As the number of crypto projects rises and more advanced blockchain blockchain applications emerge, how data can be stored and managed in a decentralized world is crucial to showcase the full potential of web3.
Blockchain-based decentralized storage solutions involve storing data across multiple computers or nodes in a decentralized secure network.
In this article let us look into the top decentralized storage networks and how they enable secure and efficient storage.
Quick Overview of Decentralized Storage
Decentralized storage uses distributed ledger technology like blockchain to store digital information by distributing data into multiple nodes located at different locations in a peer-to-peer network. It removes the risk of storing data in a single database such as hacking, data breaches, and single point of failure. Utilizing a decentralized network over a centralized one allows the copy of data to be shared and accessed on multiple nodes. Even if one node is faulty, the data remains safe and retrievable using another.
Decentralized storage in web3 offers an efficient system where users can rent storage space and earn rewards. Traditional cloud storage methods are limited in functionality and in providing security. Files in the decentralized network are broken into smaller parts, encrypted, and shared across the network. This offers users complete ownership of data and anytime access to data from anywhere.
Top 5 Decentralized Storage Platforms
Filecoin (FIL)
Filecoin is one of the popular protocols for decentralized storage in web3. It is an open-source decentralized cloud storage platform that allows users to rent out unused storage space and earn FIL tokens-the native token in the Filecoin network. Earlier InterPlanetary File System (IPFS) was widely used to store and share data in a decentralized way however, it doesn’t effectively store data for the long term. As a result, Filecoin is built as an incentive layer for IPFS by Protocol Labs.
File coin offers a marketplace consisting of storage providers, retrieval providers, and clients for the storage and retrieval of data. Storage providers are users who have unwanted storage space and are willing to rent to others. Users can negotiate with providers and pay for them in FIL coins to store their data. The retrieval of data requires the help of retrieval providers for quick access to the stored data on the network.
BitTorrent File System (BTFS)
BitTorrent File System (BTFS) is a next-generation decentralized file storage system for web3. It is defined as a Decentralized physical infrastructure (DePIN) that allows users to share large files in web3 by utilizing blockchain and tokenized incentives to build real-world storage infrastructure with low cost and high reliability.
BTFS allows users to store files across various multiple global nodes that act as clients and servers, ensuring security and faster access to data. It relies on the features of BitTorrent Chain(BTTC) for cross-chain interactions and multichannel payment options. Large files are divided into small parts and distributed to peer nodes with each peer downloading and uploading data. A tracker server will track all peer nodes in the network.
Arweave (AR)
Arweave is a permanent and decentralized storage network offering censorship-resistant storage of users’ data. It uses blockweave- a new structure similar to blockchain technology where miners are required to access historical data through a proof of access(PoA) algorithm. It offers a more efficient storage than utilizing a traditional blockchain network like Bitcoin. The native token AR is used for paying storage fees and reward miners for creating blocks. In addition to storage of data, it also supports hosting decentralized applications
SiaCoin (SC)
Sia is a decentralized cloud storage network with a native coin called Sia Coin(SC). Similar to Filecoin, it lets users rent storage space and earn sia coins(SC). It offers a marketplace where renters can find storage providers to store their digital information by paying Sia coins.
While renters upload files to be stored in the Sia network, hosters store these files by breaking uploaded files into small parts, encrypted and distributed to a global network. The Sia network ensures security, privacy, and complete ownership of user’s data.
Storj (STORJ)
Storj is a decentralized cloud storage platform offering users a secure, efficient, and cost-effective storage of digital data. It has a globally distributed network and uses blockchain technology and native token Storjcoin for transactions. It allows network participants to rent their storage spaces to others while earning coins on the network.
The files undergo automatic encryption before uploading to the network and the files are split into smaller parts. These small parts are distributed to a network consisting of multiple nodes at various locations.
Conclusion
Traditional centralized data storage is less secure and offers no privacy and ownership of user’s data. Decentralized data storage avoids the risk of centralized servers while maintaining privacy and brings incentivized opportunities to network participants. With blockchain technology, storing data on these networks is safer, more efficient, and censor-proof compared to traditional cloud storage services.
