Centralized storage
Centralized storage can simply be interpreted as traditional cloud storage, which is a cloud computing system with data storage and management as its core. Simply put, cloud storage is to share storage resources into a storage space that users can access through any internet-connected device, without any time or geographic constraints. Popular platforms that we come across on a daily basis, such as Dropbox, iCloud, and Google Drive are good examples of centralized cloud storage. When users store their photos or other data on cloud services, in fact, they are being uploaded and stored on these central servers.
Centralized cloud storage has become the future development trend of storage technology, and its necessity is reflected in the fact that a large amount of multimedia information creates a huge amount of unstructured data due to the popularization of the Internet.
On the other hand, data in both the business and personal world, such as company data, vacation photos and playlist, need to be stored online in order to be readily accessible.
Given the huge market space of the personal cloud storage market, it puts forward even higher requirements for the network disk service providers. In order to be a leading edge in this highly competitive market, the only way is to be sufficiently funded, which allows the provision of more personalized services.
Disadvantages of centralized storage
Traditional centralized storage is praised for its convenience and high speed, however, one cannot ignore the potential risks and worries within its mechanism and storage mode.
Privacy Leakage
With centralized storage, users are able to quickly upload audio, video, or any other files from their devices to the network disk anytime. Not only that it frees up space on the local storage on their mobile devices, but it also allows the users to access their network files instantly when needed. In reality, network administrators are able to access every piece of file or data that are uploaded by the users. Within this management mechanism, the privacy of the user is highly vulnerable to leakage. Companies that have a large amount of data need a large amount of AI neural network training data in order to keep up with the steps in the AI era. Huge commercial interest will drive large companies to use the data stored in the personal cloud disk to conduct AI neural network training, so as to enhance the AI competitiveness of large companies.
- Low Server Security
Because of its special storage mode, central storage server has already become the primary target of hackers. When a large amount of user data is stored on the server, information hijacking of large user group becomes an important source of revenue for hackers. As a result, the safety of user data is solely dependent on its server security. It is not surprising that data from a number of big companies can be found on sale in the black market on dark web, which implies no data is truly secured, even the ones managed by big companies.
- Risk of termination of operation
In the current Internet environment, the annual investment of cloud storage service providers for public users sums up to more than 500 million RMB, while the profit model of cloud storage provided to private companies remains unclear. In recent years, the investment in centralized storage is unprecedented, with low monthly cost bring the primary requirement to attract users, it contradicts most companies’ operating purpose of profit making. Such business model could force these providers to run out of business, which ultimately leads to the suspension of service.
Decentralized storage
Decentralized storage distributes data across multiple network nodes, similar to the distributed ledger technology of blockchain. Storage vendors (managed hosts) store customer data based on contracts and periodically proof that they can continue to provide storage services until the contract expires.
Users can lease the unused hard disk space of their own computer to get a certain token as a payment, while those with tokens can rent the hard disk storage space of other users. These users from all over the world can form their own remaining disk space into a decentralized network. Consequently, these spare disk spaces become the node of the decentralized network. For those who use storage services, security is paramount, therefore, data stored on a decentralized network will be broken into small pieces, encrypted and distributed across many nodes.
Advantages of decentralized storage
Cost reduction
Decentralized storage could form a sharing economy. Since the mechanism primary uses the remaining disk space and unused user upload bandwidth, this way we can make full use of these resources. Owner of the storage resources are able to enjoy the benefits and to save on the construction cost of centralized storage.
- Privacy enhancement
The data is divided into small pieces, which are encrypted and stored in a large number of nodes. This avoids the centralized risk of centralized storage. Even if a piece of data is leaked, it will only be a part of the data.
- Faster transmission
During the download process, file segments are reorganized and they are derived from multiple storage space providers. Multi-point downloads turn decentralized storage into a much faster option compared to centralized storage. In addition, centralized storage will only deploy a few core data centers, while decentralized storage, with storage providers (miners) everywhere, is much faster using the principle of proximity.
- Blockchain smart contract
Through smart contracts, programs can determine usage and reward resource providers.
- Token Economic Revitalization Storage Market
The token incentive enables more users to contribute their idle resources, thereby amplifying the storage capacity of the entire market.
Difficulties and challenges of decentralized cloud storage
1、 Stability problem
Since decentralized storage relies on storing data segments in different nodes, when there are fewer numbers of users, the insufficient backup of the segments will result in the loss of data. In comparison, centralized storage has been developed for many years, which cultivates a more mature and stable environment.
- Token cheating problem
Since decentralized storage is based on a blockchain token economy, storage providers (miners) benefit from providing services, which is the economic basis of the entire decentralized system. It is difficult and challenging to ensure a fair and reliable mechanism. Resources are needed to police malicious miners and to forbid them from exploiting any vulnerabilities or loopholes in the system to gain illegally.
- Project Cold Start
In the case of centralized cloud storage, since it is a storage space operated by a company, the company itself has the flexibility to choose to increase or decrease servers based on actual storage space usage. For decentralized storage, it is a very different yet difficult scenario.
Since it is not a single storage space operated by a company, the operation of storage space mainly relies on token incentive to encourage storage providers (miners) to provide services. This will lead to the challenge of balancing between supply and demand in the sharing economy.
In other words, at the early phase when there are not enough users, miners could be reluctant to provide services because they cannot acquire sufficient and stable returns. To solve this problem, a good token economy incentive model must be designed.
Article author：Wayne Wong
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