The emergence of the digital world with the continuous advent of eCommerce portals, mobile apps, IoT, and other digital systems has incepted a data-driven era. The users of the latest digital devices are continuously generating a large volume of data. In today’s data-centric world, this data has become the most valuable asset for businesses which is capable of generating a wide array of opportunities for distinct business segments. The right convention of data holds the power to transform the industry. As businesses are more tending toward the data solutions and engaging it for prompt operations, they are continuously seeking the most powerful storage for the data that can help them reduce the manual efforts with better data management.

There are several cloud storage solutions available in the market, but some of the major players in this industry are Amazon, Dropbox, Google, etc. The mentioned cloud storage solutions have gained a specific space in the technological world with their storing options, data sharing solutions, and management.

Before the advent of the cloud storage solutions, businesses were using physical storage solutions which was an expensive approach and most businesses were incapable to afford such expensive solutions and hence restricting them from leveraging the power of data. Cloud storage has helped them to reduce the expenses to a great extent and also efforts to maintain data.

Now, startups and most enterprises are choosing the cloud storage of their choice and can pay the host for a certain storage space based on their requirements. On one hand, where cloud storage offers a plethora of benefits, on the other hand, it is also having a major limitation of keeping the data at a centralized location. The data which you are storing in a centralized location is easy to snoop in and manipulate.

 But now you might be thinking if centralized cloud storage is not ideal then which one to prefer? Then the answer is decentralized cloud storage. Let’s get to know what is decentralized cloud storage and other details related to it.

What is decentralized cloud storage?

Decentralized cloud storage offers a content-centric approach shifting the level from a location-centric solution. Now, people can search their content by defining what it is instead of memorizing the location to find it. This is because data is not stored at a particular location, instead, it is distributed over the global network.

Decentralized storage if summarized in simple terms, can be defined as a storage system that uses multiple servers or computers of various companies acting as an integral part of the decentralized cloud. The reason for selecting a decentralized cloud over a centralized one is enhanced security. In a decentralized cloud solution, data is distributed over a chain of computers hosted in the blockchain network encrypting your data into cryptographs and hence making it more secure than ever.

There are several decentralized cloud storages developed by various blockchain development companies in Bangalore. A few decentralized cloud storage solutions are developed for private use and a few are used for B2B usage, a few of those are Akash network, filecoin, siacoin, storj, internxt, and more.

What are the benefits of decentralized cloud storage?

There are several benefits of decentralized cloud storage over centralized cloud storage. A few benefits are listed below:

  • No need for dedicated servers for data storage
  • Peer-to-peer solutions
  • High data redundancy
  • Less computing power is required
  • Lesser bandwidth is required
  • Load balancing is very flexible
  • Higher availability
  • If you have free space on a hard disk, it allows you to rent out your space
  • Cost-effective
  • Higher availability
  • Verification of data is easy
  • Enhanced data security
  • Encrypts data during transmission to reduce the chances of snooping in between file transfer

Working on decentralized cloud storage:

The mechanism of decentralized cloud storage is very simple. It is a peer-to-peer network solution, where all the participating computers are connected over the blockchain network and offer the highest security to the stored data. The files stored in a decentralized network are broken into small chunks and encrypted using cryptography and stored on various networks all across the globe using blockchain technology.

Anyone with a storage solution can be a part of this storage solution, and they can earn profit in the form of cryptocurrencies. The payment structure of decentralized cloud storage is very simple where the users using services will pay in cryptocurrency and the person offering the service will also be paid in the same currency which will avoid all the intermediatory included in other storage solutions, which means, there are no governing bodies in the decentralized cloud storage system involved in the process.

The decentralized storage offers complete security and privacy of data throughout the storage and data transmission process. Whether a user holds a public key or a private one, he holds the complete ownership of the data storage because the participants involved in the data storage process only hold the encrypted form of data which is completely secure and free from snooping.

The process to store decentralized cloud storage:

  • Encryption:

The storage process starts with the encryption process. Once you store data on decentralized cloud storage, immediately the entire data is encrypted and the decoding only can be done by the owner of the data and those to whom the owner has shared the access to decrypt it. Also, the decentralized cloud storage extends flexibility to the owner of the data to change the access permission of the data decryption.

  • Splitting:

Once the data is encrypted it is broken into smaller crunches and each crunch has its unique identification number. One data is broken maximum into 80 fragments and each fragment is stored at a different node all across the global networks. This enhances the security of the stored data. The encrypted data is only accessible for the users having permission, even the storage service providers don’t hold access to the stored data.

  • Global distribution:

The servers included from all across the globe act as the nodes to store split data of an object. This implies better security of your data because complete data is not stored at a single location rather it is distributed all across the global network.

Why decentralized cloud storage is considered the best solution for the web?

  • Location centric approach:

As we have already discussed centralized cloud storage which stores data in a certain location which makes finding the same data difficult. To understand this in a better way, let’s consider a book in a huge library and someone asks you to read that book, but the only name will not be sufficient to find the book. To find it faster you may require section no., case no., and also the placement position. But what if someone has already removed or shifted the book from the particular location, then it will be an impossible or tough to handle task for you to find out that book.

A study says that most of the cited links on the web are either replaced or removed from the mentioned locations. As a solution to this location problem, a decentralized storage solution allows you to find any data by what it is instead of its where it is?

  • Content-centric approach:

Storage of data is quite different in Decentralized storage solutions from centralized solutions. In decentralized clouds, content is converted into content-centric links which define the content instead of its storage location. Using blockchain cryptographic hash data is converted into content-centric links which are used as a unique identifier of the data stored. This type of content conversion into links allows the data to flow all across the worldwide peer-to-peer network. The data is stored in the form of nodes in the computers participating in the decentralized network and whenever a user wishes to retrieve or transmit data they can establish direct access with the node regardless of their location.


Centralized storage solutions were a quick solution for data storage but it is limited and also have various other shortcomings, such as expense of physical storage hardware, low flexibility, lack of storage alternatives, and more. All these limitations are now addressed with the help of decentralized cloud storage. It is a new-age solution offering enhanced security and better storage solutions. It uses blockchain technology to store data on various servers involved globally. In decentralized storage, data is stored by what it is instead of where it is, which means the location of the storage is not a crucial aspect instead what type of content you are storing is crucial for the storage.

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