Storage Tokens

Storage tokens -

 

Decentralized storage platforms have become increasingly popular as another option to

centralized data storage providers. Often run by large corporations, centralized entities lack

transparency, are liable to misusing or selling data, and are vulnerable to a single-point-of-

failure. Thanks to blockchain technology, various decentralized data storage platforms have

emerged. Further, and crucial to each network, are the storage tokens or storage coins.

Also, users can often make money with decentralized storage coins by being active in the

networks.

 

What are Decentralized Storage Tokens?

Businesses and individuals store large amounts of data with centralized entities frequently.

Large corporations, such as Amazon, One Drive, and DropBox offer data storage services

as an alternative to data storage on local hardware or servers. Although these services are

often useful, there are several disadvantages to using them. 

 

Data stored on a centralised database presents a single-point-of-failure. If one entity were to

come under a cyber-attack or experience downtime due to technical reasons, it could affect

thousands, if not millions of users. In turn, a large number of people may fail to gain access

to their data or services when needed. Moreover, giant cloud storage companies often use

or sell data unbeknown to the owner. When users give their data to centralized data storage

services, they usually give up their rights and permissions regarding how companies can use

said data. 

Because blockchain technology can ease the issues around centralized data storage

providers, decentralized file storage solutions are becoming more accessible. Decentralized

storage platforms increase transparency, eliminate the threat of data theft, and offer users a

secure way to store their data. 

 

How Decentralized Storage Works & Storage Coins

Decentralized storage solutions exist without centralized storage hosts. Rather than a single

entity controlling and monitoring siloed information, decentralized storage platforms

distribute data across multiple hosts in different locations. Furthermore, servers operate

using a network of independent nodes.

Many decentralized data storage platforms rely on blockchains to maintain an immutable

ledger of data transactions. These include the use of both public and private blockchains.

When using a blockchain for a decentralized data storage network, participants have an

incentive to earn the native storage coin or storage token of a particular network. Some

decentralized storage tokens and coins act like bonds, meaning users can stake them or

lock them up as collateral to secure a network. In turn, node operators that attempt to act

maliciously can lose their stake. This encourages nodes to behave honestly.

 

Moreover, the efficiency of immutable decentralized file storage solutions helps to increase

download speeds, avoid bottlenecks, and reduce costs. Plus, when files are broken down

into several pieces and distributed across several nodes, no single node can read an entire

file without permission. Resultantly, decentralized storage solutions provide higher levels of

security and privacy than centralized solutions.

Additionally, users of decentralized storage platforms pay for transactions using

decentralized storage coins and tokens. Moreover, these decentralized storage tokens and

storage coins serve as rewards for node operators for providing data storage services.

 

Storage Tokens vs. Storage Coins 

Cryptocurrencies fall into many categories, with a lot of terms being thrown around loosely in

the industry. Tokens and coins are among the most common. Although similar, there is a

distinction between the two. 

Firstly, storage coins are cryptocurrencies that launch directly from a native blockchain. For

example, the decentralized storage platform hosted by the Sia blockchain has its own coin,

Siacoin (SC). On the other hand, tokens are cryptocurrencies that launch through

applications built on top of a blockchain. For example, Streamr’s DATA token is a storage

token. The DATA token operates through the Streamr application, built on the Ethereum

blockchain. 

There is no underlying difference between storage coins and storage tokens other than their

deployment origin. Both types of cryptocurrency are adjustable through individual

tokenomics and governance parameters to suit a specific decentralized storage network. 

 

Storage Coins

1. Filecoin (FIL):

Filecoin is a peer-to-peer network that stores files on the internet, with built-in economic

incentives to ensure files are stored reliably over time.

 

2. BitTorrent (BTT):

Founded with a leading peer-to-peer sharing technology standard in 2004, BitTorrent, Inc. is

a consumer software company based in San Francisco. Through a suite of distributed

technologies that scale efficiently, BitTorrent enables users to send large files over the

internet through its popular peer-to-peer sharing protocol, enabling legitimate third party

content providers to connect with users. 

BitTorrent’s desktop and mobile products are installed on hundreds of millions of new

devices each year across 138 countries worldwide. 

In December 2019, DLive formed a strategic partnership with BitTorrent and officially began

its integration with the TRON ecosystem. On October 22, 2020, BitTorrent announced the

official acquisition of DLive.tv. As a world-leading eSports live-streaming platform, DLive.tv

hosts 7 million active users and over 20k active content creators. 

In December 2020, BitTorrent secured a partnership with Huawei. Over 3 billion Huawei

users across 170 countries now have access to TRON’s BitTorrent, the world’s largest

distributed network service.

 

3. Arweave (AR):

Arweave aims to make information permanence sustainable. Arweave describes itself as a

new type of storage that backs data with sustainable and perpetual endowments, allowing

users and developers to store data forever. As a collectively owned hard drive that never

forgets, Arweave aims to allows users to remember and preserve valuable information,

apps, and history indefinitely. By preserving history, it prevents others from rewriting it.

 

4. Siacoin (SC):

Stores tiny pieces of your files on dozens of nodes across the globe. This eliminates any

single point of failure and ensures highest possible uptime, on par with other cloud storage

providers.

 

5. Ankr (ANKR):

Ankr strives to build a resource efficient blockchain framework that truly enables Distributed

Cloud Computing (DCC) and provides user-friendly infrastructure for business applications.

Ankr Network proposes a novel blockchain solution that addresses the current barrier to

mass business adoption: (1) Resource-efficient mining scheme based on Proof of Useful

Work (2) Scalable Blockchain framework through Plasma sidechains and sharding (3) Native

oracle service connecting real-world data of existing Internet solutions to on-chain entities.

 

6. Storj (STORJ):

Storj is a platform, cryptocurrency, and suite of decentralized applications that allows users

to store data in a secure and decentralized manner.

 

7. RSK Infastructure Framework (RIF):

RIF (Rootstock Infrastructure Framework) is a third layer on top of Bitcoin that provides a

wide range of solutions based on blockchain technology such as payments, storage, and

domaining (RNS). It is a tech-stack where the $RIF token is required to use these services.

RIF aims to create collaborative marketplaces where individuals interact on a peer-to-peer

basis coordinated by immutable smart contracts in order to exchange information, value, and

services with full control and transparency.

 

8. PAC Global (PAC):

PAC Global is a digital network connecting not only merchants and consumers, but business

enterprise as well, with a fast, secure and more cost-effective way to send digital

transactions globally.

PAC Global has a new Board of Directors whose broad experience extend across the

Business, Finance, Regulatory compliance, Software and Blockchain Development fields.

 

9. FLUX:

Zel has been rebranded to Flux. Flux is the cryptocurrency that powers the Flux Ecosystem.

The Flux Network comprises Proof-of-Work miners and FluxNode Operators, who are

rewarded in Flux for validating transactions and providing computational resources.

Flux is also the currency for purchasing resources and fueling transactions on our

decentralized computational network called FluxOS. Users of the ZelCore wallet may unlock

special features (ZelCore+) by staking Flux.

 

10. Aleph.im (ALEPH)

Built for the DeFI ecosystem, aleph.im is a decentralized network that is dedicated to

providing secure storage and computing to decentralized applications of all chains.