How Can Blockchain Technology Improve Data Storage?
Decentralized Cloud Storage
Cloud storage systems maintain data on remote servers that are accessible from the internet. However, unlike conventional cloud servers, decentralized cloud storage does not keep user data on a single centralized server. A decentralized storage system breaks down the files and spread them across multiple nodes on the network. These days, several blockchain companies are implementing decentralized file sharing. Blockchain technology helps create a robust decentralized file-sharing system where the participants receive incentives for their contributions.
There are many benefits of centralized data storage, such as higher speed, low latency, quick throughput, etc. However, since the files are not encrypted and stored at a single location, they are vulnerable to manipulation. This is where decentralized data storage scores big. They are more secure and reliable as they do not keep the data on a single server. They divide the files into multiple pieces and send them to different nodes; therefore, minimizing the chances of any external control over the data.
Blockchain-based Data Storage Solutions
Generally, there are two main methods in blockchain data storage solutions:
In the on-chain method, each block on the blockchain stores the user data. The main advantage of the on-chain method is that in case of an attack, the data remains safe and can be quickly restored. Since each node contains all the uploaded data, it can be an expensive option. Any running node has to maintain a copy of all uploaded user data, and all nodes will have to synchronize with one another continuously. Moreover, scalability is also an issue with this method.
In the off-chain approach, the miners get incentives or rewards for allowing users to store data on their hard disks. The blockchain promotes the storage market between the users and miners. This approach’s main challenge is to convince the users to store other people’s data on their disks. The best solution is to provide the native crypto coins as an incentive. The incentive encourages the users to rent their additional disk space. The off-chain method is cost-effective than the on-chain method.
Advantages of Decentralized Cloud Storage
Decentralized cloud storage has numerous advantages over the traditional centralized cloud servers such as Amazon or Google Drive. The main advantages of decentralized cloud storage are:
As there is no central authority involvement, no one can make any changes, take away your document, or restrict access in the name of censorship.
Incentives for Storage
Many decentralized storage systems use native cryptocurrencies and blockchain to provide incentives to users. Anyone with extra storage space like unused hard drives can rent it for incentives. Blockchains connect users who are willing to share their storage space with those who need it, therefore, making it a profitable venture for both.
Decentralized cloud storage is much cheaper than centralized cloud storage. The popular centralized cloud storage systems like Amazon S3 and Google One charge around $0.02 for 1 GB of space, whereas their competitors using blockchain charge around $0.002 for 1 GB of space.
SAFEBOX allows its users this added security while sharing any document or record online. Users can choose to add blockchain security to their work when sending the files to any recipient using the SAFEBOX dashboard.
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