Arweave is a new type of storage that can endow backing data on a continuous and permanent basis, allowing users and developers to store data truly permanently for the first time.
As a collectively-owned hard drive that will never be forgotten, Arweave allows people to remember and save valuable information, applications and history indefinitely. By preserving history, it prevents others from rewriting and tampering with it.
How Arweave works
Compared with common blockchains, Arweave has its own uniqueness in terms of storing blocks about transaction content. Arweave stores data in a graph of blocks. In this way, each block is connected to the two preceding blocks, forming a structure known as a "blockweave".
There are several important elements that make Arweave unique:
Proof of Access Consensus
Additionally, Arweave successfully built its own decentralised storage contract without IPFS. Users must mine new blocks by visiting “recall blocks” that allow them to earn rewards, which is called Succinct Proof of Random Access or SPoRA. Because "recall blocks" are randomly assigned, users are naturally encouraged to store larger or rarer data on them, and in doing so, users are automatically converted to miners.
If Arweave miners upload files with stronger rarity, they will be rewarded with more tokens.
What is AR?
Arweave has its own currency - AR tokens. AR tokens have a limited supply of only 66 million.
Users who want to store data must purchase it as a way to pay for storage; otherwise, the computer providing the storage must accept AR tokens as payment. Interestingly, the payments are not made directly to each miner, but are pooled and then distributed to the network over time.
This fee pool is called the Storage Endowment. Its purpose is to provide safeguards for future data from this overcharged AR pool. The fee is the mining reward paid by the user, and since the pool grows over time, it can pay the miners in the future over a long period of time.
It’s also important to note that storage on Arweave requires a one-time settlement and is not a subscription-based approach. However, data is stored permanently, which makes Arweave very attractive to both customers and the network, making it a currency with real utility.
AR Crypto Wallet
In addition to placing AR in the Gate.io exchange for easy trading, users can also save AR in a crypto wallet.
Under the Arweave network ecosystem, there are two wallets: ArConnect and Arweave Web Extension. ArConnect can help users manage Arweave balances, view and transfer assets, and view the latest transactions. At the same time, all wallets can be added and easily switched between them.
Arweave Web Extensio can also be used as a wallet. Users can manage their AR token wallet in the browser, export the wallet history and download it as a CSV file.
There are two schools of thought in determining the price of Arweave.
By way of intrinsic value: This typically involves on-chain metrics, project metrics and financial metrics of Arweave, collectively known as fundamental analysis. The law of supply and demand, tokenomics, use case, project roadmap as well as regulations and governance involved would affect the value of Arweave from a long term perspective.
By way of price action: Primarily analyzed via candlestick chart patterns and technical indicators such as MACD, RSI and the bollinger bands, technical analysis forecasts the price of Arweave on the basis that history tends to repeat itself. As the candlestick charts are a general representation of the emotion of the market, news announcements and community sentiment can be significant price action drivers for Arweave as well.
HODLers tend to prefer the long term nature of fundamental analysis, whereas short term traders tend to rely on technical analysis more. In reality, both analyses may combine and create interesting scenarios for Arweave and the cryptocurrency market as a whole.
2. What is the highest price of Arweave in history?
Arweave achieved the all-time high of €84.74 in 2021-11-05, and is currently trading at €8.62.
3. What is the lowest price of Arweave in history?
In 2020-01-31, Arweave reached the all-time low of €0.28.
4. Should I buy Arweave now?
It is important to remember that Arweave, like all other cryptocurrencies, are subject to extreme market conditions, legal policies, project team management and other unpredictable factors. As such, cryptocurrencies fluctuate greatly and it is important to manage your own risk level. Users are advised to do your own research when making investment decisions in the crypto market.