Arweave PriceAR

What is Arweave?

Arweave is a decentralized storage network that offers a platform for the indefinite storage of data, secured by a consensus method called proof of access (PoA). The project's aim is to create something akin to the fabled Library of Alexandria: an everlasting digital archive.

In this respect, Arweave shares many similarities with other decentralised storage platforms such as Filecoin and Sia, both of which also use cryptocurrencies to create marketplaces where users can buy and sell data storage services.

Like these ambitious protocols, Arweave is also seeking to disrupt a market dominated by existing storage giants such as Google, Amazon, and Microsoft.

Arweave is not a traditional blockchain: each block links to the block immediately before it and to a random earlier block, a structure called a blockweave. Its consensus method, proof of access (PoA), requires miners to supply hashes from both earlier blocks to build a new block and earn the AR block reward.

History of Arweave

The project was first announced as Archain in August 2017 and rebranded to Arweave in February 2018; the Arweave mainnet launched in June 2018 with 1,800 hand-picked participants from various countries. The company's mission is to make permanent, low-cost storage a reality. It aims to accomplish this with the Arweave network, which uses a block-based data structure called a 'blockweave'.

Arweave was co-founded by Sam Williams, a computer scientist who serves as CEO, and William Jones; both were Ph.D. candidates at the University of Kent. Jones left the project in mid-2018 to complete his Ph.D.

The Arweave blockweave underpins the Arweave Permaweb: an array of data, websites and applications hosted on the blockweave. Arweave is described as a browsable sister network to the internet, and permaweb content can be accessed through modern web browsers. The Arweave protocol enables individuals with spare hard drive space to store data on the network in perpetuity in exchange for AR tokens. Arweave anticipates that the cost of storage will continue to decrease, and it uses a formula to calculate the cost of storing a particular piece of data. Arweave's storage cost assumptions are set out in its whitepaper (arweave.org/whitepaper).

Prior to the mainnet launch, the Arweave team conducted an initial token sale limited to whitelisted individuals.

In November 2019, Arweave raised US$5 million from a number of venture capital firms. In March 2020, the team raised a further US$8.3 million from Andreessen Horowitz, USV and Coinbase Ventures in exchange for AR tokens. Following this round, however, the firm stated that it would use the new funds to incentivise community adoption and growth.

Although Arweave was founded with centralized leadership, in January 2020 it launched a decentralized autonomous organization (DAO) made up of core community members to further the development and expansion of the network and its ecosystem.

What is the AR token?

AR is the currency of the Arweave network.

Users who wish to store data must buy AR to pay for distributed data storage, and computers on the network that provide storage services must accept payment in AR tokens.

Of note for investors is that the maximum supply of AR is capped at 66 million tokens, of which roughly 65.65 million are currently in circulation. Of the maximum 66 million AR tokens, 55 million were distributed in the genesis block at the network's launch in June 2018.

A further 11 million AR are scheduled to be introduced gradually through block mining rewards.

How to buy Arweave (AR)?

AR can be acquired on major exchanges that list AR/USD, AR/EUR and AR/USDT pairs. After purchase, AR can be held in a self-custody wallet that supports the Arweave network; always confirm the receiving address before transferring. AR is available on a range of major cryptocurrency exchanges; check that the platform is regulated in your jurisdiction and supports AR trading pairs before buying.

AR trades on a number of major exchanges; always verify a platform's regulatory status and fees before trading.

Risks and considerations

The value of AR, like that of other cryptocurrencies, can be highly volatile and may fall as well as rise. Regulatory treatment of cryptocurrencies varies by jurisdiction and may change, which could affect how AR can be bought, sold or held. The Arweave network also carries technical risks, including potential vulnerabilities in its protocol or the possibility that its long-term storage assumptions do not hold as expected. This article is for general information only and does not constitute investment advice.