Web3 Time Capsule? Reviewing the Arweave Project and Its AR Token
Arweave stands as a decentralized network with a mission to shield data from malicious interference, paving the way for a sturdy web infrastructure that guarantees everlasting access to information for generations to come.
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In the early days of 2022, the Arweave team showcased an impressive application of their project. Amid the onset of the full-scale war in Ukraine, the developers pivoted their efforts towards preserving all evidence of Russian atrocities against civilians.
Founders and investors
The initiative was conceived in 2017 by computer scientists Sam Williams and William Jones. It embarked as a research venture, searching for a scalable and resilient approach for data storage within the blockchain. After passing numerous successful trials, they launched their main network in 2018.
Through a series of fundraising rounds from 2017 to 2020, the project amassed a remarkable $22 million. Among the backers are renowned investment funds such as Andreessen Horowitz (a16z), Coinbase Ventures, Multicoin Capital, and Union Square Ventures.
Operation mechanism and other notable features
Arweave operates on a distinctive consensus mechanism named Proof of Access, amalgamating elements of both Proof of Work and Proof of Stake. The platform employs a data structure known as Blockweave, ensuring efficient data storage and retrieval. Developers can tap into this through a straightforward API and integrate Arweave into their software.
Network miners are rewarded for offering storage services and validating data, while users pay a corresponding fee. This fee initially seems pricier compared to the competitor, Filecoin. But, considering it's a one-time payment with no recurring charges, it turns out to be more cost-effective over the long run.
New block creation procedure Source: arweave.org
Naturally, one might ask, “Why would miners continuously store data?” The system is architected in a way that miners don't receive rewards for generating a new block if it is found that not all information is stored. Miners' rewards may also hinge on the quality of internet connectivity and computational capacity.
What is AR and what's its purpose?
AR is the native token of the Arweave network, a vital element that fuels the project's ecosystem. Users employ AR to pay for data storage. Such a fee also serves as a reward for the miners who ensure the network's stability.
Arweave's tokenomics feature a deflationary model with a capped supply of 66 million tokens. The allocation comprises 55% for mining rewards, 19% dedicated to the team, 8% set aside for advisors, and 18% assigned to token sales.
Additionally, the platform utilizes a dynamic pricing model for data storage, assuring competitive and steady costs as the network continues to grow.
You can buy AR cryptocurrency on centralized exchanges like WhiteBIT, OKX, Binance, Kucoin, Bittrex, Huobi, Bybit, CoinEx, and several others.
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