Businesses face several problems when storing data on location. There are difficult technical and cost issues to expand the infrastructure up and down, and maintaining a network of storage areas is a challenge. One also has to deal with complex issues of data compatibility and security.
These challenges have led to the emergence of cloud storage models that offer scalability, agility, security, cost savings and simplicity. Fortune Business Insights expects the global cloud storage market to grow from $83.41 billion in 2022 to $376.37 billion in 2029.
Cloud storage allows users to store data in an off-site location via the public internet or a dedicated private network connection. In general, cloud storage solutions, such as Dropbox, Sync and Google Drive, use centralized cloud providers such as Amazon Web Services and Azure to store data. Dropbox is a cloud-based file storage and collaboration platform that allows users to store, access and share files from anywhere, on any device.
With Sync, users can easily share files with others and collaborate on projects, even in real time. The solution also provides advanced security features, such as end-to-end encryption and two-factor authentication, to protect sensitive information.
Google Drive is a file storage and synchronization service developed by Google that allows users to store and access files, including documents, photos and videos, from any device with an internet connection.
Centralized solutions, however, have major demerits. Having data stored in a central location gives great power to the host, such as data disclosure to third parties without consent and data loss through hardware or network failures and cyberattacks.
Decentralized storage has emerged as a viable alternative to centralized options. Powered by blockchain technology, decentralized storage applications become quite useful in an age when business operations depend on efficient data handling.
This article discusses what decentralized storage is and how it works. It also briefly compares centralized and decentralized storage solutions.
What is decentralized storage?
Decentralized storage is a type of storage solution that is based on a blockchain-based decentralized network, rather than relying on a single centralized entity. Data is stored on multiple nodes in a decentralized network rather than on a single server under the control of a single authority. This improves security and reliability by ensuring that data is distributed and protected from errors and other potential risks.
Decentralized storage options also give consumers complete ownership and control over their data, rather than having to rely on a third party to manage and store it. InterPlanetary File System (IPFS) and StorX are some of the decentralized storage systems.
IPFS is a decentralized peer-to-peer file storage network that allows users to store, access and share files in a distributed manner, providing greater security, privacy and scalability. StorX allows anyone to securely encrypt, fragment and distribute critical data across multiple hosting nodes globally. Each file stored in StorX is divided into several components before encryption and stored in independent storage nodes managed by different operators around the world.
Structured as a group of autonomous storage networks, StorX does not have a single operator who has full access to the data owned by a single user. Because different operators hold data fragments, no one has disproportionate influence, increasing data security. The network has built-in privacy protections for personal data belonging to certain users.
How is storage decentralized?
Let’s continue with the StorX example to get an insight into working with a decentralized solution. One uses a login and password to upload files to the StorX network. Under the hood, the network generates a unique private key, encrypts the file, splits the file into multiple fragments, and distributes it among independent nodes globally.
To ensure redundancy, the network creates multiple copies of the fragment, which ensures that if a node becomes unavailable, the data fragment can be retrieved from an alternative node. Whenever the user wants to retrieve the file, they use their login credentials to activate their private and background keys to reassemble the file and gain access.
The network uses native SRX tokens as a payment medium. Data centers with excess storage capacity operate storage nodes. At regular intervals, they provide proof of storage for the platform.
Storage node reputation mechanism
To ensure high quality standards in the storage nodes, StorX has a storage node reputation mechanism, an application powered by artificial intelligence, which maintains regular quality checks on all storage nodes. The mechanism assigns a quality score to each node based on the quality checks it performs.
Factors affecting the node reputation mechanism are node efficiency, quality and location, and amount of SRX staking. SRX is the native currency of StorX and powers the ecosystem. Regarding efficiency, the mechanism takes updated security parameters and server OS patches. The system also ensures that nodes are not concentrated in the same internet service provider or location.
Decentralized storage solutions vs
The design of decentralized storage platforms makes them better than centralized systems. Using StorX as an example, let’s take a look at its performance:
Data storage is critical
While centralized storage systems are vulnerable to spoofing and limitations, a decentralized network consisting of more than 4,000 nodes globally enables StorX to store critical data. All nodes in StorX are enterprise-class, meaning server-grade hardware residing in a minimum 3-tier data center. The quality of the hardware is reflected in the quality of the storage.
StorX limits the mapping of publicly accessible data. Only the owner of the data or the person granted access can retrieve the data stored in the account through the private key.
Use of encryption
Some centralized storage systems have tried to compete with decentralized storage systems by creating hybrid decentralized solutions that lack the core element of decentralization – that is, transferring decision-making to a distributed network.
StorX, on the other hand, uses content and transport encryption, which makes stored data more secure. StorX offers decentralized cloud storage that deploys military-grade AES-256 encryption and fragmentation techniques, ensuring data security as no single node has complete data.
Advanced cloud storage
In conventional cloud storage, data is stored on a single file server hosted in a single geographic location. Decentralized data, however, fragments these files into multiple pieces spread across different locations around the world. Because decentralized storage has no point of failure, it has the capacity to withstand simultaneous outages or even censorship.
StorX rolls out a mechanism that combines the best of both. When these files are distributed to multiple nodes, this is all server-level hardware and not just any computer. Users get advanced cloud storage, which is a combination of traditional cloud and decentralized data structures.
Improved speed
Unlike conventional storage methods where large amounts of data are stored in a single source, decentralized storage has multiple nodes to store data. In a centralized system, speed depends on various factors, such as connectivity, bandwidth and the number of processors running on the server. However, in a decentralized system like StorX, the system queries the network and retrieves data from the nearest node, resulting in optimal data retrieval speed.
The future of decentralized storage systems
Decentralized storage systems may become popular in the future, as they offer many advantages over traditional centralized storage systems, such as increased security, data privacy and reliability. They also have the potential to reduce costs and increase access to storage resources.
Related: Internet of Things (IoT): A beginner’s guide
In addition, decentralized storage systems are anticipated to improve scalability, security and usability in the future, making them more appealing to a larger spectrum of users, including individuals and organizations. Demand for decentralized storage solutions is anticipated to increase with the expansion of Internet of Things devices and other decentralized systems, leading to additional innovation and research in this area.