Decentralized storage platforms give consumers a safer option to store their information while increasing transparency and removing the risk of data theft.
Additionally, certain decentralized storage networks give customers the possibility to use cryptocurrency to generate additional income. The native storage coins that protect decentralized data storage platforms are used in this procedure.
To start, storage coins are digital assets that are created directly on a native blockchain. For instance, the Sia blockchain’s decentralized storage platform has its own cryptocurrency called Siacoin (SC).
Filecoin is a decentralized storage network created to house the most crucial data for humanity. When Filecoin generated more than $250 million in an ICO (or initial coin offering) in 2017, it established itself as one of the biggest ones ever.
This open-source, decentralized storage platform, created by Protocol Labs on the InterPlanetary File System (IPFS) storage protocol, enables users to store vast amounts of data safely and generate passive revenue utilizing the internal storage of their device. It is based on the Ethereum blockchain, which DeFi projects have found to be highly prominent.
Inside its network, Filecoin utilizes the Proof of Spacetime (PoST) and Proof of Replication consensus techniques (PoRep).
The PoST technique, which is connected to Proof of Storage, effectively calls for miners to demonstrate that they are storing a certain set of data for a decentralized network.
Miners are randomly selected, and they then check the storage of their data. As it is significantly more ecologically friendly, this type of process is an improvement over the Proof of Work (PoW) technique.
Sia (and Siacoin)
Sia is a significant player in the decentralized storage space. Through the partitioning of users’ data into bit chunks and subsequent distribution across network nodes, this platform provides decentralized cloud storage to users.
According to Sia’s developers, the network provides users with “underutilized hard drive capacity” that is protected by blockchain technology.
Smart contracts are also used to protect data transactions, making it possible for cloud storage to be more reasonably priced.
Users of Sia retain control over their private keys, ensuring that no one else may access or change the data they have stored.
Users can use Siacoin, the native currency of Sia, to settle for their rented cloud storage. When compared to Filecoin, this coin’s value is now somewhat minimal, yet it is still a strong storage coin competitor.
With tens of thousands of users, Storj is one of the most widely used decentralized cloud storage platforms in the world.
This network, which was established in 2014 and introduced in 2018, enables you to keep your data in a secure, encrypted format.
Users’ data is divided into tiny bits by Storj, enhancing its security and longevity. Every time, Storj divides a file into precisely 80 pieces, and each component is transmitted to a different node.
Within the Storj network, users can pay other users for storage space, but doing so has a cost.
The same name-based digital currency is used by Storj. When users rent out space on Storj, they get paid in their home currency.
An SNO is someone who accomplishes this (or Storage Node Operator). Several people decide to use Storj to monetize their data rather than leasing out cloud storage space.