{"id":213360,"date":"2022-02-15T09:00:04","date_gmt":"2022-02-15T09:00:04","guid":{"rendered":"https:\/\/cryptoslate.com\/?p=213360"},"modified":"2022-02-14T19:52:49","modified_gmt":"2022-02-14T19:52:49","slug":"can-arweave-re-invent-data-storage-for-the-blockchain","status":"publish","type":"post","link":"https:\/\/cryptoslate.com\/can-arweave-re-invent-data-storage-for-the-blockchain\/","title":{"rendered":"Can Arweave Re-Invent Data Storage for the Blockchain?"},"content":{"rendered":"<p><span style=\"font-weight: 400;\">In a previous article,<\/span><i><span style=\"font-weight: 400;\">\u00a0 &#8216;<\/span><\/i><a href=\"https:\/\/cryptoslate.com\/will-decentralized-storage-protocols-overtake-the-cloud-storage-market\/\"><i><span style=\"font-weight: 400;\">Will Decentralized Storage Protocols Overtake the Cloud Storage Market?'<\/span><\/i><\/a><i> <\/i><span style=\"font-weight: 400;\">we compared four major decentralized storage protocols.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">In this article, we see if Arweave\u2019s concept of permanent storage can be an effective competitive strategy to win over the market.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Arweave's permaweb is not private, and all data is permanently public and directly accessible. Therefore, it is not suitable for storing personal or sensitive data. Its upfront storage costs, which start at 40+ years, are significantly more expensive than existing solutions.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">For example,<\/span> <span style=\"font-weight: 400;\">to be able to store files on Arweave, developers create a transaction to pay a certain number of AR tokens as a network fee (currently $0.01\/MB) to store data forever. At the same time, the low-end package of Amazon S3 charges $0.000023\/MB per month. It will take 40 years for each Arweave user to break even. That means Arweave users are paying a premium for permanent storage.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">So, who exactly would use this solution? Arweave is suitable for organizations and companies who need their data to be:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Publicly available<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Stored for 40+ years<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">Censorship resistant\u00a0<\/span><\/li>\n<\/ul>\n<h2><strong>Potential Application Scenarios For Arweave<\/strong><\/h2>\n<p><strong>Storage layer for on-chain data<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">The biggest problem with most public chains is that they cannot store large amounts of hypermedia data on their chains. Blockchain is a ledger for bookkeeping, not data storage. As a storage layer for on-chain data, Arweave has a vast market.<\/span><\/p>\n<p><strong>Storage layer for NFTs\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">NFTs, which have an obvious demand for long-term, immutable, and publicly available storage, will likely be one of the major market segments for projects like Arweave.<\/span><\/p>\n<p><strong>Storage for public, but sensitive, content<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">In traditional centralized storage, the company or central authority can easily remove content. Activists like WikiLeaks, for example, or larger organizations similar to Wikipedia would be prime candidates for decentralized storage.\u00a0<\/span><\/p>\n<h2><strong>Arweave\u2019s Ecosystem Expansion Path<\/strong><\/h2>\n<p><span style=\"font-weight: 400;\">Looking back at Arwearve's technology development and market expansion trajectory since 2021, it is clear that the Arweave team has a clear and unique vision of its application scenarios and market strategy.\u00a0<\/span><\/p>\n<p><strong>Cooperation with Web 3.0 Infrastructure<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">Arweave has partnered with Cosmos, Polkadot, Avalanche, NEAR, and Solana. The Graph, a blockchain indexing protocol, supports Arweave as well, allowing users to access archived blockchain data more efficiently.<\/span><\/p>\n<p><strong>Collaboration with DeFi Projects<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">More and more projects use Arweave to store data related to the crypto industry. There are some significant use cases in the DeFi space: Uniswap and Compound have already hosted their entire front-end applications on Arweave.<\/span><\/p>\n<p><strong>Expansion of Arweave Ecosystem<\/strong><\/p>\n<ul>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">NFTs: Arweave has an NFT standard, known as Atomic NFT, that makes it possible to keep both the asset file, metadata file on-chain and permanent, whereas other solutions just provide a one-off NFT and the metadata file is stored off-chain.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">DApps: Arweave has its own ERC-20 token format called Profit Sharing Token (PST). When deploying a smart contract, developers can set up a corresponding PST pass and agree that the holder of the PST will receive a proportional share of the future gas fees generated by the contract. Thus, the more a smart contract deployed on Arweave is used, the higher the intrinsic value of its PST tokens. This incentivizes developers.\u00a0<\/span><\/li>\n<\/ul>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-213361 size-full\" src=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/2-14.png\" alt=\"\" width=\"760\" height=\"485\" srcset=\"https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/2-14.png 760w, https:\/\/cryptoslate.com\/wp-content\/uploads\/2022\/01\/2-14-300x191.png 300w\" sizes=\"(max-width: 760px) 100vw, 760px\" \/><\/p>\n<h2><b>In Summary<\/b><\/h2>\n<p><span style=\"font-weight: 400;\">Arweave, the Web 3.0 storage infrastructure, is a decentralized cloud storage solution that solves the problem of storing data in perpetuity over time. Its network and application architecture supports development and data storage as a whole, making data integrity from time and space possible.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Many smart contracts, especially GameFi, pay much attention to user front-end behavior data and urgently need to connect the data on and off the chain..\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">With the growing richness of the ecosystem, Arweave has the potential to build a solid foundation to solve the above problems and have an excellent chance to become a top chain.<\/span><\/p>\n<p><strong>Date & Author:<\/strong> February 15th, 2022, sabrina@footprint.network<\/p>\n<p><strong>Data Source: <\/strong><a href=\"https:\/\/www.footprint.network\/guest\/dashboard\/arweave-fp-4c9dff09-7213-4022-9fe2-df0c0eccb88a?channel=u-apcVFj#secret=8CE7F8DAE34B576D1113542854CF8D07\"><span style=\"font-weight: 400;\">Arweave Dashboard<\/span><\/a><\/p>\n<h2>What is Footprint Analytics?<\/h2>\n<p>Footprint Analytics is an all-in-one analysis platform to visualize blockchain data and discover insights. It cleans and integrates on-chain data so users of any experience level can quickly start researching tokens, projects and protocols. With over a thousand dashboard templates plus a drag-and-drop interface, anyone can build their own customized charts in minutes. Uncover blockchain data and invest smarter with Footprint.<\/p>\n<ul>\n<li><a href=\"https:\/\/www.footprint.network\/?cnl=cryptoslate\">Footprint Website<\/a><\/li>\n<li><a href=\"https:\/\/discord.gg\/3HYaR6USM7\">Discord<\/a><\/li>\n<li><a href=\"https:\/\/twitter.com\/Footprint_DeFi\">Twitter<\/a><\/li>\n<li><a href=\"https:\/\/t.me\/joinchat\/4-ocuURAr2thODFh\">Telegram<\/a><\/li>\n<li><a href=\"https:\/\/www.youtube.com\/channel\/UCKwZbKyuhWveetGhZcNtSTg\">YouTube<\/a><\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>In a previous article,\u00a0 &#8216;Will Decentralized Storage Protocols Overtake the Cloud Storage Market?&#8217; we compared four major decentralized storage protocols.\u00a0 In this article, we see if Arweave\u2019s concept of permanent storage can be an effective competitive strategy to win over the market. Arweave&#8217;s permaweb is not private, and all data is permanently public and directly [&hellip;]<\/p>\n","protected":false},"author":828,"featured_media":213362,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[120,77252],"tags":[],"post_folder":[],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v21.9 (Yoast SEO v21.9.1) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Can Arweave Re-Invent Data Storage for the Blockchain?<\/title>\n<meta name=\"description\" content=\"If Arweave\u2019s concept of permanent storage can be an effective competitive strategy to win over the market\uff1f\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/cryptoslate.com\/can-arweave-re-invent-data-storage-for-the-blockchain\/\" \/>\n<meta property=\"og:locale\" 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