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  • Decentralized storage systems are a type of storage where information is encrypted and spread across several servers or nodes that are independently maintained by people or businesses that rent out their servers to third parties for cloud storage services.
  • A customer participates in peer-to-peer (P2P) smart contracts on blockchain-based decentralized markets in order to employ a decentralized cloud storage system provider's services. The amount of data to be saved, how long it will be held for, and how much it will cost are all determined by smart contracts on these platforms.


This  topic establishes the knowledge of various types of decentralized storage systems, highlighting the decentralized storage systems and how they operate. These decentralized storage systems include Akash Network (AKT), Filecoin (FIL), Siacoin (SC). The knowledge of these decentralized storage systems will enable you to know how they operate and the importance of the decentralized storage systems, this article will highlight only the top decentralized storage system providers and we recommend you try them out whenever you require their services.


Decentralized storage systems refers to a storage system where data is encrypted  and stored in multiple servers or nodes, that are independently managed by individuals or companies that share their servers for cloud storage services for a fee. The fear of data breaching is avoided in decentralized storage systems as only the client has the private key to access the data, even the providers cannot access the data unless the client authorizes it with the private key.



This section provides a detailed description of how decentralized storage systems operate and how you can efficiently use them to maximize output.

In order to utilize the services of a decentralized cloud storage system provider, a user  enters into peer-to-peer (P2P) smart contracts on blockchain-based decentralized marketplaces. On these platforms, smart contracts determine the amount of data to be stored, how long it will be stored for, and at what price. Smart contracts also enable clients to ensure that multiple copies of their data are backed up through redundancy — the act of storing multiple copies of a particular piece of data in multiple different locations. The smart contracts are then stored on and implemented by various blockchains and can then benefit from the immutability and transparency provided by blockchain technology. The individual variants of this system vary, though most need some type of Proof-of-Storage (PoStorage) consensus mechanism.


There are different types of decentralized storage systems existing today. This article will look into the top decentralized storage systems. These platforms target various sectors of the cloud services market and utilize different technologies and methodologies in doing so. Some platforms are made for individual consumers, some are created to provide B2B solutions, and some focus on specific use cases like privacy. Below, we’ll highlight a few of the most popular decentralized storage providers in the blockchain space.

Akash Network (AKT)

Akash Network’s main target audience is the decentralized finance (DeFi) market and creators interested in building decentralized applications (dApps). At the base, Akash is a decentralized, open-source storage services marketplace and described as “DeCloud for DeFi.” Akash Network is a Cosmos-based Proof-of-Stake (PoS) blockchain created with interoperability using the Cosmos SDK. The main goal of this provider is to provide faster, cheaper, and more efficient decentralized data storage services for applications that run on the cloud.

Here’s how AKASH works: When traditional cloud storage providers have excess storage space, they can sell it on Akash Network’s blockchain-based marketplace to maximize the output of their unused resources. The Akash Network also strives for interoperability and boosts flexibility with major existing cloud infrastructure and cloud-based apps, increasing collaboration viability for major cloud service providers. Akash Network works closely alongside existing cloud service provider giants, while seeking to increase speed and efficiency to the cloud services industry. Eighty-five percent of Akash Network’s cloud services are utilized from already existing and ineffective data centers. By allowing existing cloud storage providers to sell their excess capacity on the Akash Network marketplace, providers can compete with one another for sales like the regular market, which can ultimately lower the costs for developers, as well as end users of the developed products and services.

An illustration showing the process of the Akash Network (AKT),Source.

Go to https://docs.akash.network/guides/deploy for a guide on how to deploy Akash’s “Cloudmos Deploy Tool” which is a desktop application that simplifies the deployment process on the Akash Network.

Filecoin (FIL)

Created by the same team responsible for the Interplanetary File System (IPFS), Filecoin is an open-source, cloud-based decentralized storage network that desires to improve upon some perceived inefficiencies of traditional cloud storage providers. These major points include lack of trust, data insecurity, limited connectivity, poor accessibility and scalability, and high dependence on centralized storage systems. Filecoin’s aims to create a massive decentralized file storage network that can be adapted to meet the urgent needs of different customers. Low costs, fast retrieval speed, and data storage redundancy are a few of the features that may appeal to customers who choose to use Filecoin. Filecoin also claims to be created with state-of-the-art cryptographic storage proofs that ensure data is being stored securely and swiftly for a specified time period.

The Filecoin system Is built to create an earning structure for miners to accumulate as much storage space as possible so they can, in turn, sell that storage to customers. The system also relies on efficient data retrievers who are responsible for retrieving client’s data when they request it. In this way, storage and retrieval of decentralized data on the Filecoin database are linked directly to the mining mechanism of the entire system — and are separated into two distinct components. The retrieval market exists off-chain, while the storage market exists on-chain.

An illustration showing the Filecoin storage process, source

Siacoin (SC)

Like Filecoin, Sia is a blockchain network that operates decentralized data storage services by utilizing users’ excess hard drive space and selling it to those who need it. Sia storage providers are able to monetize their storage space using Sia’s data storage marketplace, and can earn incentives in the form of siacoin (SC) — the network’s native utility token.

Sia desires to differentiate itself from competitors in the space by prioritizing the highly decentralized nature of its structure above all other factors. Sia wants to give individuals not only exclusive control over their data, but also the ability to store it securely and autonomously without breach. Sia’s general ethics of decentralization and autonomy is familiar in the blockchain space, but the way to which the Sia crypto market has applied it to decentralized data storage is applaudable.

Sia uses open-source nodes, and its core software aims to eschew centralized aesthetics entirely. It does not rely on its own nodes to keep the network afloat, nor does it automatically push updates to the network as users are required install them manually in order to efficiently use the service. However, Sia’s dedication to decentralized storage is achieved at the cost of a slightly high barrier to entry as a user compared to traditional data storage providers, or even some of its decentralized counterparts. Sia data storage network participants must generally download a copy of the entire Sia blockchain, run a full node, transact using SC, and have a fair amount of technical knowledge to get up and running. These are tradeoffs that Sia is willing to accept in order to remain a highly trustworthy decentralized data storage solution.

An illustration showing how the SiaCoin (SC) operates, Source

Conclusively, we have analyzed what a decentralized storage system is, its mechanisms and mode of operation, the various types of decentralized storage systems though they are numerous, and we have highlighted a few top decentralized storage systems. Hopefully, you have learnt about these decentralized storage systems and will make the right choice when seeking to employ the services of a decentralized storage system provider. Kindly drop comments for feedback and inquiries. Thanks for reading.

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About Pontem

Pontem is a product developing company aiming to promote blockchain-based global financial inclusion. Together with Aptos, we are developing the core dApps and other infrastructure needed for the adoption of their L1 platform, including development tools, EVMs, AMMs, and other components.

Pontem has unveiled the first DEX as well as a wallet that supports both unstable and volatile asset pairs.

Among other incredible features, Move, Aptos' native language for smart contracts, enables secure data storage and multichain development.


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