On the Tech Powering Decentralized Storage

Decentralized storage is a model of networked online storage where data is stored on multiple computers (nodes) cooperating to create an emergent cloud. The capacity for flexible contribution allows some nodes to contribute less storage and others to contribute more. Incentives are often used to encourage greater storage contribution and network participation. Ultimately, the model is viable only if the total storage supplied in aggregate is greater than or equal to the storage demanded.

Unlike centralized storage, decentralized storage networks don’t employ dedicated servers for storing data, thus eliminating the need for a significant investment in dedicated storage hardware. Instead, each node in a decentralized storage model runs specialized software which communicates with some orchestration system, which may or may not be centralized. The orchestration system allows nodes to consume and contribute storage space in the decentralized cloud.