Blockchain-based data providers have a significant opportunity to thrive by scaling their infrastructure to meet the growing demand for data storage. As the volume of data generated globally continues to increase exponentially, industries require secure and efficient solutions. With its decentralized and immutable nature, blockchain technology offers a promising option. However, before these providers can fully capitalize on this potential, they must demonstrate their ability to scale effectively.
Drawing insights from members of the Cointelegraph Innovation Circle, here are ten tips to assist blockchain-based data providers in meeting the expanding needs of the data storage space.
1. Foster collaboration
By forming purposeful partnerships and leveraging decentralized networks, blockchain-based data providers can collectively scale their capabilities and address evolving demands.
2. Ensure seamless integration with existing storage systems
Developing standards and protocols that enable easy integration with established data storage systems attracts a wider network of clients while allowing for maximum utilization of existing infrastructure.
3. Leverage sharding
Partitioning data across nodes through sharding increases capacity. Additionally, integrating Layer 2 solutions like Plasma and Lightning Network reduces network load, enabling efficient response to the growing demand.
4. Explore partnerships with other storage providers
Consider collaborating with centralized storage providers such as Google Cloud or Amazon Web Services. Alternatively, partnering with decentralized entities like Arweave or Filecoin maintains a decentralized approach to storage.
5. Provide a simple and safe experience
Prioritize user experience, streamline onboarding, offer intuitive interfaces, and ensure robust data privacy and security measures. These factors will help retain clients in the larger data storage market.
6. Determine on-chain vs. off-chain storage
Evaluate what should be stored on the blockchain itself and what can be stored off-chain. A combination of decentralized storage, distributed processing, and efficient lookup capabilities can optimize efficiency while meeting network demands.
7. Think satoshi-level small
Within the Bitcoin community, there is a growing trend of thinking in terms of “satoshi-level small” for data storage. Exploring innovative ways to co-mingle funds and information on decentralized networks may lead to unexpected solutions.
8. Focus on interoperability
Develop solutions that seamlessly integrate with existing data storage systems and infrastructure by emphasizing compatibility with different formats, protocols, and platforms. This facilitates a smoother transition for businesses seeking decentralized and secure data storage.
9. Pair with modern, flexible blockchain platforms
To achieve scalability, data providers should adopt storage solutions that pair well with modern and efficient blockchain platforms. Moving away from outdated systems enables faster progress and better performance.
10. Look at crowdsourced storage mechanisms
As open-source data becomes more accessible, enterprise data providers should consider cost-effective and decentralized storage options like The Render Network, which leverages GPU-based operations through its platform and marketplace.