- 5 Apr, 23
ARPA Chain 101: An Advanced Layer-2 Solution for ETH
ARPA Chain (ARPA) is a layer-2 network based on the Ethereum blockchain. It allows people in this secure and multi-party computational network to collaborate on functions while protecting the privacy of their data. The chain aims to protect data privacy using smart contracts. For scalability, the network uses “sharding” technology in its infrastructure. In this article on Zatrun.com, you will learn everything you need to know about ARPA Chain.
Table of Contents
What is ARPA Chain and How Does It Work?
ARPA Chain is a layer-2 solution running on the Ethereum blockchain. The network benefits both blockchain and traditional networks by improving user privacy and scalability. One of the attractive aspects of blockchain technology is its decentralised and open model, which allows people to use it without worrying about authority. However, there is a problem with this. Most blockchains are public, so anyone can access them, view transaction histories, and work on them. This obstructs privacy.
ARPA Chain brings data into a format that can be used and shared without being made public. It does this using a technology called “multi-party computation (MPC).” MPC is an encryption tool that allows transactions to take place without other users having to share their data. For example, financial institutions can share relevant information without compromising specific data components.
As a layer-2 solution, ARPA Chain works with extremely high scalability, enabling users to perform fast transactions. It was established in April 2018 with the aim of separating data benefits from ownership and enabling data rental. Arpa’s MPC protocol ensures data security while creating joint data analysis and data sharing capabilities for various businesses.
Developers can create Dapps that protect privacy in compatible blockchains, such as credit fraud prevention, private data wallets, and key management systems, or use them for training artificial intelligence models. The network has a high level of scalability and interoperability. It also provides a data market.
What is ARPA Token? Is It a Good Investment?
ARPA is the native token of the ARPA Chain network. It is given as a reward to those who help run the network. Users receive a reward in exchange for using their time, work, and computing power.
ARPA coin is also used as a deposit for jobs carried out on the network, and those who fail to complete their jobs are effectively fined. The cryptocurrency also works as a payment method in the data market and provides decentralisation to the platform. Token holders can participate in governance and vote.
ARPA coin was launched in 2019, raising $8 million in its ICO. However, even though it has been in the market for almost four years, it has never made it into the top 100. This could be due to its niche section of the crypto world. Even so, it has not yet managed to earn a significant place in investors’ portfolios. ARPA Chain could become a bigger project in the future with the growth of the data market.