The storage tokens on Coingecko (a category gathering several storage tokens like Filecoin, Storj or Arweave) has increased by 15% in the last 7 days.
Should you invest in blockchain-based storage solutions?
There are several different blockchain-based storage solutions that have been developed to address the issue of data storage and security on decentralized networks. Some of the most popular ones include:
InterPlanetary File System (IPFS): IPFS is a peer-to-peer protocol that aims to make the web faster and more secure by replacing the traditional HTTP protocol with a distributed file system.
Filecoin: Filecoin is a decentralized storage network that allows users to rent out unused storage space on their devices in exchange for cryptocurrency.
Sia: Sia is another decentralized storage platform that uses blockchain technology to enable secure, private, and decentralized storage.
Storj: Storj is another decentralized storage solution, using Ethereum (ETH) zkSync rollup to provide incentive rewards to their node operators, that allows users to store their data on a network of distributed nodes.
MaidSafe: MaidSafe is a secure, decentralized data storage and communication platform.
Arweave: Arweave is a decentralized storage protocol that utilizes blockchain technology to create a permanent storage solution.
These are some of the widely used storage solutions, but there are many other projects that are working on similar solutions as well. They all have different characteristics, use cases and focus on different market segments.
How to invest in blockchain-based storage solutions?
All the solutions above have their own coins or tokens, except IPFS. They have all increased in the last 7 days, except MaidSafeCoin. Therefore, looking at the short term, it could make sense to have a look at Filecoin (FIL), Sia (SC), Storj (STORJ) and Arweave (AR) tokens. However, before investing into these tokens, it is worth noting that these blockchain-based storage solutions are still in development. It will take a while before they can really compete against the large centralized cloud service providers, despite the obvious advantages that blockchain-based decentralization provides to storage.
Disclaimer: this article does not contain any financial advice. The information is provided for general informational and educational purposes only.