Each year, the amount of data generated across the globe is growing exponentially. From the explosion in the use of digital tools in the workplace to the ever-growing use of Internet of Things devices, social media, online gaming, e-commerce and other digital platforms, each day sees the creation of a massive amount of data that needs to be stored securely and efficiently.
Blockchain technology provides a decentralized, immutable, secure solution, making it an ideal option for multiple industries. But first, blockchain-based data providers need to prove they can scale to meet the exploding demand. By leveraging smart partnerships and building new solutions that are compatible with what’s already in the market (and familiar), the blockchain industry can lead the way in addressing an issue in genuine need of a solution. Below, 10 members of Cryptox Innovation Circle share tips to help blockchain-based data providers scale to meet the ever-growing demands of the broader data storage space.
Foster collaboration
As blockchain-based data providers navigate the expanding demand for data storage, a key strategy lies in fostering collaboration. By forming purposeful partnerships and leveraging decentralized networks, we can collectively scale our capabilities and address the evolving needs of the broader data storage space. – Vinita Rathi, Systango
Ensure seamless integration with existing storage systems
Develop standards and protocols that enable seamless integration with existing data storage systems. This strategy can ultimately attract a wider network of clients. Developing these integrations rather than starting from scratch allows for the existing infrastructure to remain intact while repurposing its use, essentially giving it an update to allow for more client traction. – Anthony Georgiades, Pastel Network
Leverage sharding
Blockchain providers can scale through sharding, which partitions data across nodes, increasing capacity. Layer 2 solutions, like Plasma and Lightning Network, process transactions off-chain, reducing network load. By integrating these strategies, providers can efficiently meet the growing demand for data storage. – Erki Koldits, OÜ Popspot
Explore partnerships with other storage providers
You could explore partnerships with centralized storage providers including Google Cloud or Amazon Web Services. But if you really want to be decentralized, your partners in storage should be protocols like Arweave, Filecoin or other similar decentralized entities in that space. – Zain Jaffer, Zain Ventures
Provide a simple and safe experience
Prioritize user experience and security when developing data storage solutions. Streamline the user onboarding procedure, offer user-friendly interfaces and guarantee strong data privacy and security safeguards. Blockchain-based data providers can draw and keep clients in the larger data storage market by providing a simple and safe experience. – Arvin Khamseh, SOLDOUT NFTs
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Determine what needs to be on-chain and what can be off
Determine what can be stored on the blockchain, but also consider whether actual files can be stored off-chain. The industry will benefit from a mix of decentralized storage, distributed processing and efficient lookup capabilities to maximize efficiency while meeting the growing network demand. – Megan Nyvold, BingX
Think satoshi-level small
Given the rise of Ordinal inscriptions among the Bitcoin community, there’s an argument for thinking satoshi-level small when it comes to data storage. These clever innovations are reconceptualizing how funds and information can co-mingle on a decentralized network. While BTC offers unique security features, turning the problem on its head, and minimizing it, could offer some unexpected solutions. – Oleksandr Lutskevych, CEX.IO
Focus on interoperability
Focus on interoperability by developing solutions that seamlessly integrate with existing data storage systems and infrastructure. Emphasizing compatibility with different data formats, protocols and platforms allows us to bridge traditional data storage solutions and blockchain technology, making it easier for businesses to transition and leverage the benefits of decentralized and secure data storage. – Theo Sastre-Garau, NFTevening
Pair with modern, flexible blockchain platforms
The simple fact is that the old blockchains don’t and won’t scale well. That is why the Ethereum founders split up and started their own projects — they knew that years ago. To scale, all data providers should embrace storage solutions that pair with more modern, flexible and efficient blockchain platforms. Otherwise, they will be stuck with the overhead and slow progress of the old systems. – Stephanie So, Geeq
Look at crowdsourced storage mechanisms
Since open-source data is becoming easier to obtain, enterprise data providers need to stay competitive. As a result, looking at cheaper, decentralized, crowdsourced storage mechanisms like The Render Network, which provides a platform and marketplace for GPU-based operations, may keep costs down for the end-user. – Timothy Enneking, Digital Capital Management
This article was published through Cryptox Innovation Circle, a vetted organization of senior executives and experts in the blockchain technology industry who are building the future through the power of connections, collaboration and thought leadership. Opinions expressed do not necessarily reflect those of Cryptox.
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