We live in an era often referred to as Web 2. During the period of Web 1.0, websites were static and mostly “read-only.” Later, as Web 2.0 evolved, the web became interactive, allowing “read and write” functionality. People could upload their own content. However, this led to another problem: the content we upload is stored on the servers of large organizations. For example, if you upload any content on YouTube, it’s stored on YouTube’s servers. Every message you send on Messenger is stored on Facebook’s servers.
This is a concern. Tech giants like YouTube, Facebook, Google, Amazon, and Microsoft have access to your data and can use it for profit, sell it to the government, or even use it to train AI models. These companies’ centralized control allows them to gather massive amounts of data and use it as they choose.
This is why Web 2.0 is also called “centralized.” To address this issue, Web 3.0 introduces the idea of data decentralization, meaning the data you upload on the web is divided, encrypted, and distributed across a network of computers. This makes your data more secure and returns data ownership to you.
Web 3.0 achieves this by using a peer-to-peer network instead of a central server, leveraging blockchain technology and cryptocurrency.
Data stored on decentralized storage is encrypted with cryptographic methods to ensure security. Each piece of data is also divided into multiple parts and spread across the globe. This way, a piece of data stored on a single node in the network doesn’t reveal much information.
In decentralized storage, data is also replicated, meaning multiple copies exist across the network. If one node loses the data, it can be retrieved from other nodes where it’s stored.
When retrieving data, technologies ensure the original owner’s identity is verified. Solutions like cryptographic keys provided by Self-Sovereign Identity (SSI), decentralized ledgers in the blockchain, or zero-knowledge proofs (ZKP) verify identity without revealing original data.
The nodes where data is stored can be any computer, even a desktop PC. These computers contribute spare resources (storage, processing power, bandwidth, etc.), allowing the decentralized storage network to utilize millions of nodes. However, this setup poses some challenges. For instance, if a PC is shut down, if a region experiences a power outage, or if the hardware fails, the data stored on that PC becomes temporarily inaccessible.
Web 3.0 addresses these issues by creating multiple copies of data and distributing parts across the globe to mitigate risks from power outages or hardware failures. Nodes providing resources are rewarded with cryptocurrency. Additionally, a reputation system helps track the reliability of each node; nodes with lower reputations are less likely to get future contracts, encouraging node owners to manage them effectively.
In short, decentralized storage in Web 3.0 aims to democratize data, offering various solutions to overcome the challenges it faces.