Google, Amazon, and Microsoft reportedly account for 66% of the cloud services in the industry—potentially increasing data privacy, security, and integrity risks. Filecoin, Sia Foundation, Storj, and Arweave intend to thwart such risks, offering a suitable model for data storing and accessing.
The leading crypto market intelligence products provider, Messari, helps navigate crypto with confidence. Messari tweeted:
1/ @Google, @Amazon, and @Microsoft account for 66% of the cloud services industry, resulting in risks to data privacy, security, and integrity.@Filecoin, @Sia__Foundation, @Storj, and @Arweave combats these risks, providing a better model for storing and accessing data.🧵 pic.twitter.com/ynULaFMTSq— Messari (@MessariCrypto) January 12, 2023
Old school cloud storage needs large and centralized data centers. It centralizes storage and brings costly barriers to entry. Decentralized cloud storage (DCS) decreases single points of failure as it leverages on the untapped storage. DCS networks do away with the requirement of third-party trust altogether, to boost data security and privacy, still being environmentally sustainable and cost-effective.
Decentralized storage networks (DSNs) use blockchains to develop a P2P storage nodes’ network. These networks leverage data retention, durability, availability, persistence mechanisms, data privacy and security mechanisms for data maintenance.
A DCS’ strengths include its cost-effectiveness, enhanced data security and privacy, and increased redundancy. Some of its weaknesses include slower retrieval times, (so far) unproven resilience, and a high learning curve.
Messari Crypto shared the state of the storage market in an Enterprise report. Insights include details on token models and use cases for Filecoin, Sia Foundation, Storj, and Arweave. A redundant information storage across nodes (computers), decentralized storage safeguards information accessibility and security.
Decentralized storage marketplaces operate via blockchain smart contracts to enable users and storage providers’ interactions. These smart contracts tend to define the following:
- The size of the information the user intends to store.
- The total information holding duration obligation on the storage provider.
- The storage provider’s compensation for their information storage services.
A number of decentralized storage systems use the proof-of-storage (PoStorage) consensus algorithm.