Blockchain Cloud Storage
Introduction
Many of us have stored data on cloud storage services such as Google Drive, Dropbox and iCloud. However, these centralized cloud storage services often have drawbacks such as high fees, low flexibility, and low safety and security. Several blockchain start-ups have recently proposed decentralized alternatives to cloud storage providers. One of the most popular types is blockchain cloud storage. In this article, we will explore what blockchain cloud storage is, how it works, as well as some of the benefits and limitations of decentralized cloud storage.
Chain 1: Why Use Blockchain Cloud Storage?
Despite the popularity and widespread use of centralized cloud storage providers such as Google Drive, Dropbox and iCloud, they come with a slew of downsides, including the risk of monopolized pricing, censorship, policy changes, cyber-attacks, loss of data, and a number of privacy concerns. In fact, more than 2.438 billion centralized cloud storage accounts were affected in 2018 due to data breaches.
As blockchain technology started gaining prominence, decentralized cloud storage emerged as a more secure alternative to centralized cloud storage. In contrast to centralized cloud providers, decentralized cloud storage secures data through a widely distributed structure, which can help make these systems more resistant to hackers. Currently, there are 4 leading firms in decentralized data storage: Filecoin, Sia, Storj, and Maidsafe. In 2017, Filecoin managed to raise $257m in 2017 during their ICO, the biggest amount in the history of ICOs.
Chain 2: How Does Blockchain Cloud Storage Work?
Blockchain cloud storage connects network members over a peer-to-peer (P2P) network. Some users participate in renting their extra storage capacity and are paid via cryptocurrency. There are also end users who can rent storage from those who rent out their storage space and would pay in terms of cryptocurrency. In this network, there is no centralized governing body who is holding all the data.
Although one might think that the data might be less safe without a central authority. However, files are safer because when uploaded to the decentralized system, they are broken into small data chunks and stored on various computers by distributing the data in nodes worldwide. When downloading a file from a decentralized system, fragments of the file will be downloaded until the entire file is downloaded. This makes it more challenging for hackers to seize all the data simultaneously.
All the uploaded data to a decentralized storage network will be encrypted by default using cryptographic hashing mechanisms. This guarantees that only those who know the content address of the file can access the information. This typically occurs through Proof-of-Storage consensus algorithms. This algorithm selects Storage Providers based on how much data they contribute to the network. It then uses a random verification system to check whether Storage Providers are indeed holding the data.
Chain 3: Benefits of Blockchain Cloud Storage
There are three significant reasons blockchain cloud storage is more beneficial than centralized cloud storage:
Cost: Since network members rent out storage space, investing in expensive data centre hardware is unnecessary. The cost of most cloud services is around $25 per terabyte per month, while the corresponding one of blockchain storage is 12.5 times cheaper at around $2 per terabyte per month.
Security and privacy: All data is encrypted. Each file is encrypted with a private key, and only users with the same set of encryption keys can access the data, making it highly secure. Furthermore, the data is then split among millions of storage nodes. This makes it impossible for any single node to access or understand what is stored on a decentralized network. Hackers would have to simultaneously attack the data of multiple storage drives worldwide, making a successful cyberattack highly implausible.
Fewer intermediaries: Unlike the centralized cloud, blockchain cloud storage is a peer-to-peer (P2P) solution, where data storage is not stored and managed by a centralized authority but is managed by the users or miners of the system.
Immutability: In cloud storage, data is mutable, while in blockchains, data is immutable. This means that users cannot adjust, delete, or modify existing data in the blockchain. This prevents data tampering by hackers.
Chain 4: Challenges and Limitations
While blockchain cloud storage has many benefits, it has challenges and limitations. Here are three of the major challenges:
Scalability: Scalability is critical if your organization needs to store large amounts of data. Since data can only be added to the chain–not deleted–the data piles up. The chain can become very inefficient if the blockchain cloud storage has many users and updates.
Compliance: Since blockchain cloud storage is decentralized, there’s no single authority that can prevent certain kinds of files, even illegal material, from being stored on these networks. However, since the networks are private. Data stored on these networks is encrypted before being stored on the network, and no single computer holds enough chunks of the file to piece together the puzzle and deduce what is contained within the file.
Trust: There is a lack of trust in the new and unknown. Peer-to-peer networks using storage drives of complete strangers and bypassing any centralized regulatory authority may not yet sound very safe and appealing to businesses and customers. Given this lack of trust, developers are working towards designing the highest level of security within the decentralized network. It may still take some time for businesses to invest in new technology.
Technical issues: The decentralized storage technology is in its beginning stages of development. Therefore, some performance issues may hold businesses and consumers back from immediately migrating to decentralized storage systems.
Conclusion
Overall, blockchain cloud storage can be an innovative solution to the limitations of traditional cloud storage. Although it still is in the trial stages with some challenges, such as scalability and compliance regulations, its enhanced security and privacy features make it a feasible alternative to traditional cloud storage. As the technology continues to evolve, it will be interesting to see how it transforms the cloud storage industry.
Sources:
https://www.coindesk.com/learn/what-is-decentralized-file-storage/
https://medium.com/@hsvo389/is-blockchain-cloud-storage-the-new-black-6e3f4164f66
https://investmentbank.com/blockchain-cloud-industry-intro/
https://techgenix.com/blockchain-technology-for-cloud-storage/
https://www.linkedin.com/pulse/cloud-storage-already-being-disrupted-blockchain-antoniou
