The future of Data Storage: Decentralized Storage Review 2023

From Decentralized Finance and democratized internet, the world is now shifting to a new form of storage, Decentralized storage.

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Jay Crypto

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Last updated Mar 14, 2023 at 01:09 PM

Posted Mar 14, 2023 at 01:03 PM

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Based on a blockchain-based network, Decentralized storage stores data on different computers called nodes, run by individuals or organizations who provide free space and, in return, are incentivized in the form of tokens. This data may or may not be encrypted, and only the data owner has the key to access the data. This data is disseminated across different nodes so that the loss of one node does not affect the availability of data as a whole. Unlike the centralized storage system, the users have complete ownership of their private data and don’t have to rely on third parties to manage and store the data.

Brief overview of decentralized storage

As the early computers had limited storage and processing capacity, people were looking for devices that could store data safely. Magnetic tapes and punching cards were the first innovations used for storing data in the early days of computing. Data was recorded in these punching cards and magnetic tapes that could be read by different machines. In the early days of the internet, the floppy disk was a portable and inexpensive way of storing and transferring data. It was the first portable way of storing data, allowing users to transfer data between computers. Due to the limited space and fragility of floppy disks, users were looking for better options for storing data. With technological advancement, businesses and organizations across the world started to store their digital data on servers. Because these servers were centralized, they could lose important data in case of any damage. The solution to this issue was keeping backups, but creating backups for a huge amount of data was another challenge. The invention of cloud storage revolutionized the way we store data. It made it possible to store and access data more efficiently from any part of the world without any need for wires or physical devices like floppy disks or USBs which are fragile and limited in space.

Google Drive is an example of centralized cloud storage that allows users to store data in the form of photos, documents, and videos and this data is accessible from any part of the world with an internet connection and a device. The flexibility and scalability of these cloud storage quickly made them a popular mode of storing data of large businesses and organizations. However, these centralized modes of storing data are vulnerable to cyberattacks and security breaches as the data is stored on a single server managed by a third party. There is always a risk of unwanted data disclosure, data theft, and hardware or network failure resulting in loss of data.

For example, in 2018, the world’s biggest database Aadhaar was infiltrated by hackers who disclosed names, addresses, photos, bank details, contact numbers, and emails, as well as biometric data like fingerprints of more than 1.1 billion Indian citizens. Similarly in 2019, two datasets of Facebook were hacked, and 267 million users’ data was found unprotected on the dark web. Therefore, it is obvious that relying on centralized storage, whether physical or cloud, is risky as it may compromise the security and privacy of your confidential data. The drawbacks of these storage methods prompted users to look for a more diversified and decentralized method of storing data. In January 2009, when the first cryptocurrency, Bitcoin, was launched, it also introduced the unique concepts of decentralized finance, Web3, decentralized apps, and ultimately decentralized storage, the most advanced solution for storing data. This storage system is a Web3 product built on peer-to-peer blockchain decentralized technology, making your data easily accessible, and more secure than ever.

How does Decentralized Storage work?

Although centralized storages like cloud storage are more common, it is hard to access data from servers due to the vast network and it is even more challenging while trying to access it from a remote place. Moreover, the data is stored on a single server, and in case the server is destroyed or goes down, all the data stored in it could be lost.

Decentralized storage –where data is stored on various nodes in a decentralized network -- is the ultimate solution for all these problems. The working of decentralized storage is given below:

1. Encryption:

The data stored in decentralized storage is automatically encrypted by Securing Hashim Algorithm (SHA). This data can be accessed only using a private key, keeping your data safe from unauthorized intruders.

2. Sharding

The data is then split into little pieces and sent to different nodes globally. As sharding splits the data into little pieces, it is almost impossible for anyone to collect the pieces and access the data.

3. Replication

Decentralized storage is based on a peer-to-peer network of nodes provided by users. As there is no central authority to ensure the safety of these nodes, there is a chance that a node might go offline or get damaged. To deal with the challenge, several copies of data are made and dispersed across the vast network of nodes. So if a node goes offline somehow, the data is still safe on the other nodes, eliminating the chances of data loss.

4. Hashing

In the final stage, all the split parts of data are connected through hashing using distributed ledger technology. Each fragment of data has a unique digital fingerprint created using cryptography, which is then saved on the blockchain to prevent tampering and allows communication among nodes.

decentralized storage

Web3.Storage vs NFT.Storage vs LightHouse.Storage

NFT.Storage is a service that allows users to store their NFTs and their metadata safely on a decentralized network. This service has become important for every NFT creator or holder and is trusted by over 30,000 users worldwide Web3.Storage is a decentralized storage solution that enables users to genuinely own their data and store it on the Filecoin network and IPFS. It is an ideal option for developers building JavaScript-based apps. Lighthouse.Storage is an ideal option when you want to store your data on Filecoin permanently. You have to pay just once and enjoy the service for a lifetime. It is a general-purpose data storage ideal for web3 developers.

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Difference between Distributed Storage and Decentralized storage

In Distributed storage, the data is stored on a distributed network of servers. As the servers are still controlled by a single entity, it is still centralized and there are chances of data loss and other problems associated with centralized storage systems.

In a decentralized storage system, the data is stored on a peer-to-peer decentralized network of nodes. It is based on a decentralized network which means no central entity controls these nodes, making your data secure and easily accessible.

Conclusion:

The decentralized system is still in the early phase but has a promising future as it offers cost-efficient and secure storage solutions. As the world is moving towards digitalization, this decentralized storage could play an important part in managing and storing our valuable digital information.

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