Top 5 Myths About Decentralized Storage Debunked

Monisha Fernando

August 30, 2024

Today, centralized cloud storage is dominated by massive data centers operated by giants like Meta, Google, and Microsoft. These data centers, which hold everything from personal messages to critical documents, consume substantial amounts of energy. Currently, eight companies control 79% of the cloud market, with the top three alone holding 64%. This is the reality of Web 2.0.

In contrast, decentralized cloud storage, or Web 3.0 storage, offers a different approach. It encrypts data, breaks it into fragments, and distributes it across various drives managed by different entities. This model reduces energy consumption and avoids issues such as data center monopolies and vendor lock-in.

Additionally, the Web 3.0 market, valued at approximately $2.25 billion in 2023, is expected to grow at a CAGR of 49.3% from 2024 to 2030. One would imagine that with such growth, more people and businesses would be adopting decentralized storage.

However, that is not the case. While decentralized storage solutions are gaining more attention, they currently represent only 0.1% of the market. In addition to other reasons, various common myths significantly deter individuals and organizations from adopting decentralized storage.

So, in order to truly benefit from the cutting-edge features of decentralized storage, it’s important to have your facts clear. This article will address and debunk the top five myths about decentralized storage, providing a clearer view of this technology. Read on to gain insight into the true advantages of decentralized storage.

Myth 1: Decentralized Storage is Not As Secure As Traditional Storage

The Myth

A common belief is that decentralized storage is less secure than traditional centralized systems. This concern stems from the idea that spreading data across multiple drives managed by different entities introduces vulnerabilities.

Some people worry that this approach makes it easier for unauthorized access or breaches to occur since data is not stored in a single, controlled location.

Why Decentralized Storage is Actually More Secure

Stronger Encryption and Fragmentation: When data is uploaded, it is first encrypted, ensuring that even if intercepted, it remains unreadable without the decryption key. The encrypted data is then fragmented into smaller pieces and distributed across various nodes.

This method, known as “sharding,” means that even if an attacker gains access to a single node, they only obtain a fragment of the encrypted data. Without the complete set of fragments and the decryption key, this data is meaningless.

Resilience Against Single Points of Failure: Centralized storage systems are vulnerable to single points of failure. A breach, natural disaster, or technical failure at one location can compromise the entire data repository.

Decentralized storage, however, mitigates this risk by distributing data across numerous nodes. If one or several nodes fail, the network can still retrieve the data from other functioning nodes, maintaining data integrity and availability. This guarantees minimal downtime and protects against data loss.

Superior Defense Against Cyber Attacks: Decentralized storage systems offer robust protection against cyber attacks. They are particularly resilient to Distributed Denial-of-Service (DDoS) attacks.

In a centralized setup, a DDoS attack can overwhelm servers, potentially shutting down the service. Decentralized networks avoid this issue because there is no single point of attack.
Even if some nodes are targeted, the overall system remains operational and data remains accessible.

Additionally, decentralized networks use consensus mechanisms, such as Proof-of-Work (PoW) or Proof-of-Stake (PoS), to validate transactions and ensure data integrity. These mechanisms require multiple nodes to agree on any data changes, making it extremely difficult for a single actor to manipulate the system.

Myth #2: Data Loss Occurs if a Storage Node Fails

The Myth

A prevalent concern is that data might be lost if a storage node becomes unavailable. People often ask, “What happens if a node goes offline or is turned off? Will my data be lost?”

How Decentralized Storage Addresses This Concern

Incentive Mechanisms: Decentralized networks use incentive structures to ensure nodes stay operational and reliable. For example, in the Züs Network, nodes are incentivized to maintain 24/7 availability and accurate data storage through a system of rewards and penalties.

Blockchain technology supports this by validating data integrity through regular challenges to nodes, ensuring that data remains consistent and unaltered.

Continuous Auditing: To maintain data accuracy, decentralized storage networks implement rigorous auditing processes. With Züs Network, validator nodes regularly assess the claims made by storage nodes regarding their data. These validators provide digital signatures to confirm that storage nodes are correctly storing data, ensuring compliance and detecting potential discrepancies.
Detection of Malicious Activity: Decentralized storage systems are equipped to identify and address malicious behavior swiftly. The network’s design allows it to detect anomalies or fraudulent activities by monitoring node performance and data integrity. This reduces the risk of data loss due to malicious actions.
Redundancy Through Erasure Coding: Redundancy is a key feature in decentralized storage to protect against data loss. Using erasure coding, data is divided into multiple fragments, with only a subset needed for complete reconstruction.

For instance, a file might be split into 50 fragments, with 30 fragments required to reconstruct the file. This method ensures that data remains accessible even if several nodes fail, as the system can still recover the file from the remaining fragments.

Self-Healing Capabilities: Decentralized networks often have self-healing features to manage node failures. When a node goes offline or data becomes corrupted, the system tracks these changes and can recreate and redistribute the affected data.

Such a self-healing process automatically detects and corrects inconsistencies. So, the network maintains data integrity and the required levels of redundancy.

Myth #3: Decentralized Storage Compromises Privacy and Transparency

The Myth

Many people believe that decentralized storage systems might compromise privacy and transparency due to their distributed nature. Additionally, people may also feel that these systems make data management and access obscure and difficult to track. Moreover, users might feel uncomfortable trusting a network of independent nodes instead of a single, well-known provider with established security and transparency measures.

Why Decentralized Storage Actually Enhances Privacy

User Control Over Data: In decentralized storage, users maintain full control over their data. Unlike centralized systems where service providers have access to encryption keys, decentralized networks encrypt data before distributing it across various nodes. Users hold the decryption keys, ensuring that only they or their authorized parties can access their information.
Robust Data Encryption: Data is encrypted before being fragmented and distributed. Even if a node operator attempts to access data, they would only obtain fragments, which are meaningless without the complete set of pieces and the decryption keys.

For instance, Züs Network increases privacy via distributed encrypted data sharing, significantly bolstering security measures for handling sensitive information.

Privacy from Unauthorized Access: Decentralized storage systems ensure that no single entity can access all data fragments. This design reduces the risk of data being accessed or misused by unauthorized parties, as the system is built to prevent any one node or operator from having full access.

Anonymity and Data Sovereignty: Some decentralized storage solutions offer features like anonymous data storage, which levels up privacy by separating user identities from their data. This approach supports data sovereignty, allowing users to manage their data independently of national regulations or centralized entities.
Protection Against Data Interception: Decentralized storage networks use various mechanisms to protect against data interception. The distributed nature of the network means that even if a part of the network is compromised, the overall system remains secure due to the encrypted and fragmented nature of the data.
No Central Authority: Without a central authority, decentralized storage systems avoid the privacy risks associated with centralized providers who might sell or share data without explicit consent.

The distributed model assures that data control remains in the hands of users, minimizing the risk of unauthorized data exposure. In the case of Züs Network, user data remains solely under user control, inaccessible to Züs or any external entities–even the government.

Blockchain-Enabled Transparency: Many decentralized storage solutions leverage blockchain technology to improve transparency. Blockchain records all transactions and data movements in an immutable ledger, providing a complete and verifiable history of data activities.
Real-Time Data Monitoring: Decentralized storage networks often provide tools for real-time data monitoring and management. Users can access detailed metrics, track data interactions, and make adjustments as needed. This level of control contrasts with traditional systems, where such insights are limited.

For example, Züs network’s platform allows users to track where their data is stored, choose their providers, and track their file interactions in real-time.

Independent Verification: Decentralized storage systems enable users to independently verify data management practices. Transparent protocols and public records maintained by the network allow users to review detailed logs and verify how their data is handled. This independent oversight ensures that data management aligns with agreed terms and conditions.

Myth #4: Decentralized Storage is Very Expensive

The Myth

Another huge myth about decentralized storage is that it is very expensive. This myth stems from several concerns. Firstly, many individuals and organizations believe that the decentralized storage model is too complex. It leads people to assume that managing and maintaining it is more expensive.

Additionally, people may worry that the innovative technology behind decentralized storage could introduce hidden costs or inefficiencies. Moreover, there is also a belief that decentralized storage networks might charge high fees for data transfer and egress.

Lastly, users are also concerned that scaling storage with decentralized systems might incur unexpected costs, unlike the predictable upgrade paths offered by centralized providers.

Why Decentralized Storage is Actually Cost-Effective

Lower Infrastructure Costs: Traditional centralized storage providers, such as AWS and Google Cloud, rely on large data centers with significant expenses for construction, maintenance, cooling, and security. These capital and operational expenditures are passed on to users through higher storage fees.

In contrast, decentralized storage networks leverage existing storage resources from participants worldwide. They eliminate the need for dedicated data centers. This model reduces infrastructure costs and also minimizes the environmental impact associated with maintaining large-scale data centers.

Flexible Pay-As-You-Go Pricing: Decentralized networks, such as Filecoin and Sia, utilize market-driven pricing, allowing users to pay only for the storage they actually use. This competitive environment encourages providers to offer lower prices and better terms, making storage more affordable and adaptable to fluctuating needs.
Reduced Data Transfer and Egress Costs: Networks like Züs offer free egress and use a global network of nodes to store data. This methodology reduces data retrieval times by accessing information from the nearest node. It lowers costs for data access and transfer.
Scalability Without Additional Costs: Scaling storage capacity with traditional centralized providers often involves upgrading to more expensive service tiers. This may result in paying for unused capacity. Decentralized storage networks scale dynamically as more participants contribute resources.

This flexible scaling model allows users to expand their storage capacity cost-effectively without incurring additional expenses for unused resources. As the network grows, the cost per unit of storage typically decreases, benefiting users with cost-effective scalability.

Efficient Resource Utilization: Decentralized storage networks optimize resource utilization by aggregating unused storage from various devices and servers. This efficient pooling of resources reduces overall costs and improves the economic viability of storage.

Capitalizing on distributed storage capacity, decentralized systems make better use of available resources. They provide a more cost-effective solution compared to centralized models that require significant investment in physical infrastructure.

Myth #5: Decentralized Storage is Too Complex to Use

The Myth

A common belief is that decentralized storage is too complex for general use. This perception arises from several factors. Firstly, the terminology associated with decentralized storage—such as blockchain, nodes, and cryptographic keys—can seem daunting and contribute to the belief that the technology is overly complicated.

Additionally, as a relatively new technology, decentralized storage may appear complex due to its unfamiliarity and the rapid evolution of its features and protocols. Users often worry about the complexity of setting up and managing decentralized storage systems compared to the straightforward nature of traditional cloud storage services.

Furthermore, uncertainty about how decentralized storage operates and the underlying technology can deter users from exploring it, reinforcing the myth of its complexity.

Why Decentralized Storage is More Accessible Than It Seems

User-Friendly Interfaces: Decentralized storage platforms are increasingly designed with user-friendliness in mind. They feature intuitive, easy-to-navigate interfaces that simplify the management of data.

Platforms such as Filecoin and Züs Vult or Blimp offer streamlined dashboards that make it straightforward for users to interact with the storage network, even if they are not technically inclined.

Increasing Popularity and Education: As decentralized storage becomes more popular, educational resources and community knowledge are expanding. This uplifted availability of information helps demystify the technology and provides users with practical insights and tips, further reducing perceived complexity.

For example, you can access Züs Network’s Documentation, Blog, and Whitepapers to learn more about decentralized storage in a simplified manner.

Comprehensive Support: To counteract the complexity myth, decentralized storage providers offer extensive support. This includes detailed guides, FAQs, and customer support services designed to assist users in understanding and utilizing the technology effectively. These resources help users navigate and manage decentralized storage systems with confidence.
Streamlined Onboarding Processes: Many platforms have simplified onboarding processes to make it easier for users to start using decentralized storage. These processes often include step-by-step tutorials and automated setup procedures that guide users through the initial stages.

Users can rest assured of a smooth and straightforward experience. Züs Network offers extensive guides and “Getting Started” sections for all its apps in its Documentation.

Focus on Usability Improvements: Decentralized storage technology is continually evolving, with a strong focus on improving usability. Developers are working to elevate user experiences by refining interfaces, simplifying operations, and addressing common user concerns, making the technology more accessible over time.

Züs Network: A Strong Choice for Decentralized Storage

Now that we’ve addressed and debunked the myths surrounding decentralized storage, it’s worth considering the practical options available. Züs Network emerges as a strong candidate for those looking to transition from traditional storage systems.

Here’s why Züs Network might be the right choice for you:

Comprehensive Data Protection

Rest assured, Züs Network employs end-to-end protection for your data. Fragmenting and encrypting data before distributing it across multiple data centers, Züs Network offers unparalleled security.

With user cryptographic keys securely stored in the Vault and a serverless two-factor authentication (2FA) system, Züs provides robust client-side protection as well. This makes it ideal for a wide range of applications, from backups and archives to handling analytics and media files.

Advanced Decentralized Architecture

Decentralized Design: Züs Network’s decentralized architecture distributes data across a global network of nodes, eliminating reliance on any single location. Such a design mitigates risks associated with server or data center failures. Therefore, as you’ve read above, data remains accessible even if some servers experience outages.
Geo-Diverse Redundancy: The network offers geo-diverse redundancy by replicating data across dispersed geographic locations. This bolsters stability and availability, reducing storage costs while protecting against regional failures.
Distributed Immutability: Data is fragmented, encrypted, and cryptographically protected, maintaining integrity and authenticity even if parts of the system are compromised. This distributed immutability provides a reliable recovery point, safeguarding against unauthorized modifications.

High Performance and Flexibility

High Uptime: Züs offers configurable availability and reliability based on number of parity shards. This supports high uptime which also sets the tone for more protection against outages.
Wire Speed Performance: Züs Network delivers high-speed data access and transfer rates comparable to local storage. The result is efficient data handling and low latency, crucial for maintaining business continuity during outages.
Configurable Redundancy: The platform offers configurable availability and reliability through parity shards. Users can adjust the number of parity shards to increase data protection and redundancy, ensuring robust data reconstruction capabilities.
Free Egress: With no charges for data access or downloads, Züs Network minimizes financial impacts during data retrieval, making it cost-effective during service disruptions.

Transparency and Control

Data Transparency: Züs Network provides detailed insights into server usage, data localization, and performance metrics. This transparency empowers users with visibility and control over their data storage environment, enhancing trust and accountability.
Blockchain-Based Integrity: Züs utilizes blockchain technology to verify data integrity through transparent challenges and verifications. This promises that data remains unaltered and reliable over time, adding a layer of assurance.
Blimp’s Private Cloud Feature: Züs Blimp’s Permissioned Storage feature allows the creation of a private cloud experience with the management ease of a public cloud. This option provides a tailored storage solution for enterprises needing exclusive servers.

More Robust Security and Privacy

High Security: Züs Network’s decentralized design protects data by storing fragments across multiple locations, safeguarding against breaches and ransomware attacks. Blockchain technology records all transactions transparently, allowing users to monitor their data’s security.
Total Privacy: The network guarantees that user data remains private and accessible only to those authorized. With no external access, including government entities, users maintain complete control over their information.
Secure Sharing: Züs Network facilitates secure sharing of sensitive information while preserving privacy and confidentiality. Users can share files with confidence, knowing that access is strictly controlled.

Endnotes

Decentralized storage offers numerous advantages over traditional systems, providing enhanced security, privacy, and cost efficiency. As we’ve examined, the myths surrounding decentralized storage often stem from misunderstandings or outdated perceptions.

For those considering a shift from centralized systems, Züs Network presents a compelling option. Züs Network stands out as a robust solution. It addresses the various concerns you may have about decentralized storage, combining advanced technology with user-centric features. Its comprehensive data protection, high performance, and transparency features make it a strong contender in the growing storage market.

Embracing decentralized storage with Züs Network can help you improve data management, increase security, and have greater control over your digital assets.

Frequently Asked Questions

What types of data are best suited for Züs Network’s storage solutions?

Züs Network offers tailored storage solutions to meet various needs. Blimp is ideal for enterprise data storage, catering to large volumes of critical business information with enhanced security and redundancy. Vult is designed for personal use, providing a user-friendly interface for managing individual files and backups efficiently. Chalk specializes in NFTs, supporting both the creation and storage of digital collectibles, making it a suitable choice for managing and preserving these assets.

How does decentralized storage enhance business security compared to traditional cloud storage?

Decentralized storage, as implemented by Züs Vult, enhances security by distributing data across multiple nodes. This reduces central points of failure and mitigates the risk of data breaches, making it particularly advantageous for sectors handling sensitive information.

How does decentralized storage handle scalability?

Decentralized storage scales efficiently as additional participants contribute resources to the network. This allows for easy and cost-effective expansion of storage capacity without the need for expensive upgrades, making it an attractive option for those seeking scalable and affordable solutions.

What benefits does decentralized storage offer for my business?

Decentralized storage provides improved security, data resilience, and privacy. By spreading data across numerous nodes, it eliminates single points of failure and reduces the likelihood of data breaches, ensuring robust protection for your business.

What is vendor lock-in, and how can it be avoided?

Vendor lock-in occurs when a customer becomes overly dependent on a specific vendor’s products or services, making it difficult to switch providers. Züs Network addresses this issue by offering flexible options, allowing customers to transition to or choose other cloud service providers without losing control over their data and storage preferences.