Decentralized storage providers power the Web3 economy, but adoption still underway
The promise of owning and managing one’s own data is revolutionary, creating increasing interest in Web3 platforms and applications. For instance, recent findings show that the Web3 market was estimated to be worth around $2.9 billion last year, yet this number is expected to reach $23.3 billion by 2028. Web3 is also capturing the interest of venture capitalists, as Cointelegraph Research found this sector to be the most sought-after investment deal in 2022.
The rise of Web3 has also resulted in the need for decentralized storage solutions, which will ultimately allow users to archive, retrieve and maintain their own data. Findings from Huobi Research Institute further show that increasing global storage data volume will elevate the cost of security and high power consumption, which will fuel the trend toward decentralized storage. The report states, “World storage system demand has progressed from remote storage to instant cloud storage, and now blockchain decentralized storage which we shall call Web3 storage.”
In order to better understand the potential behind decentralized storage, it’s important to explain what these solutions provide and how they differ from centralized platforms. Marta Belcher, president and chair of the Filecoin Foundation — the organization facilitating governance of the Filecoin network — told Cointelegraph that decentralized systems offer an alternative to centralized systems for storing data and making websites available. She said:
With these challenges in mind, Belcher explained that decentralized storage providers like Filecoin are capable of creating a better version of the Web by combining the storage capacity and computing power of many individual devices into a supercomputer-like network
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