What Is ARPA Chain (ARPA)?

ARPA Chain (ARPA) is a secure computation network compatible with blockchains. It is is a secure multi-party computation network that allows people to work together on a function while keeping their inputs confidential. ARPA enables private smart contracts with data privacy. Additionally, the network uses computational sharding, to create a scalable infrastructure. Sharding is a database partitioning technique used by blockchain organizations to increase scalability and allow for more transactions per second. In simple terms, the ARPA network is adaptable, is simple to use, and works with existing blockchains. The protocol focuses on reimagining blockchain for real-world applications.

The whitepaper highlights that there is no way to validate the result on a distributed blockchain network without running it. This results in increased fees for each transaction, which is the most severe issue as the network grows. Layer 2 computing, also known as off-chain computation, addresses this issue by removing computation from the public network. Layer 2 publicly confirms the output only in the event of a dispute. Big data firms rarely pay owners a part of the revenue earned by their data. ARPA Chain intends to allow users to develop models, reward contributions, and keep the data securely via a decentralized data-sharing method. ARPA relies on fast performance for mass adoption where industrial-level processing and storage are possible with an off-chain computation network.

Another big problem is that intellectual property theft and other threats are becoming more common as demand for blockchain and smart contract technologies grows. As a result, privacy, security, and confidentiality are significant roadblocks to blockchain adoption. To address this, ARPA is designed to act as an off-chain solution for most blockchain networks, allowing for secure processing. Further, sharing high-value data can result in massive damage in the event of a data breach. The network employs privacy-preserving smart contracts and data renting.

Essentially, ARPA Chain promises to give DApp developers an efficient private smart contract. Smart contracts are just like regular contracts; however, instead of being drafted on paper, these contracts run in the form of protocols on a blockchain. Private smart contracts protect sensitive data from access by nefarious actors. In addition, the network aims to rent personal and business data while maintaining anonymity. ARPA Chain also plans to use computational sharding to create a highly scalable infrastructure.

Furthermore, as stated in the whitepaper, the platform is based on the multi-party computation (MPC) technique, which allows many parties to compute a function using their respective secret inputs. MPC is a programmable framework with a combination of crypto tools that enable participants to build a protocol according to their needs for security and efficiency.  

ARPA is the native token of the platform used to perform the following interconnected crucial functions within the ecosystem. The token serves the essential functions as mentioned below.

1. Cost of computation: All multi-party computation (MPC) members are reimbursed with ARPA tokens for their contribution of computing power.

2. Data and model usage fee: Each MPC computation is charged a data usage price to compensate the data provider for listing high-quality data resources on the ARPA network. The funds earned can be used to reward early adopters and supporters of ARPA's data marketplace.

3. Stake and security deposit: MPC participants can utilize ARPA tokens as a security deposit while starting and completing computing jobs.

4. Community Governance: Token holders with more than a certain number of tokens can vote on suggestions using the token.  

History of ARPA Chain (ARPA)

ARPA was cofounded by Derek Zhang, Felix Xu, Jiang Chen, and Yemu Xu. Felix Xu is the CEO and cofounder of ARPA and the Bella Protocol. Felix graduated with a degree in finance and information systems from New York University. Yemu Xu is the cofounder and chief growth officer of ARPA. The team released the whitepaper in 2018.

How to Purchase ARPA Chain

You have a lot of options when it comes to ARPA Chain, including Coinbase. You can buy ARPA Chain on Coinbase.com or Coinbase app, anywhere Coinbase is available.