How will AO Impact the New Narrative of Blockchain?

Original title: X Space 活动实录｜AO 是不是以太坊杀手，它将怎样推动区块链的新叙事？

Abstract: Following the AO launch event, the Arweave ecosystem once again captures attention. PermaDAO invites experts in the Arweave domain to discuss AO’s concepts, design, and user experience, focusing on the new opportunities it brings to developers and the entire blockchain industry, as well as AO’s role in shaping a new narrative in the blockchain industry.

In the rapidly evolving digital world, since its inception in 2018, Arweave has quietly occupied a place in the blockchain space with its unique decentralized storage concept. Over the past five years, Arweave’s name has been lauded among tech enthusiasts, yet its intricate technical features have made it feel both familiar and distant to many. Now, with the emergence of AO, this ecosystem has once again become the center of attention, sparking a series of curiosity and questions.

To address these inquiries, PermaDAO has initiated a unique X Space event, inviting heavyweight guests to discuss whether AO will become the “killer” of Ethereum.

We are privileged to have one of AO’s co-founders and proponents of the SCP paradigm, Wei Xiong (@outprog_ar), AO’s evangelist and co-founder of ChainFeeds, Zhixiong Pan (@nake13), the founder of ArweaveOasis, Gerry Won, and SevenX’s Head of Research (@Hill79025920), who has long been focusing on the Arweave space. They will guide us through the technical development history of Arweave since its inception, deepening our understanding of this decentralized storage pioneer. Let’s unveil the mystery of AO together and explore how it further drives the development of a new narrative in the blockchain space.

AO Computer: What’s it?

Zhixiong Pan: AO is a standardized data protocol for data processing and information exchange.

The design intent of Arweave and Ethereum differs. Ethereum is designed for computing services, while Arweave focuses on storage. However, from the outset, founder Sam has been exploring a different approach to realizing a world computer, leading to the birth of AO. AO is not a computer nor an independent network. It is a data protocol based on Arweave, setting standards for data processing and information exchange. By storing logs responsible for data computation on Arweave, a world computer can be run on Arweave, and tasks on it can be operated concurrently. For example, the SCP paradigm, after abstraction and standardization, becomes AO.

Gerry Wang: AO fills the computing puzzle piece for Arweave.

The hierarchical structure of AO can be compared with the structure of the SCP paradigm. Arweave serves as AO’s information-sharing layer, allowing programs running on AO to share data on Arweave, achieving the goal of creating a decentralized world computer. Projects on traditional blockchains are squeezed onto a single-threaded blockchain, waiting in line to run. AO, based on Arweave, builds a computing layer on top that can run processes in parallel, solving scalability issues and opening up imagination space. AO transforms Arweave from a blockchain capable only of storage into one with parallel computing capabilities.

Hill: AO realizes an enhanced version of the inscription functionality.

From a valuation perspective, the value captured by GPUs greatly favors Arweave’s move towards computing. From the user and investor perspectives, Arweave is akin to an enhanced version of inscriptions. In the Bitcoin network, due to storage restrictions, users can only perform relatively simple operations like minting, deploying, and transferring assets, with most computing performed off-chain by indexers. Indexers have no malicious incentive, as users can verify the computing process and results by changing indexers or running their own indexers. On Arweave, with its storage capacity far exceeding that of Bitcoin, developers can build a more complex and powerful computing layer on it. AO is based on this idea, allowing all computing instructions and intermediate state results to be stored on Arweave, achieving computing capabilities similar to Bitcoin’s inscriptions but more powerful and flexible.

outprog: AO protocol enables effective information exchange and collaboration between different applications, providing an open platform with unlimited possibilities.

At the core of AO is an information protocol that allows communication between different applications running on Arweave. Each application can send request information to the AO network, such as inquiring about an account balance. The receiving application will use its consensus mechanism to send the results back to the requester via the AO network. This allows different applications to perform composite operations using the AO network, achieving cross-chain information exchange.

This communication protocol of AO is not limited to blockchain applications; it also allows traditional Web2 applications to participate in this decentralized network by integrating with the AO protocol interface. This means that both Web2 and Web3 applications can utilize the AO computer for trustworthy message authentication and collaboration.

The vision of AO Computer is to break down the barriers between Web2 and Web3, allowing developers to develop decentralized applications using Web2 methods or enabling direct information bridging and exchange between Web2 and Web3 applications. The design of this communication protocol makes AO Computer an open platform, supporting interoperability between various applications and providing developers with unlimited possibilities.

What is the architectural difference between an AO computer and Ethereum EVM?

Zhixiong Pan：

1. The focus of architectural design: AO solves storage problems first, and EVM considers computing problems first
   a. AO computer: focuses on the permanent storage of data, providing a huge, immutable storage space, similar to the paper tape of a Turing machine, for storing and performing calculations.
   b. Ethereum EVM: focuses on computing power and provides an environment for executing smart contracts. Its original design is to achieve Turing completeness and allow the execution of complex computing tasks.

2. Computing model: AO can run computing tasks independently on different nodes, while EVM requires all nodes to run the same computing tasks.
   a. AO computer: Based on distributed storage and parallel computing, it allows computing tasks to be run independently on different nodes and communicate and collaborate through the AO network.
   b. Ethereum EVM: Using a centralized computing model, all nodes need to perform the same computing process to verify transactions and smart contracts, which results in computing redundancy.

3. Consensus mechanism: AO uses data to maintain consensus, while EVM uses competition or equity to reach consensus.
   a. AO Computer: Using the Hash Chain consensus mechanism, the number of data sets stored by miners becomes the largest contributor to mining performance, focusing on data accessibility and storage sustainability.
   b. Ethereum EVM: operates under the PoW (Proof of Work) or PoS (Proof of Stake) consensus mechanism, focusing on reaching network consensus through competition or equity.

4. Calculation logic: AO can define its own calculation logic, while EVM can only follow predefined operation logic.
   a. AO computer: The execution of smart contracts is closely related to data storage. The computing logic can be customized according to application requirements and has higher flexibility at the storage level.
   b. Ethereum EVM: The execution of smart contracts follows predefined opcodes, which are executed in the same way on all nodes to ensure the consistency of the network state.

outprog：

1. The architecture of Ethereum EVM：
   Ethereum’s EVM was originally designed to be an extension of Bitcoin script, aiming to achieve Turing-complete computing capabilities. Ethereum makes it easier for EVM to implement state changes and calculations by replacing the UTXO model with a state model.

2. Calculation redundancy problem：
   Ethereum’s computational redundancy is very high, because each transaction needs to be repeatedly calculated on thousands of nodes in the network, resulting in a huge waste of resources. This is one of the reasons why Ethereum has difficulty breaking through its performance limitations, because it is essentially a single-threaded machine.

3. Architecture of AO computer：
   The architecture of the AO computer is completely different from that of the Ethereum EVM. The AO computer is based on Arweave, a distributed, immutable storage system. In an AO computer, computing resources are decentralized, and there can be multiple independent nodes performing operations. These nodes can independently process data sets and perform calculations.

4. Parallel computing and collaboration：
   The AO computer allows different nodes to operate independently and collaborate as needed. This parallel computing model enables the AO computer to handle more complex tasks and improves overall network performance.

5. Concurrency model of AO computer：
   The architecture of the AO computer supports concurrent processing, in contrast to the single-threaded computing model of the Ethereum EVM. The concurrency model of the AO computer is similar to the actor model in the Erlang language, which implements concurrency between different processes through message passing.

6. Practicality of AO computers：
   The design of the AO computer was pragmatic, it was not just a theoretical idea, but it was already implemented and could be used in practice. The release and application of AO Computer demonstrates its practicality and complements existing blockchain technology.

Gerry Wang：

1. Continuous pursuit of long-term goals：
   The Arweave team is focused on achieving its long-term goals, even if those goals may not immediately attract public attention. They improve the consensus mechanism through constant updates and iterations to ensure the stability and efficiency of the network.

2. Iterative improvement of consensus mechanism：
   Arweave has gone through at least four iterations of its consensus mechanism, each designed to reduce competition for computing power and increase the efficiency of data replication and storage. This iterative process demonstrates the Arweave team’s attention to technical details and continuous optimization of network performance.

Editor’s note: Please refer to “Understand Arweave’s consensus mechanism iteration process“learn more.

1. Pragmatic development attitude：
   The Arweave team prefers mature and proven solutions such as actor models during development. They don’t pursue short-term hype, but focus on building an optimal system, which reflects their emphasis on practicality and stability.

2. Low-key and focused work style：
   The Arweave team may not appear in the public eye very often, but they are quietly carrying out continuous development work in the background. Their low-key working style and serious attitude towards iteration enable the Arweave ecosystem to develop steadily.

3. Integration of existing solutions：
   When Arweave builds its system, it integrates existing solutions, such as actor models, to ensure that the system runs efficiently. This integration strategy helps Arweave achieve its goals quickly while maintaining system stability and reliability.

How is the user experience after AO is released?

outprog：

1. Access challenges:
   a. Users may encounter network problems when trying to access AO computers, which may be caused by improper VPN settings or other network connection issues.
   b. Since AO is currently in the testing phase, there may be some bugs and system problems, which may affect users’ access to the test network.

2. Access method:
   a. Users can learn how to access the AO computer through online tutorials and demonstrations. For example, Sam and Tom provided detailed instructions at the launch showing how to use NPM and the Arweave gateway to download and run the original program. Tutorial address: https://twitter.com/aoTheComputer/status/1763702970040856833
   b. Users need to establish the corresponding Connector or Process, which is the key component for communicating with the AO network.

3. User experience：
   a. For developers, following tutorials and demonstrations, they can gradually experience the entire process of AO computer under good network conditions.
   b. Even for non-developers, by watching the demonstration, they can clearly understand the working principle and operating process of the AO computer.

4. Ease of use：
   The AO computer appears to be designed to provide an experience that is easy to understand and operate, even in its beta phase, encouraging users to experiment and explore.

What is the connection between token AO and AR? What kind of incentive mechanism will AO have in the future?

outprog：

1) Token Separation: The functions of AO tokens and AR tokens are separated. AO tokens focus on solving communication issues between applications, while AR tokens focus on Arweave’s storage functionality. This separation is akin to the division of labour in the real world, where each token has its specific role and responsibilities.

2) Design Principles of AO Tokens: The design of AO tokens will be based on observations from practice and the actual operation of test networks. Sam Williams (Founder of Arweave) will weigh and design AO tokens based on these practical situations to ensure they effectively serve the network’s needs.

3) Focus of AR Tokens: The goal of AR tokens is to support Arweave’s permanent storage capability. Sam is not interested in features like staking or DeFi; his primary objective is to ensure Arweave achieves permanent data storage.

4) Utility of Tokens: The design of AO tokens will follow the principle of optimality to support the communication needs of a global distributed, decentralized computer. This design philosophy emphasizes the practicality and efficiency of tokens in the network.

5) Pragmatic Attitude Towards Tokens: From a pragmatic perspective, token specialization is necessary. Attempting to solve all problems (such as computing and storage) with a single token would be costly, whereas separating token functions can more effectively achieve their respective goals.

Gerry Wang:

1) Token Positioning: AR tokens are seen as more professional and rigorous assets, with their design and use following strict standards. AO tokens are relatively more flexible, with their specific definition and mechanisms yet to be determined, requiring further observation and formulation.

2) Miner Incentive Issues:

a. The number of miner nodes in the Arweave network is limited, and miners have a clear need for profit. Without sufficient incentives, miners may turn to other more profitable mining activities.

b. Arweave has established an endowment vault mechanism, automatically allocating a portion of mining rewards to the vault and gradually releasing them to miners over time to ensure long-term data storage.

3) Challenges of Incentive Mechanisms:

a. Current incentive mechanisms may lack attractiveness for miners seeking immediate profits, which could affect the stability and long-term development of the network.

b. AO tokens may explore new incentive methods to increase miner motivation, thereby enhancing the foundation of the entire network.

4) Future Outlook:

a. If an effective incentive mechanism can be designed to benefit miners from AO tokens, it would be an excellent system design.

b. Currently, these issues and potential solutions are still under observation and resolution, requiring further exploration and practice.

Based on the Arweave team’s past style, the guests speculate that it may involve airdropping to early Arweave ecosystem users or require the burning of AR tokens to obtain AO, but specific details are still awaiting official announcement from the Arweave team.

How do developers access AO? What kind of projects are suitable for integration with AO?

outprog:

The way to access AO is to access the message we want the AO network to broadcast according to the message specifications of the AO protocol. Whether it is a Web2 or Web3 program, you only need to access the information in the native program or native nodes through the AO message interface.

AO can provide support to projects in the following ways:

• Compatibility: AO supports various forms of threads, whether based on WASM or EVM, and can be connected to AO through certain technical means.
• Content co-creation projects: AO also supports content co-creation projects. You can publish atomic NFT on AO, upload data and combine it with UDL to build NFT on AO.
• Data composability: NFT on AR and AO can achieve data composability, allowing an article or content to be shared and displayed on multiple platforms while maintaining the consistency and original properties of the data source. When content is updated, the AO network can broadcast these update statuses to all relevant platforms to ensure synchronization of content and dissemination of the latest status.
• Value feedback and ownership: Content creators can sell their works as NFTs and transfer ownership information through the AO network to realize value feedback for the content.

Discussion on understanding AOS

(Q: Zhixiong Pan, A: Outprog)

Q: Can AOS be understood as a thread of AO?

A: AOS is currently a terminal tool. Developers use AOS to download, run and run threads. So AOS is a tool set on the AO protocol.

Q: Is each application an AO, or is the application on AOS? Or will developers deploy applications on the AO thread?

A：1) Relationship between applications and AO:: Theoretically, the application can exist as an independent AO instance, or it can run on the protocol layer of AO. The key is whether the application follows the AO’s protocol specifications and is able to send and receive data according to these specifications.

2) Versatility of AO protocol: The AO protocol is a communication protocol that allows applications written in different languages ​​(such as Golang or JavaScript) to communicate with each other while complying with the protocol specifications. This communication is achieved by sending data to the AO network.

3) The role of AOS: AOS can be viewed as an environment that supports application development and deployment. Applications can be developed on AOS and interact with the AO network through AOS.

4) Application deployment: Developers can choose to deploy applications on AO’s threads, which means the application will interact directly with the communication protocol of the AO network. This deployment method allows applications to take advantage of the parallel computing and data transfer capabilities of the AO network.

5) Analogy to microservice architecture: The AO network can be analogized to a microservice architecture, in which each application (or service) is an independent unit and they communicate through the AO protocol. This architecture is similar to the Kafka message queue and is used to implement message delivery between services.

In conclusion,Web2 or Web3 applications can become threads on AO. After using the AO protocol standard, verifiable communication can be carried out throughout the AO network or computing environment.

Q: What is the difference between AO and ICP?

A: ICP is akin to developing within a standardized container, where each container has some memory constraints. Both AO and ICP actually utilize the actor model pattern, but the difference lies in that ICP provides a cloud service within a container model similar to Docker, while AO is more flexible. AO can be accessed without using AOS, as long as it adheres to the AO protocol standards, enabling integration with both Web2 and Web3 applications.

Compare AO and Polkadot from the perspective of sharding architecture

outprog：

Polkadot is a relay chain + parachain model. Each process of AO is equivalent to Polkadot’s relay chain. If AO needs to stake AO tokens in the future to run a process, this will be similar to Polkadot’s auction slot.

Hill：

Similarity between AO and Polkadot:

1. Security guarantee: Polkadot’s relay chain provides security guarantee for all parallel chains, while in AO computer, Arweave (AR) provides security guarantee for each computing unit (process). Both are responsible for storing the global state and ensuring the security of the network.
2. Composability: Both AO Computer and Polkadot support composability, which means that different computing units or parallel chains can cooperate with each other to implement complex functions.

The difference between AO and Polkadot:

1. Architectural differences: Polkadot has a centralized relay chain, while the AO computer is based on Arweave’s decentralized storage, and the calculation results of each computing unit are stored on Arweave.
2. Deployment freedom: Polkadot used to have card slot restrictions. Although this restriction has now been lifted, AO computers have no card slot restrictions in principle, allowing users to deploy their own machines to run computing units.

Q & A

(In this session, outprog answers audience questions)

Question: How does DAPP access AO? Does the front-end page of the application have to interact with the back-end API interface written as a process?

Answer:

1. DAPP access AO:
   a. DAPP can access the AO network through the messages interface of the AO computer. This means that DAPP can utilize the communication capabilities of the AO network to interact with other applications or services.
   b. For DAPPs that need to perform specific calculations or issue tokens, AO provides native process support. Developers can use these processes to implement DAPP’s computing needs or token issuance functions.

2. Front-end and back-end API interaction:
   a. The front-end page does not have to be written as the back-end API interface of the process for interaction. Developers can choose to directly connect to AO’s message interface, or use existing back-end services (such as Alipay) as a process of AO and transfer information to other platforms through the AO network.
   b. If the back-end service of DAPP is already a process, the front-end page can interact with it through the AO network to send and receive data. This interactive method allows DAPP to achieve cross-chain communication and data sharing in the AO network.

The final suggestion for developers is to use AO as a messaging system when developing AO applications. If you don’t understand the AO system, you can learn the Erlang language. The terminology in the AO architecture is basically the same as that in Erlang.

Question: Does AO have any plans to develop SDK in the future?

Answer:

Maybe Arweave officials won’t do it themselves, and the project needs to develop it by itself. everVision plans to develop a series of tools in the Golang language that can interface with AR and AO. I believe there will also be SDKs for various other languages ​​in the ecosystem.

Question: How to develop smart contracts on AO?

Answer:

Your own smart contracts on AO need to be developed with Lua. However, threads on AO are compatible with smart contracts in other languages, whether Solidity, Move, Rust or Warp.

What narrative will the release of AO create for the entire blockchain industry?

Hill：

1. The value of eternal data：
   AO is based on the permanent storage feature of Arweave, emphasizing the long-term value of data. In the Web2 era, data was usually stored in large company databases, while in the Web3 era, data is stored on the blockchain, but the cost is usually higher. AO provides a low-cost permanent storage solution that enables high-value data to continue to generate value.

2. The combination of AI and blockchain：
   In the field of AI, data and computing power are two key scarce resources that generate value. AO provides AI with access to permanently stored high-value data while maintaining the lowest storage costs in the industry. This combination provides new possibilities for the development of AI applications on the blockchain.

3. Potential of decentralized AI applications：
   The scalability of AO creates conditions for the development of decentralized AI applications. As AI products become more dependent on specific data sets, the products themselves may become increasingly valuable as the data accumulates.

4. Native access to Arweave’s computing layer：
   AO is the only solution with native access to Arweave’s compute layer, which provides developers with a unique platform to build and run AI applications based on eternal data.

5. AO’s impact on the industry：
   The release of AO attracted industry attention and was viewed as a potentially game-changing technology. It not only provides a new perspective on the application of AI in blockchain, but also brings a new narrative direction to the development of the entire blockchain industry.

Zhixiong Pan:

1. Improved user experience：
   AO’s framework allows developers to build applications that are more in line with Web2 user habits, which means that users can enjoy the convenience of decentralized applications without being aware of the complexity of blockchain technology.

2. Implementation of full-stack Web3 applications：
   AO enables developers to create full-stack Web3 applications, including static and dynamic web pages, as well as applications that require computing. This provides developers with greater flexibility, allowing them to design richer and more complex applications.

3. Integration of AI data：
   The release of AO may bring new solutions for the processing and storage of AI data, potentially altering the scale of AI data processing and providing new possibilities for AI applications on the blockchain.

4. Challenges to existing economic models：
   The release of AO may pose challenges to Arweave’s economic model, as it may change user demand for storage and computing resources. This may require Arweave to adapt accordingly to new market and technological developments.

5. Integration of technology and user habits：
   AO’s goal is to build an application that can fit most users’ habits without requiring users to understand the technology behind it. This narrative emphasizes the importance of usability and user-friendliness of blockchain technology.

Gerry Wang:

1. Breakthroughs in scalability：
   AO combined with Arweave provides a scalability solution that is different from traditional blockchains. It no longer relies on users to compete for limited bandwidth resources, but enhances the scalability of the network through parallel computing modules, thus avoiding the bottleneck problem in traditional blockchain networks.

2. A new model of decentralized computing：
   The design philosophy of AO is to create a super-parallel computer that allows any number of processes to run in parallel at the same time. This model not only supports large-scale calculations, but also ensures the verifiability of calculations, which is something that previous decentralized computing systems did not have.

3. Feasibility of practical application：
   AO’s white paper mentions applications such as BitTorrent as examples that demonstrate the widespread use and feasibility of the bandwidth sharing model. The success of this model demonstrates the potential and usefulness of the decentralized computing approach adopted by AO for practical applications.

4. Transformation of industry narrative：
   The release of AO is not just a technical innovation, it also changes the narrative of the blockchain industry. AO provides a new perspective to solve the scalability problem of blockchain through decentralization and parallel computing, which provides new directions and possibilities for the development of the industry.

5. Outlook：
   The launch of AO is seen as promising as it provides a feasible, pragmatic solution to improve blockchain scalability. This solution is not only feasible in theory, but also shows its strong potential in practical applications.

outprog:

1. The transition from storage to computing：
   The release of AO marks that Arweave is no longer just a storage platform, but adds computing power. This provides a new option for other blockchain projects, allowing developers to develop applications more conveniently without having to worry about underlying transactions and transaction processing.

2. Improve user experience：
   The launch of AO allows developers to develop applications in a way that is more in line with Web2 user habits, providing a better user experience. Users can enjoy the convenience of decentralized applications without being aware of the technical complexity behind them.

3. Openness and inclusiveness：
   AO’s computing power provides the possibility of integration for various blockchain projects. Whether it is Web3, Web2 or other blockchains, they can be integrated on the AO network, demonstrating its high degree of openness and inclusiveness.

4. Decentralized identity system：
   The release of AO enables users to manage their identities more flexibly, for example, by using their smartphones as hardware wallets and combining email and phone binding to achieve decentralized identity verification.

5. Platform for the past, present and future：
   AO’s computing power allows Arweave to not only store past historical data, but also carry current data. It is even possible to record the activities of the entire Internet on Arweave, making it a comprehensive and historical platform.

6. Reshaping the blockchain narrative：
   The release of AO resets Arweave’s narrative, moving from a single storage chain to a comprehensive computing and storage platform. This shift is of great significance to the development of the entire blockchain ecosystem, providing more possibilities for developers and users.

Summary

We hope everyone focuses on the technical development of AO rather than just short-term financial gains in the secondary market. While financial markets may offer quick returns, the real value comes from long-term ecosystem development and support from the developer community. The long-term growth of AO depends on the healthy development of the ecosystem and the active participation of the developer community. Excellent projects and innovative applications will also support the continuous growth of AO.

Space replay:

https://permadao.com/permadao/Twitter-Space-AO-cf92e72845234073a8e1ef68ebe8a129

statement:

1. This article is reproduced from [PermaDAO]，Original title “X Space Activity Record | Is AO an Ethereum killer? How will it promote the new narrative of blockchain?”，Copyright belongs to the original author [Jomosis], if you have any objections to the reprint, please contact the Gate Learn team, and the team will handle it as soon as possible according to relevant procedures.

2. Disclaimer: The views and opinions expressed in this article represent only the author’s personal views and do not constitute any investment advice.

3. Other language versions of the article are translated by the Gate Learn team and are not mentioned in Gate.io, the translated article may not be reproduced, distributed or plagiarized.