---

name: arweave-ao-cookbook description: Build decentralized applications on AO - a permanent, decentralized compute platform using actor model for parallel processes with native message-passing and permanent storage on Arweave version: 1.0.0 category: blockchain-development tags: [arweave, ao, decentralized-compute, smart-contracts, blockchain, lua, permanent-storage, distributed-systems] source: https://cookbook_ao.arweave.net/ author: AO Community last_updated: 2025-12-26

AO Cookbook Skill

Purpose

Master building decentralized applications on AO - a revolutionary decentralized compute system where countless parallel processes interact within a single, cohesive environment. AO combines permanent storage on Arweave with actor model architecture to create truly decentralized, permanently available compute.

What is AO?

AO is a decentralized compute system built on the AO-Core protocol that employs the actor model (inspired by Erlang), enabling independent process operation through native message-passing mechanisms. Each process is an independent server in the network, communicating through messages stored permanently on Arweave.

HyperBEAM is the current production network, delivering:

• High-performance message processing
• Instant HTTP access to process state
• Trustless, permissionless infrastructure
• Permanent availability

Key Differentiator: Unlike traditional blockchains or cloud platforms, AO provides "your personal server in the AO computer" - a genuinely decentralized alternative to traditional hosting with permanent message storage.

When to Use This Skill

✅ Perfect for:

• Building decentralized applications requiring permanent storage
• Creating smart contracts with complex state and interactions
• Developing chatbots, games, and interactive applications on blockchain
• Implementing token systems, voting mechanisms, and governance
• Building systems that require trustless, permanent compute
• Creating applications that benefit from parallel process execution
• Developing Arweave-integrated applications

❌ Not ideal for:

• Simple static websites (use traditional hosting)
• Applications requiring real-time sub-millisecond latency
• Systems that need to delete or modify historical data
• Traditional centralized database applications
• Projects without permanent storage requirements

Core Concepts

1. Processes

Independent servers in the decentralized AO network. Each process:

• Has its own state and memory
• Executes autonomously
• Communicates via messages
• Persists permanently on Arweave
• Can spawn other processes

2. Messages

The core communication mechanism between processes:

• Permanently stored on Arweave
• Asynchronous by nature
• Contain data and metadata
• Trigger handler functions
• Enable process interaction

3. Handlers

Event processors that respond to incoming messages:

• Pattern-match on message properties
• Execute logic based on message content
• Update process state
• Send responses to other processes
• Enable reactive programming model

4. aos (AO Shell)

Interactive development environment:

• Command-line interface for AO processes
• Built-in Lua REPL
• Supports modules and blueprints
• Enables rapid prototyping
• Provides process management tools

5. Permanence

Everything is permanent on Arweave:

• Messages never disappear
• Code is immutable once deployed
• State history is preserved
• Audit trails are built-in
• No centralized control

Installation & Setup

Prerequisites

• NodeJS: Version 20 or higher
• Code Editor: Any editor (VS Code recommended)
• Arweave Wallet (optional): For custom wallet authentication

Step 1: Install AOS

# Install AOS globally via npm
npm i -g https://get_ao.arweave.net

# Verify installation
aos --version

Step 2: Connect to HyperBEAM Network

# Option 1: Connect to HyperBEAM for optimal performance
aos --node https://forward.computer

# Option 2: Use default settings
aos

# Option 3: Specify custom wallet
aos --wallet ~/.arweave-wallet.json

# Auto-generated wallet location
# Default: ~/.aos.json (created automatically if not specified)

Step 3: Verify Connection

-- In aos shell, try basic commands:
print("Hello AO")
-- Output: Hello AO

-- Check your process ID
Name
-- Output: Your process name

Owner
-- Output: Your wallet address

-- View inbox
#Inbox
-- Output: Number of unhandled messages

Basic Usage Patterns

Pattern 1: Simple State Management

-- Initialize state variable
counter = 0

-- Create handler for increment messages
Handlers.add(
  "increment",
  Handlers.utils.hasMatchingTag("Action", "Increment"),
  function(msg)
    counter = counter + 1
    print("Counter incremented to: " .. counter)

    -- Send response
    Send({
      Target = msg.From,
      Data = tostring(counter)
    })
  end
)

-- Access state via HTTP
-- https://forward.computer/<process-id>~process@1.0/compute/counter

Why this works: State persists permanently and is accessible via HTTP through HyperBEAM.

Pattern 2: Message Passing Between Processes

-- Send message to another process
Send({
  Target = "process-id-here",
  Action = "Chat-Message",
  Data = "Hello from my process!"
})

-- Handle incoming messages
Handlers.add(
  "chat",
  Handlers.utils.hasMatchingTag("Action", "Chat-Message"),
  function(msg)
    print("Received: " .. msg.Data)
    print("From: " .. msg.From)

    -- Reply to sender
    Send({
      Target = msg.From,
      Data = "Message received!"
    })
  end
)

Pattern: Asynchronous message-passing enables loosely-coupled process communication.

Pattern 3: Inbox Monitoring

-- Custom prompt showing inbox count
function Prompt()
  return "📬 Inbox: " .. #Inbox .. " > "
end

-- Check inbox
if #Inbox > 0 then
  -- Access first message
  local msg = Inbox[1]
  print("From: " .. msg.From)
  print("Data: " .. msg.Data)
end

Pattern: Monitor incoming messages in real-time with custom prompts.

Pattern 4: Using Modules

-- Load JSON module
local json = require("json")

-- Encode data
local data = { name = "Alice", balance = 1000 }
local encoded = json.encode(data)

-- Decode JSON
local decoded = json.decode(encoded)
print(decoded.name)  -- Output: Alice

-- Use .utils module for functional programming
local utils = require(".utils")
local numbers = {1, 2, 3, 4, 5}
local doubled = utils.map(function(n) return n * 2 end, numbers)
-- Result: {2, 4, 6, 8, 10}

Available Modules:

• json: JSON encoding/decoding
• ao: Core AO functions (Send, Spawn)
• .base64: Base64 encoding/decoding
• .pretty: Formatted output (tprint)
• .utils: Functional utilities (map, reduce, filter)

Pattern 5: Multi-line Code with Editor Mode

-- Enter editor mode
.editor

-- Write multi-line function (type all lines, then Ctrl+D to execute)
function createToken(name, symbol, supply)
  return {
    Name = name,
    Symbol = symbol,
    TotalSupply = supply,
    Balances = {}
  }
end
-- Press Ctrl+D to exit editor mode

-- Use the function
myToken = createToken("MyToken", "MTK", 1000000)
print(myToken.Name)  -- Output: MyToken

Pattern 6: Loading External Lua Files

-- Load functions from file
.load myFunctions.lua

-- Functions from file are now available
-- (assuming myFunctions.lua defines functions)

Use case: Organize complex logic in files, load into aos session.

Common Workflows

Workflow 1: Building a Token System

-- Initialize token state
Token = {
  Name = "MyToken",
  Symbol = "MTK",
  TotalSupply = 1000000,
  Balances = {}
}

-- Initialize owner balance
Token.Balances[Owner] = Token.TotalSupply

-- Transfer handler
Handlers.add(
  "transfer",
  Handlers.utils.hasMatchingTag("Action", "Transfer"),
  function(msg)
    local recipient = msg.Tags.Recipient
    local amount = tonumber(msg.Tags.Amount)

    -- Validate sender has balance
    if Token.Balances[msg.From] >= amount then
      Token.Balances[msg.From] = Token.Balances[msg.From] - amount
      Token.Balances[recipient] = (Token.Balances[recipient] or 0) + amount

      Send({
        Target = msg.From,
        Data = "Transfer successful"
      })
    else
      Send({
        Target = msg.From,
        Data = "Insufficient balance"
      })
    end
  end
)

-- Balance query handler
Handlers.add(
  "balance",
  Handlers.utils.hasMatchingTag("Action", "Balance"),
  function(msg)
    local target = msg.Tags.Target or msg.From
    local balance = Token.Balances[target] or 0

    Send({
      Target = msg.From,
      Data = tostring(balance)
    })
  end
)

Workflow 2: Creating a Chatroom

-- Chatroom state
Chatroom = {
  Members = {},
  Messages = {}
}

-- Join handler
Handlers.add(
  "join",
  Handlers.utils.hasMatchingTag("Action", "Join"),
  function(msg)
    Chatroom.Members[msg.From] = true

    -- Notify all members
    for member, _ in pairs(Chatroom.Members) do
      Send({
        Target = member,
        Action = "Notification",
        Data = msg.Tags.Username .. " joined the chatroom"
      })
    end
  end
)

-- Send message handler
Handlers.add(
  "broadcast",
  Handlers.utils.hasMatchingTag("Action", "Broadcast"),
  function(msg)
    -- Store message
    table.insert(Chatroom.Messages, {
      From = msg.From,
      Text = msg.Data,
      Timestamp = msg.Timestamp
    })

    -- Broadcast to all members
    for member, _ in pairs(Chatroom.Members) do
      if member ~= msg.From then
        Send({
          Target = member,
          Action = "ChatMessage",
          From = msg.From,
          Data = msg.Data
        })
      end
    end
  end
)

Workflow 3: Spawning New Processes

-- Spawn a new process
Send({
  Target = ao.id,  -- ao core process
  Action = "Eval",
  Data = [[
    -- Code for new process
    Handlers.add(
      "ping",
      Handlers.utils.hasMatchingTag("Action", "Ping"),
      function(msg)
        Send({ Target = msg.From, Data = "Pong!" })
      end
    )
  ]]
})

-- Programmatic spawn with Spawn()
local newProcess = Spawn("module-id", {
  Data = "Initial state",
  Tags = {
    Name = "SubProcess",
    Type = "Worker"
  }
})

Workflow 4: Using Blueprints

Available blueprint templates:

• chatroom: Complete chatroom implementation
• token: Token standard with transfer/balance
• voting: Voting mechanism with proposals
• staking: Token staking with rewards
• CRED: Reputation/credit system

-- Load blueprint (example - actual syntax may vary)
-- Blueprints provide pre-built handlers and state management

Advanced Patterns

Pattern: State Persistence & HTTP Access

-- Define state that should be HTTP accessible
GameState = {
  players = {},
  score = 0,
  round = 1
}

-- State is automatically accessible via HTTP
-- GET https://forward.computer/<process-id>~process@1.0/compute/GameState
-- Returns JSON representation of GameState

Power: Any process variable becomes instantly queryable via HTTP through HyperBEAM.

Pattern: Handler Composition

-- Helper function for common checks
local function isAuthorized(msg)
  return msg.From == Owner
end

-- Composed handler with authorization
Handlers.add(
  "admin-action",
  function(msg)
    return Handlers.utils.hasMatchingTag("Action", "Admin")(msg)
      and isAuthorized(msg)
  end,
  function(msg)
    -- Admin logic here
    print("Admin action executed")
  end
)

Pattern: Error Handling

Handlers.add(
  "safe-operation",
  Handlers.utils.hasMatchingTag("Action", "SafeOp"),
  function(msg)
    local success, result = pcall(function()
      -- Potentially error-prone operation
      local value = tonumber(msg.Tags.Amount)
      assert(value > 0, "Amount must be positive")
      return value * 2
    end)

    if success then
      Send({
        Target = msg.From,
        Data = tostring(result)
      })
    else
      Send({
        Target = msg.From,
        Error = result  -- Contains error message
      })
    end
  end
)

Troubleshooting

Issue: "aos command not found"

Solution:

# Verify NodeJS version
node --version  # Should be v20+

# Reinstall aos
npm i -g https://get_ao.arweave.net

# Check PATH
echo $PATH | grep npm

Issue: Connection timeout

Solution:

# Try different node
aos --node https://forward.computer

# Check network connection
curl https://forward.computer

# Verify wallet if using custom
aos --wallet ~/.arweave-wallet.json

Issue: "Handler not triggering"

Solutions:

1. Check tag matching:

   -- Verify message has correct tags
   print(msg.Tags.Action)  -- Should match your matcher
   

2. Test handler directly:

   -- Simulate message
   local testMsg = {
     From = "test-id",
     Tags = { Action = "Test" },
     Data = "test data"
   }
   -- Call handler function manually
   

3. Check handler order:

   -- List all handlers
   Handlers.list()
   -- Handlers execute in order, first match wins
   

Issue: State not persisting

Explanation: State in aos session is temporary until messages are sent/processed. To persist:

1. Send messages to your process (triggers permanent storage)
2. Deploy handlers as permanent code
3. Use .load to reload functions across sessions

Issue: "Inbox full" or performance degradation

Solution:

-- Process and clear inbox
for i = 1, #Inbox do
  local msg = Inbox[i]
  -- Handle message
  print("Processing: " .. msg.From)
end

-- Inbox clears automatically after handlers process messages

CLI Reference

aos Command-Line Options

aos [options]

Options:
  --wallet <path>       Path to Arweave wallet (default: ~/.aos.json)
  --node <url>          AO node URL (default: https://forward.computer)
  --module <id>         Module ID for process
  --cron <interval>     Cron interval for process
  --version             Show version
  --help                Show help

aos Shell Commands

Command	Purpose	Example
.editor	Enter multi-line edit mode	.editor then Ctrl+D to execute
.load <file>	Load Lua file	.load functions.lua
.exit	Exit aos shell	.exit
#Inbox	Count unhandled messages	print(#Inbox)
Inbox[n]	Access message at index	local msg = Inbox[1]

Global Functions & Variables

Global	Type	Purpose
Send(msg)	Function	Send message to process
Spawn(module, msg)	Function	Create new process
Inbox	Table	Unhandled messages
Handlers	Module	Handler management
Owner	String	Process owner address
Name	String	Process name

Best Practices

1. Handler Organization

-- Group related handlers
-- Authentication handlers
Handlers.add("auth:login", ...)
Handlers.add("auth:logout", ...)

-- Business logic handlers
Handlers.add("game:move", ...)
Handlers.add("game:score", ...)

2. State Management

-- Use clear state structures
State = {
  users = {},
  config = {
    maxUsers = 100,
    timeout = 300
  },
  stats = {
    totalMessages = 0,
    activeUsers = 0
  }
}

-- Avoid global pollution
-- Use tables to organize

3. Error Handling

-- Always validate inputs
function validateAmount(amount)
  local num = tonumber(amount)
  assert(num, "Amount must be a number")
  assert(num > 0, "Amount must be positive")
  return num
end

-- Use pcall for risky operations
local success, result = pcall(validateAmount, msg.Tags.Amount)
if not success then
  Send({ Target = msg.From, Error = result })
  return
end

4. Testing Handlers

-- Create test utilities
function testHandler(handler, mockMsg)
  return pcall(function()
    handler(mockMsg)
  end)
end

-- Test before deploying
local testMsg = {
  From = "test-sender",
  Tags = { Action = "Transfer", Amount = "100" },
  Data = ""
}
local success, err = testHandler(transferHandler, testMsg)
print(success and "✓ Test passed" or "✗ Test failed: " .. err)

5. Documentation

--[[
  Handler: token:transfer
  Purpose: Transfer tokens between addresses
  Tags Required:
    - Action: "Transfer"
    - Recipient: target address
    - Amount: token amount (string number)
  Returns: Success/failure message
]]
Handlers.add("token:transfer", ...)

Resources

Official Documentation

• Cookbook: https://cookbook_ao.arweave.net/
• HyperBEAM: https://forward.computer
• GitHub: https://github.com/permaweb/ao

Community

• Discord: Community support and discussions
• Tutorials: Begin track, Bots & Games, Advanced guides

Learning Paths

1. Getting Started: Welcome → Installation → Basic messaging
2. Token Development: Token tutorial → Transfer mechanics → Balance queries
3. Game Development: Bots & Games track → State management → Multiplayer
4. Advanced: Custom modules → Process spawning → HTTP integration

Examples Repository

See /examples directory for complete working examples:

• chatroom.lua - Full chatroom implementation
• token.lua - Token standard with all handlers
• game.lua - Simple game with state management
• voting.lua - Voting system with proposals

Version History

• 1.0.0 (2025-12-26): Initial skill creation
  • Core concepts and patterns
  • Installation and setup
  • Basic and advanced workflows
  • Troubleshooting guide
  • CLI reference
  • Best practices

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Last Updated: December 26, 2025 Source: https://cookbook_ao.arweave.net/ Community: AO Discord and GitHub Status: Production Ready ✅