How Arweave works
Most cryptocurrencies are built on blockchain technology, where data is stored in a chain of blocks. Arweave puts its own twist on this concept with a technology called blockweave, where data is stored in a graph of blocks.
Arweave miners maintain the blockweave by providing their disk space and replicating the network's data. Mining and validating blocks of data is done through a system called proof of access. In the proof-of-access system, when a miner checks a block, they must verify that it also contains a randomly selected marker from a previous block.
The result is an entirely different structure from what traditional blockchains and blockchain companies do. On the blockweave, every block is linked to two previous blocks and one following block.
Arweave also handles the legal challenges of public, permanent blockchain-based data storage by offering content moderation through several flexible mechanisms. Miners can analyze and refuse to store any data. Network gateways that provide access to stored data can filter data (regional gateways could implement different standards based on different legal needs). And Arweave-based apps can filter the data they show to users, allowing for the possibility of community-driven content moderation. As an example of positive content moderation, Arweave works with the Internet Watch Foundation to prevent distribution of content associated with the abuse of children.
There are several interesting Arweave apps, and since Arweave is a smart contract blockchain, there is an ongoing stream of new apps. The new apps include the Arweave web archive, for storing websites; Ardrive, for storing your files; and Permaweb Community, which allows users to create and run profit-sharing communities.
Partnerships
Partnerships
Given Arweave’s goal of creating a permaweb, it makes sense that Arweave and the Internet Archive would team up since the two projects are a natural fit.
Arweave began working with the Internet Archive, a nonprofit digital library of internet sites, in 2020. The project involves Arweave using its technology to make access to the Internet Archive's data fault-tolerant and decentralized.
In addition, quite a few major blockchain networks have integrated Arweave to store their blockchain data. Blockchains that rely on Arweave to store historical transaction data include:
- Solana (SOL +0.71%)
- Avalanche (AVAX -0.19%)
- Polkadot (DOT -0.60%)
- Cosmos (ATOM -1.23%)
- NEAR Protocol (NEAR -1.77%)
Beyond the ongoing demand for storage services that comes from blockchain transaction data storage, the Polygon network recently added Arweave integration for its dApps. As of early 2022, there is also a wrapped form of the AR token (wAR) that makes Arweave interoperable with the Ethereum network. The wAR token is available from the decentralized exchange Uniswap.
Unique risks
Arweave is offering a service with an extremely long life cycle and banking on its storage endowment for funding. It calculates how much to charge up front based on how much storage costs decline over the years.
The method makes sense, and it appears Arweave is conservative in what it promises compared to the amount in its storage endowment. But this is still a relatively new project that's claiming it can offer storage for hundreds of years at a minimum. It's natural to be skeptical of whether Arweave can live up to those claims. Plenty of other blockchain projects have made lofty promises only to end up failing.
Arweave's claim of permanent storage also feels disappointing when you learn that it's actually guaranteeing 200 years of storage. That's a long time, but it's a far cry from "permanent" and "forever," which is what Arweave states on its website.
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