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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.
