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In the Era of Web3.0, the bottom layer of the Internet will not be entirely built on blockchain, and data computing will not all run on the single plank of the public chain. Considering the efficiency of data computing and the differences in the underlying programming language environment, the data computing base layer in the Web3.0 era will be a complex and diverse environment.
Therefore, cracking the data computing efficiency of the blockchain era has become the focus of the next generation of computing paradigm. The vast Web2.0 era of data assets and computing will continue to be part of the Web3.0 era for a long time to come. The challenge is how to integrate this data and computing with the new blockchain-led ecosystem, and how to coordinate the invocation of the Internet’s basic resources such as data storage, networks and computational memory.
Arweave is a product of The Times. Sharing data in both a centralized and decentralized world will create a huge demand for the use of storage classes. Arweave’s data and applications will continue to converge with Web3.0 in the foreseeable future.
Arweave’s core mechanics
Arweave (AR) provides data storage services to users through decentralized operations and POA (Proof Of Access) consensus mechanism, giving AR rewards to miners who provide storage services. The POA implementation is based on Arweave’s unique BlockWeave structure, where each Block is connected not only to the Previous Block but also to a Recall Block.
The Recall Block is generated from the hash and Block height of the Previous Block. When deciding to use a block miner, the miners must prove that they can access the data in the recalled block in order to gain block rights, which in turn earn block rewards. This requires miners to :1) copy as many blocks as possible; 2) Keep repeating blocks as hard as possible :3) Try to save blocks with as few people as possible in order to gain more advantage when digging new blocks.
At the same time, due to the verifiable and traceable characteristics of the unique data on Arweave blockchain, it ensures the credibility of the data on the chain, so as to achieve reliable permanent storage.
The advantages of Arweave
The Storage-based Consensus Paradigm (SCP) implements AR based computing, that is, the Turing band with AR as the data source, provides data source for off-chain applications, and the calculation results are also uploaded to AR Storage. Its efficiency depends on the performance of off-chain applications and computers, and is naturally higher than consensus-based on-chain computing.
In traditional Layer1 such as Ethereum, computing, storage, consensus and other functions are handled by nodes. On-chain storage is accomplished through consensus mechanisms such as POW, constrained by impossible triangulation, with conceivable efficiency.
SCP separates on-chain storage from computation. In short, the public link itself is more like a computer’s hard disk, responsible only for data storage. As long as the data stored on the chain is reliable, the execution of smart contracts can take place on any computation-capable device on the chain.
Arweave uses a “one payment, storage forever” model. In the long run, the storage cost of AR is very low, even close to zero. The storage efficiency of AR is high. For this reason, AR is often compared to a Turing machine tape, storing user data at a low cost. Therefore, with the efficient and low-cost storage of AR, data calculation can be performed in the chain, and the data source comes from the AR chain, and the calculation results are also stored in the chain.
Arweave Ecological Project
SmartWeave is a smart contract platform built on top of Arweave that shifts the burden of smart contract execution to users through a Lazy Evaluation process. In Ethereum, each node executes every transaction. SmartWeave uses a “lazy evaluation” system that hands users calculations to verify transactions. When users interact with the SmartWeave contract, they evaluate each previous transaction on the dApp to make sure it matches the latest status of the data stored on the chain, then write the transaction results to the Arweave network for verification and repeat the process.
When run, users can treat SmartWeave as a virtual machine running outside the chain. Transactions are executed locally by reading application code and input parameters on Arweave, and then synchronising output with Arweave to separate on-chain storage from off-chain computation. The user’s authentication work is accompanied by step-by-step tracking and validation of transactions and does not need to be done on the chain, i.e. is not subject to the consensus mechanism.
EverPay is a cross-chain token payment protocol that provides real-time token payment services between users and merchants. EverPay locks the various assets of other public chains into one and maps them. For example, when a user crosses an asset from Ethereum to Arweave, the coordinator collects and validates the transaction and puts each transaction into a serialized pool of pending transactions. EverPay then packages pending transactions in batches and uploads them periodically to Arweave. The Detector will then verify The global status and account balance on The chain. Any user can apply to become a Detector node.
On the other hand, unprocessed transactions on Arweave are completed by Watchmen using multiple signatures or threshold signatures and returned to Ethereum. Thus, execution of the contract is done off the chain, and data storage is performed on the chain for storage and separated computation.
Permaweb is an application layer based on the Arweave networking protocol. It allows Dapp developers to permanently deploy front-end content on the Web, package it and store it in the Arweave network, making front-end access permanent and uncensored. Because content on the Internet cannot be changed, multiple versions are left behind when new versions are updated.
Bundlr’s vision is to make Arweave easier to access and use. One can think of Bundlr as pseudo-Layer 2 Arweave. As the name suggests, the main function of the Bundlr node is to “bundle” a digital L2s TXS and publish them as a single transaction to Arweave L1.
To date, Bundlr has processed more than 200 million transactions, stored a total of more than 40 Terabytes of data on Weave, and now processes more than 90 percent of the data uploaded to Arweave and 93 percent of all transactions.
Kyve focuses on the issue of retrieving data from Weave and the validity of the data. Like Bundlr, Kyve uses bundling to improve network efficiency. Kyve focuses on data retrieval, while Bundlr focuses on data uploading. It is clear that the future of cryptocurrencies is multi-chain. The data published to each blockchain can look quite different, so any chain that wants to use Kyve to archive and store data must be able to do so in a way that ensures it is equivalent when retrieved as to when first stored.
This in turn means that Kyve must be able to ensure the accuracy of data across multiple chains. Kyve does this through a storage pool, where uploaders are responsible for storing the latest data and verifiers are responsible for verifying the accuracy of the data. Both parties pledge $KYVE tokens to the storage pool to incentivise fairness and reduce the risk of malicious behavior.
AR token function
The main use of AR tokens is to pay for storage. The Arweave model is a one-time payment, permanent storage and free access. About 14 percent of the AR tokens paid by users are given to miners as direct incentives and 86 per cent go into the donation pool. Funds are drawn from the donor pool only when the miners’ direct incentives are insufficient.
In Arweave’s internal incentives, users mainly consume AR storage data to purchase storage services. Storage providers make money by rewarding blocks and providing storage services. Currently, it costs 0.6-0.8 cents to store 1MB of data on Arweave, and at least 2 cents to store 1MB of data for 100 years on AWS.
In other words, at current costs and AR prices, data storage on Arweave will last for at least 300 years, even before factoring in future cost reductions. Arweave has been providing storage services for public blockchain and well-known Defi projects since 2020. Solana and Nervos store the data layer in Arweave, and Synthetix, Uniswap, and Curve store the front-end presentation layer in Arweave. Arweave also provides block data storage services for public chains such as Avalanche, Celo, Near, Cosmos through the storage middleware project KYVE.
With the introduction of SPoRA, a new consensus mechanism, Arweave encourages miners to avoid decentralized storage, thereby improving data access speed for users. Bundlr is addressing Arweave’s transaction throughput issues. Bundlr, which provides bundled services for networks, currently handles 90% of Arweave’s data. The introduction and improvement of cross-chain Bridges has dramatically increased storage space.
Kyve also seeks to improve the Arweave ecosystem by ensuring the validity of the data stored on Arweave, which other underlying networks cannot. Working together, these projects are improving Arweave’s overall product experience and accessibility. While the decentralized storage narrative is not exactly “sexy,” it is a necessary part of the larger Web3 infrastructure to further decentralize and ensure resistance to centralized censorship.
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