Decentralized storage methods are available in some projects listed on Coinmarketrate.com, and have clear advantages over existing cloud systems. Increased security, saving space and time. These are the databases of the future.
Let’s get acquainted together with some projects that seek to offer online storage thanks to the blockchain, and let’s start with the basic concepts.
Definition of basic concepts:
- Cloud storage
Cloud storage is a model for storing computer data. The data is organized into so-called logical pools, which are called a “cloud”. Hosting is managed by a company, storage takes place on several servers.
- Big Data
Big data refers to a large amount of information. The characteristics of this data require the use of technologies and analytical methods to be able to analyze and process them. This processing is done in parallel on multiple machines at the same time and creates added value.
- Internet connected objects
The Internet of Things (IoT) refers to the relationship between everyday objects, for example, a watch, a toy or a bracelet. These objects can be connected to each other or directly to the Internet. The name refers to the growing number of connected objects that create a link between our so-called physical goods and their digital existence.
Let’s get acquainted with these three basic principles to explain how blockchain storage projects can be useful.
Internet of Things
It is true that the number of connected objects around us continues to grow: connected watches, smartphone, laptop, connected watches, cars, etc. Technologies continue to evolve and improve. This is what is called the Internet of Connected Objects (IoT), or as we used to hear – the Internet of Things. The focus is on communication between these devices to facilitate our daily life.
This is not a problem, depending on how we use them. However, privacy and digital data management issues are important today. How to manage the huge amount of data coming from all these devices? How to store them, how to secure them? These are issues that concern many, and today some blockchain projects are trying to find a solution for users.
Let’s look at three major projects that represent the world of storage thanks to blockchain.
The birth of projects
Globally, the first official documents on blockchain-based storage projects appeared in 2014. The idea was to use the available space to create a decentralized backup system. These projects realized how much blockchain can be a phenom-nal lever for creating a decentralized cloud network.
All these projects have been existing in the blockchain ecosystem for 7 years. An example would be the Filecoin project, which is in 23rd place Coinmarketrate.com by capitalization. This amounts to about $7 billion with a daily volume of about $1.2 million. Other projects have not been left out, they are close to the TOP 100.
The goal of a decentralized cloud
These projects have a cloud storage platform. Blockchains use a decentralized network of nodes to host user data. Encrypted data ensures privacy and security. Users who have a good Internet connection can provide a storage space to participate in the development of the network.
In the long term, blockchains want to compete with existing data storage solutions such as Dropbox, Google Drive and large centralized organizations such as Microsoft, Amazon or Google. The long-term goal is to become the leading solution in the big data and database ecosystem.
How the cloud works
Users can either free up storage space or request data hosting.
If you want to make storage space available, you, of course, become a node of the ecosystem, the acceptance rules for granting access vary from project to project. In general, you need a good internet connection to meet customer needs quickly.
For example, launching a Filecoin miner is a high-tech task with high hardware requirements necessary to obtain the necessary evidence. Nodes are called miners, similar to Bitcoin’s proof of work. They ensure the security, speed and reliability of the blockchain.
Nodes will be rewarded for providing storage space, transaction verification (peer-to-peer), and protocol protection.
- Network users
Network users, individuals, or companies have encrypted storage solutions. These solutions provide privacy and security thanks to the hashing system known in the world of cryptocurrencies.
The data representation process is a peer-to-peer system between a user and a network node, which means that two objects trust each other. Trust is recorded inside the smart contracts used to operate the protocol.
Decentralized Cloud Consensus
Let’s introduce the most commonly used consensus in this type of storage blockchain. This is a proof of replication and a proof of space or time.
- Proof of replication
Proof-of-Replication (POREP) is an interactive proof system in which a user who wants to prove defends a publicly verifiable claim. This operator must allocate unique resources to store one or more recoverable replicas of the data file.
- Proof of space or time.
Proof-of-Space (POS) in English, can also be called Proof-of-Capacity (POC). The main use of this algorithm is to allow different devices to use the available disk space. This helps in making decisions regarding mining rights.
Network nodes will use the available space on their hard drives for cryptocurrency mining. The larger the disk size, the larger the size of multiples of correct solutions can be stored on it. Like Bitcoin miners who will use computing power to decrypt complex algorithms, free space is used for mining here.
And so, the important criteria are:
For privacy, security, and speed, the source files can be divided into 30 parts. This is called the method of segmentation, partitioning in order to increase the speed and scalability of the blockchain. But it significantly improves decentralization, since your files can be located in 30 different places.
As we’ve seen, decentralization is improving, meaning it doesn’t matter if an earthquake hits Asia or a fire devastates the United States. As long as 1 of the 3 nodes is working, the blockchain will still be able to receive data.
The reputation of storage nodes can be shared to always improve the performance of the blockchain. For example, a job confirmation system, an initial verification process, a verification system, or preferences.
This allows you to separate tasks, but more importantly, this system ensures that no node will be malicious, since the task is not performed by only one node.
Blockchain storages offer cheaper, faster and safer alternative solutions than existing models. Encrypted data, as well as the decentralization of the blockchain network, significantly increase security, as well as the separation of tasks for nodes, which emphasizes the reputation of the network and prevents intruders. Separation speeds up transactions and data loading. Blockchain and smart contracts offer an alternative to the current centralized solutions.
In the coming years, with an increase in the number of connected objects in IoT and digital data. it will be difficult to do without this type of blockchain[injury.