Permanent Cloud Storage
In today's digital age, cloud storage has become an essential aspect of our daily lives. With the increasing amount of data that we generate and need to store, the traditional means of data storage, such as physical hard drives or flash drives, are becoming less practical. Cloud storage offers a more convenient and accessible solution, allowing users to store their data on remote servers that they can access from anywhere, at any time, as long as they have an internet connection. However, one of the limitations of traditional cloud storage is that it requires users to pay a monthly or annual fee to maintain their storage space. This is where permanent cloud storage comes in.
Permanent cloud storage, as the name suggests, offers users a one-time payment option for storing their data permanently. This means that users can store their data without worrying about monthly or annual subscription fees, and they can access their data whenever they want without any time limits.
Advantages
Data Loss Prevention
Data loss is a major concern for individuals and businesses alike. Losing important files, documents, or other data can have serious consequences, ranging from inconvenience to financial loss and legal liability. Traditional cloud storage solutions, while convenient and accessible, are not always reliable in terms of data protection. Many cloud storage providers require users to renew their subscriptions regularly, and if they forget to do so, their data may be lost forever.
Another risk associated with traditional cloud storage is the potential for providers to go out of business. This can happen for various reasons, such as poor financial performance, acquisition by a larger company, or legal issues. In such cases, users may not have access to their data, and there may be little or no recourse to recover it. This can be especially problematic for businesses that rely on cloud storage for critical operations, as the loss of data can disrupt their entire workflow and put them at risk of legal penalties.
Permanent cloud storage offers a solution to these concerns by providing users with the assurance that their data is safe and secure, regardless of what happens to the provider. With permanent cloud storage, users pay a one-time fee to store their data indefinitely, and they can access it whenever they want, without any time limits. This means that users don't have to worry about renewing their subscriptions or losing their data if the provider goes out of business.
One of the ways that permanent cloud storage providers ensure the safety and security of user data is through encryption. Encryption is the process of converting data into a code that is unreadable without a key or password. This makes it difficult for hackers or unauthorized users to access the data, even if they manage to gain access to the storage servers. Permanent cloud storage providers typically use high-level encryption protocols to protect user data, such as AES-256 encryption, which is considered one of the most secure encryption methods available today.
In addition to encryption, permanent cloud storage providers may also implement other security measures, such as firewalls, intrusion detection and prevention systems, and regular security audits. These measures help to prevent unauthorized access, theft, or loss of data, and they ensure that user data is protected against both internal and external threats.
Another benefit of permanent cloud storage is the ease of use. With traditional cloud storage solutions, users may have to go through a complex setup process or install additional software to access their data. With permanent cloud storage, however, the setup process is typically straightforward and user-friendly, and users can access their data through a web browser or a dedicated app. This makes it easy for users to store and access their data, without the need for specialized technical skills.
Cost Efficiency
Cost is a significant factor when it comes to data storage, and traditional cloud storage solutions can be expensive, especially for businesses or individuals with large amounts of data. Many cloud storage providers offer pricing plans based on the amount of storage space required, and these plans typically involve monthly or annual fees. For example, a business that requires 1 TB of storage space may have to pay hundreds or even thousands of dollars per year, depending on the provider.
Permanent cloud storage offers an alternative approach to cost, as it allows users to pay a one-time fee for storage space and store their data indefinitely. This can be a cost-effective option for users who have large amounts of data that they need to store, as they don't have to worry about monthly or annual fees adding up over time. In addition, the one-time payment can be a better option for users who prefer a more predictable cost structure, rather than having to manage ongoing subscription payments.
Another cost-related benefit of permanent cloud storage is the potential for long-term savings. With traditional cloud storage solutions, users may have to pay higher fees if they require additional storage space, or if they exceed their allotted storage limits. This can be especially problematic for businesses that need to scale up their storage capacity over time. With permanent cloud storage, however, users can purchase the storage space they need upfront, and they don't have to worry about paying extra fees for additional space in the future.
Permanent cloud storage providers can also offer cost savings by eliminating the need for on-premise storage solutions. Many businesses and individuals invest in expensive hardware or software solutions to store their data on-premise, which can be costly to maintain and upgrade over time. With permanent cloud storage, users can avoid the need for these investments and instead rely on cloud-based storage solutions that are more scalable, secure, and cost-effective.
In addition to cost savings, permanent cloud storage can offer other benefits for businesses and individuals. For example, permanent cloud storage providers may offer more customization options and advanced features than traditional cloud storage providers. This can be especially beneficial for businesses that require specific data management or security features, or for individuals who require more advanced tools for organizing and accessing their data.
Furthermore, permanent cloud storage can also provide greater flexibility and mobility for users. With cloud-based storage solutions, users can access their data from anywhere with an internet connection, making it easy to collaborate with others, work remotely, or access data on the go. This can be especially beneficial for businesses that need to share data with remote employees or clients, or for individuals who need to access their data while travelling.
Data Security
Data security is a top priority for businesses and individuals when it comes to storing data on the cloud. With cyber-attacks and data breaches on the rise, it's crucial to ensure that data is secure and protected. Fortunately, permanent cloud storage providers offer robust security measures to ensure the safety of user data.
One of the key security measures that permanent cloud storage providers implement is encryption. This means that all data is encrypted both during transmission and while at rest, ensuring that it is protected from prying eyes. Encryption is a critical component of data security, as it ensures that even if someone gains access to the data, they won't be able to read it without the decryption key. Most permanent cloud storage providers use industry-standard encryption protocols to ensure maximum protection.
In addition to encryption, permanent cloud storage providers typically implement other security protocols to prevent unauthorized access to data. These protocols include multifactor authentication, firewalls, intrusion detection and prevention systems, and other security measures to ensure that only authorized users can access data. Multifactor authentication requires users to provide additional information beyond a password, such as a fingerprint or a security token, to ensure that the user is who they claim to be.
Regular security audits are also standard practice for permanent cloud storage providers. These audits are conducted by third-party security experts and aim to identify potential vulnerabilities or weaknesses in the provider's security infrastructure. This helps ensure that the provider is compliant with industry standards and regulations, such as HIPAA or GDPR, and that they are taking all necessary measures to protect user data.
Another security feature of permanent cloud storage is the ability to set custom access controls. Users can set specific permissions for different users or groups of users, ensuring that only authorized individuals can access certain data. This is especially important for businesses that need to protect sensitive data, such as financial or medical records. By setting granular access controls, businesses can ensure that only those who need access to certain data can view or modify it.
Finally, permanent cloud storage providers offer backup and disaster recovery solutions to ensure that user data is not lost in cases of a disaster, such as a natural disaster, cyber-attack, or hardware failure. Regular backups are conducted, and data is stored in multiple locations to ensure that it is always accessible, even in the event of a catastrophic event.
User-Friendliness
In addition to the peace of mind, flexibility, and remote accessibility, permanent cloud storage providers also typically offer user-friendly interfaces and additional features to enhance the user experience.
One of the key features offered by permanent cloud storage providers is automatic backup and synchronization across multiple devices. This means that users can access their data from any device that is connected to the internet, and changes made to the data on one device are automatically updated on all other devices. This feature ensures that users always have the most up-to-date version of their data, no matter where they are accessing it from.
Another feature offered by permanent cloud storage providers is file-sharing options. This allows users to share their data with others, such as colleagues or family members, with ease. Users can set specific permissions for different users, ensuring that only authorized individuals can access certain data. This feature is especially beneficial for businesses that need to collaborate on projects or share files with clients.
Digital estate planning features are another useful addition to permanent cloud storage providers. These features allow users to plan for the distribution of their digital assets in the event of their passing. This includes everything from social media accounts to digital files and other online assets. By using these features, users can ensure that their digital legacy is managed and distributed according to their wishes.
In addition to these features, permanent cloud storage providers typically offer user-friendly interfaces that make it easy for users to manage their data. Users can organize their data into folders and subfolders, search for specific files, and view their data in various formats, such as list view or thumbnail view. These interfaces are designed to be intuitive and user-friendly, making it easy for users to find and manage their data.
Furthermore, permanent cloud storage providers typically offer customer support to assist users with any issues or questions they may have. This support may be available through various channels, such as email, phone, or live chat, and may be available 24/7. This ensures that users have access to assistance whenever they need it.
Disadvantages
One of the main disadvantages of permanent cloud storage compared to impermanent cloud storage is the initial cost. While users do not have to pay recurring fees for storage space with permanent cloud storage, they do have to pay a one-time fee to access the storage. This fee can be expensive, particularly for users who need to store large amounts of data. In contrast, impermanent cloud storage providers typically offer pay-as-you-go or monthly subscription options, which can be more affordable for users with smaller storage needs.
Another disadvantage of permanent cloud storage compared to impermanent cloud storage is the potential for data loss or corruption. While permanent cloud storage providers typically have robust security measures in place to protect user data, there is always the risk of data loss or corruption due to hardware failure, software bugs, or human error. In some cases, this data loss or corruption may be irreversible, meaning that users may lose important data that they cannot recover. Impermanent cloud storage providers, on the other hand, typically offer shorter storage periods, which can reduce the risk of data loss or corruption.
In addition to the risk of data loss or corruption, permanent cloud storage may also have limited storage options compared to impermanent cloud storage. Some permanent cloud storage providers may only offer a certain amount of storage space, which may not be enough for users with large data needs. Additionally, some providers may not allow users to expand their storage space, meaning that users may need to switch to a different provider if they require more storage. Impermanent cloud storage providers often offer more flexible storage options, including the ability to scale up or down storage as needed.
Another potential disadvantage of permanent cloud storage compared to impermanent cloud storage is the reliance on internet connectivity. Users require a stable internet connection to access their data with permanent cloud storage, which may not always be available. This can be particularly problematic for users who need to access their data in a remote location or who do not have access to reliable internet connectivity. In contrast, impermanent cloud storage providers typically offer offline access to data, which can be more convenient for users who need to access their data on the go.
Permanent cloud storage may also have privacy concerns compared to impermanent cloud storage. While permanent cloud storage providers typically have robust security measures in place to protect user data, there is always the potential for unauthorized access or hacking. Additionally, some permanent cloud storage providers may share user data with third parties, which can be a concern for users who are worried about their privacy. Impermanent cloud storage providers often offer more granular control over user data and privacy settings, which can be reassuring for users who value their privacy.
Finally, some users may prefer impermanent cloud storage over permanent cloud storage because it offers more flexibility. Impermanent cloud storage allows users to store data for a specific period of time, after which the data is automatically deleted. This can be useful for users who only need to store data for a short period of time, such as during a project or while travelling. In contrast, permanent cloud storage requires users to make a long-term commitment to storing their data, which may not be practical for all users.
Example of Permanent Cloud Storage
Forever.com is a permanent cloud storage provider that is different from other cloud storage providers. The company’s unique selling proposition is its commitment to storing digital assets permanently. Forever is a platform that allows users to store and share digital assets such as videos, photos, and documents in a secure and safe environment.
Glen Meakem founded the company in 2012 to address the need for a safe and secure platform where people could store and share their memories and important documents. Since then, Forever has become a leading provider of permanent cloud storage solutions, with a user-friendly interface, robust security features, and a variety of additional features that enhance the user experience.
One of the significant benefits of using Forever is that users can store their digital assets indefinitely. Traditional cloud storage providers require users to pay monthly or yearly fees to access their data. With Forever, users pay a one-time fee for the storage, and their data is stored indefinitely. This means that users can have peace of mind knowing that their essential files and memories will be accessible for generations to come.
Forever offers a variety of features designed to enhance the user experience. The company offers automatic backup and synchronization across multiple devices, making it easy to ensure that all data is up-to-date and accessible from any device. The company also offers file-sharing options that allow users to share their digital assets with friends, family, and colleagues. Additionally, the platform allows users to collaborate on projects in real time.
Digital estate planning is another key feature of Forever. Users can create a plan for how their digital assets will be managed and distributed in the event of their passing. This feature is important for individuals with large collections of digital assets, such as family photos, videos, and documents. It ensures that these assets will be managed in a way that aligns with their wishes.
Forever is unique because of its commitment to preserving memories. The platform offers a variety of tools and services designed to help users organize and preserve their memories. The company provides scanning and digitization services for physical media such as photos and videos. Additionally, Forever offers a variety of printing and photo book options, allowing users to create physical copies of their digital assets.
Security is a top priority for Forever. The company uses a variety of security measures, including encryption during transmission and storage, regular audits to ensure compliance with industry standards and regulations, and other security protocols to prevent unauthorized access, theft, or loss of data. Additionally, the company offers a 100-year guarantee on its storage media, ensuring that users' data will be accessible for generations to come.
Forever’s commitment to preserving memories and offering robust security measures has earned it recognition from various organizations. In 2020, Forever was named the winner of the American Business Awards for Best New Product or Service in the Storage and Backup category. The platform was also recognized as a 2021 Best Cloud Storage Provider by Digital.com.
Let’s compare Forever prices with an instance of impermanent cloud storage.
Amazon S3 Standard is one of the storage classes offered by Amazon Web Services (AWS) Simple Storage Service (S3). It is a highly available, durable, and scalable object storage service designed for frequently accessed data. S3 Standard is optimized for performance, making it ideal for use cases that require low latency and high throughputs, such as big data analytics, mobile and gaming applications, and content distribution.
S3 Standard offers a number of features that make it a reliable and efficient storage solution. It provides automatic scaling of storage capacity, so users only pay for the storage they use. Additionally, it provides high durability of objects, with a 99.999999999% (11 nines) durability guarantee. S3 Standard also provides high availability of objects, with a 99.99% availability guarantee. Finally, the S3 Standard provides built-in security features, such as server-side encryption and access control policies, to protect user data.
To store 500 GB of data on AWS S3 Standard service, one must pay $0.023 per GB per month, which is about $11.5 per month. Assuming that this person needs to store the data for 100 years–almost a lifetime–then he/she would need to pay more than $13,000. In contrast, Forever offers $4,400 for almost 100 years of storage. This shows the importance of using permanent storage instead of impermanent storage when needing to store a large amount of data for a very long time.
Up until now, we understood why permanent storage can be better than impermanent storage, and why we need it. Now, it’s time to say why we require decentralized permanent storage.
Decentralized Permanent Storage
Advantages
Decentralized permanent storage provides several benefits over traditional centralized storage solutions. Decentralized permanent storage offers increased data security compared to traditional centralized storage methods. In a decentralized storage network, data is encrypted and distributed across multiple nodes, making it more challenging for hackers or unauthorized individuals to access the data. Decentralized storage networks also utilize blockchain technology, which provides an additional layer of security and ensures that data cannot be tampered with or deleted without permission.
Decentralized permanent storage also offers increased data availability, which is particularly important for businesses and organizations that require high levels of accessibility for their data. With traditional centralized storage solutions, downtime can be a major issue, which can result in lost productivity and revenue. However, with decentralized storage, data is stored across a network of nodes, ensuring that it is available at all times. Additionally, because there is no single point of failure, data can still be accessed even if some nodes go offline. This provides users with greater flexibility and ensures that their data is always available when they need it. Furthermore, since decentralized storage networks often utilize a peer-to-peer architecture, users can access their data from anywhere in the world, making it an ideal solution for businesses and organizations with remote workers or distributed teams, such as financial institutions, healthcare providers, and government agencies.
Decentralized permanent storage also offers increased data sovereignty. In a centralized storage system, data is typically stored in data centers located in specific geographic locations, which means that users' data is subject to the laws and regulations of that jurisdiction. However, with decentralized storage, data is distributed across nodes located in different locations, giving users greater control over where their data is stored and potentially allowing them to choose nodes in jurisdictions with more favorable data protection laws.
Moreover, decentralized permanent storage can be more cost-effective than centralized storage solutions. In a centralized system, storage providers need to invest in expensive infrastructure and equipment to store and manage the data. In contrast, decentralized storage relies on the existing resources of the network participants, which can significantly reduce the cost of storage. Decentralized permanent storage is often based on a peer-to-peer network, which means that there are no intermediaries involved in the storage process. This allows users to store their data directly on the network, without having to go through a centralized storage provider. By eliminating the need for intermediaries, the cost of storage can be significantly reduced.
Furthermore, decentralized storage can also help to reduce the cost of data transfer. With traditional cloud storage solutions, data transfer fees can be a significant expense, especially for businesses that need to transfer large amounts of data on a regular basis. However, with decentralized storage, data can be transferred directly between nodes on the network, without the need for a central server to facilitate the transfer. This can significantly reduce the cost of data transfer, which can be especially beneficial for businesses with high data transfer requirements. Overall, the cost savings associated with decentralized storage can be a significant advantage for businesses and organizations looking to reduce their storage and data transfer costs.
Decentralized permanent storage also provides increased data availability. Since the data is stored across multiple nodes, it can be accessed from anywhere in the world. Additionally, since there is no single point of failure, the data is available even if some nodes in the network go offline. This means that users can access their data at any time, from anywhere, without worrying about downtime or data loss.
One of the key benefits of decentralized permanent storage is its inherent security. Because data is distributed across multiple nodes, it is more difficult for an attacker to compromise the entire network or access all the data. Additionally, because the network is decentralized, there is no single point of failure that can bring down the entire system. This makes decentralized storage an attractive option for individuals and organizations looking for secure, reliable storage solutions.
Decentralized permanent storage also offers benefits in terms of accessibility and affordability. Because there is no need to pay for centralized storage providers, decentralized storage can be more cost-effective for individuals and businesses, particularly those with large amounts of data to store. Additionally, because the network is distributed across multiple nodes, data can be accessed from anywhere in the world, making it an attractive option for individuals and businesses with global operations.
Challenges
One of the biggest challenges of decentralized permanent storage is ensuring data integrity. In a decentralized network, data is often stored across multiple nodes, making it difficult to ensure that the data has not been tampered with or corrupted. To address this challenge, decentralized storage solutions regularly use cryptographic techniques such as hashing and digital signatures to ensure that the data remains intact and unaltered. These techniques can help to protect against data tampering, but they also require additional computational resources and can add complexity to the storage system.
Another challenge of decentralized permanent storage is ensuring data availability. While storing data across multiple nodes can increase data availability, it also introduces new challenges. For example, if a node goes offline, the data it contains may become temporarily unavailable until another node in the network takes over. To address this challenge, decentralized storage solutions typically use redundancy and replication techniques to ensure that data is always available. However, these techniques also require additional storage resources and can add complexity to the storage system.
Data security is another major challenge of decentralized permanent storage. While storing data in a decentralized network can provide increased security, it also introduces new risks. For example, if a node is compromised or hacked, the data it contains may be at risk. To address this challenge, decentralized storage solutions often use encryption and access control techniques to ensure that data is only accessible by authorized users. However, these techniques also require additional computational resources and can add complexity to the storage system.
Another challenge of decentralized permanent storage is scalability. Decentralized storage solutions must be able to scale to meet the needs of growing data volumes and increasing numbers of users. This can be difficult to achieve, as it requires a balance between decentralization and efficiency. For example, while storing data across many nodes can provide increased redundancy and data availability, it can also increase the complexity and overhead of the storage system. Finding the right balance between decentralization and efficiency is a key challenge for decentralized storage solutions.
Finally, there is the challenge of interoperability. Decentralized storage solutions often use different protocols, standards, and interfaces, making it difficult to integrate with other systems and applications. This can limit the usefulness and adoption of decentralized storage solutions. To address this challenge, decentralized storage solutions must support open standards and protocols that allow for easy integration with other systems and applications.
In addition to these challenges, there are also practical challenges associated with decentralized permanent storage. For example, users must have access to reliable and high-speed network connections in order to access their data. This can be a challenge in areas with limited or unreliable network connectivity. Additionally, decentralized storage solutions may require specialized hardware or software, which can be costly and difficult to manage.
Arweave is a decentralized permanent data storage, built on blockweave technology–a variation of blockchain technology–that promises to bring the benefits of decentralized permanent storage while solving the challenges it may face.
Arweave
Arweave developed an underlying network where data can be stored forever and accessed on its permaweb, a secondary layer where data is accessible in a human-readable manner (e.g., via web browsers).
Founded in 2017 as Archain, the company changed its name to Arweave in 2018 while completing the Techstars Berlin mentorship program. Arweave's mission is to make permanent, low-cost storage a reality. The company aims to accomplish its goal with the Arweave network, a block-based data structure called a “blockweave”.
Arweave's blockweave technology forms the foundation of the Arweave permaweb. The permaweb is a collection of websites, data, and applications hosted on the blockweave network, which can be accessed through modern web browsers like Google Chrome or Brave. The Arweave protocol aims to provide a permanent and decentralized storage solution for its users. To achieve this, the protocol allows individuals with available hard drive space to store data on the network in exchange for AR tokens.
The cost of storage on the Arweave network is determined using a formula that factors in the size of the data being stored and the number of other nodes in the network storing the same data. Arweave believes that the cost of storage will continue to decline, which will make it more accessible to individuals and organizations. By using a decentralized storage solution like Arweave, individuals and organizations can have greater control over their data and can ensure that it remains secure and private.
The Arweave mainnet launched in June 2018 with a select group of 1800 hand-picked participants across various countries. Before the launch, the Arweave team also conducted an initial token sale limited to whitelisted individuals.
In November 2019, Arweave secured a $5 million funding round from several venture capital firms in exchange for $5 in Arweave tokens. Six months later, the Arweave team raised another $8.3 million in exchange for AR tokens. However, after this round, the firm stated that it would use the new funds to incentivize community adoption and growth.
Technology
Arweave is built on four core technologies that work together to create low-cost, high-throughput, permanent storage on a new blockchain. These innovations are:
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Blockweave
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Proof of Access
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Wildfire
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Blockshadows
While these technologies are intertwined, each plays a pivotal role in creating a new type of network suited for both fast transactions and low-cost permanent storage.
Blockweave
A well-known property of most blockchains is that every block must be stored to participate in validating transactions as a “full node”. This is not the case with Arweave.
Arweave has introduced two novel concepts to enable nodes to perform essential network functions without having the entire chain. The first of these concepts is the block hash list, which consists of a list of all the previous blocks' hashes. This enables the verification of old blocks and the effective evaluation of potential new blocks. The second concept is the wallet list, which includes all active wallets in the network. Transactions can be verified without the possession of the block in which the last transaction occurred, thanks to the wallet list. Nodes can participate in mining the weave almost immediately by synchronizing these block hash lists and wallet lists. The network makes these lists available for download by the miners.
By introducing these two concepts, Arweave provides a way for nodes to contribute to the network's essential functions without possessing the whole chain. This allows new nodes to join the network and begin mining the weave promptly. The block hash list enables the verification of old blocks and the evaluation of potential new blocks effectively. The wallet list allows transactions to be verified without the possession of the last transaction's block. As a result, these two concepts reduce the amount of data that nodes need to store, making it easier for new nodes to participate in the network. By introducing these concepts, Arweave makes it easier for more people to participate in the network, which in turn can lead to a more secure and reliable decentralized storage solution.
Arweave utilizes a different approach to network verification that doesn't require new nodes to verify the full block structure upon joining. This system, called ongoing verification, allows miners to download the current block and retrieve the blockhash and wallet lists. Since these lists have been continuously verified through the ongoing progress of each block, new miners can start participating immediately without verifying the entire weave themselves. However, full weave verification is still available to any node that wishes to perform it.
Instead of finding the previous transaction associated with a wallet in order to verify a new transaction, miners can simply verify that the transaction has been properly signed by the wallet owner's private key. This removes the need for miners to have possession of the previous block, which could slow down the verification process. Additionally, the hash of the blockhash list is distributed with every new block to prevent recall block forging attacks.
Overall, Arweave's approach to network verification streamlines the process for new nodes to join the network and participate in mining the weave. By continuously verifying blockhash and wallet lists, Arweave ensures that new miners have access to reliable information without the need for complete verification of the entire blockchain.
Proof of Access
Arweave's consensus mechanism is a combination of Proof of Access (PoA*) and Proof of Work (PoW). Unlike traditional PoW systems, the PoA algorithm uses data from a randomly selected previous block to generate each new block. This approach, combined with the blockweave data structure, allows miners to store any previous blocks rather than having to store the entire chain as in a typical blockchain. This weave of blocks, called a blockweave, is incentivized by PoA and wildfire.
* In general, “PoA” is the abbreviation of Proof of Authority. In terms of Arweave’s structure, “PoA” is the abbreviation of Proof of Access.
The “recall block” for the next block is chosen by calculating the modulus of the hash of the current block with respect to the current block height. This allows the recall block to be selected in a fair and transparent manner. By incorporating data from a randomly selected previous block and using the blockweave data structure, Arweave's consensus mechanism reduces the computational and storage requirements for mining while maintaining the security and reliability of the network.
The transactions in the recall block are hashed alongside those found in the current block in order to generate the next block. When a miner finds an appropriate hash, they distribute the new block along with the recall block to other members of the network. This allows the other members of the network, even those without their own copy of the recall block, to independently verify that the new block is valid.
Wildfire
As a data storage system, Arweave requires not only the ability to store large amounts of information, but also to provide access to that data in the most expedient manner possible. Further, an important part of the Arweave system is costless access to data at the point of request. Subsequently, the Arweave has an added layer of incentives to encourage miners to share data freely.
The Wildfire system offers a solution to the dilemma of data sharing on a decentralized network. Its unique ranking system serves as an incentive structure, giving peers a financial reward to ensure they maintain the highest ranking possible. This ensures new blocks and transactions can be distributed quickly and efficiently among nodes, without the need for costly operations, and with the assurance of high-speed data transfer.
Being responsive and accepting data from other peers is key to staying ahead in the ranking system. Peers who consistently fail to meet these criteria are blacklisted from the network, meaning they won't be able to benefit from the advantages Wildfire offers.
Rather than having to allocate resources or spend time on optimizing data delivery routes, Wildfire sets up a network topology that fits the underlying physical connection substrate of the internet, treating each connection like a separate path with its own latency assumptions, in turn improving latency and data distribution speed. The topology will also adjust to changes in the internet architecture over time, allowing for improved routes for data distribution.
This mechanism also helps to protect against malicious actors and allows for data sharing without fear of reprisal. All peers in the network are incentivized to treat each other in the most friendly manner possible, meaning no one can take advantage of those who make one-off requests.
Overall, the Wildfire system excels at rapidly fulfilling data requests on a distributed network while providing a safe, secure and fast data-sharing environment. By setting up a ranking system that prioritizes and rewards those who are active and responsive, network peers are encouraged to perform optimally even in the absence of a cost incentive. Moreover, the adaptive and ever-changing topology provides a stable and reliable flow of data throughout the entire system.
Blockshadows
In a regular blockchain system, a large amount of data is distributed to each node in the network when a new block is generated. This is not only inefficient, but can also slow down the consensus process. To address this issue, Arweave has developed a revolutionary new technology called blockshadows.
Blockshadows have been designed to drastically reduce the amount of data that needs to be sent with each block. This helps improve the speed of block consensus and increases the system's transaction throughput. The technology ensures that only the parts of the block that are not already known to the node are sent, instead of sending the entire block.
Arweave has designed this revolutionary technology to improve the efficiency of blockchains. It eliminates the vast amount of data that needs to be sent with new blocks, allowing consensus to be achieved more quickly. Moreover, the increased transaction throughput enabled by blockshadows also brings with it added security, as it reduces the opportunity for bad actors on the network.
The introduction of blockshadowing means transactions are no longer tied to the creation of blocks. Instead of broadcasting a full block, only a minimal block shadow is sent. This block shadow is essentially made up of two parts: a hash of the wallet list and a hash list, and a list of transaction hashes. By using these two elements, it becomes possible to reconstruct the full block rather than transmitting the entire thing.
The information provided in the block shadow is usually only a few kilobytes and is usually enough to recreate the block. To ensure this process runs smoothly, nodes will also immediately share transactions with one another once they know that other nodes also have the same transaction. Even though the size of a block may be large, this method ensures the network can reconstruct blocks almost instantly.
By introducing blockshadowing, the network is able to get the latest information much faster and with more efficiency. By separating transactions from the creation of blocks, networks don't have to keep sending out full blocks which use up more time and resources. Now networks are able to process the data quicker and with fewer resources by using the power of blockshadowing.
The innovative blockshadowing system offers rapid, flexible block circulation throughout the network. It ensures transactions can be finalized with little delay and consensus can be easily established at a rate similar to the speed of the network. This system keeps transaction fees low, even during periods of intense network usage. Therefore, its promising top throughput of 5000 transactions per second on an optimistic network with 100 Mbps bandwidth is quite impressive.
The blockshadowing system simplifies the process of transaction validation and achieves better scalability of the network, which is one of the major challenges in the crypto world. This system eliminates the lags in the transaction processing, hence, it could positively impact user experience. Such an improved scalability factor increases the transaction rate and can act as a significant driver for the mainstream adoption of cryptocurrency.
The blockshadowing system has given rise to a trouble-free transaction handling mechanism that does not compromise the quality and speed of the transactions. Transacting in cryptocurrencies is made more convenient because of this system owing to the high processing speed and the security assurance of the transactions. It ensures the safety of a user’s digital assets and the reliability of the entire blockchain network. These qualities make the blockshadowing system a revolutionary advancement in the field of cryptocurrencies.
Democratic Content Policy
To support the freedom of individual participants in the network to control what content they store, and to allow the network as a whole to democratically reject content that is widely reviled, the Arweave software provides a blacklisting system. Each node maintains an (optional) blacklist containing, for example, the hashes or substrings of certain data that it doesn’t wish to ever store, and will never write to disk content that matches this. These blacklists can be built by individuals or collaboratively, or can be imported from other sources.
At a local level, these blacklists allow nodes to control their own content, but the sum of these local rejections also creates network-wide content rejection. Content that is rejected by more than half the network will not only be rejected by each of those individual nodes, but will also be rejected by the wider network as a whole. This creates a democratic network-wide content rejection system that can merge blacklists across a variety of cultures and opinions into a tiny, specific blacklist of content that is universally reviled. This near-universal, democratic blacklist shields the network from outside censorship by a few actors, while still allowing it the freedom to protect itself in a democratic manner.
Permaweb
Permaweb is an ever-evolving system, comprised of a variety of communication protocols and built on top of Arweave's immutable storage layer, which offers users an alternate version of the classic internet experience. From a visual standpoint, the permaweb is extremely similar to the traditional web we've grown accustomed to. But underneath this façade lies a vast array of features that differentiate the user experience of the permaweb from that of the traditional web.
This section explores some differences between the permaweb and the traditional web, and how the protocols involved work together to provide various advantages.
Arweave is an innovative storage platform which offers its users security, reliability and accuracy. Founded on the blockchain infrastructure, Arweave offers its users protection from changes to content, tampering and data loss.
Using the principles outlined in the blockchain papers, Arweave guarantees that all its content is timestamped, from the moment it comes into the system, to the time when it is accessed or modified. The process for this is unique and does not require time servers or GPS systems, but instead uses a process of consensus which is secured through a mesh network of nodes connected to the system. This ensures that all timestamps are accurate within a few minutes, and remain unaltered while they are stored or retrieved.
Furthermore, Arweave incorporates the option to include a transaction data transmission inside a block hash to ensure the integrity of the content remains unaltered and available at all times. This extra feature provides unbeatable security and is a testament to the reliability of the Arweave platform.
All in all, Arweave is a dynamic storage option that provides users with the peace of mind that their content is secure and tamper-proof. With the support of the blockchain’s reliable time-stamping and the blockweave consensus verification process, users can access their data with confidence, knowing that the integrity and accuracy of their content are top-notch.
The Arweave Network has revolutionized the way the web works by recording facts and the associated identity behind them in an immutable log of data. Every wallet record in the wallet list includes that wallet's last transaction, providing full transparency of every wallet's history. This ensures that users always know who is behind their interactions on the network, allowing users to know where a specific fact originated from.
Unlike other content-addressed networks, each page or data uploaded to the permaweb is registered to a real identity, at a specific point in time. This becomes even more important for data that can be deemed factual, as any alterations to this data would have a record of who is responsible for such revision. This stands in stark contrast to the centralized web, which can allow for false claims to be made, spread and retracted quickly, hiding the source of this misinformation.
As a result, the Arweave Network makes it easier for users to trust the data they receive, as they know they can trace the details of this fact back to its true source. This allows decisions to be made that are more reliable and grounded, as users can more easily ensure the data they receive is true. As a result, users can make decisions based on quality rather than quantity of information that can be difficult and time-consuming to confirm.
In addition, the Arweave Network lessens the likelihood of fraudulent activity, as all transactions are publically available on the ledger. This allows users to check if a particular transaction matches the associated records on the wallet. For example, if a user is buying goods, they can check if the seller has made such a transaction and the details associated with it before making a payment. This eliminates the risk of potentially being scammed and allows users to engage in commerce with greater trust.
Overall, the Arweave Network has transformed the way data is handled on the web by allowing it to be associated with a single verified identity. By keeping an immutable record of transactions, it ensures that every piece of data or information is traceable back to its source, creating a safe and trustworthy atmosphere for any web-based interactions. This means users can be confident in the data they interact with, which can have a positive impact on how decisions are made and user confidence within the web.
Replicating data is an important part of the Arweave protocol's mechanisms design, which is necessary to ensure the resilience and responsiveness of the network. The incentives implemented by the protocol promote reliable data storage that can quickly and effectively be located and retrieved. To achieve this, incentives are in place to ensure that more data is able to be stored across the network.
Having a higher probability of replication in the system makes it faster and easier for requests to be answered. This idea is far more efficient compared with ’contract-based’ storage systems, as nodes don’t have to forward data requests to other nodes and can promptly answer them with locally available information.
The incentivizing process ensures that the network has greater availability and is better protected from damage or attack. By allowing the replication of data, the spread of information across nodes is much more efficient and requires less energy and time. Furthermore, response times are quicker as the data requested is already present in most of the nodes in the network.
Arweave protocol’s incentive-driven approach also contributes to increased accuracy and integrity of the data. By utilizing a decentralized system with information spread over a range of nodes, the risk of compromised data is significantly reduced. The wide-scale replication of data also prevents potential malicious tampering, as there will be multiple copies used as a reference.
The Arweave network allows browsers and third-party applications to communicate safely and effectively with one another, thanks to its underlying design. Through the use of the Arweave internode protocol, the network is built specifically with the goal of having the entire system communicate in the same language. This is accomplished by having the nodes within the Arweave network use the same reference implementation of the HTTP API, helping to ensure that data is transferred securely between the participating nodes as well as with any other external systems or applications.
The result of this is that the Arweave network allows browsers, computers, and other devices to access the same data in the same format. Everyone in the network speaks the same ‘language’ so all data is accessible quickly and easily among all users–a plus for both the user and the developer. On the user end, it allows them to quickly and easily understand the data they’re seeing. For developers, they’ll find it easier to create a structure that works with any type of system, whether desktop, mobile or otherwise, that uses the same protocols.
The advantage of having a unified protocol is also appreciated outside the Arweave network. Any third-party applications can use the same reference implementation of the HTTP API and securely connect with the Arweave network. On top of that, they can also incorporate data from other applications, as long as they use the same basic protocol or have been converted to one that’s compatible. This makes it easy for developers to create a streamlined database that can be connected and used between disparate applications and systems.
The Arweave internode protocol is an invaluable asset for those who use the Arweave network. Having everyone armed with the same reference implementation of the HTTP API, greatly simplifies the process of transferring and accessing data among users, regardless of their device or browser. It also ensures that the data is secured with encryption, making it ideal for any use case involving sensitive and important information. Third-party applications can also benefit from the Arweave network, and get easy access to data from external sources. All in all, the Arweave internode protocol helps to make the Arweave network more secure, accessible and efficient for all.
Profit-Sharing Community
The Arweave network now hosts over 300 sites and apps and is constantly expanding. The summer of 2021 has seen even more growth, with the launch of profit-sharing tokens (PSTs) in June and profit-sharing communities (PSCs) in August. PSCs are a new, fairer business model for web startups that offer sustainable incentives for founders, developers, community contributors, and users.
In traditional startups, employees own equity that is unlikely to become liquid anytime soon, does not grant governance rights, and almost never issues dividends. In contrast, all profit-sharing community contributors earn tokens that give them fair governance rights, instant liquidity, and access to micro-dividends generated by the usage of apps. The Arweave protocol enables permanent data storage, which powers the profit-sharing community ecosystem.
For app developers, using Permaweb means a published web app requires zero ongoing maintenance and incurs no additional costs after it is deployed. For users, this means that the Arweave apps you use (and all previous versions of these apps) will always be accessible.
PSTs allow people who build websites and apps to earn money easily and flexibly. PSTs are a novel way of incentivizing and rewarding both Permaweb app founders and external contributors to a project. When building a PST app, the developer adds a mechanism that sends small tips in AR, Arweave’s native token, to PST holders every time a user interacts with the app in a way that generates a transaction on the Arweave network. Tips are automatically distributed to PST holders in proportion to their relative PST holdings. Developers can determine the size of tips when building the app. Tips are often micropayments for interactions, such as sending a message or posting a status update.
PSC creators can also designate larger tips for significant interactions, like pressing a donation button or trading many tokens on an exchange. Tips can be a fixed fee for a given interaction or a percentage of the interaction’s value—the PSC creator has control over their own business model. As the app’s user base grows and more people interact with the app, individual tips can add up over time to become a significant source of revenue to sustain a founder, builder, or team. Founders or other PST holders can sell their tokens on a PST exchange, such as Swap Market.
Team
Sam Williams
CEO & Co-founder
Sam Williams is a computer scientist and entrepreneur who co-founded the blockchain-based data storage platform Arweave in 2017. Williams holds a Bachelor of Science in Computer Science from the University of Nottingham, where he studied from 2011 to 2014. After graduating with his Bachelor of Science, Williams continued his education with a PhD in Computer Science. He was able to receive his PhD in 2014 from the University of Kent.
After graduating, Williams started working as an Assistant Lecturer at the University of Kent. In 2017, Williams co-founded Minimum Spanning Tree, the developer company of Archain (Arweave), with William Jones.
William Jones
Former CTO and Co-founder
William Jones is one of the co-founders of Arweave, a blockchain-based platform for the permanent and low-cost storage of data. According to his LinkedIn profile, Jones has a background in computer science and has been involved in various tech-related projects throughout his career.
Jones received his Bachelor of Science in Computer Science from the University of Kent in the UK in 2013. After graduating with his Bachelor of Science, Jones continued his education with a Master of Science and PhD in Computer Science. He was able to receive his Master’s degree in 2014 and his PhD in 2020 from the University of Kent.
In 2017, Jones co-founded Arweave with Sam Williams. At Arweave, Jones served as the company's Chief Technical Officer (CTO) and was responsible for overseeing the technical development of the platform.
Overall, William Jones has built a strong foundation in computer science and has gained experience working on a variety of tech-related projects throughout his career.
India Raybould
Chief Coordinator Officer
India Raybould is a professional with experience in various fields, including marketing, communications, and public relations. According to her LinkedIn profile, she holds a degree in Psychology from the University of Manchester, which she completed in 2014.
Following her graduation, Raybould began her career in psychology advising, working for Canterbury Christ Church University.
In 2017, Raybould joined Arweave, as the company's CCO. Shortly after that, she was responsible as the web/UI/UX designer, in addition to her role as the CCO.
In addition to her work at Arweave, Raybould is also actively involved in the blockchain and cryptocurrency community. She has written articles for industry publications such as CoinMarketCap.
Overall, India Raybould has a strong background in psychology and communications, with a particular focus on the technology sector.
Top Competitors
Arweave Protocol has seen strong competition in the blockchain technology market. As a permissionless data storage protocol that offers long-term data preservation, Arweave Protocol is becoming increasingly popular as a data storage solution for businesses and individuals alike. Arweave Protocol’s main competitors are Storj, Filecoin, and Sia.
Storj is a cloud storage platform that provides a distributed architecture to provide high durability and availability. Storj enables users to store data in an encrypted format, making data safe and secure. The platform is an open-source platform, allowing users to view and customize the code as they wish. It also provides a decentralized data storage solution, allowing users to take control of where their data is stored.
Filecoin is a distributed storage network powered by blockchain technology. It provides a decentralized data storage network that enables users to store and access data from anywhere. It utilizes a proof-of-replication mechanism, providing a secure and reliable system for storing data. Filecoin also has to offer an integrated P2P marketplace that allows users to rent their spare hard drives or computer space to users needing to store data on their network. Filecoin offers a digital currency, in the form of FIL tokens. This may be an advantage for users looking for a platform to earn digital currency.
Sia is an open-source distributed cloud storage platform that uses blockchain technology to store data. It uses a global, decentralized network composed of independent users and computer hosts. Sia offers users a blockchain-based storage solution where data is spread out over many computers, lowering costs compared to traditional cloud storage. As a result, users can access their data anywhere and anytime, with low latency and high speed.
Arweave offers a unique storage infrastructure built specifically for use on the blockchain. Instead of relying on a sharded blockchain, Arweave uses a higher-level data structure, known as a blockweave. This structure allows for quick and efficient data storage due to the shards being ‘weaved’ into a single block. Additionally, Arweave's blockweave allows for much higher data availability due to tighter sharding, meaning data is less likely to be lost, and retrieval speeds are much faster.
Another major advantage that Arweave brings to the table is its innovative data protection system. Arweave claims to be the only decentralized storage network that offers true end-to-end data encryption. All data uploaded to Arweave is automatically encrypted on-chain, and can only be decrypted with a valid encryption key. This means that even if a file is successfully obtained by a malicious actor, they would not be able to access its contents due to the encryption. This level of security is not offered by Storj, Filecoin or Sia, and presents an appealing option for users in need of something more secure than their competitors.
In addition to its superior security, Arweave also provides a more affordable option for users. Arweave does not require users to store ‘gas’, as is the case with Storj and Filecoin, nor does it require users to pay any recurring fees, as is the case with Sia. Instead, Arweave uses a unique reward system whereby users are rewarded for providing storage space and bandwidth. This allows Arweave to remain competitive in terms of pricing, while reducing users’ risk of unexpected costs.
Finally, Arweave’s reputation for reliability has been second to none. Arweave has been designed from the ground up with redundant data redundancy and proven fault-tolerance systems. Furthermore, as an open protocol, Arweave encourages verifiers to work together to ensure data integrity and maintain network health. This produces a more reliable and resilient decentralized storage network that is less vulnerable to attack and intrusion.
In conclusion, Arweave can be said to offer numerous advantages when compared to its competitors. From its superior security and pricing to its proven reliability and faster data retrieval, Arweave can be said to offer the perfect solution for anyone looking to store their files, photos, and data in a secure, immutable and resilient manner.
Tokenomics
The Arweave Network is powered by its own scarce token, AR. An AR token is composed of 1,000,000,000,000 Winstons, and has a non-zero financial value, due to its unique usage of encoding data in the network and rewarding miners, which is only attainable through the use of the token.
The network, which went live on 8th June 2018, was launched with a genesis block containing 55 million AR, to jumpstart the network’s circulation. To further increase the circulation of the token, 11 million AR has been added to the block reward, increasing the maximum circulation to 66 million AR.
The AR token is held either in wallets or in the endowment pool. It not only facilitates permanent storage of data on the blockchain but also provides value exchange. This is thanks to the consensus mechanism of the blockweave data structure which ensures the scarcity of the token.
The Arweave network is unique in its ability to provide permanent data storage all while providing a secure and reliable means of value exchange. The token’s distinctive ability to encode data, reward miners and function as a currency, makes it one of the more attractive digital tokens in the market.
The blockweave data structure works in a way that enables it to recognize any data that is stored on its blockchain, allowing for a new level of scalability and flexibility for blockchain-based technologies. As data is stored in blocks instead of individual transactions, entire applications can be developed on the network. What’s more, the blockweave is built with a consensus model which uses the token itself to secure the entire network from potential attackers.
As a result, the Arweave network provides users with a secure, scalable, and reliable means of generating permanent data storage and value exchange. Its blockweave consensus model provides a secure and scarce token, allowing the Arweave network to function as reliably as more traditional blockchains while providing users with the unique ability of permanent data storage.
Arweave conducted an 8.7 million initial coin offering that ended on June 6th. The Arweave teams reported over 30,000 unique individuals applied to participate in the firm's ICO. Of the whitelisted individuals, 1,800 were selected to be participants in the network.
The company raised $5 million in exchange for AR tokens from venture capital firms including A16Z crypto, Multicoin Capital, and Union Square Ventures.
Arweave raised $8.3 million in exchange for AR tokens from venture capital firms including Andreessen Horowitz, a16z crypto, Coinbase Ventures, and Union Square Ventures. Arweave has publicly stated that this round of funding would be used to incentivize community development.
The initial distribution (not clear):
-
3% - Arweave Advisors - 5 years vesting
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13% - Arweave Team - 5 years vesting
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86% - Set aside for future use
In order to write a transaction into a block, a user has to pay some AR as a transaction fee. This transaction fee is not transferred in its entirety directly to a miner of this block, unlike in traditional blockchain systems. Rather, most of the transaction fee is contributed towards a storage endowment, which is distributed to the wallets of miners over time according to the mechanism described later.
Since the inception of digital data storage techniques, the GBh cost of commercially available storage media has been decreasing at a significant rate. Over the past 50 years, the average annual rate of decline of GBh cost has been 30.57%.
Carefully and conservatively extrapolating the pattern of the decreasing cost of data storage presents the opportunity to provide a finite cost for the indefinite storage of data.
By taking advantage of Arweave’s decentralized network and data storage capability, one can experience cost savings of approximately 15 per cent. This cost-saving is quite significant when one considers the total expenditure of a large data storage requirement. When comparing Arweave’s costs with those of the comparable offering from Forever, the 500 GB file storage cost of Arweave comes in at approximately 403 AR tokens, which at the current rate of $9 per token is $3,700, which is substantially lower than Forever’s $4,400.
But cost savings isn’t the only benefit of using Arweave for data storage. In addition, Arweave provides a much more secure option for data storage. As opposed to centralized storage solutions that only store data in one physical space, Arweave’s storing drives are distributed worldwide amongst different people and organizations. Each node acts as an independent storage node, allowing for greater security and scalability.
Data stored on Arweave is also highly resilient, owing to its distributed nature. Unlike traditional centralized storage options, Arweave can withstand the failure of an individual node without causing any disruption to the network. Furthermore, Arweave’s decentralized network is censorship-resistant, giving users the freedom to securely store and access data without fear of censorship or third-party interference.
Arweave has also made great strides in addressing scalability issues. With a typical decentralized storage network, expandability is often a major issue. When a single storage node fails, the rest of the network must work even harder to make up for its absence. To counter this, Arweave uses a new form of consensus protocol, called Proof of Access. This protocol allows for a wider range of storage nodes to be added to the network, resulting in improved scalability and reliability.
Overall, Arweave offers a unique and attractive solution when it comes to efficient, secure and scalable data storage. Not only does it ensure cost savings when compared to its market competitors, but it also provides users with greater flexibility and a greater level of data security. With its wide range of features and scalability enabled by its consensus protocol, Arweave is definitely worth considering if one needs to store large amounts of data permanently and securely.
In line with the costing model described above, the Arweave protocol employs a storage endowment mechanic. This mechanic allows the network to distribute appropriate quantities of tokens to miners over time, in order to sustainably incentivize the perpetual storage of arbitrary quantities of data. Transaction pricing in the Arweave network comes in two components: a highly conservative estimate of the perpetual storage cost, and an instantly-released transaction reward to incentivize a miner to accept new transactions into the new block.
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