Arweave is a good investment-based crypto analyst. The first time I visited the Arweave site, it looked very different from other cryptocurrencies. The home page is greeted with the slogan “Store data, permanently”. The page color the white and the background is like clippings of books summarized in a collage.
Arweave we found on Coinmarketcap in the Solana ecosystem. It is #75 of all cryptos, and 6th in the Solana ecosystem under The Graph. But interestingly, the price of Arweave is higher than The Graph. Where the price of Arweave is $47.44, while The Graph is $0.605. The difference is that The Graph’s market capitalization is almost $3 billion, while Arweave is $1.5 billion.
Contents
What is Arweave?
Arweave (AR) is a decentralized data storage platform that allows its users to upload data and store it permanently. The development team mentions that the platform is called “Permaweb” which means a permanent decentralized web that hosts several community-based applications and platforms.
Meanwhile, AR tokens are used to reward miners who share and store all that data and pay for storing any new data. Arweave uses a technology called Blockweave and offers a platform for unlimited data storage where users and developers will store their data permanently.
Blockweave technology provides a solution to solve major problems currently associated with public decentralized blockchains:
- On-chain storage constraints.
- Unsustainable consensus mechanism.
Arweave explained
To use Arweave users pay a one-time cost to access and provide permanent and immutable data storage. Everyone is allowed to contribute to the network by renting out unused storage space on their computers.
How to maintain stability and security across the network, Arweave uses the new Succinct Proofs of Random Access (SPoRA) consensus mechanism. It is also referred to as a Permaweb, which is a community-owned network that operates like a traditional web. Users can add data to the Permaweb, and the data cannot be changed or deleted, even by the creator.
How does Arweave work
Arweave is not a blockchain by nature. This platform stores its data in block graphs, not in blockchains containing transactions and data, like a typical blockchain. Each block is connected to the previous two blocks in Arweave, forming a structure called a “Blockweave.” DIfferent to Bitcoin, where blocks are linked sequentially, forming a chain.
Proof of Access
How to check the accuracy of Arweave transactions is also different from most cryptocurrencies that use Proof Of Work or Proof of Staking consensus. Arweave uses a different consensus called “Proof-of-Access.”
This consensus has a working system whereby each computer taking part in the network must check whether the new transaction bundle also contains randomly selected markers from the previous bundle. If the marker exists, then new transactions can be added to the network. Computers that add new bundles are rewarded in the form of AR cryptocurrency.
Proof of Access will later ensure that computers on the Arweave network can accurately verify all new transactions but not modify old transactions.
Content Moderation
This is another feature in the Arweave network where anyone running the software can freely choose the type of data they want to store.
Simply put, computers on the network can decide what type of content they want to host. For example, it only wants to host audio files and not images.
If a user uploads new data, Arweave will ask each computer in the mining network whether to accept the data. Because there is a higher incentive fee for more data storage.
Founder Arweave
Arweave was founded by Sam Williams and William Jones. Both are Ph.D. candidates at the University of Kent.
Sam Williams came to the project with experience in centralized and distributed systems. And has developed an operating system called HydrOS as part of his studies.
Meanwhile, William Jones focused on graph theory and neural networks. While Williams dropped out of graduate school to focus on the company, Jones left the project early in mid-2018 and completed his Ph.D.
Arweave’s initial name was Archain in 2017, then in 2018, it changed the name when the Arweave team was accepted to participate in the Techstars startup accelerator.
Arweave and Solana
Solana’s community reports that Arweave has partnered with Solana. Both agreed to provide a permanent decentralized data storage solution from the data ledger, and anyone can retrieve the data as needed.
Then to achieve that goal using SOLAR Bridge that will connect Solana and Arweave is enabled by Bering Waters, an investment group based in Hong Kong.
SOLAR Bridge automatically and progressively stores ledger data from the Solana blockchain to the Permaweb. It then ensures that Solana’s entire ledger history is available on the public infrastructure forever.
Arweave mining
The development team is still working on making it possible to mine Arweave using not only Linux and Ubuntu operating systems. In the future, it will be possible to mine with various operating systems, including Windows. The minimum recommended requirement is a computer that has at least 8 GB of RAM, and a recommendation of 32 GB. Mining with a CPU is more efficient than GPU because it uses Proof of Access and Blockweave software.
Miners need to download software and run mining, this requires codebase programming skills for the installation process. Mining performance depends on the amount of data stored, and it is impossible to mine without data.
Arweave mining guide here.
Where to stake Arweave?
Arweave didn’t use Proof of Stake, but it did use Proof of Access so it was impossible to use Arweave at stake. Because Arweave and the Ethereum blockchain are not directly compatible.
So to use AR to be collected, planted, staked, and exchanged like any other token in the Defi space, a step that can be taken is to swap AR for wAR or the wrapped AR will be compatible with ERC-20 tokens so it can be staked.
wAR is an ERC-20 token created by Ever finance which is the DAO responsible for facilitating Swap.
Is Arweave an ERC-20 token?
AR is the native token in the Arweave network ecosystem. It becomes an important foundation for network security through incentives.
AR tokens are used to reward network miners and also as a means of paying fees if you want to upload and store data on the blockchain.
Arweave is not compatible with the Ethereum blockchain, as mentioned earlier. How to make it compatible with ERC-20 tokens, AR tokens must be wrapped to make Arweave interoperable to Ethereum blockchain.
What wallet supports Arweave?
At the moment there are not many wallets compatible with Arweave, it seems the team is working on that possibility in the future.
The wallet used for storing AR is a web wallet extension that can be downloaded on browser, Firefox, Chrome, and Brave.
Users cannot send ERC-20 tokens to Arweave wallet addresses because they are not compatible. Arweave wallet specifically by the development team for the Arweave network.
Is Arweave a good investment
This may sound make sense, Arweave is the first blockchain to offer a permanent data storage solution. Users can store various kinds of data, audio, images, and more. It could be a competitor to Google and other data stores.
It is estimated that the demand for data storage will increase, by 2025 allowing the adoption of Arweave to be very large. Experts estimate data growth of 22.3% per year to allow growth of $137.3 billion by 2025.
Currently, 300 decentralized applications have been built in the Arweave ecosystem of which ArDrive is just one of them.
Meanwhile, Cointobuy estimates Arweave has an investment rate of 3.8 out of a total of 10 safe levels. That’s under half the safe level. But on the other hand, Cointobuy expects a return of +76.6%. The expected return from the current price is expected to reach $115.75.
Why is Arweave going up?
In November the prices of several cryptocurrencies such as Solana, Arweave increased, where Solana rose 17% and Arweave rose 45%.
But what caused the two tokens to rise quite sharply? According to Nasdaq analysts, the price soaring because of increased gaming adoption.
The report states that Solana is launching a $100 million joint venture with Lightspeed Ventures Partners and FTX. The platform has invested in blockchain-focused game studios.
Like the Ethereum blockchain, Solana is an open-source platform for building Defi applications. While the relationship between Arweave and Solana, that Arweave provides data management services to Solana through blockchain storage technology. Solana’s funding of blockchain gaming seems to be the reason for Arweave’s price hike.
Arweave all-time high
The increase in the price of AR tokens has occurred since January 2021, but the increase in volume increased in March. Where the price of AR from about $2 increased to $28 in just over a month. After that, the price fluctuated and fell to a low of $8 in July.
Then in August AR prices started to rise quite high. By the end of August, the price hit a new high of $65. September AR prices remained highly volatile and brought prices down to a low of $37 this month. October the price has risen and is approaching the high formed in August. Prices sit at a high of $61 this month.
November is the best month for Arweave, AR token price forms an all-time high at $90.94. After forming an all-time high, in December the price of AR tokens fell again to a low of $38. It is possible that this month the price will increase again, which is why price behavior forms a reversal pattern. Probably Arweave is a good investment a few years ahead.
Coinmarketcap
Where to get Arweave?
Despite, not all exchanges providing AR tokens, there are some exchanges where you can buy AR. The following exchanges support AR tokens:
Buy Arweave MEXC Global
Originally the global MEXC exchange was MXC.COM, this exchange was built by a solid team from Wall Street, Japan, and Europe. This exchange provides AR tokens, and users can buy on AR_USDT pairs.
Buy AR Huobi Global
Huobi Global is an exchange with the native platform and Tradingview chart options. You can buy AR tokens with USDT pairs. This means that to buy AR the user must have USDT.
Buy AR Hoo.com
Hoo exchange headquarter in Hong Kong launched in 2017. You can buy AR tokens on Hoo exchange on the AR/USDT trading pair.
Buy AR Gate.io
Gate.io exchange also provides AR tokens within their marketplace. You can also buy AR on this exchange, after registering an account, verifying and funding an account. It is available on the AR/USDT trading pair.
Buy AR Kucoin
Kucoin exchange is effectively making AR tokens available from 9:00 on October 26, 2021 (UTC) for trading on AR/USDT and AR/BTC pairs.
Arweave price prediction
Priceprediction.net predicts AR prices from 2021 to 2030 to increase gradually with an average change of 30% from year to year. 2021 average price $38.04, with further upside in 2030 with forecast at $1,186.45. Arweave a good investment by conclusion.
Wallet investor with its forecast system predicts AR is an awesome investment asset. The year 2022 predicts AR prices of up to $103,735, while the 2026 forecast is higher at $357,111. Arweave a good investment by conclusion.
Gov Capital with its forecasting system predicts that in 2022 the AR price will reach $177.70. And will rise higher in 2026 expected to $1450,114. Arweave a good investment by conclusion.
Arweave technical analysis
Analysis December 18, 2021. AR price at press time is $49.11, that’s up 7.6% on the day. The key point to this analysis is, there has been a reversal pattern since December 14th. The daily timeframe shows the Morning star pattern where the price forms a bull’s candle.
Focus on the Moving Average indicator, it is an EMA with a period of 30. This is the same as calculating the average price for one month by taking the close price data.
There the price is currently below the 30 MA line, but there is a possibility to break the line and become a reversal point. However, at this time the 30 MA line still acts as a dynamic resistance.
The scenario is, if the price is successful, there is a break of the MA line, where the price crosses the MA line from below, the price will have a continuation of the uptrend. However, if it becomes a strong resistance, then the price can decline again.
Meanwhile, the RSI shows level 47, which is below the value of 50 which is the center value of the RSI to signal a downtrend or uptrend.
The RSI line is rising upwards, an indication of a bullish trend, and if it crosses the 50 levels, it will be a bullish signal.
Going to the 1H timeframe, the 30 MA indicator shows a bullish trend based on the price being above the MA line. Likewise, the RSI Indicator on this timeframe shows level 54 an indication of an ongoing trend up.
AR/USDT live price Tradingview
Final thought
Arweave a good investment comes by offering to store data permanently, which is immutable. It partners with Solana blockchain so that the increase in the price of the SOL token, may affect the price of AR. Being a pioneer, in building blockchain-based data storage services, Arweave has the potential to gain gradually increasing adoption.
Note: this article is for personal information and opinion only. This is not investment advice, each investor is responsible for their investment.
You may like
