Today, storage cost is a significant factor when deciding which solution to use. Decentralised storage solutions are known to be significantly cheaper than centralized ones due to their distributed nature. The cost savings come from the fact that there is no need for expensive hardware or software to manage the data, and they can scale more effectively as the data size grows.
For many businesses and institutions, centralized solutions have been the go-to option for a long time. However, in recent years decentralized solutions have emerged as viable alternatives. According to BitcoinCasinos.com, decentralized storage solutions are 78.6% cheaper than centralized solutions on average.
The site’s financial analyst, Edith Reads, comments, “Decentralized storage solutions have revolutionized the data market. The potential cost savings associated with decentralized solutions have made them attractive for businesses and organizations seeking to reduce costs. Centralized storage centers like Amazon S3 and Google Drive, which are more costly, may lose market dominance to decentralized solutions.
What Are Decentralized Storage Solutions, and How Do They Work?
Decentralized solutions use peer-to-peer networking based on blockchain technology to transfer data across a network of nodes. Unlike centralized options, decentralized storage solutions do not need centralized servers and large data centers.
Each node in the decentralized network is a mini data center storing a small portion of the user’s data. When users want to retrieve their data, the decentralized storage network identifies and retrieves the nodes that store the relevant data.
Decentralized Storage Solutions vs Centralized Solutions Cost
On average, the major decentralized storage solutions charge $2.11 per 1 terabyte a month, while the main centralized solutions charge $9.88, nearly five times the charge for decentralized solutions.
Amazon S3, the top centralized solution, charges $23.00 per 1 terabyte monthly, $22.81 more than Filecoin, a major decentralized solution.
Other decentralized solutions like Sia, Arweave, and Storj are also cost-effective compared to centralized solutions. Storj charges $4.00 per 1 terabyte monthly, yet it’s considered one of the more costly decentralized options. This only shows decentralized storage options are way cheaper than centralized solutions.
Why Are Decentralized Storage Solutions Cheaper Than Centralized Solutions?
Decentralized storage solutions eliminate the need for centralized servers due to the technology they use. Hence, they cut down on a significant expense incurred by centralized solutions in maintaining servers and the staff managing them.
Moreover, decentralized storage solutions have reduced operating costs as they do not require data centers. Centralized storage solutions incur more operating costs by managing their dedicated data centers. The extra expenses play a key role in the overall data storage costs.
Decentralized storage solutions provide a more secure, flexible, and cost-effective way of storing and managing data. The significant cost savings of decentralized solutions have been key in attracting more users.
