The US National Archives were detected changing a 2017 photograph in January 2020. This was and is a major issue because archiving is about preserving information without modifying it.
Arweave is a crypto initiative that has partnered with major cryptocurrencies to forever retain their transaction history. What is Arweave? What are its latest updates? Why is its AR coin poised to become one of the most desirable cryptocurrencies?
What Is Arweave (AR) Crypto
If you're unfamiliar with Arweave, read on. Arweave was founded in 2017 by Sam Williams and William Jones of Minimum Spanning Technologies.
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| Sam Williams William Jones |
The Open Web Foundry is an accelerator and incubator for Arweave projects supposedly operated by minimum spanning technologies.
Arweave earned $22 million in ICOs in 2017, 2018, 2019, and 2020, and launched its mainnet in June 2018.
Bits of trivia, Arweaves mainnet debuted on the anniversary of George Orwell's renowned dystopian novel 1984, because opposing totalitarianism is a battle worth fighting.
One of the reasons Arweave was formed is detailed in the book. Arweave seeks to achieve this by permanently storing all global data. The creators of Arweave feel that preserving the past is essential to preventing future 1984 scenarios.
Arweave's ability to store data indefinitely with a single payment sets it apart from other decentralized storage cryptocurrencies that operate on a pay-per-use basis. Arweave's unique architecture and economics make this possible.
Unlike other cryptocurrencies, Arweave does not rely on a blockchain. Instead, it uses a block weaving to encourage the network's miners to keep as much data as possible for as long as feasible.
To get block rewards, miners must show that they are saving data from the preceding blog. As well as the recall block, which is chosen at random.
Not having the data in the recall block prevents miner from earning block rewards. This encourages miners to save as much Arweaves data as possible, even if they aren't required to. They risk not getting block rewards if they don't.
This innovative consensus technique leverages elements such as storage capacity, internet speed, and computer power to choose which miner gets to miner block.
Bit of trivia SPORA uses Monero's Random X consensus to pick miners, and Arweave co-founder Sam Williams helped create it.
While the profitability of AR mining is unknown, it has attracted around 1,200 miners worldwide.
To guarantee Arweave miners are fairly compensated in the future, just a part of the AR paid to miners is readily available. The rest goes into a storage endowment, which slowly distributes AR coins to guarantee Arweave miners always make enough to pay their costs.
The cost of permanent storage on Arweave is calculated assuming data storage costs will decrease over time. As a precaution, the Arweave protocol anticipates that data storage costs will fall significantly slower than currently anticipated, and thus employs a 200-year timescale to calculate storage costs.
A Gigabyte of data on Arweave now costs roughly $7 in AR coins. This is substantially more than both centralized and decentralized storage options, yet you only pay once for permanent data storage.
Arweave is also smart contract compliant. Arweave dapps may be made decentralized and everlasting, and its block weaving can process roughly 5,000 transactions per second.
Arweave Crypto Update Explained 1
Last September, Livepeer, the decentralized streaming protocol, unveiled the web3 index, a platform that measures the use of cryptocurrency protocols. As you can see, Arweave has been at the top of the list since the Web3 index was introduced.
Early October saw The Graph merge with Arweave, allowing crypto developers to easily evaluate and incorporate any data held on its block weave. Mirror, an Ethereum-based decentralized blogging platform, launched utilizing Arweave as its decentralized storage solution.
Kyve network, a data preservation protocol on Arweave, raised around $3 million from well-known crypto VCs in late October. Avalanche, Zilliqa, Polkadot's parachain, Moonriver, NEAR Protocol, and Injective Protocol all use the KYVE network to incorporate Arweave.
Through Bundlr Network, Arweave connected with Ethereum's leading scaling solution Polygon in November.
It appears that most data storage on Arweave is done via Bundlr, possibly because you can pay for it with any token and Bundlr will immediately convert it to AR to pay Arweave miners.
In December, specialist investor Katie Haun departed Andreessen Horowitz to start her own crypto VC business. As well as Arweave, Katie apparently managed the transaction to back the OpenSea NFT marketplace.
Katie recently raised $1.5 billion for her crypto VC business Haun Ventures, which will be invested in Arweave.
Arweave Crypto Update Explained 2
Sarcophagus, a crypto project managed by the Arweave team, raised about $5 million in early January. A “Decentralized dead man switch built on Ethereum and Arweave”, Sarcophagus is supposed to deliver all your cryptos to a wallet after you die. eerie but cool.
In mid-January, a BCG associate tweeted about the importance of Arweave. Boston Consulting Group is a global consulting giant. So Arweave being on its radar is a major issue.
The company said it is exploring developing new crypto funds for over two dozen coins, including Arweave. Sadly, no Arweave Trust has yet materialized.
A request to its community to archive as much information as possible concerning Russia's invasion of Ukraine made Arweave the talk of mainstream and crypto media in February.
To preserve any data linked to the violence, the Arweave community has constructed bots that are archiving millions of photographs, articles, and videos every day.
Pianity, a decentralized NFT music marketplace built on Arweave, just secured $6.5 million from famous crypto investors, along with one of the Sandbox's co-founders.
Some few days later, Arweave's decentralized Google Drive rival, AR Drive, secured $17 million from crypto VCs to develop ar.io, a decentralized gateway for Arweave's whole ecosystem.
As part of its Bundlr Network integration, Arweave stated that its users can now permanently save their on-chain data.
Arweave (AR) Crypto Price Analysis
For example, AR's pricing is closely tied to SOL's native cryptocurrency. It's simple to see the similarities in the price action of the two.
Because Arweave has been storing Solana's transaction history since December 2020, and Solana appears to be driving most of the storage demand. Solana's NFT marketplaces have been losing interest for a long time.
In September, Sam Williams was questioned why there were so many Arweave miners in China. Sam attributed it to another crypto project called Chia, which uses storage for mining. When Chia mining proved unprofitable, many miners turned to Arweave.
China's current crypto crackdown wasn't launched until late November, when Chinese Arweave miners ditched their earnings, causing AR's price to plummet.
Arweave (AR) fell together with the majority of the crypto market in December and has struggled to rebound compared to other big cryptocurrencies. There's no shortage of comments on the Arweave subreddit taking umbrage about buying AR in the country.
The excellent thing is that AR supply has remained stable. According to Coingecko, AR supply has climbed by roughly 6 million, yet according to coinmarketcap, it hasn't risen at all.
The desire for permanent storage from crypto initiatives like Solana certainly countered much of the sale pressure. All bots and regular users of Arweave automatically upload data.
It's bothersome since Arweave's vesting timeline is vague, making it difficult to determine how much AR's circulating supply has changed and will change in the future.
Fortunately, the Arweave explorer makes estimating demand simple, and all available measures point to continued exponential growth independent of price.
Nearly 1200 miners presently. On the user side, Arweave went from 90,000 wallets to over 150,000 wallets, and from 10 terabytes to over 55 terabytes of data.
Arweave's monthly transaction development has been phenomenal over the last year and shows no signs of slowing. A medium market cap suggests Arweave has plenty of room to expand. Demand for AR may easily 5x in the future with adequate integrations and decentralized applications.
The parabolic run depends on Arweave's impending milestones. There is no formal Arweave roadmap, however Sam Williams has mentioned a few impending milestones in interviews and presentations.
Arweave's Cryptocurrency Plan
In September, interview Sam Williams stated that Polkadot will use Arweave to preserve transaction histories. This basically confirms Polkadot's recent focus on decentralization.
Arweave has indeed been developing on its Polkadot integration for nearly a year, and it still appears to be ongoing. Concerning decentralization, Sam stated that Arweave is working to remove centralized components from its ecosystem.
The Arweave website will eventually be moved to the Arweave Wiki on Arweave's Permaweb.
Arweave may even give archive services to institutions, including governments, resulting in high demand for AR. Arweave's short-term aim is to become the backbone of all decentralized applications in bitcoin, Sam remarked at the Messari Mainnet Conference.
The interviewer claimed that Arweave had just raised money from crypto VCs, which Sam didn't dispute but didn't elaborate on. The interviewer probably just confused Arweave with AR Drive.
Sam explained that we will focus on incubating new applications built on Arweave via the Open Web Foundry, with the goal of increasing adoption.
Decentralized storage options for institutions, decentralized apps, and projects to store culturally and historically significant knowledge are all highlighted on the Arweave website.
In an earlier interview, Sam stated that the Open Web Foundry plans to incubate 1,000 Arweave projects over the next three years. So, how much of the money comes from AR sales?
Arweave Working With Ethereum
The author of an Arweave news piece published in December evaluated Vitalik Buterin's Ethereum plan and discovered something quite significant.
After Ethereum switches from proof of work to proof of stake and introduces zero knowledge scaling solutions, it will purge any transactions older than a year.
The purge is justified as making Ethereum speedier and more decentralized, but as the article's author points out, it's vital to keep Ethereum's whole transaction history somewhere.
The developers of Ethereum improvement proposal (EIP)-4444 consider storing Ethereum's whole transaction history on decentralized storage solutions like the Interplanetary File System (IPFS).
The IPFS, unlike Arweave, does not guarantee persistence and does not provide significant financial incentives for storage.
Ether's whole transaction history should be stored on many decentralized storage solutions. So, when the purge occurs, it's feasible Ethereum will use Arweave to store its whole transaction history, causing an absurd demand for AR.
Arweave issues
My first worry is Arweaves adoption. While Arweave's list of crypto project integrations grows daily, the app explorer shows few interactions from ordinary users.
And Arweave's two most downloaded browser extensions had only 30,000 installs. Given the scope of the project, it's not bad, but not outstanding.
When questioned recently how Arweave can comply with data rules in places like the EU, Sam Williams seemed to imply that Arweave miners may remove user data if requested.
Sam doesn't want Arweave on the naughty list of governments, especially if the project is storing their public data.
Arweave has been strong in its decentralization initiatives. This time it's about listing on US cryptocurrency exchanges.
Despite this, these issues aren't really serious. The only thing that annoys me is the lack of information on mining incentives, AR vesting timetable, and the team's AR holdings. Also, the Arweave community has many questions regarding this, which may and will be addressed.
What matters is that Arweave has gained significant traction and is poised to become one of the most popular crypto projects. I am convinced that Arweave will someday power all decentralized applications and major cryptocurrency blockchains.
THAT'S ALL FOLKS!!!.
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