Arweave’s AO sees $260 million bridged in four days upfront

AO, a hyper-parallel computer, saw a $260 million inflow from steTH pre-bridged to its platform, making it the 28th largest decentralized finance (DeFi) economy in the past four days, Arweave and AO founder Sam Williams noted in a after on X June 22.

According to Williams, AO’s Total Value Locked (TVL) now matches that of Cardano ($209.43 million), surpassing notable blockchain projects such as zkSync, Fantom, Scroll, Algorand, Filecoin and ICP.

Understanding AO and Arweave

AO uses a decentralized computing model to enable parallel processing of applications, including artificial intelligence (AI) apps. It is based on Arweave, which provides persistent data storage solutions.

Hyperparallel computing uses a large number of processors simultaneously to perform numerous calculations, dramatically increasing efficiency and speed. This makes AO particularly suitable for tasks that require significant computational resources, such as large-scale simulations, complex data analysis, and AI model training.

According to research into hyperparallel computing, this method leverages the power of distributed processing to tackle problems that traditional systems struggle to tackle efficiently.

Arweave, on the other hand, uses a blockchain-like structure called “blockweave” to store data permanently, so that once data is written it cannot be changed or deleted.

This immutability of data has significant implications for data integrity and security, making Arweave an attractive option for developers looking for reliable, long-term data storage solutions.

The fair launch of AO

A crucial aspect of AO’s introduction to the market was the fair launch of its token. In the context of blockchain and cryptocurrency, a fair launch means that the project’s tokens were distributed without any preferential treatment or pre-sales to insiders.

In other words, 100% of the minted tokens are available to the entire community. This approach promotes a more decentralized and equitable distribution of tokens, encouraging broader participation and reducing the risk of market manipulation.

The AO Network was launched in February, but the token issuance took place on June 13. For AO, the fair launch included the issuance of 21 million tokens, with a halving schedule every four years. This mechanism, similar to Bitcoin’s halving process, reduces the reward for mining new blocks, controlling the rate at which new tokens are put into circulation.

According to a report on the launch of cryptocurrency exchanges, this not only helps control inflation, but also introduces a deflationary aspect over time, potentially increasing the value of the tokens as their scarcity increases.

The future of AO and hyperparallel computing in DeFi

AO’s rapid growth highlights a key trend in the blockchain and DeFi space: the increasing demand for high-performance computing solutions amid the conventional computing limitations of blockchains. As more projects and applications require substantial computing resources, the appeal of hyperparallel computing platforms like AO will continue to increase.