associated with each exchange and payment method.

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History of Arweave

Arweave, a blockchain-based data storage protocol, was founded by Sam Williams and William Jones while they were pursuing their doctoral degrees at the University of Kent. The idea was conceived by Williams during a walk in Scotland, and he brought it to Jones, who helped with the technical details. Initially, the project was named Archain and was established on June 28, 2017. The name was later changed to Arweave in February 2018, and the mainnet launched in June 2018.

Arweave secured significant funding through seed rounds. On November 6, 2019, it raised $5 million led by Andreessen Horowitz and contributions from Union Square Ventures and Multicoin Capital. Another seed round on March 5, 2019, led by Andreessen Horowitz and participation from Coinbase Ventures, raised a total of $8 million.

The project also held an Initial Coin Offering (ICO) starting on June 3, 2018, which raised $8.7 million. The ICO was backed by Arrington XRP Capital, 1kx, Benjamin Kong, and Coefficient Ventures Grand Renfield One. The $AR token was priced at $0.73 during the ICO, and 20.6% of the total supply was available for the round.

Arweave's innovative approach to permanent data storage has garnered significant attention and investment. Its unique model, which incentivizes participants using the $AR token, has made it a promising solution for long-term data preservation.

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How Arweave works

Arweave is a decentralized data storage network that uses a blockchain-like architecture called the blockweave. The blockweave is maintained by miners who provide disk space and replicate the data stored in the network. In exchange for their services, miners receive Arweave tokens (AR). This incentivizes them to store data over long periods of time, ensuring the permanence of the data.

Blockweave and Proof of Access

The blockweave differs from traditional blockchain structures. Each block in the blockweave is linked to two previous blocks and one following block. This unique linking system allows for the Proof of Access (PoA) consensus mechanism. Miners must provide cryptographic proof that they can access a randomly selected "recall block" from the blockweave's history to mine new blocks. This mechanism incentivizes miners to store data for long periods, as they must access older blocks to mine new ones and receive rewards.

Content Moderation

Arweave allows miners to establish content policies, which prohibit certain data from being stored. This ensures that miners can choose what data they want to store, and data that does not meet their policies will not be accepted into their transaction pools. Additionally, network gateways and Arweave-based apps can filter data, enabling community-driven content moderation.

AR Token Economics

The Arweave token (AR) is used to pay for data storage. When data is uploaded to the network, users pay a one-time fee in AR tokens. These tokens are then distributed to miners as rewards for storing the data. The fees do not go entirely to miners; some are deposited into a sustainable endowment that grows by earning interest. This endowment is used to pay for future storage costs, ensuring the long-term viability of the network.

Permaweb

The permaweb is the decentralized web built on top of the blockweave. It allows for permanent, decentralized data storage and retrieval. Permaweb URLs are unique and permanent, ensuring that data can be accessed forever. The permaweb is designed to be community-owned and maintained, with anyone able to contribute or get paid to maintain it.

Applications and Partnerships

Arweave has various applications, including ArDrive for file storage and the Arweave web archive for storing websites. It has also partnered with organizations like the Internet Archive to ensure the preservation of important data and to create a fault-tolerant and decentralized data storage system.

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Arweave's strengths

Arweave (AR) has several strengths that contribute to its unique position in the decentralized storage sector:

  1. Single One-Time Fee: Arweave offers permanent storage for a single up-front fee, which sets it apart from traditional storage providers that charge recurring fees.

  2. Blockweave Technology: Arweave's blockchain-like infrastructure, called blockweave, allows nodes to participate in the network without needing to store and sync the entire blockchain. This makes it more efficient and accessible.

  3. Proof-of-Access: Arweave's succinct random proof of access ensures that data can be retrieved efficiently and securely.

  1. Well-Developed and Accessible Ecosystem: Arweave has a well-organized and user-friendly ecosystem, making it easy for users to interact with the protocol and build applications on top of it.

  2. Supportive of Ecosystem Development: Arweave is community-friendly and actively supports projects integrating its technology through dedicated investment affiliates and capital injections.

  3. World-Class Investors: Arweave is backed by a strong network of venture capital firms, providing access to top technology and expertise.

  1. Powerful Professional Relationships: Over 115 projects, including prominent names like Meta and Instagram, have integrated Arweave into their systems, demonstrating real-world adoption and network effects.

These strengths position Arweave as a leader in decentralized storage, offering a unique and innovative solution for permanent data storage.

Arweave's risks

Arweave (AR) carries several risks that investors should be aware of:

  1. Market Competition: Arweave operates in a highly competitive decentralized storage sector, where market forces can dictate the adoption of its technology. This competition can lead to Arweave being overlooked despite its superior advancements.

  2. Volatility: Arweave is considered a high-risk investment due to its volatility. Its price can fluctuate rapidly and unpredictably, making it challenging for investors to predict its performance.

  3. Risk of Devaluation: Arweave's market sensitivity and economic sensitivity indicate that it is susceptible to devaluation. This means that its value can drop significantly in response to market changes.

  1. Technical Challenges: Arweave's usability is not the best, requiring users to set up an Arweave-compatible blockchain wallet and purchase AR tokens. This complexity can deter users and hinder adoption.

  2. Unforeseen Issues: As Arweave grows and stores more data, it may encounter unforeseen technical issues that could impact its ability to deliver permanent storage.

  3. Risk of Manipulation: Arweave's price can be easily manipulated by limited trading activity, which increases its risk profile.

These risks highlight the importance of a measured approach when investing in Arweave, and investors should only invest what they can afford to lose.

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Did Arweave raise funds?

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Arweave’s team

  • Sam Williams: Founder of Arweave, hacker, and CEO at Forward Research. He is a PhD drop-out and can be found on Twitter at @samecwilliams.
  • James Piechota: Team member at Arweave.
  • Markus Ihringer, CFA: Team member at Arweave.
  • Ben Kong: Team member at Arweave.
  • Ros Mc Mahon: Team member at Arweave.
  • Phil Mataras: Founder of AR.IO, with extensive experience in system architecture. He has been deeply involved with Arweave, creating the Arweave File System (ArFS) and the ArDrive app.

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