What Is Arweave (AR) How It Works & Where To Buy It?

Arweave is an innovative protocol that facilitates the permanent storage of data in a decentralized manner. The Arweave protocol positions itself as a permanent data storage solution that manages blockchain-based decentralized storage services.

The project was founded in London in 2017 by Sam Williams and William Jones. AR is the protocols native token and it is currently the 89th largest cryptocurrency by market capitalization.

How Arweave (AR) Works

The simplest way to understand how the Arweave protocol facilitates distributed data storage is by observing the two layers that make it possible: blockweave and permaweb.

What differentiates blockweave from standard blockchains that most cryptocurrencies are built atop, is that blockweave stores both transactional information as well as individual block’s data information.

Similar to the functionality of typical blockchains, blockweave facilitates the process where each block refers to the previous block. However, what differentiates blockweave is the linking of the previous block to a recall block (randomly selected block).

Arweave incorporates a novel consensus mechanism called SPoRA which is essentially proof of access. Nodes that participate in the network are rewarded for the storage of Arweave’s transactional history.

Block rewards for nodes can only be distributed once a node has proved to blockweave that they have full access to the data of the previous block, as well as the recall block.

The principle is simple, blockweave will be able to identify that the node isn’t storing the entirety of transactional data on the blockchain if the node doesn’t have access to the recall block – this will result in no block reward being distributed.

This system is designed to encourage node participants to store data to the utmost extent. The system is designed to make it impossible for nodes to predict which previous block of data will be required by the system to earn block rewards. The most detailed insights into how the protocol operates can be understood by reading Arweave’s whitepaper.

Permaweb is the other essential component of the Arweave network, it’s a decentralized web that has been built atop the Arweave blockchain. All Arweave DApps are stored here – accessing these DApps can be done through various gateways, much like standard websites. HTTP is used by the Arweave protocol to enable interactions between permaweb and the WWW.

What Is Arweave (AR) Used For?

Data stored on Arweave is immutable, meaning that data stored permanently on Arweave will always be accessible – unlike traditional web entities that can eliminate/remove previously created data.

The AR token plays a key role in the data storage protocol and possesses a great deal of utility. For example, within the Arweave ecosystem, the AR token is used for transaction fees – both for the storage and the retrieval of data.

When interacting with any decentralized applications (DApps) the AR token is required to power interactions. Data management on the Arweave blockchain also requires the utilization of the AR token for payment – this is required for distributed data storage. Computers that offer storage services are also required to accept payment for their services in AR tokens.

Additionally, the AR token is frequently swing or arbitrage traded on various cryptocurrency exchanges. The price fluctuations of the AR token make it favorable to trade.

Where To Buy Arweave (AR) Tokens

AR tokens are among the most frequently traded cryptocurrencies on the market. The AR token is listed on most of the major cryptocurrency exchanges.

Before purchasing AR, any user will need to deposit fiat money onto an exchange, sequentially, AR tokens will be credited to their AR digital wallet on the exchange.

The crypto exchanges below are the safest place where you can buy, sell and store AR tokens.

1. Gate.io
2. HTX
3. KuCoin
4. Binance
5. Crypto.com

To earn additional rewards on your AR tokens, it is advised that you store them in one of the Arweave-compatible wallets.

A full list of Arweave-compatible wallets can be found here.

About Arweave (AR)

How long has Arweave (AR) existed?

Arweave was initially founded in 2017 by Sam Williams. The initial coin offering of the AR token then commenced on the 3rd of June 2018.

Arweave’s initial coin offering (ICO) was very successful. The ICO price for the AR token was 1 AR = 0.73 USD. The initial coin offering had a total of 20,6% of the total supply of tokens for sale. A total of $8,700,000 was raised during the ICO.

Since the ICO launch, the AR token has appreciated more than 20x and it is currently trading at just under $15.

What’s controversial about Arweave (AR)?

There are thousands of new projects entering the crypto space. Unfortunately, the opaque nature of crypto often means that opportunists try to take advantage of people.

Before investing, doing research is fundamental. Look into the project’s founders, the tokenomics, various partnerships, the whitepaper, and all other important factors surrounding the project.

Let’s take a look at the top controversy surrounding Arweave (AR):

• Scalability – Among the biggest concerns surrounding the Arweave project is its ability to scale at a global level. The protocol looks incredibly impressive as a data management and data storage solutions provider but whether the project will be able to prove its scalability is yet to be sufficiently tested.

  Should the protocol not be able to deliver on its scalability problems, it is likely that the project will quickly fall by the wayside.

How many Arweave (AR) Tokens tokens are there?

At the time of writing, Arweave (AR) has a circulating supply of 33,394,701.00 AR (51% of the total supply).

The total supply of Arweave (AR) is 63,190,435.

The max supply of Arweave (AR) is 66,000,000.

Can Arweave (AR) be mined?

Arweave (AR) is not a mineable cryptocurrency. Arweave uses a novel proof-of-access consensus algorithm which makes it an unmineable currency.

Mining Arweave is not possible but AR holders can earn rewards from network participation and staking. To earn block rewards, AR token holders will need to become node participants – their contributions to the network will be rewarded with AR tokens.

The Arweave protocol rewards developers for building quality applications, this mechanism ensures that developers maintain a high standard.

Some centralized exchanges also offer staking rewards for AR holders that stake their tokens for a certain duration.

What is the market cap of Arweave (AR)?

The market cap of Arweave (AR) is:

Arweave (AR) market cap = total amount of coins in circulation x current market price of AR.

Arweave (AR) Market Cap = 33,394,701.00 AR x $14,17 = $473 million (89th largest market cap)

Arweave has claimed a spot on the list of the top 100 cryptocurrencies by market capitalization – the AR price is currently trading at more than 6x below its April 2021 all-time high of $86.

The market cap fluctuates according to circulating supply and market price.

Biggest Competitors Of Arweave (AR)

Arweave has rapidly grown to become one of the most popular blockchain protocols on the market. The Arweave team has built one of the most efficient decentralized storage platforms, and has proved that the Arweave protocol tackles some of the most serious data storage issues being faced today.

However, Arweave is not the only blockchain project that provides these solutions – there are a host of top projects that have already amassed major utility and user adoption.

Arweave’s biggest competitors are:

• Filecoin
• Storj
• BitTorrent
• Ankr
• Holo

What are the future plans for Arweave and AR token

Arweave is currently pioneering the Web3 storage sector, a sector that is destined to be incredibly prominent in coming years. To store data may seem like a simple and even mundane task but once you understand how frequently data is manipulated, then it becomes easier to see the role that the Arweave protocol plays in the world.

The team has announced its intention to continue building a decentralized network that will ensure permanent long-term data storage and offers developers indefinite storage in the most efficient way possible.

Pros And Cons Of Arweave Network and AR Token

Pros:

• Censorship Resistant – The Arweave protocol facilitates immutable data storage and is devoid of censorship. The protocol tackles the task of permanent data storage services, without any manipulation by government or institutional facilities.
• Low Supply – The total supply of Arweave is only 66 million. 33 million AR tokens were minted in the genesis block and the rest of the supply is rewarded to node participants for their network contributions.
• Real Use Case – Today’s day and age sees an extensive amount of data manipulation, fake news, and information that goes ”missing”. The Arweave protocol positions itself as a beacon of light and truth in a society where monopolies too often practice data removal and manipulation.
• Energy-efficient – Arweave is significantly more energy-efficient than blockchains that utilize proof-of-work consensus mechanisms. Arweave incorporates an energy-efficient proof-of-access consensus mechanism, where nodes ensure the security, efficiency, and optimization of network miners – as opposed to miners.

Cons:

• Scalability Issues – The task of data storage requires comprehensive capabilities that can handle the enormous amounts of data needing to be processed on a global scale. The Arweave network will need to facilitate data storage extensively, accommodating on a global level – whether the protocol will be able to scale to this extent is yet to be tested.

  Should the protocol fail to prove its scalability, then faith in the project will be lost by members of its community.