IT MAY BE “THE WEB3”
AO is a decentralized computation environment that allows users to execute and store computational tasks securely on Arweave while using their local device memory. It mimics the architecture of the World Wide Web but decentralizes it, positioning itself as a core infrastructure for Web3.
Why we invest in AO?
AO offers a scalable, decentralized computation platform that allows much more memory for smart contracts than competitors like Ethereum and Internet Computer, enabling richer use cases such as AI models and entertainment services.
How good is AO?
AO is a decentralized computation environment that manages tasks across different units—Messenger Units (MUs) for distributing messages, Scheduler Units (SUs) for organizing these messages, and Computing Units (CUs) for executing tasks. Arweave provides the underlying permanent storage for all data and processes, ensuring everything remains decentralized and immutable. This infrastructure allows users to run complex computational tasks by leveraging their local memory, with execution handled across a network of decentralized nodes.
The interaction between different components of AO.
AO’s system is highly scalable and memory-efficient, allowing smart contracts and processes to access 16GB of local memory from user devices—an exponential leap from the few KBs available in systems like Ethereum. This access to greater memory enables more complex and memory-intensive applications to run on the blockchain, including AI models, data processing, and entertainment services such as video streaming. The combination of local memory and decentralized computation vastly increases the potential for Web3 applications that require heavy processing.
AO stands out from other Web3 protocols, including Ethereum and Internet Computer (ICP), by offering enhanced scalability and flexibility. Ethereum’s roll-ups, while helping with scalability, require complex setups and off-chain processing, whereas AO scales more naturally by using the local memory of devices. Additionally, unlike ICP, which forces all processes to adhere to the same consensus and execution rules, AO’s modular architecture allows processes to configure their own environments, enabling more efficient, long-running computations. AO also strengthens its security and flexibility with an economic model designed to align node behavior with network health through incentives, further setting it apart from monolithic protocols like ICP.
AO features a sophisticated tokenomics model aimed at fostering ecosystem growth. New AO tokens will be distributed among Arweave token holders (36%) and stakers of assets like stETH and SOL (64%). Yield farming with AO tokens provides significant annual percentage yields (APY) for staked assets, making it an attractive investment opportunity. Importantly, AO tokens will not be tradable until 15% of the total supply has been minted, allowing time for the network and ecosystem to develop sustainably before market speculation begins.
APY of holding $AR. Source: https://www.chainofthought.xyz/p/research-ao-fking-big-computer
APY of bridging stETH. Source: https://www.chainofthought.xyz/p/research-ao-fking-big-computer
Key Team Members:
- Sam Williams - Founder. He is a technical advisor for a supply-chain company Minespider, and the founder of Arweave. Before entering the Web3 space, he obtained his PhD degree in the University of Kent and served as an assistant lecturer there.
- Sebastian Campos Groth - COO. He had rich and diversified experience before joining AO. He used to be the mentor and committee member of two venture capital firms, consultant of a startup accelerator program, manager of a job hunting service among many other experiences. His abundant past experience promises agility in his current COO role.
Our position in AO is facilitated through our investment in Permanent Ventures, which has substantial investment in both Arweave and AO. We are proud to support AO’s ambition to become the ultimate “Web3”. For more information, please visit AO website.
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