Web3 Data Storage and Its Working Principles

Nowadays, users are increasingly concerned about the privacy of their data. Therefore, they are shifting from centralized storage providers to Web3 storage technologies to meet their needs. For any user who cares about file security, there is no better alternative than “Web3 storage”. In addition, it also allows you to save and back up files.

If you want to learn more about Web3 data storage, there is a detailed blog post below.

Web3 Data Storage

What is Web3 data storage?

Web3 storage is a data preservation solution that utilizes blockchain technology. It is also known as decentralized storage.

Blockchain can be conceptualized as a digital chain of blocks, with each block storing data. This is the most straightforward way to understand how blockchain works. The data stored on the blockchain is protected by hashes, ensuring that it cannot be modified. The data stored on the blockchain is also encrypted, making it more difficult for hackers to access important information.

Evolution of Data Storage: Web1 to Web3

Web1

The earliest version of the World Wide Web (Web1) primarily introduced static media for websites. This revolutionary development provided users with a powerful platform to enjoy media. The fundamental flaw was that it only allowed one-way communication. In Web1, users could only view content and could not create or contribute content. Therefore, compared to the modern web, Web1 was a dull workplace. Web1 was also highly managed and regulated by its developers. They could also read user data and communicate with them. Users were merely observers of web1, unable to control what they interacted with.

Web2

Users can browse and create content on Web2. They can also create blogs, video tutorials, and other content. However, users' actions are limited. Web2 allows its users to leverage their creativity to do more, such as creating their own websites and connecting data in new ways. They can now offer functionalities and services that Web1 could not imagine. However, such data storage and hosting are on servers owned and managed by major tech companies. The data generated and uploaded by users to the internet is beyond their control. Therefore, the information exchange and storage on the Web are centralized.

Web3

Web3 is decentralized, meaning no single entity is running it. The decentralized nature of Web3 ensures that users can access all their data without restrictions while protecting their privacy. This user-centric network is supported by blockchain networks, allowing for decentralized data storage and processing instead of relying on a few central servers. They do not use traditional methods but communicate with users through dApps.

How does Web3 data storage work? Why is it so important?

Cryptocurrencies store transaction data in blocks, allowing network members to verify a distributed ledger containing the transaction history of specific cryptocurrencies. Bitcoin, Dogecoin, Ethereum, and Tether are examples of cryptocurrencies that use blockchain technology. Because their operations do not rely on central authorities or external parties, these networks are sometimes referred to as peer-to-peer or P2P networks. Its participants maintain the network and are commonly known as miners or validators.

In Web3 storage, data is stored using a distributed model that utilizes blockchain technology and incorporates this decentralized storage paradigm. User data is dispersed and distributed across multiple nodes within the Web3 storage network. Because the data is segmented, it is difficult for hackers to access all the data. These fragments are encrypted, and in the event of an issue, copies are generated as backups.

Why do we need decentralized data storage?

Blockchain technology is used to develop the underlying infrastructure for Web3. Since blockchain is not designed to store important information, it needs to leverage decentralized storage. The consensus of the blockchain relies on grouping large amounts of transaction data into blocks and then quickly distributing them among nodes for verification. First, while data can be stored in these blocks, doing so is very costly.

Secondly, let's assume that these blocks are used to store large amounts of completely random information. In this case, network congestion is likely to worsen significantly, which could lead to consumers facing increased costs to access the network due to competitive bidding for gas. This is because of the implied time value of blocks, which stipulates that users who need to submit transactions to the network at specific times must pay higher gas prices for these transactions to be prioritized. Therefore, it is strongly recommended to store the underlying metadata of NFTs and the image data of dApp front-ends off-chain.

Thirdly, we need decentralized data storage because censorship and content modification can also occur on centralized networks. Data may be intentionally or unintentionally erased due to policy changes implemented by storage providers, hardware failures, or attacks initiated by third parties.

What is the difference between Web3 decentralized storage and cloud storage?

One of the main drawbacks is that many of the most popular storage platforms operate from a single location. This indicates that the information entrusted to the provider by consumers is centralized in one place. Using a single central site like this can be troublesome, mainly because it presents a single point of failure.

A “single point of failure” refers to a vulnerability or issue that can lead to the collapse of an entire network and system. However, when the network is supported by hundreds or thousands of nodes instead of just a few, the likelihood of interruptions, hacking attacks, and other problems occurring is greatly reduced.

No central organization can access the decryption keys for the data you store on Web3 platforms. Instead, the private encryption keys used to decrypt the data are stored only on your device. You are the only person authorized to access this key.

Another thing that makes Web3 storage platforms unique is their use of encryption.

Web3 Data Storage Solutions

Firstly, it is important to note that “decentralized data storage” is an alias for Web3 storage solutions. Now that you are familiar with what Web3 storage solutions are, adopting a decentralized strategy can eliminate the possibility of single points of failure and the issues of centralized entities abusing or manipulating confidential data.

In light of this, it is hoped that people who envision a bright future unanimously agree that decentralized data storage solutions play a crucial role. The good news is that some projects have already been addressing this issue in a centralized manner. Additionally, it is important to remember that everyone adopts different approaches to ensure redundancy, efficiency, and an appropriate level of decentralization. It is reasonable to assume that development is still ongoing, and the best method for storing Web3 data has yet to be developed.

In addition to the interstellar file system (IPFS) that does not use blockchain technology, we have the following initiatives to expand the frontier of “Web3 storage”:

Holo (HOT)

Crust Network

Sia

Arweave (AR)

Storj

SONM

Advantages and Limitations of Web3 Data Storage

On the Web3 storage platform, you can request files just like on other storage platforms. On the other hand, instead of simply obtaining the complete file, segments are extracted from each node and then sent to you as a whole.

Because no single device in a decentralized storage network can store the entirety of a file, no one in the network can steal the file.

Many users of decentralized storage sites have obtained their private keys, which they can use to access the data stored on these platforms. Without the private key, the data will remain inaccessible. This allows consumers to have complete control over their data, rather than handing control over to a central authority, which aligns with the idea of Web3. **$HOME **$HUMA **$HAEDAL **