Non-Centralized Protocols for Storage Purposes
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Non-centralized storage protocols have emerged as a very good alternative to the usual centralized storage facilities. The non-centralized storage systems, provide users with more privacy, increased security, and better data recovery capabilities.
Nevertheless, non-centralized storage systems still have to get better before they can displace the traditional centralized storage industry. There are protocols that actively work to develop non-centralized storage so that it can be more attractive to users.
Best non-centralized storage protocols.
Filecoin (FIL)
This network began operating toward the end of 2020. Since then, Filecoin has become the most famous and most commonly used non-centralized storage project. This project operates as an open-source cloud storage network. It was designed on the InterPlanetary File System (IPFS), which is the latest protocol for the non-centralized web targeted at displacing the HTTP protocol.
Filecoin gives users the chance to rent out their excess storage space to clients and get paid with the Filecoin Token. Consequently, this has made it possible for users to store their files in a way that they don’t need to trust the custodian of their files on a P2P level.
Internet Computer (ICP)
Established by Dfinity in 2021 for the purpose of creating a non-centralized, open internet platform that supports dApps (decentralized applications) and smart contracts. Application and web developers can now build websites and apps that aren’t governed by a centralized authority. This is made possible when they have them run on non-centralized networks.
This project is supported by venture capital organizations like Polychain and Andreessen Horowitz. The Internet Computer Project raised funds up to $190 million and has grown tremendously since its commencement.
Arweave (AR)
Arweave is planning to enable people to store their files on permanent storage, something that hasn’t been idealized by legacy cloud computing organizations. Arweave is trying to design a new market in which users can pay a single upfront payment and are then able to store their files forever. This project is designed to reward miners to ensure that the data that is kept on the protocol remains permanent, dependable, and available.
Arweave commenced operations in 2021 after its mainnet was launched in 2018. This project experienced encouraging growth throughout the fourth quarter of 2021, when it usually records about 7,000 users making use of its services on a daily basis. However, this number has decreased as the years have passed.
Holo (HOT)
HOT allows users to host and access decentralized applications on a widely distributed network of computers. They do this by providing computing capacity and bandwidth to the network. And in return, they are paid with the Holo network token.
This project is still in its developmental stage, but it raised $20 million in an Initial Coin Offering (ICO). Despite being in its early stages of development, the HOT project has already risen to the top five non-centralized storage protocols in terms of market capitalization over the last two years.
SaiCoin (SC)
SaiCoin is also another non-centralized storage platform that enables users to rent out their excess storage space to earn tokens. On this network, files are fragmented into smaller pieces, encrypted, and disbursed to different hosts for storage.
SaiCoin raised more than $3 million, and its storage capacity has increased to 4,660 TB, but only 1210TB have been used. However, user activity is low on this network, which brings its monthly revenue down to $600 from $12,000 five months ago.
Ocean Protocol (OCEAN)
The Ocean protocol is specialized in monetizing data because it considers it a financial instrument. The Ocean protocol tokenized data into ERC-20 assets known as data tokens. These data tokens exist on the blockchain network. Any individual who is interested in data can then buy these tokens on Ocean’s marketplace.
A report says that Ocean is struggling to attract enough data providers for its protocol to work. Initially, the protocol generated a lot of momentum.
Nevertheless, ever since the last month of 2020 (December), the protocol has had an average of 10 to 15 mint transactions and has created 10 data tokens every month.
