What Is Decentralized Storage?

Today, cloud storage is how most organizations store their data. It provides a secure way for companies to host data they may need to access remotely and share between multiple verified users. On the surface, it seems like a viable solution for an organization, but closer inspection reveals several potential flaws, including:

• Centralization: All data is stored with a single company, and often in one or very few geographical locations. This exposes servers to geopolitical, natural disaster, and security risks.

• Fragility: Cloud storage services can isolate data from the people that own it by limiting its transferability. With companies typically invested in a single vendor, these lock-ins can become a concern for those who wish to maintain multiple instances of their data.
• Cost: Enterprise data storage on the cloud has varying rates. Lock-ins tend to reduce the ability of organizations to negotiate prices, creating high-friction markets.

Decentralized storage solutions like Filecoin provide a compelling alternative to these shortfalls. Filecoin offers enterprises all the utilities they’ve come to expect from cloud storage services without the vulnerabilities that are inherent to a centralized data storage system. Among its benefits are:

• Decentralization: there’s no single-point-of-failure and no proprietary lock-in. Data can be spread across multiple storage providers around the globe who guarantee its permanence and availability in the face of any individual risk.
• Robustness: Cryptographic data is verified daily and multi-copy architecture means there’s always redundancy built into the system.
• Efficiency: Decentralized storage is cheaper than cloud storage because of a competitive bidding system that forms the core of the infrastructure. Data can be stored closer to the edge.