Arcana Network (XAR): Supercharging the Web3 User Experience

Arcana, a UX-focused appchain, takes the software-as-a-service (SaaS) model and applies it to the web3 universe. This exciting crypto project provides helpful authentication software that other crypto apps can use to manage their customer bases. Is this service really necessary — and does Arcana do a good job of managing users? Keep reading to explore all the features of the Arcana network.

Key Takeaways:

• Arcana is a software developer kit (SDK) that connects to web3 apps. 

• Developers can use Arcana to authenticate users' identities, store sensitive information securely and perform a variety of decentralized finance (DeFi) services.

• Looking to trade Arcana tokens? Bybit now offers the XAR/USDT Spot trading pair. To celebrate this listing, Bybit is holding three exclusive events where users can earn a share of the 14,600,000 XAR prize pool.

What Is Arcana Network?

Arcana is a software developer kit (SDK) that connects to web3 apps. Developers can use Arcana to authenticate users' identities, store sensitive information securely and perform a variety of decentralized finance (DeFi) services.

History of Arcana Network 

Arcana was founded by Aravindh Kumar and Mayur Relekar. Kumar is an AIESEC Alumnus with a background in SaaS entrepreneurship. While helping startups create software to market to other companies, Kumar realized there was a real need for a similar product model in the crypto ecosystem. He teamed up with blockchain developer Relekar to turn Arcana into a reality. Arcana’s co-founders are funded by investments from a variety of crypto companies including Fenbushi Capital, Republic Crypto and Woodstock.

What Does Arcana Aim to Achieve?

Arcana's main priority is to provide a better user experience (UX), having realized that many decentralized apps (DApps) have great ideas but struggle to onboard users because their application programming interfaces (APIs) are confusing or bulky. It hopes to support developers by providing a more effective way of handling users.

Arcana wants to create a system in which developers can use its auth services and other financial features to improve their DApps’ user experiences. Instead of spending a lot of time developing their own systems, developers can quickly connect the tried-and-tested Arcana UX to their project. In the long run, Arcana aims to become one of the leading UX and authentication providers in the web3 community.

How Does Arcana Work?

Arcana’s app chain runs mainly on the Ethereum network of EVM chains. It consists of a complex set of smart contracts and computer code that work together to handle user requests. The key mechanism behind Arcana is Validium, an Ethereum scaling solution that allows off-chain data storage.

To help speed up transaction processing and reduce gas fees, the Arcana network uses Validium to handle customer data in a secure, off-chain location. This data is then bundled into cryptographic proofs to securely transmit it onto the parent chain. After processing the transaction on the chain, Arcana’s software then transports the result to the relevant DApp.

Features of Arcana Network

There are several ways Arcana helps DApps improve their APIs and encourage the adoption of their products. Here are the main features that this community currently offers to users.

Auth

Arcana Auth is an authentication service that lets DApps easily confirm customer identities. Users can create their accounts through helpful services such as their email, Google or Discord, and then Arcana generates a noncustodial wallet linked to that account. This provides a secure way for Web 2.0 users to confirm their identities and start using a developer's products.

Gasless

Gasless is a system designed to take away the frustration of paying for gas fees. Developers set up a system through Arcana that allows them to automatically pay gas fees for their clients. This prevents people from being frustrated by microtransactions, so it often boosts adoption enough to make the extra cost worthwhile.

SendIt

SendIt is a straightforward way to send crypto through emails. Users don't need to enter wallet keys or to log transactions manually on a blockchain. Instead, this software lets DApp users send and receive crypto in seconds with a few simple clicks on an intuitive interface.

Staking

The main consensus mechanism for Arcana is proof of stake (PoS). This method of confirming transactions relies on users to temporarily lock tokens and encourages community participation while reducing the amount of computing power needed to run Arcana.

Staking Rewards

People who choose to stake on the Arcana network earn rewards in exchange for their participation. This allows token holders to receive passive income from the Arcana coins that they own.

Arcana Network Road Map

Arcana’s road map began in 2022 with the launch of its testnet. The company then successfully released Arcana Auth (Mainnet), multiple SDKs and a crypto wallet program. 

In 2024, its main focus is transitioning to the Validium design that will add extra scaling to the system. Arcana also plans to release staking options for the XAR token, and to launch the mainnet for its app-chain UX network. In the future, Arcana hopes to move beyond EVM chains and offer services to other networks as well.

XAR Tokenomics

The XAR token is an important way of maintaining security on the Arcana network. Validators stake XAR to help finalize transactions on the network and earn rewards in exchange for their assistance. XAR is also a governance token used to vote on Arcana proposals, as well as a payment token used to purchase subscriptions to Arcana services. XAR’s maximum supply is 1 billion, with a self-reported circulating supply (as of Apr 9, 2024) of 61 million tokens. Arcana plans on distributing its tokens as follows:

• Ecosystem growth: 31%

• Arcana team: 20%

• Reserves: 18%

• Private: 15.4%

• Seed: 3.8%

• Advisors: 6.4%

• Pre-seed: 2.5%

• IDO/Public: 3%

XAR Price Prediction

XAR was released in early April 2024 and has already experienced significant fluctuation in its price. The coin initially debuted at around $0.50, but of late its price has mostly fluctuated between $0.15 and $0.25. This decline in price has led to mixed reviews. Some crypto enthusiasts are skeptical of XAR, due to its high token supply and the fact that so much of its allocation goes directly to the Arcana team. However, other investors believe this price decrease may be temporary. For example, Coincu predicts XAR’s price will reach $0.27 by July 2024 and $0.30 by October 2024.

Where to Buy XAR

Looking to trade Arcana tokens? Bybit now offers the XAR/USDT Spot trading pair. To get started, you’ll first need to create a Bybit account, fund it with cryptocurrency and then navigate to the XAR/USDT Spot trading page. 

To celebrate this listing, Bybit is holding three exclusive events where users can earn a share of the 14,600,000 XAR prize pool. Event periods run from now through April 30, April 16 and Apr 10, 2024, respectively. (See above link for individual details, as well as Terms and Conditions.)

Is XAR a Good Investment?

Though the Arcana project looks promising, XAR is a moderately high-risk investment right now. Arcana is a somewhat small, unknown company that fulfills a niche market. Since its token launch, the company has struggled to attract attention and to appeal to users. Despite this caveat, there is a chance that XAR may eventually pick up steam. Investors willing to play the long game may end up seeing some impressive profits.

For the best results, carefully research XAR market conditions right before you buy. Avoid overextending yourself financially or focusing on strategies that rely on sudden price increases.

Closing Thoughts

Arcana's ability to improve each DApp's user experience is a much-needed service in the crypto world. However, it's a fairly small project without a dedicated community, so its main challenge will be to promote adoption. If Arcana can onboard users and convince more developers to work with its system, the Arcana network could be quite successful.

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