This week, CoinMarketCap Alexandria takes a look at some of the most promising decentralized file storage and sharing services in the market.
CoinMarketCap Alexandria looks at three of the biggest decentralized file storage and sharing services on the market:
- BitTorrent File System (BTFS)
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How Does Filecoin Work?
Filecoin is a distributed, peer-to-peer network consisting of Filecoin nodes and storage providers.
Use Cases of Filecoin
Filecoin creates an open market with competitive pricing for data storage provision. With its low barriers to entry, anyone can participate in the Filecoin ecosystem, which sets prices based on market dynamics. Furthermore, storage providers on Filecoin create a track record of their services, creating incentives to provide reliable storage facilities.
Filecoin is censorship resistant and can adjust to market demand when content needs to be distributed to a multitude of users. Moreover, its blockchain consensus mechanism has a positive externality in securing safe data storage instead of creating negative externalities like proof-of-work blockchains.
Compared to traditional storage providers like Google or Amazon, Filecoin has several advantages:
- It has a competitive and dynamic pricing structure.
- Storage is decentralized and reliability is tracked publicly through the blockchain.
- Applications can access all storage providers through the same API.
- It has low barriers to entry for storage providers.
- It is censorship resistant.
Filecoin has a maximum supply of 2 billion FIL. FIL is used to participate in the Filecoin ecosystem and pay storage providers and retrieval providers for their services. The distribution of FIL is as follows:
- Rewards: 70%
- Protocol Labs (the company behind Filecoin): 10.5%
- Protocol Labs team: 4.5%
- Filecoin Foundation: 5%
- Ecosystem development: 2.5%
How Does Bullit Work?
A Bullit is a file generated offline by the Bullit system. It can be shared via the usual distribution channels like mail, messenger services, USB sticks, and others. Bullets can contain any type of information, such as:
- A business plan
- An audio track
- Financial information
- Video footage
- Child protection data
- Healthcare data
- Legal documents
Use Cases of Bullit
Bullit can be used in a number of ways:
- Legal, Financial, and Insurance: To maintain confidentiality in corporate-client relations.
- Corporate & Telecom: As a SaaS and consumer-to-enterprise solution.
- Health Care: Bullit is HIPAA compliant and leaves a full audit trail.
- Marketing & Entertainment: Bullit can track and capture who views communications and harvests email addresses.
- Government: With its military-grade encryption and secure architecture, Bullit can be used for communication in the public sector.
Bullit Product Features
Several product features of Bullit are already live:
- Encryption and Decryption: You can upload any file type and convert it into a Bullit and upload a Bullit to decrypt and view its content.
- Terms and Conditions: You can upload the terms and conditions that the recipient must accept to open your Bullit.
- Terminate: You can terminate content if you suspect someone to have breached your agreed terms.
- Email Notification: You can receive a notification every time your Bullits are opened.
- AI Protection: Bullit is protected with artifical intelligence.
- Control Panel: Easy access to all incoming and outgoing Bullits.
- Presale: 6% - vested 10% monthly
- Staking rewards: 15% - vested 12.5% quarterly
- Burn: 10% - vested 12.5% quarterly
- Marketing: 14% - vested 12.5% quarterly
- Team: 25% - vested 12.5% quarterly
- Foundation: 30% - vested 12.5% quarterly
Bullit plans burn events after certain (yet undefined) milestones are reached. According to the project's roadmap, blockchain recording and full decentralization can be expected in September 2022.
BitTorrent File System (BTFS)
How Does BTFS Work?
BTFS facilitates filesharing through its BitTorrent client, a computer program implementing the BitTorrent protocol. Users can download from several hosts that provide the file for downloading. For instance, a file can be hosted by several computers in the network (called seeds) and then be downloaded via the BitTorrent network. Bigger files are usually split up into many smaller parts, allowing their distribution in a non-sequential and efficient manner.
Use Cases of BTFS
BTFS has seen particularly strong adoption in the entertainment sector. Although the protocol became popular for the distribution of pirated content, a growing number of individuals and organizations in the film and music industry distribute licensed content via BTFS. BTFS is also used in the software and gaming industry to distribute downloadable content and by the education sector to share large datasets.
The total supply of BTT tokens is 990 billion BTT. BTT is used to incentivize network usage. For example, users can pay in BTT for faster downloads. BTT is distributed as follows:
- Public sale tokens - 6%
- Private sale tokens - 2%
- Seed sale tokens constitute - 9%
- Tron airdrop tokens - 10.1%
- BitTorrent protocol airdrop tokens - 10%
- BitTorrent Team and the BitTorrent Foundation - 19%
- TRON Foundation - 20%
- BitTorrent ecosystem - 19.9%
- Partnership tokens - 4%
Storj is an open-source, decentralized cloud storage layer with inbuilt privacy and security. It enables developers to build applications with data protection and privacy in mind. Storj boasts trustless architecture and multi-region high availability with default encryption. That means only users with permission granted can access uploaded files.
How Does Storj Work?
The main component of Storj is its decentralized cloud storage layer (DCS). Users can upload files to the DCS, which are then encrypted and split up into 80 or more pieces that get distributed across the thousands of diverse storage nodes. Due to the high degree of decentralization (nodes are located in nearly 100 countries), there is no single point of failure that could prompt an outage, downtime, bitrot, ransomware, or data breaches. In case a node goes down, the file is not lost but can be reinstated from just 29 of its distributed pieces.
Furthermore, Storj offers a cost-efficient solution in comparison to centralized providers. For example, users can create a Storj DCS account and receive a free tier of decentralized cloud object storage with up to three projects with 50 GB of bandwidth each.
Siacoin is a decentralized cloud storage platform secured by blockchain technology. Sia aims to build a data storage marketplace that outperforms traditional storage providers by using idle hard drive capacity on computers around the world. You can upload files to Sia, where they get split up, encrypted, and distributed around different hosts worldwide. Once uploaded, files remain accessible since they are copied several times. Hosts receive only encrypted parts of an entire file, thus guaranteeing the full security of a user’s data.
How Does Sia Work?
Users can be either renters or hosts. A renter uploads files to other users that have made space available. These are the hosts. Sia acts as a marketplace that finds storage space from hosts for renters. The market rate is determined competitively by hosts and is listed in Siacoins. Sia quotes a typical network price of $2 per TB per month, with the possibility to become more cost-efficient as more data is stored.
- Uploading files and paying for storage.
- Storing someone else’s data and receiving SIA.
- Owning a share of the SIA network.
Decentralized file storage and sharing will likely only grow as blockchain technology breaks into the mainstream. Bullit, Filecoin and BTFS can be considered pioneers of this sector, and you should definitely give each of them a closer look.