Summary
The use of dispersed networks and technologies to store and manage data in a decentralized and safe manner is referred to as decentralized storage. Decentralized storage aims to offer a more safe, dependable, and private alternative to standard centralized storage solutions.
Rather than being saved on a centralized server, data is divided into smaller bits and dispersed over a network of storage providers in decentralized storage. This minimizes the likelihood of data breaches and makes it more difficult for hackers to get access to or corrupt the data. Decentralized storage systems also provide customers with more privacy and control because they do not reliant on third-party organizations to store and manage their data. Furthermore, because users can rent out their unused storage space to others, decentralized storage can be more cost-effective.
Decentralized storage platforms are often built on blockchain technology, which provides a secure and transparent way of managing data. Some decentralized storage platforms use their own token, such as Filecoin (FIL), Siacoin (SC), Storj (STORJ), MaidSafeCoin (MAID), Arweave (AR) and Aragon (ANT), to incentivize users to contribute storage to the network and to pay for storage.
________________________
Privacy
Various strategies are used by many decentralized storage services to protect the privacy and security of stored data. Data encryption is one such technology, which allows users to encrypt their data before it is put on the blockchain. This ensures that the data can only be accessed by authorized parties who have the relevant encryption key. Another option is the use of “sharding,” which lets data to be divided into smaller bits and distributed over numerous network nodes, making it more difficult for any single entity to obtain access to the complete dataset.
Furthermore, many decentralized storage solutions employ a type of distributed storage known as IPFS (InterPlanetary File System), which allows data to be stored decentralizedly. Instead of keeping files on a centralized server, IPFS uses a combination of content-addressable storage and a distributed hash table to store them decentralizedly.
Side note: many web 3 sites are stored on IPFS
Note: There is no 100% in security. Even the best physical lock in the world has been cracked under 2 minutes. So physical and digital, there is always a level of risk.
____________________________
Decentralized storage & crypto
The following are a few coins and their functions. Please keep in mind that I strongly advise doing some research before investing in or using one of them.
Filecoin (FIL) is a cryptocurrency and decentralized storage network that allows users to securely store and retrieve files. The network employs IPFS (InterPlanetary File System) distributed storage, which allows users to split files and store them over a decentralized network of storage providers. The FIL token is used to incentivize network storage, retrieval, and usage. Filecoin is a decentralized, open-source platform that allows anyone to participate in a data storage market.
Ocean Protocol (OCEAN) is a decentralized data exchange platform that enables individuals and companies to securely and privately share and monetize data. The OCEAN token governs the platform and is used to pay for data access and storage.
Skale Network (SKL) is a decentralized storage network that employs “Skale Chain” distributed storage, which enables high-performance, low-latency, and low-cost data storage and retrieval. The native token SKL protects the network.
Band Protocol (BAND) is a decentralized oracle platform that enables smart contracts to access off-chain data in a secure manner. Band Protocol also enables decentralized storage solutions, and the platform is governed by the BAND token.
Siacoin (SC) is a decentralized storage network in which users can rent out spare storage space to others in exchange for Siacoin. The Siacoin network employs a distributed storage system known as “Sia,” which is comparable to IPFS.
Storj (STORJ) is yet another decentralized storage platform that allows users to rent out spare storage space in exchange for Storj coins. The Storj network employs a distributed storage method known as “Tardigrade,” which is comparable to IPFS.
Arweave (AR) is a decentralized data storage network that employs a new data storage mechanism known as “blockweave,” which allows data to be saved permanently and without tampering. The network is protected by the AR native token.
Aragon (ANT) is a platform for decentralized governance that enables users to construct and run decentralized autonomous groups (DAOs). The ability to construct decentralized storage solutions is one of Aragon’s capabilities, and the ANT token is utilized to manage the platform.
There are many, many more. However, FIL is one of the more well-known.
___________________________________________________
Decentralized Storage vs Normal Storage like AWS
No single entity or organization controls decentralized storage networks. They are instead powered by a decentralized network of nodes owned and maintained by individuals and organizations all over the world. Because there is no single point of failure, this provides increased security and resilience. To encourage users to contribute storage to a decentralized storage network, a token-based method is often used. Users who provide storage to the Filecoin network, for example, receive FIL tokens, which may be traded on the open market.
Because data is distributed over a large number of nodes rather than being held in a single location, decentralized storage networks can be more secure than centralized storage solutions. Furthermore, decentralized storage networks frequently employ encryption and other security methods to safeguard user data. Users can rent out their idle storage space rather than building and maintaining their own storage infrastructure, making decentralized storage networks more cost-effective than centralized storage solutions.
Decentralized storage networks can give greater privacy and anonymity than centralized storage solutions. As data is dispersed and stored among a large number of nodes, it becomes more difficult for any one organization or individual to access or control user data.
It should be noted that this can be used for personal cloud. For example, photographs and so forth. Decentralized storage networks can be more stable than home computers or NAS, but it’s vital to consider network uptime and availability, as well as network performance.
However, keep in mind that you are giving up the power to be the sole controller of the data. A personal NAS that is not connected to the internet, for example, is significantly more secure than other choices.
There are a few possibilities for a plug-and-play solution for residential consumers.
Sia-UI
Storj Share
FileZ
Tardigrade: This has a simple drag-and-drop interface, it also provides a CLI tool for more advanced users.
IPFS-Desktop
There is other options.
___________________________
Normal Storage vs Decentralized Storage
Because the data is stored in a centralized location and can be accessed via a single endpoint, centralized storage solutions often provide faster and more reliable data access.
In general, centralized storage systems are more scalable than dispersed storage solutions. This is because centralized storage providers may invest in large-scale infrastructure to manage a big volume of data, whereas decentralized storage solutions rely on individual users’ resources.
Individual users generally lack the resources and skills required to safeguard data and comply with rules that centralized storage companies have. They also frequently have security specialists and incident response teams on hand to respond rapidly to possible threats or breaches.
Customer support and troubleshooting services are often better provided by centralized storage providers than by decentralized storage solutions.
This is a tried-and-true technology. Decentralized storage is relatively new, which introduces risk.
In some circumstances, centralized storage meets compliance requirements but decentralized storage does not.
____________
BTW if anyone says the only thing you can do with crypto is trade. Point them to this.
