Decentralized storage is slowly gaining traction and going mainstream, with Facebook and Instagram's parent company Meta (FB), utilizing Arweave's decentralized storage technology to bring data permanency to its platform.
In response to this integration, Web 3 data storage platform tokens like AR, FIL, and STORJ jumped 10% to 60% in price.
In decentralized storage, data is spread across a network of computers rather than being stored in a single central location, offering greater reliability, availability, scalability, and resistance to failure. But it can also be slower and more challenging to manage. Centralized storage solutions, meanwhile, are vulnerable to outages, censorship, and other forms of control.
There is clearly a growing need for decentralized storage solutions that are not controlled by any single entity, as they are more resilient and allow users to maintain control over their data.
As such, decentralized storage is the need of today's Internet, but the market needs more than just one solution to this problem to meet specific needs and requirements. After all, some solutions are better suited for individuals, while others are better suited for organizations.
Fully Decentralized Storage Network
Besides Arweave, Filecoin is a popular decentralized storage provider that enables users to store and share files securely and efficiently.
The Filecoin network is powered by a native cryptocurrency called Filecoin (FIL), which is used to reward users who contribute storage space to the network. The Filecoin network offers several benefits over traditional data storage solutions, including increased security, privacy, and efficiency.
FIL is a unique cryptocurrency that allows individuals to lease and utilize unoccupied storage on Filecoin Network. Moreover, Filecoin is the first and largest decentralized storage network in which users can lease unused hard drive space to earn tokens.
Filecoin currently has over 2.5 billion gigabytes in its network capacity, making it the largest decentralized storage solution in the industry. By allowing anyone on the planet to join the network, it has the potential to create an enormous data store.
It allows for quicker, cheaper data storage, less dependence on centralized servers, and offline web access. In addition to storage, Filecoin offers other solutions that will provide a full set of decentralized Web services for a Web3 economy.
Adding DeFi to the Mix
The growth of Web3 has also led to a demand for decentralized storage solutions that ultimately allow users to store, retrieve, and manage their data. This is where Filecoin is able to build a better version of the web by merging storage capabilities and computing power from many separate devices into one supercomputer-like network capable of holding multiple copies of data.
For example, individuals with spare storage can become storage miners, who are essentially responsible for maintaining data within the network. So, anyone with suitable infrastructure can buy and sell storage space on the network, setting prices and creating contracts. And by forcing storage providers to stake coins, the network is in a position to penalize bad actors financially in the network.
Since users of the network must stake FIL in order to operate the storage miners, providing a liquid supply of FIL via Ethereum's strong DeFi marketplace is a crucial element in building out the Filecoin storage market and promoting the usage of the network.
Filet Finance is one such DeFi platform that allows users to earn interest on their FIL holdings, as well as use FIL as collateral for loans. This provides users with a new way to earn interest on their Filecoin holdings and access to fixed or flexible staking periods.
Besides adding the innovative and financial element to decentralized storage via DeFi, Filet Finance tokenizes mining power to break the current high threshold and high investment situation of Filecoin mining, allowing all investors to participate in Filecoin mining as well as the growth of decentralized storage and gain generous returns. After all, not everyone can afford expensive mining machines or have professional mining knowledge.
This makes access to decentralized storage solutions possible for everyone while making it an efficient investment channel for both conservative and high-risk-tolerant investors.
* This is a contributed article and this content does not necessarily represent the views of techtimes.com
