Arweave (AR) Price

Will Arweave Become Another Ethereum's Competitor?

Arweave was originally designed for decentralized storage, targeting NFT users. The biggest difference from traditional Filecoin is that Arweave writes data on the blockchain, while Filecoin is similar to a protocol.

Because Arweave stores data on the blockchain, Filecoin's storage actually uses the hard drive storage space of traditional PCs, so the storage cost of Arweave is much higher than that of Filecoin. At the same time, this also means that Arweave’s data will not be lost. Because the blockchain cannot be tampered with, the security of Arweave’s data is also very high.

Arweave AO VS Ethereum EVM

AR is Arweave’s token, and AO is Arweave’s new computing-level protocol. A virtual machine similar to Ethereum. The core of Ethereum is smart contracts, so the storage space of the blockchain is very limited. Execution of smart contracts is handled by Ethereum’s virtual machine EVM. The main function of AO is similar to that of the Ethereum Virtual Machine EVM. It is mainly used to execute Arweave's smart contracts.

The difference between AO and EVM is that EVM is subject to the framework when Ethereum was founded and can only handle single tasks, so multiple tasks using the same EVM will need to be queued. If you think of the entire Ethereum EVM as a supercomputer, whether it is 10,000 tasks or 100,000 tasks, they are all queued up and processed one by one. To get priority, you need to pay a higher fee. AO is a multi-tasking framework that can customize the number of tasks processed as needed. Therefore, Ethereum has developed to this day and can only be expanded through the Layer 2 framework model. Large-scale projects can only be built on Ethereum Layer 2 to use Ethereum’s smart contract framework. The Layer 2 projects themselves have their own tokens, so Ethereum Layer 2 are competing with each other.

AO is different. The multi-tasking method means that the scalability is almost unlimited and the cost is close to zero. Developers do not need to build complex Layer 2, users do not need to cross-chain, and there will be no excessive gas fees caused by network congestion.

Another point is that the Ethereum blockchain storage space is limited and cannot store anything except smart contracts. AR uses an entire block as storage space, and theoretically the storage space can be expanded infinitely.

Therefore, AR is considered to be another strong challenger to ETH in 2024 besides SOL and Celestia. The design framework completely broke the single-task processing model of Ethereum, which was also the reason why the AR price doubled immediately on the day AO was released, from US$13 to US$28.