In a previous article, ‘Will decentralized storage protocols overtake the cloud storage market?’ we compared four major decentralized storage protocols.
In this article, we look at whether Arweave’s concept of permanent storage can be an effective competitive strategy to win the market.
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. The upfront storage costs, which start at 40+ years, are significantly more expensive than existing solutions.
For example, 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 costs $0.000023/MB per month. It will take 40 years for every Arweave user to break even. This means that Arweave users pay a premium for permanent storage.
So who exactly will use this solution? Arweave is suitable for organizations and companies that need their data to be:
Publicly availableStored for 40+ yearsCensorship proof
Potential application scenarios for Arweave
Storage layer for on-chain data
The main problem with most public chains is that they cannot store large amounts of hypermedia data on their chains. Blockchain is a ledger for accounting, not data storage. As a storage layer for on-chain data, Arweave has a large market.
Storage layer for NFTs
NFTs, which have a clear demand for long-term, immutable and publicly available storage, are likely to be one of the most important market segments for projects like Arweave.
Storage for public but sensitive content
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.
Arweave’s Ecosystem Expansion Path
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.
Collaboration with Web 3.0 Infrastructure
Arweave works with Cosmos, Polkadot, Avalanche, NEAR and Solana. The Graph, a blockchain indexing protocol, also supports Arweave, allowing users to more efficiently access archived blockchain data.
Collaboration with DeFi Projects
More and more projects are using Arweave to store data related to the crypto industry. There are some important use cases in the DeFi space: Uniswap and Compound have already hosted their entire front-end applications on Arweave.
Extending Arweave Ecosystem
NFTs: Arweave has an NFT standard, known as Atomic NFT, which allows both the asset file, metadata file to be kept on-chain and permanent, while other solutions only offer a one-time NFT and the metadata file is stored off-site. chain. DApps: Arweave has its own ERC-20 token format called Profit Sharing Token (PST). When a smart contract is deployed, 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.
In Summary
Arweave, the Web 3.0 storage infrastructure, is a decentralized cloud storage solution that solves the problem of storing data forever over time. Its network and application architecture supports development and data storage as a whole, enabling data integrity across time and space.
Many smart contracts, especially GameFi, pay a lot of attention to user front-end behavior data and urgently need to connect the data on and off-chain.
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.
Date and author: February 15, 2022, [email protected]
Data source: Arweave Dashboard
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