We live in a world where all our data is digitized: debit cards, documents, photos, crypto wallets, and even passwords are usually kept in centralized data storage like AWS, Google Cloud, or Microsoft Azure. While the whole world uses these tech giants to store its data, only a few know about their biggest downsides, and even fewer people are aware of decentralized data storage and how it solves the problems centralized storages have.
In this article, we’ll delve deeper into what decentralized data storage is, how it works, and what the brightest examples of this technology are, put into action. Enjoy!
Traditional Data Storage Challenges
Centralized data storage, usually controlled by big tech companies like Amazon, has four major downfalls that decentralization has already fixed.
Cost Monopolization
With budgets of hundreds of millions of dollars, big companies like Amazon and Google can offer services at a price below average for years. This strategy attracts all the customers, eliminates competition, and then raises the prices above what the competition had, harming the end client.
Single Point of Failure
When discussing centralized data storage services, we refer to massive servers with hundreds of thousands of storage elements placed in one location. A breach at that location means thousands of terabytes of data could end up in the hands of malicious actors.
Privacy
It’s no secret that Facebook, Google, and all the tech giants have access to all our data. That’s the reason behind their success – the ability to market potential clients to hundreds of thousands of businesses around the world.
Scalability Challenges
The volume of data stored will always grow. However, the space in these centralized storages is limited, offering very little potential for scaling up. To add even a few hundred terabytes of data space, companies like Google and Microsoft must invest millions, if not tens of millions of dollars, into infrastructure, personnel, and so on.
How Decentralized Storage Works
Unlike centralized data storage providers, which use almost the same architecture and infrastructure to store data, decentralized storage providers employ various techniques to ensure security, scalability, and privacy.
Here are the main three providers of decentralized data storage and their architecture:
OORT Storage
OORT Storage, within the OORT framework, serves as a robust cloud storage solution, offering users a secure, private, and cost-effective alternative to major players like Amazon S3 or Google Cloud.” When users upload files to OORT Storage, the files are split into smaller parts called ‘shards.’ Each shard is encrypted for security, ensuring that nobody outside the user can read or analyze the stored data. The files also have extra backup shards in case of emergencies.
These shards are distributed across OORT infrastructure nodes, which are operated by individuals worldwide, sharing their surplus computer space. The locations of these shards are recorded in OORT’s decentralized database. When users need their files back, the application requests the shards from the nodes. Even if some shards are missing, the files can be reconstructed using a special coding technique.
OORT Storage employs its patented ‘Proof of Honesty’ consensus mechanism to ensure the stored shards are secure. Nodes that perform well are rewarded. OORT Storage operates without a centralized authority controlling everything, which makes it resistant to many common problems. In the future, the source code will be open for anyone to inspect and contribute.
Internet Computer Protocol
In contrast to OORT, the Internet Computer Protocol (ICP) takes a unique approach. It utilizes smart contracts for secure and infinitely scalable data storage.
These smart contracts on the Internet Computer, known as ‘canisters,’ consist of WebAssembly (Wasm) bytecode and isolated data storage. Each canister has its storage, which is altered only when the canister executes code. Canisters are placed on subnets, which are the primary architectural components of the Internet Computer Protocol (ICP). Subnets are independent blockchains that operate on nodes in globally distributed data centers. A single subnet can securely host numerous smart contracts, with dozens of subnets currently active and expected growth into the thousands.
Each canister’s code and data are stored on every node within its subnet, ensuring fault tolerance in the event of node issues. This replication is facilitated by the ICP, which features a high-throughput consensus mechanism and an efficient WebAssembly virtual machine, all supported by a blockchain.
Filecoin
Filecoin is built on the same foundation as the IPFS protocol, a peer-to-peer distributed storage network that uses content addressing to create permanent data references. However, unlike IPFS, Filecoin introduces an incentive layer to promote reliable storage and access to content.
In the Filecoin system, users pay to store their files with storage providers, who are responsible for the proper storage and verification of these files over time. Anyone interested in storing their files, or in earning payment for storing others’ files, can join Filecoin. Storage availability and pricing are not controlled by a single entity. Instead, Filecoin establishes open markets for file storage and retrieval, facilitating broad participation.
Filecoin serves a variety of purposes, including the storage of Web3 native NFTs and metaverse/game assets, incentivized permanent storage, and providing a more affordable alternative to traditional cloud storage for archiving Web2 datasets. Moreover, it supports a wide range of data formats, including audio and video files. This versatility makes Filecoin an ideal decentralized storage backend for Web3 platforms that are engaged in music streaming and video conferencing
Advantages of Decentralized Storage
Now that you understand how decentralized storage operates in various scenarios, let’s discuss the three primary advantages of using a decentralized storage provider to store your valuable data, such as precious memes.
Cost-Saving
Storing data on a decentralized network is significantly more cost-effective than using a centralized one. By harnessing a vast network of computers and storage facilities around the world, decentralized infrastructure providers can greatly reduce costs. For instance, OORT saves up to 80% by utilizing an optimized decentralized infrastructure globally. To illustrate OORT’s cost efficiency, let’s examine some figures. Imagine storing 1024 TB of data per year and downloading the entirety of it each month.
Below is a comparative table highlighting the differences:
Infrastructure Provider | Price per Year | Price Per Month |
OORT | $981,467 | $81,788.92 |
AWS | $1,421,869 | $118,489.08 |
Google Cloud | $1,799,356 | $149,946.33 |
Microsoft Azure | $1,270,874 | $105,906.17 |
Security and Reliability
A crucial advantage of decentralized data storage is its enhanced security. Distributing data across multiple nodes in a network, as Internet Computer does, significantly reduces the risk of data breaches, since no single entity has complete access to all the data. This decentralized structure also increases resilience to cyberattacks, as the data isn’t stored in a single, vulnerable location. It’s important to note that even if one node is compromised, companies like OORT shard and encrypt the data before storing it. This means that even if a hacker accesses and decrypts the data, it would be incomprehensible to them.
Another key benefit is the improved reliability and fault tolerance of decentralized storage systems. Unlike centralized systems, where a single server failure could result in significant data loss, a decentralized system ensures that even if one node fails, the data remains accessible from other nodes. This redundancy significantly enhances the reliability of both storing and retrieving data.
Full Ownership of Data and Fast Retrieval
Using decentralized protocols for data storage grants you complete control and ownership of your data. Unlike traditional data storage providers, who may sell your data to third parties without your consent, decentralized storage systems are incapable of doing so due to the nature of their technology.
Additionally, decentralized systems often offer faster data retrieval by sourcing information from nearby nodes, unlike centralized systems that may need to fetch data from a distant location. For instance, with OORT, you can retrieve terabytes of data within seconds, making the process more user-friendly and advantageous for both retail and institutional-grade customers.
Conclusion
In conclusion, decentralized storage providers represent the future of data storage. Similar to advancements in finance and other sectors, decentralization offers a better and more efficient solution to existing challenges. Decentralized storage is faster, more secure, and infinitely more private than its centralized counterparts, not to mention its cost-effectiveness and scalability.
Therefore, if you have a substantial amount of data, such as crypto memes, and are unsure where to store them, choosing a decentralized storage provider from the ones mentioned above would be an ideal choice. If you enjoyed this article, feel free to follow us and share it with your friends. We also welcome suggestions for our next topic in the comments!
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