What is Arweave (AR) cryptocurrency ?
Arweave (AR) cryptocurrency
Arweave or AR tokens have been introduced as the new generation of decentralized data storage networks. This platform has created a secure and permanent information storage network, and the purpose of introducing this project is to create a more durable Internet network and reduce the limitations of developers. Using this platform, users and developers can archive sites or resources without time limit. In this way, Arweave network will lead to the formation of applications with higher performance and more pervasiveness.
Arweave was first launched in 2017 under the name Armchin. Again in 2018, at the same time as accepting the presence of the Arweave team with startup accelerator single stars, it started working with the new title Arweave. This crypto’s founder and CEO Sam Williams describes Ramer’s future as promising. In 2019, Arweave digital currency was able to generate $5 million in revenue through venture capital firms such as Andreessen Horowitz and Union Square Ventures. In March 2020, Arweave announced that $8.3 million in additional funding would be used to expand the community of users and developers.
What is Arweave (AR)?
Arweave is a new generation decentralized storage network founded by Sam Williams and William Jones in July 2017. Arweave can be considered a decentralized protocol that uses a blockchain to store global information securely and permanently. Its mission is to minimize developer constraints and create a long-term vision for the entire Internet.
Large amounts of data published on the Internet are lost daily. There are several reasons for this. The storage methods we currently use are vulnerable to hackers, and data published on the network may be lost over time due to user negligence.
One of the main sources of information loss on the Internet is broken links. For many websites, links are usually the only way users can find information. When a link fails, the website is redirected to a dark web and cannot be found by any search engine. Because of this, all website data is in danger of being lost forever – not to mention the threat posed by centralized organizations, which have the power to manipulate or delete previously published data.
Arweave can completely eliminate data loss or manipulation on the Internet. The innovative blockweave protocol they have developed provides a cheap and scalable solution for on-chain storage, allowing users to archive information on websites forever.
Its P2P protocol allows different users (nodes) with large storage space on their hard drives to connect to the Arweave network and store data for others. The network then rewards these nodes for providing their storage services. As the amount of data stored in a particular system increases, the amount of hashes required for the agreement decreases and data storage becomes more cost-effective.
Aside from storage, the Arweave network is a great platform for developers looking to create more efficient decentralized applications. Flexible network APIs allow programmers to seamlessly build DApps on block text. To date, more than 300 applications have been built on the Arweave blockchain.
How Does Arweave Work?
The function of the Arweave protocol can be understood by looking at the two layers involved: blockweave and permaweb.
Blockweave is different from the regular blockchain on which many digital currencies are based. In addition to storing transaction information, blockweave also stores data information in each block. Like other blockchains, each block in the visibility block points to its previous block. However, in blockweave, this previous block is attached to a randomly selected block called the call block.
The Arweave protocol enables this architecture by using a completely new consensus mechanism called SPoRA, access proof. This consensus rewards participating nodes in the network to store all Arweave transaction history. Suppose you want to manage a node in the Arweave blockchain. To receive block rewards, you must prove to blockweave that you have full access to the previous block data, along with some randomly selected contact blocks.
If you do not have access to the call block, blockweave knows that you do not store all transaction data in the Arweave blockchain, thus depriving you of any block rewards. These participants encourage the node to store as much data as possible, although they do not have to – it is impossible for them to know which previous data block the system needs to receive the block reward.
Another key component of the Arweave network is the permaweb, a decentralized web built on the Arweave blockchain. This is where all Arweave DApps are stored. These DApps can be accessed using multiple gateways that resemble regular websites. The Arweave protocol also uses HTTP and enables permaweb to interact with the WWW.
The team behind Arweave (AR)
British entrepreneurs Sam Williams and William Jones founded Arweave in July 2017. The company is registered in Germany. The main Arweave network was launched in June 2018 and its permaweb platform was activated in early 2019.
Sam Williams will serve as CEO, while another co-founder, William Jones, served as Chief Technology Officer until August 2018, but has since left the project.
Arweave has raised a total of $22 million in venture capital (VC) investment. The first major round of financing was the initial coin offering (ICO) in June 2018, when the project raised a total of $8.7 million. Key investors include Arrington XRP Capital, 1kx and Coefficient Ventures.
In the next major financial periods, November 2019 and March 2020, Arweave raised $5 million and $8.3 million, respectively. In both rounds, Anderson Horowitz acted as the main investor. In total, VC is financing Arweave with 15 investors, mostly institutional.
In addition to raising VC funds, Arweave has also been active as an investor in a number of blockchain startups. The company invested in four different blockchain projects in five rounds. Funded projects include Mintbase, Meson Network, Redstone and Kyve.
Prior to 2021, AR coins were generally traded below $5, with a maximum price of $7 in late August 2020. AR started 2021 with $2.6. This year proved to be a real breakthrough for the coin.
It crossed its previous high of $7 by mid-February and quickly reached $32 by the end of March. However, the collapse of the digital currency market in 2021 did not leave augmented reality coins ineffective. Unlike some other digital currencies, AR was able to recover quickly and confidently from the downturn caused by the market crash. The coin has been on a strong uptrend since late July and is now trading at around $80.
Key Features of Arweave (AR)
Key features of Arweave (AR):
Ease of use
Despite the seemingly complex functions of the Arweave network, all the technical points in its back-end operation are covered, while the front of the network is simplified for the best possible user experience. Storing websites in the Arweave blockchain simply creates a bookmark in your browser via the Arweave browser extension. Pages saved using this extension can be viewed and shared by other users on a decentralized network.
Immutability
Permanent Arweave applications – their rules cannot be changed or altered even by application developers.
User and developer core ethics
Because applications cannot be modified or updated, the Arweave protocol rewards developers and encourages them to ensure the quality of the applications they build. It also forces developers to build and engage communities that use their DApps, as this helps simplify migration to a modified version of their DApps.
What Makes Arweave Unique?
According to its yellow paper, Arweave seeks to ensure “the collective ability to store and share information between individuals and over time for new generations.” To achieve this, Perma Web, its flagship, is built on the Arweave blockchain, a type of blockchain technology in which each block is linked to both the immediately preceding block and the previous random block. Arweave says it encourages these miners to store more data since they need to be able to access previous random blocks to add new blocks and receive rewards.
Arweave focuses on creating a sustainable ecosystem around the network. In June 2020, it unveiled “profit-sharing tokens,” which allow developers to receive dividends when network transaction costs are incurred from their application, and host incubators to support the development of applications based on is the web. The project also works with startups through its “Boost” program, offering free storage space and access to the Arweave team and industry investors.
In March 2020, Arweave announced that it had received $8.3 million in funding from Andreessen Horowitz, Union Square Ventures and Coinbase Ventures. This was followed by an initial investment in November 2019 from Andreessen Horowitz and Union Square Ventures, as well as Multicoin Capital.
What Is the Future for Arweave?
The overall outlook for the Arweave project looks quite promising. The platform provides a much-needed service, secure blockchain-based storage that should underpin its future growth.
Recently, similar storage solutions have grown as the market recognizes the use of this service. Projects like BTT are driving growth in this area. However, Arweave, with its permaweb platform, offers a wider range of functions beyond simple data storage.
Permaweb is able to save not only files, but also distributed applications with full functionality. In this sense, permaweb is both a storage medium and an application-wide server.
The persistent nature of permaweb storage also makes Arweave a fierce competitor to non-blockchain cloud storage services such as Dropbox, Microsoft OneDrive and Google Drive. Arweave lets you pay for storage once and save your data permanently, while competing cloud storage platforms charge continuously on a monthly or yearly basis.
You get some free storage on some of these platforms, for example. Google Drive is free for up to 15 GB of data. However, free fees are often very low for users interested in external storage services.
While the initial storage costs on Arweave may be higher than on competing platforms, the fact that you only pay once for storing your data forever makes long-term storage on this platform more cost-effective than competitors typically offer. The market is also responding positively to Arweave’s business concept with confident growth in AR this year. Arweave itself is actively investing in other blockchain startups as a sign of the project’s sound financial condition. Demand for storage services is growing rapidly, and Arweave is only benefiting from this growth.
Where Can You Buy Arweave (AR)?
AR can be purchased at digital currency exchanges such as MXC.COM, Bilaxy, Huobi Global and Hoo, etc. It can be traded against the Stable Currency Tetra (USDT) as well as Bitcoin (BTC) and Ether (ETH).
Are you interested in buying AR or other digital currencies like Bitcoin? CoinMarketCap has a simple, step-by-step guide to teaching you everything about cryptography and how to buy your first coins.
AR is listed in a number of cryptocurrencies, unlike other major digital currencies, it cannot be purchased directly with Fiat currency. However, you can still easily buy this coin by buying bitcoins from any Fiat exchange to Crypto and then transferring them to the exchange that offers the coin.
In conclusion
Arweave is an innovative data storage platform based on a derivative of blockchain technology called blockweave. It has a unique PoA block authentication method that helps Arweave get operational and activate its permaweb platform.
Permaweb is a web-based blockchain of files and applications that is stored in a completely decentralized manner, independent of a central control body. Permaweb is able to save both files, decentralized applications, and support their full functionality.
While permaweb is a decentralized platform, Arweave miners, who also act as storage providers, can delete content that they deem unsuitable for storage on their devices. This criterion, while implying a degree of censorship, is a useful feature to help Arweave prevent it from becoming offensive content that characterizes some parts of the web around the world.
Arweave is also taking its first steps in delivering DeFi performance through digital payment and DeX solutions. These are being developed under the umbrella of the everFinance brand.
As demand for data storage services grows rapidly, we expect Arweave to grow confidently and likely to challenge heavy storage such as Dropbox, Microsoft, and Google.
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