Businesses encounter various challenges when storing data on-premises. Scaling infrastructure, maintaining storage area networks, and ensuring data compatibility and security are all complex and costly issues. However, the advent of cloud storage has offered a solution to these problems. Cloud storage provides scalability, agility, security, cost savings, and simplicity. According to Fortune Business Insights, the global cloud storage market is expected to reach $376.37 billion by 2029.
Cloud storage allows users to store data at an off-site location using the public internet or dedicated private network connection. Traditionally, centralized cloud providers like Amazon Web Services and Azure have been used by cloud storage solutions such as Dropbox, Sync, and Google Drive. Dropbox is a cloud-based platform that allows users to store, access, and share files from any device, anywhere. Sync enables real-time file sharing and collaboration, with advanced security features like end-to-end encryption and two-factor authentication. Google Drive, developed by Google, is a file storage and synchronization service that allows users to access files from any device with an internet connection.
However, centralized solutions have their drawbacks. Storing data at a central location gives the host significant power, including the ability to disclose data to third parties without consent and the risk of data loss due to hardware or network failure and cyberattacks. This has led to the rise of decentralized storage as a viable alternative. Powered by blockchain technology, decentralized storage applications provide increased security and reliability by distributing data across multiple nodes in a decentralized network. Examples of decentralized storage systems include InterPlanetary File System (IPFS) and StorX.
IPFS is a decentralized file storage network that offers enhanced security, privacy, and scalability. StorX allows users to securely encrypt, fragment, and distribute data across multiple hosting nodes globally. Each file stored on StorX is split into multiple components and stored on independent storage nodes operated by different operators located worldwide. This decentralized approach eliminates the concentration of data and enhances data security, with built-in privacy protection for personal data.
So how does decentralized storage work? Let’s take StorX as an example. Users upload files to the network using a login and password. The network generates a unique private key, encrypts the file, fragments it, and distributes the fragments among independent nodes globally. Redundancy is ensured by creating multiple copies of the fragments, allowing data retrieval from alternative nodes in case of unavailability. To retrieve files, users activate the private keys and reassemble the file in the background. Native SRX tokens are used as a medium of payment, and storage nodes operated by data centers with excess capacity ensure the storage and retrieval of data.
To maintain high-quality standards, StorX employs a storage node reputation mechanism that assigns a quality score to each node based on factors like efficiency, quality, location, and SRX staking amount. This mechanism ensures that the nodes meet security parameters, have updated server OS patches, and are not concentrated in the same internet service provider or location.
Decentralized storage systems have several advantages over centralized ones. StorX, for example, provides secure storage for critical data through its globally distributed network of enterprise-grade nodes. It uses both content and transport encryption, ensuring data security. Decentralized storage also offers advanced cloud storage that combines the benefits of traditional cloud and decentralized data structures, resulting in increased reliability and resilience against outages or censorship. Additionally, decentralized storage systems offer enhanced speed by fetching data from the closest nodes, resulting in optimal data retrieval speeds.
The future of decentralized storage systems looks promising. As they offer increased security, data privacy, and reliability compared to centralized systems, they are expected to gain popularity. Decentralized storage solutions are anticipated to improve in scalability, security, and usability, making them more appealing to individuals and organizations. With the expansion of Internet of Things devices and other decentralized systems, the demand for decentralized storage is expected to rise, driving further innovation and research in the field.