Decentralized Storage Systems

Everything to know about Decentralized Storage Systems

Decentralized storage systems are a trending topic in the storage technology environment. Moreover, decentralized storage systems have multiple benefits, like securing data. Further, businesses leverage the decentralization features to protect sensitive data by not storing it with one provider. 

Most importantly, businesses require a more robust storage system with the rise in mobile/web applications, IoT, and AI solutions. As a result, there has been a significant increase in the data sets that require constant assessment and storing. 

According to a report by Cloudwards, cloud data centers will process 94% of all their workloads. The report further states that the cloud storage market will reach $390 billion by 2028 with a CAGR of 26.20 %.

Moreover, businesses recognize that data is a pivotal asset that builds opportunities for customer retention, new product & service strategies, marketing, etc. Therefore, multiple businesses need to integrate more robust storage solutions to manage the data and retain actionable information. Hence, this article will walk through the best-decentralized storage systems to provide businesses more power over their data.

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What are Decentralized Storage Systems?

Decentralized storage systems enable users to store data regardless of the central silos of the data. Further, decentralization helps provide more privacy and security than centralized storage systems. 

Moreover, it utilizes a peer-to-peer network of operators and users that manage the data. Therefore, it helps keep the data secure during storage and transfers. It also used a blockchain-centric system or a peer-to-peer network. Hence, this distributed function offers various advantages to businesses.

Further, decentralized storage systems acknowledge the following problems traditional storage systems reject:

  • Firstly, the distribution of data to various sources makes it more difficult to hack.
  • Moreover, encrypting files with passwords keeps the ownership of the data authentic.
  • Further, the distribution of files into multiple encryptions is spread throughout various nodes. Therefore, it is impossible for an attacker to retain the complete file.
  • It also offers efficiency in the usage of existing data which decreases cost.
  • Above all, many copies of the data in the various nodes help avoid bottlenecks on the central server and enhance the downloading speed. 

How do decentralized data storage systems work?

Firstly, the decentralized storage systems divide the data into multiple chunks as “blocks”. Moreover, it then encrypts every block with a specific hash or public-private keys. It also allocates the blocks across various systems and nodes. As a result, distributing the data throughout the network is “sharding”. 

Above all, the blockchain-centric storage solution does not store the data within the blockchain. Further, it enables users and groups to combine, store, and host the servers. Therefore, various small entities use the network by offering computing abilities and data storage space. As a result, this reduces the storage cost to benefit businesses and end-users. 

Similarly, the process of storing and distributing data occurs in decentralized locations. It also encrypts the data and data blocks during an attempt to hack. 

Moreover, the data sets do not include any personal information about a user. Miners also receive nanoscopic data from the entire file. Hence, this process enables decentralized storage systems to secure confidential information. 

Further, the data undergoes a process of validation while retrieving the data. The system also executes load balancing and data redundancy to protect and accelerate data storage and transference. As a result, when one machine faces downtime, users do not experience any loss of data. Hence, load balancing advances the complete network and prevents the traffic from gathering at one location. Therefore, it encrypts, splits, and distributes data to various resources.

Advantages of Decentralized Storage Systems

  • Firstly, a decentralized storage system provides more reliability while distributing and storing the data. It also secures a copy of the files due to any hardware failures. Hence, this secures the data against hackers using various methods and specific hashes.
  • Moreover, it is a cheaper solution that helps save costs for hardware and software. It also mitigates the requirement of using high-end machines yet provides efficiency. 
  • Further, using peer-to-peer technology eliminates the need for unnecessary resources. As a result, it accelerates the process of data transfers.
  • It also uses blockchain-centric systems to offer more efficiency while decreasing the load on servers. Therefore, users and hosts can easily attain the data without accessing the servers.
  • Above all, processes like sharding divide and encrypt the data and secure it from unethical access. Hence, data encryption increases the security and privacy of confidential data.

The Best Practices and Strategies for Decentralized Storage Systems

Decentralized storage systems offer a plethora of advantages for businesses like securing the data, mitigating data center failures, ensuring privacy, etc. Moreover, businesses that plan to implement it in their processes must consider the following strategies:

  • Workload Considerations:

Firstly, businesses must understand how their workloads function with decentralized storage systems. Businesses must also consider the latency of input/output storage systems as they divide the data into various devices. Although, businesses may not employ the systems due to high-performance requirements. Moreover, businesses must redesign the applications to mimic system capabilities.

  • Compute the Actual Results:

Further, the storage systems rely on redundancy to enable the constant availability of the data. Usually, users upload the data to a storage provider who distributes the data and transfers the portions to various storage sources. Providers also use cloning systems to offer additional bandwidth for uploading the data. As a result, businesses must consider provider charges for the same and the best ways to create data backups.

  • Selecting a Robust Storage Provider:

Moreover, a suitable storage system must not include any single failure point. However, if the provider is unable to deliver the features it may cause failure leading to data loss. As a result, with decentralized storage systems, data is spread through various devices, and the provider can enable more robust storage. 

Here are the best Decentralized Storage Systems for businesses

  • Filecoin:

Filecoin is a decentralized storage system that works on an IPFS (Interplanetary File Storage) protocol. Moreover, it intends to use redundant data storage space worldwide. Hence, it helps generate a market for users and businesses to purchase cost-efficient storage.

  • BitTorrent:

BitTorrent is a decentralized peer-to-peer system that helps share and transfer files across the globe. It also helps share and trade storage resources on the TRON blockchain.

  • Siacoin:

Siacoin is another storage system that can compete against central storage systems like Dropbox. Moreover, it enables users to rent a storage space to execute transactions.

  • Swarm:

Swarm is also a distributed storage solution that offers content distribution services. Moreover, is a component of Ethereum’s ecosystem and consists of the following:

    • Messaging through Whisper.
    • Ethereum for computation features.
    • Swarm for storage.

Further, it offers similar IFPS features when using a hash to acknowledge the content. 

  • Storj

Storj is one of the best-decentralized storage systems as it offers encryption, sharding, and distribution of data globally. Moreover, its base technology is an official peer-to-peer storage contract. Therefore, it provides a platform for users to exchange storage facilities for some incentives. 


In conclusion, decentralized storage systems have gained popularity due to their various benefits. Moreover, it encrypts and stores the data in various locations or nodes. Hence a potential opportunity for individuals and businesses to rent out storage for certain incentives emerge.  

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