Thread by @FrancescoCiull4

🔲DECENTRALIZED STORAGE thread

Many of us have an idea of ​​what a database is, but how do we behave when dealing with Ethereum?

We can use something called Decentralized Storage (dStorage for frens)

The good news is that Ethereum itself can be used as a DB.

but ...
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Table of Contents

· Definition
· The Problem
· The solution
· Blockchain-based persistence
· Incentive structure
· Contract-based persistence
· Challenge mechanism
· Decentrality
· Consensus
· Tools

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Definition

dStorage systems are p2p network of user-operators who hold just a portion of the overall data.

By doing so, they create a resilient file storage sharing system.

Two options.

dStorages can be:
- in a blockchain-based app.
- in a p2p network.

The Problem

Ethereum itself can be used as a dStorage.

But it's not to be designed to store a large amount of data.

Currently, every node has to store ~1TB: if it grows so fast it will be soon too much for all the nodes.

The gas cost to deploy this data would be too much.

The solution

We need a different chain or methodology to store large amounts of data in a decentralized way.

Concepts:
- Persistence mechanism (Blockchain-based or Contract-based)
- Incentive structure
- Challenge mechanism
- Decentrality
- Consensus

Blockchain-based persistence

When running a node on Ethereum, the whole chain needs to be accounted for.

Every node needs to replicate all the data, that get tacked onto the end of the chain.

if the chain grows too much, putting it all on the same node becomes a problem!

Incentive Structure

The blockchain must also have some type of incentive structure.

For blockchain-based persistence, there is a payment for the miner.

When the data is added to the chain, the nodes are paid to add the data.

Contract-based persistence

💡Idea: data not replicated by every node, but upkept with contract agreements.

Instead of storing all data, we store the HASH where the data is located, so we don't need to scale the whole chain.

Examples:
- Filecoin
- Skynet
- Storj
- 0Chain

Challenge mechanism

A cryptographic challenge is issued to a node to check if it has the data.

e.g.: Arweave's proof-of-access:

A challenge is issued to a node to check if they have the most recent and of a random block's data.

The node is penalized if it hasn't the answer.

Decentrality

We need to use tools that don't have some form of KYC (Know Your Customer) to provide evidence they are not centralized.

Decentralized tools without KYC:
- Ethereum
- Arweave
- Filecoin
- 0Chain
- Skynet
- IPFS

Consensus

Generally, these tools are based on proof-of-work (PoW) or proof-of-stake (PoS).

PoW based:
- Skynet
- Arweave
- Ethereum

PoS based:
- The Beacon Chain
- Filecoin
- 0Chain

Tools 1/2

dStorage Tools:

- IPFS: dStorage + file referencing system.
- Storj DCS: S3-compatible dStorage.
- Skynet: decentralized PoW chain.
- Filecoin: incentive layer on top of the IPFS ideals.
- Arweave: dStorage platform for storing data.
- 0chain: PoS dStorage platform.

Tools 1/2

- Swarm: dStorage platform + content distribution service.
- OrbitDB: A decentralized p2p DB on top of IPFS.
- Aleph: Decentralized IPFS compatible cloud project.
- Ceramic: IPFS DB storage for data-rich and engaging applications.

source: Ethereum docs

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