Blockchain-based decentralized file storage prices can range from almost nothing to $4 per terabyte per month, taking into account additional expenses like data upload and retrieval fees.
- Blockchain-based decentralized file storage is far less expensive than conventional Web2 providers like Amazon Cloud or Microsoft Azure.
- Compared to 2021, network usage has increased significantly, from 0.2% to 3.1%.
Foresight Report
Due to its security, privacy, and cost-effectiveness benefits, decentralized file storage is growing in popularity among businesses and individuals. Nevertheless, despite the market expansion, there are still price differences for decentralized file storage. A recent report by Foresight Ventures highlights the price of decentralized file storage on multiple blockchains, including Filecoin, Arweave, Swarm, StorJ, and Sia.
Pricing Differences
A terabyte (TB) of decentralized file storage on blockchains like Filecoin, Arweave, Swarm, StorJ, and Sia currently costs almost nothing and $4 monthly. Compared to standard Web2 providers like Amazon Cloud or Microsoft Azure, where rates can range from $16 to $23 per TB of monthly storage, this is significantly less expensive. The paper does, though, also list other expenses related to decentralized storage, such as data upload fees and retrieval fees, the latter of which can cost $7 per TB.
It is significant to highlight that decentralized file storage pricing structures differ from those of conventional cloud storage services. Users pay for storing and retrieving their data using cryptocurrency tokens in decentralized storage, which operates on a token-based paradigm. The availability and demand for storage space on the blockchain network dictate the price. The cost of storage tokens rises as more users want storage space. In contrast, the cost of storage tokens reduces as more users give their storage space.
Associated Costs
Decentralized file storage has additional charges, such as retrieval and data upload fees, in addition to store prices. These fees are required to ensure data recovery when needed and to encourage storage providers to offer their storage space. Filecoin, for instance, charges a fee for data upload that is settled in FIL tokens. Similarly, users who request data retrieval must pay a retrieval fee to encourage storage providers to comply.
Additionally, issues like “file loss,” “difficult data retrieval,” and “high bandwidth requirements” are problems for decentralized file storage. Data is dispersed among several nodes due to the decentralized structure of the warehouse, making it challenging to recover in the event of data loss. A few nodes also offer storage services and forbid retrieval, which results in retrieval failures.
Market Growth
The market for decentralized file storage is expanding despite the difficulties and price differences. The overall storage capacity of the four most prominent file-storage blockchains climbed by 2% year over year to 17 million TB at the end of 2022, per data from blockchain analytics firm Messari quoted in the article. At the moment, Filecoin holds a 67% market share, followed by Arweave (19%), Sia (8%), and Storj (6%).
Although network utilization is still low, it has increased significantly among top players, from 0.2% in 2021 to 3.1% today. This suggests that more companies and people are implementing decentralized file storage. To speed up block validation times, Filecoin launched the nv19 Lightening and nv20 Thunder network improvements on April 27. The network has 3,623 storage provider systems and 22.7 million TB of storage capacity as of April.
Conclusion
According to Foresight Ventures’ analysis, prices for terabytes of decentralized file storage can range from almost nothing to $4 per month. This shows the pricing disparities that still exist in the industry. However, additional expenses for decentralized storage, like those for data upload and retrieval, should also be considered. Despite these problems, by the end of 2022, the combined storage capacity of the four most prominent file-storage blockchains will have grown by 2% annually to 17 million TB. It is still being determined how pricing and other concerns will be handled by providers as the market for decentralized storage expands.
