Microsoft and Amazon’s cloud storage market share has been declining for the past five years. The two companies have seen their monopoly over data usage threatened by decentralized file storage protocols like Storj, Sia, and Filecoin. This is a great time to invest in these technologies before they become mainstream.

Decentralized cloud storage companies are a new trend in the tech world. They offer decentralized data storage and file sharing that is not subject to censorship or control by any central authority. However, it is still unclear if these companies will be able to compete with the centralized cloud storage providers.

The worldwide cloud storage market is predicted to reach more than $100 billion in size between 2020 and 2025, according to IDC’s “Global Enterprise Infrastructure Quarterly Tracker: Buyer and Cloud Deployment” research.

While centralized cloud storage solutions are the most common kind of cloud storage, they have a number of disadvantages.

Data breaches, server failures, centralized operational control, and hacking events have prompted an increasing number of developers to consider how to store data in a secure, reliable, and cost-effective manner.

The rise of blockchain technology has opened up new possibilities for decentralized storage services.

What is a decentralized storage protocol, and how does it work?

Decentralized storage protocols based on blockchain technology provide an incentive structure to its ecosystem using a tokenomics model to achieve distributed and piecewise data storage across numerous network nodes.

Decentralized storage protocols are divided into two types.

Users mine by contributing hard drive space, and one utilizes storage as mathematical power. This consensus process is compared to Bitcoin-like projects, with Siacoin serving as the sample project.

Storage as a service, on the other hand, provides sufficient storage as arithmetic power—the customer completes the data storage service for mining. Filecoin, Arweave, and BitTorrent are examples of representative projects.

Why is it necessary to use decentralized storage protocols?

Reliability

Blockchain is a basic digital transaction log that is duplicated and distributed over a network of computer systems. A cloud storage protocol based on the blockchain offers decentralization and encrypted storage features, and it creates a stable and decentralized data storage mechanism.

All data blocks are confirmed via the decentralized storage protocol. Workers must double-check any data that has been submitted or updated in order to avoid data manipulation.

Load balancing is achieved through distributed storage technology systems, which prevent traffic from concentrating in a single site, slowing data storage and retrieval. Users do not lose data if any system dies or ceases operating since numerous copies of the original data are stored in separate places.

Security

Each duplicate of data is encrypted, diced, and stored on nodes throughout the network with many redundancies for security. Only the private key has access to the data, which may be decrypted and viewed using digital money. Intruders attempting to hack into these storage nodes will only access a fraction of the data, not the complete file, since the data is stored decentralized.

Scalability

The number of decentralized storage nodes may be indefinitely increased, and each node can alter storage capacity and quality dynamically based on its resources.

Fairness

The market will become more competitive and open as millions of decentralized nodes arise. Powerful centralized storage providers will be unable to control the cost of data storage, allowing for fairer pricing throughout the whole storage service market and encouraging nodes to enhance storage service quality.

Data performance and comparison of four decentralized storage technology initiatives

Cloud storage may be supplemented with decentralized storage methods. Reliability, security, scalability, and fair market pricing will continue to attract more enterprises, particularly blockchain companies, in the Web 3.0 age, when data security and user data ownership are increasingly important.

Arweave, Filecoin, BitTorrent, and Siacoin are used as project representations in Footprint Analytics’ side-by-side comparison.

Will decentralized storage protocols overtake the cloud storage market?Protocols for Decentralized Storage Comparison

According to Footprint Analytics, the following four projects’ token market cap performance is as follows:

  • Filecoin is still the most popular decentralized storage protocol.
  • In August, Arweave, which became the Solana blockchain data storage technology, had its token price skyrocket, and its market valuation is now on pace with BitTorrent token BTT.
  • On the other side, Siacoin has been a middling performer, failing to break through.
  • Decentralized storage methods are still evolving at a snail’s pace in general.

Will decentralized storage protocols overtake the cloud storage market?Filecoin is the most popular decentralized storage protocol, according to Footprint Analytics.

Summary

Cloud storage may be supplemented with decentralized storage methods. Reliability, security, scalability, and fair market pricing will continue to attract more enterprises, particularly blockchain companies, in the Web 3.0 age, when data security and user data ownership are increasingly important.

The Web 3.0 revolution is only getting started, and decentralized storage’s appeal still has to be bolstered in terms of infrastructure, finance, talent, and social agreement.

The majority of decentralized storage protocols are still in the idea or development stages, and national legislation will have an impact on the industry’s growth. Centralized storage platforms will continue to be the primary storage technique for a length of time, based on various national legislation and market agreement.

Disclaimer: The opinions expressed in this article are those of Footprint and are provided only for informative reasons. They do not constitute financial advice.

This is the author’s first work. If you want to republish anything, please give credit to the original source. The author’s permission is required for commercial reproduction. Commercial replication, excerpting, or usage in other ways without permission will be explored for possible legal ramifications.

Footprint Analytics is the source of this report.

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Posted in: Technology, DeFi

Will decentralized storage protocols overtake the cloud storage market?

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The decentralized database is a type of database that is not controlled by a single entity. In the past, this has been used to store information on computers and in cloud storage. Now, it is being used as an alternative to cloud storage providers like Google Drive. Reference: decentralised database.

Frequently Asked Questions

Is decentralized cloud storage the future?

A: Yes.

Is cloud storage decentralized?

What is decentralized storage?

A: Decentralized storage is a way to store data in the form of blockchains, which are distributed and public. This means that there is no need for a central authority or entity such as Facebook, Microsoft Azure, Amazon Cloud Drive etc., who has access to your information and could potentially sell it without you knowing

Related Tags

  • decentralized cloud computing
  • storj
  • filecoin
  • siacoin
  • sinovate