Today, we are in an era where data is no longer just information. Data has metamorphosed into a valuable, highly strategic asset.
However, despite its high value, data is still vulnerable to threats such as censorship attempts, hacker attacks, and the risk of permanent loss.
This problem then prompted the birth of Arweave (AR) – a decentralized data storage protocol here to offer a storage solution that is truly permanent, secure, and resistant to censorship efforts.
With the concept of decentralization and utilizing blockchain technology, Arweave allows data to be stored and distributed across the network, making it impossible for any party to censor, alter, or delete it.
Arweave’s vision is to answer the need for a transparent, open, and free data storage ecosystem in today’s digital era.
Well, in this article, we will thoroughly discuss the definition, the technology used, and its advantages to its fundamental analysis. Are you curious as to what? Let’s discuss.
What is Arweave (AR)?
Arweave is a unique blockchain protocol that is specifically designed to store data permanently and decentralized.
Its main goal is to provide a kind of perpetual “digital library” where we can store files, decentralized applications (apps), websites, and any other kind of digital data, guaranteeing that it will always be available and impossible to delete or censor.
The idea behind Arweave came originally from a project called Archain, a specialized blockchain for data storage. However, this idea was refined, and Arweave was born in 2017.
A year later, in June 2018, Arweave was officially launched after successfully raising funds through its original crypto token offering, AR.
Arweave is a decentralized data storage protocol that utilizes blockchain technology to record and immortalize data permanently.
Data stored in Arweave is guaranteed to be available forever and cannot be censored or altered by any party. This uniqueness is possible thanks to the combination of flagship technologies such as Blockweave, Permaweb, and AR tokens.
Get to know Blockweave and Permaweb Technology
Blockweave Blockweave is the core technology behind Arweave that forms its backbone. It is a specialized data structure that combines blockchain blocks with their stored data.
So, each Blockweave block stores a transaction record and contains the original recorded data as an inherent part of it. This allows for permanent data storage, as the data is integral to the blockchain.
1. Functions and Advantages of Permaweb
You need to know that permaweb is a term for a decentralized, anti-censorship, and permanent web built on the Arweave protocol.
Permaweb functions as a digital environment that is free, open, and cannot be censored by any party. The main advantages of Permaweb are:
Websites and applications will always be available without being deleted or changed.
Resistance to censorship attempts by any company or party.
Full decentralization to prevent centralized control by certain parties.
Access via regular HTTP protocol for easy adoption.
With Permaweb, Arweave offers a vision of the future web that is truly free, transparent, and fully decentralized.
2. Access via HTTP Protocol
Although Arweave is a decentralized protocol, the stored data can be accessed using the regular HTTP protocol, just like a normal website. This is a distinct advantage that makes it easy to adopt Arweave into the current web without the need to make significant infrastructure changes.
AR Token and Its Functions
AR tokens are the native cryptocurrency used in the Arweave ecosystem. It incentivizes storage nodes (miners) to continue storing and distributing data across the network.
The Role of Tokens in the Arweave Ecosystem Whenever users want to store data on Arweave. They have to pay a one-time fee in the form of AR tokens.
This fee is then distributed to the storage nodes in exchange for their work in storing and distributing data across the network. The larger the size of the data being stored, the more ARs are required.
AR Token Distribution and Supply
The AR token has a total supply set from the beginning, which is 66 million tokens based on data we quoted from the Coinmarketcap website as of May 28, 2024.
About 55% of the total supply has been distributed through initial token offerings, mining, and more. The rest is held in reserve to pay future data storage fees.
Advantages of Arweave Protocol
Here below are some of the advantages of the Arwave protocol that you need to know, including:
Permanent Storage at a One-Time Cost
One of Arweave’s biggest advantages is that it offers permanent data storage for a one-time fee.
Once the data is stored in Arweave, no more recurring storage fees are required, as the data will always be available forever. This starkly contrasts traditional cloud storage services, which are generally subscribed for a periodic fee.
Scalability Solution with Layer-2 Bundlr
Scalability issues are often a bottleneck on many blockchains. However, Arweave has found its solution in Bundlr, a layer-2 that enables highly efficient data aggregation and storage. Bundlr helps Arweave overcome the scalability challenges that other blockchains commonly face.
Arweave Endowment for Future Storage Costs
Arweave has established an endowment fund dedicated to paying for future data storage fees to ensure the continuity of data storage in the future.
With this fund, there is a guarantee that the data in Arweave will still be available even if, one day, no one pays the storage fees anymore.
SmartWeave for Smart Contract
In addition to data storage, Arweave has a smart contract system called SmartWeave. SmartWeave enables secure and anti-censorship decentralized application (dapp) development on top of Arweave.
This feature opens opportunities for a rich and diverse dapp ecosystem to develop on Arweave.
Analisis Fundamental Arweave (AR)
As explained in the previous article on how to analyze crypto fundamentally, it is important to conduct a comprehensive fundamental analysis before investing in crypto assets.
This will help you understand the project’s long-term prospects and assess the investment’s potential gains or losses.
And here below are some points of fundamental analysis of Airwave (AR) crypto assets that need to be considered, including:
Proof of Access
Proof of Access One of the hallmarks of Arweave’s technology is its innovative “Proof of Access” consensus scheme.
In this scheme, mining nodes must access and store data to generate new blocks and earn rewards.
This mechanism ensures that data is stored permanently and efficiently distributed across the network.
Team: Professional and Experienced
Behind the Arweave project is a team of highly competent and experienced developers in the blockchain industry. They have a solid background in cryptography, data storage technology, and blockchain to build and develop advanced protocols like Arweave on an ongoing basis.
Community: Global and Active
Arweave has successfully built an active global community that fully supports the development of the protocol. The community consists of developers, miners, users, and others who continue to contribute to the growth and accelerated adoption of Arweave worldwide.
Partnerships: Collaboration with Leading Organizations
Finally, Arweave has also established partnerships with several other top-tier blockchain organizations and projects to expand the ecosystem and adoption opportunities.
These collaborations enable the integration and utilization of Arweave in various promising use cases in the industry.
Conclusion
In conclusion, Arweave offers permanent, decentralized, anti-censorship data storage powered by innovative blockchain technology.
Flagship features such as Blockweave, Permaweb, AR tokens, and Proof of Access make Arweave a future-proof digital data storage solution.
