Arweave is a platform that offers persistent storage solutions as a decentralized data storage network. Launched in 2018, Arweave claims to store data permanently, unlike other decentralized storage platforms. AR Coin is the native cryptocurrency of this platform and is used for users’ data storage and payment transactions. As Kriptokoin.com, in this article, we will examine how Arweave works, what AR Coin is, and experts’ AR Coin price comments.
Arweave’s Working Principle
Unlike traditional blockchain technology, Arweave stores its data in block graphs. This innovative approach connects blocks of data in a mesh instead of a chain, creating a structure called a “blockweave”. Blockweave means that each new block must contain a random token from previous blocks before it can be added. In this way, each new piece of data in the network guarantees the accuracy of past data.
This structure is supported by the Proof-of-Access (PoA) consensus mechanism. This mechanism ensures that every computer in the network verifies new chunks of data. This efficiency enabled by Blockweave reduces Arweave’s energy consumption, allowing large data sets to be stored at low costs. AR Coin is used to reward users for performing these operations.
What is AR Coin? Usage and Economic Model
AR Coin is the native cryptocurrency used for data storage transactions on the Arweave platform. Users pay with AR Coin to upload their data to the Arweave network. These payments are split into two parts: one part is used to cover the initial storage costs, while the remaining part creates a fund to cover future storage costs.
This economic model is based on the assumption that data storage costs will decrease over time. Historically, data storage costs have fallen at an average rate of 30.5% per year. Assuming this trend will continue, Arweave builds up a sufficient fund to cover future storage costs. This makes it possible to permanently store data with a one-time payment.
Advantages and Uses of AR Coin
Arweave creates a variety of uses by offering permanent data storage. It is an ideal solution especially for digital archives, NFT collections and long-term data storage needs. In addition, Arweave’s blockweave structure ensures the highest level of data security and integrity.
In addition, applications developed on the Arweave platform provide solutions to meet the various data storage and sharing needs of users. For example, Ardrive allows users to securely store their files, while Permaweb Community allows users to create profit sharing communities. This diversity allows Arweave to appeal to a broad user base.
AR Coin Price Reviews
AR Coin is currently trading at $22.55. Experts expect AR Coin to exhibit different price movements in the short, medium and long term.
- Short Term: In the short term, the price of AR Coin is expected to reach the $25-30 band. This could be supported by increased interest in the Arweave platform and more users and investors turning to AR Coin.
- Medium Term: In the medium term, the price of AR Coin is expected to rise to the $35-40 range. The expansion of Arweave’s business partnerships and the introduction of new applications may trigger a price increase in this period.
- Long Term: In the long term, the price of AR Coin is expected to reach $50 and above. The continued decline in data storage costs and Arweave’s wider user base are among the factors that support this price increase.
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