Enterprises that offer cloud storage often secure customers’ data in a centralized server, which can mean increased network vulnerability from attacks by hackers. Blockchain cloud storage solutions allow storage to be decentralized — and therefore less prone to attacks that can cause systemic damage and widespread data loss.
Dubbed the “Airbnb for file storage,” Filecoin is a high-profile crypto project that rewards the hosting of files. This could help create a decentralized version of S3 from Amazon Web Services.
The company behind it, Protocol Labs, has garnered investment from Union Square Ventures, Naval Ravikant, and the Winklevosses, among a number of prominent names. But Filecoin is just one of many projects in this area, and other token names in storage include Storj and Siacoin.
Storj offers a blockchain-enabled cloud storage network to improve security and lower the transaction costs of storing information in the cloud. Storj users can also rent out their unused digital storage space in a peer-to-peer manner, potentially creating a new market for crowdsourced cloud storage capacity.
Source: CB Insights