The cry for enhanced security has been prevalent in the cryptocurrency market with stronger needs for secure transactions. Stealth of nearly $1.1 billion worth cryptocurrency in the first half of 2018 alone is testament to the insecurity regarding such online transactions.[1] The number is significant only because of the surge in cryptocurrency, which is where decentralized cloud storage comes into the picture as a saving grace for the $754.05 million market.[2]
Traditional Cloud storage involves uploading data to a Cloud. However, Cloud service providers store the data in centralized datacenters. Blockchain – the distributed ledger technology – is itself a decentralized network which enables cryptocurrency to be transacted in individual nodes. For instance, if Rahul sends 1 bitcoin or litecoin to Neha then he creates a transaction which sends the currency to every computer or ‘nodes’ run by the blockchain. Rahul doesn’t have to worry about the chain of events, and the decentralized transaction because his cryptocurrency wallet will have a pre-existing list of other nodes. Each node then receives the transaction and has the information that Neha will receive 1 unit of cryptocurrency. The whole network essentially knows each transaction that has occurred. In the same manner, decentralized cloud storage data can be distributed across an extensive network of nodes.
This decentralization prevents a single point of weakness like traditionally centralized Cloud service providers i.e. should the controlling company be attacked, the entire storage system is affected. Decentralization Cloud storage on the other hand offers security and privacy to cryptocurrency as files are segregated and spread across various nodes. In addition, decentralized Cloud storage enables encryption of files with a private key to ensure that other participating nodes are unable to view the file. The risk of losing cryptocurrency files are also substantially lowered through redundancy in data while extra copies of a file are stored in case of error occurring during data transmission. Furthermore, since blockchain storage methods themselves include high levels of efficiency, an amalgamation with cloud computing can reduce significant costs as well. Cryptocurrency Cloud storage costs around $2 per terabyte per month, whereas Amazon S3 charges $25 per terabyte per month.
Millions of dollars are currently being invested in decentralized Cloud storage of cryptocurrency which is being termed as ‘Fog Computing’. This will not only involve millions of computers connected without central control but also facilitate secure yet inexpensive options for cryptocurrency storage; blockchain storage costs can reduce the price of cloud computing between 50% and 100%.[3]
Blockchain technology and cryptocurrencies are irrefutably on the verge of disrupting the cloud computing industry, making room for new Cloud players to stake their claim among the centralized giants of the game. Apart from storage, decentralized Clouds can outshine centralized system on the speed front as well wherein users can expect fast and seamless access to blockchain information.
In Conclusion
Decentralized Cloud storage has heaps to offer not
only in terms of securing cryptocurrency data but also in terms of lower
storage costs. This will aid individuals and businesses alike in transacting
cryptocurrencies with each other which will eventually be instrumental for the
growth of both Cloud and Blockchain markets.
[1] https://www.cnbc.com/2018/06/07/1-point-1b-in-cryptocurrency-was-stolen-this-year-and-it-was-easy-to-do.html
[2] https://cryptocurry.com/features/cryptocurrencies-growth-years/
[3] https://blog.sia.tech/why-blockchains-are-the-future-of-cloud-storage-91f0b48cfce9
