Want to jump straight to the answer? You can buy AR on Crypto.com.
The birth of the internet was supposed to give rise to the unfettered flow of communication and learning to people worldwide. Discussions about censorship of information on the internet have become increasingly popular as of late. In response, Arweave has built an actual censorship-resistant data storage protocol that has the ability to maintain valuable information, documents and apps indefinitely. This advanced storage protocol is powered by a technology called the “blockweave.”
Blockweave is a modified version of a blockchain. The blockweave is a system of blocks that carry data making permanent, low-cost data storage possible. In comparison, the blockchain is a linked set of blocks that contain immutable transaction data. Arweave having the capability of conserving history prevents others from rewriting it.
This year, the Arweave AR token has put on a stellar performance, multiplying its value over 10 times and currently trading at about $50. This price explosion is due to Arweave’s technology being used in some of the most popular non fungible token (NFT) projects that launched this summer.
Solana, a blockchain protocol, has agreed to use Arweave technology to build its SOLAR Bridge data storage solution. In order for the NFT metadata to be stored on Arweave, customers must pay using Arweave’s AR token. Therefore as more data is stored on Arweave, demand for the AR token will increase. More projects using Arweave storage solutions increase network traffic and the utility of the AR token.
What is Arweave?
Arweave is a next-generation storage solution that allows users and developers to store data on the network permanently. The Arweave network connects people that have spare disk space to those who need to store data. To facilitate storage, Arweave uses an altered form of a blockchain that they call blockweave.
The blockweave, in turn, also uses a modified version of the proof-of-work consensus algorithm called proof-of-access. One of the most monumental features of the Arweave protocol is its ability to store photos, videos and web applications indefinitely.
The “permaweb” is part of Arweave’s data storage layer. It makes it possible to store all documents and applications built on the Arweave protocol forever. Arweave is built on top of the HTTP protocol. This means that web browsers like Chrome and Brave can always access any permaweb document or application. Another fantastic feature of the Arweave network is the incentives built around its native currency for all Arweave applications, the AR token.
Users have to pay AR tokens to gain permission to add data to the Arweave network. Arweave charges a price based on its formula that calculates the cost to store the data for 200 years. The circulating supply of AR tokens is 66 million. You cannot store data on Arweave unless you submit your payment in AR tokens. This payment system pools the AR tokens and pays the network participants and the future cost of the storage from the interest.
The Arweave network is fully decentralized, and anyone can store data in the network or rent out disk storage space. The development team is the Arweave community. They use the funding to pay community members to build out any genius ideas they may have. Arweave currently has a $21,000 bounty for anyone who can build a continuously updated, permanent record of DeFi user interfaces that is verifiable. Although DeFi protocols are, in fact, immutable on the blockchain, the user interfaces they use are mostly all centralized and can be altered or taken down by hackers.
Brief History of Arweave
Founded by Sam Williams in 2017, he describes Arweave as “a permanent information storage system that simplifies all of the complexities of a blockchain. Arweave makes it so that you can store a piece of data for an exceedingly long time with high degrees of security and no issues. It’s an immensely reliable backup.”
Before being invited to the Berlin Techstars program in 2018, the Arweave team was a group of Ph.D. students with no connections to the greater blockchain community. The Techstars program helped Arweave raise $8.7 million to continue their project. A few months later, Arweave held an initial coin offering (ICO). The Arweave mainnet commenced in June 2018. Arweave has since secured funding from several backers like Coinbase Ventures. It also uses a portion of its funds to incentivize community adoption and growth.
The AR token hit its all-time high of $70 in August 2021.
How to Buy Arweave
Getting started buying your first cryptocurrencies can be challenging. Fortunately, several exchanges offer very easy-to-use interfaces making learning the process simple.
- Open an online account.
The crypto world is ever-expanding and there is an assortment of exchanges to choose from. It’s a good idea to research several exchanges and find the ones that are the most reputable and secure. Some exchanges also offer users fringe benefits like free token airdrops or options to lower fees.
Most exchanges will require you to complete the KYC (Know Your Customer) process upon registration. The information needed for KYC approval is usually proof of residence and identity. - Download a wallet.
If you’re a day trader you may be more inclined to use your option to store your crypto on an exchange. Long-term investors are advised to store their tokens away from the exchange either offline in a hardware wallet or in an online software wallet. In the event the exchange is hacked, your funds will already be securely stored.
The AR token is currently only compatible with the Arweave web extension wallet. You can download it from Chrome, Firefox or Brave. Don’t send your AR tokens to any wallets other than the Arweave web extension wallet — you may lose your tokens. - Make your purchase.
After funding your trading platform account, you’re ready to buy your crypto. There are a lot of great projects to choose from; it’s a good idea to research a project’s team, technology and token economics before making your purchase. After you decide, you can enter its ticker symbol and the number of tokens you’d like to purchase.
Best Cryptocurrency Exchanges For Arweave
Arweave isn't listed on popular exchanges like Robinhood or Coinbase. Instead, you'll need to make an account with an exchange that supports a larger variety of altcoins. Here are some of the best cryptocurrency exchanges for Arweave for U.S based investors.
Best software wallet: Arweave web extension
The Arweave web extension wallet lets you create and manage your AR tokens directly in your browser, making permanent archiving safe and easy. To get started, check out its step-by-step guide which can be found here.
Bonus:
Arweave’s core features enable permanent data storage, and users need to pay for storage with the AR token. This system will continue to drive increased demand for the token, pushing the price higher over time. Solana choosing the Arweave protocol to store its NFT metadata is the first step in the mass adoption of AR.
Trade, Sell or Convert your Arweave
Knowing when to trade, sell or convert your crypto has a lot to do with knowing your goals and expectations and how much time you want to devote to technical analysis. There are several strategies you can use to help you decide. Some investors choose to take profits on the way up while keeping a portion of their tokens for the long term. The trading platform also allows you to convert your crypto into cash. When you request for withdrawal of your deposited funds, you have the option of transferring the money directly to your bank account. This allows you to remain financially stable while still having exposure to the market.
After you decide on the price you want to sell your crypto, one of the most efficient things you can do to take profits at a certain price is to set a limit sell order. This will help you stay disciplined with locking in profits. Another strategy to get the lower price you want is to set a limit buy order.
In general, day traders sell their tokens based on technical analysis for short-term gains. On the contrary, investors are able to ignore short-term price volatility to see gains over a longer time frame.
Current Crypto Prices
The crypto markets recently experienced a sharp correction. Bitcoin dropped from $52,000 to $42,000 in 1 hour. The market cap is still holding above $2 trillion and the BTC price seems to have stabilized around $46,000. The 24-hour volume is over $180 billion. Algorand (ALGO) has been one of the high performers during the correction.
Is Arweave a Good Investment?
Arweave is a long-term focused project. It is designed to be utilized for 200 years and beyond. Its payment mechanism creates a platform of funding for the protocol itself as well as those renting out their spare disk space. This should result in an increase in the token demand and price long term.
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About Tyran Christian
His expertise is in blockchain technology and cryptocurrencies.