Web3 might be the answer to the global data storage crisis, according to a new report from Holon and Filecoin.
Investment fund manager and VC firm Holon worked with Web3 data storage provider Filecoin to develop a collaborative report, which states that today’s centralised data storage model will not have the capacity to scale to meet the future demand of data.
Global data generation last year grew to 79 zettabytes (ZB), up from just 2 ZB in 2010, according to the authors. And data generated by electric vehicles, IoT, virtual and augmented reality, 5G, robotics, machine learning and artificial intelligence is expected to increase the global data footprint by over 300 times to meet future demand.
“The total cost to reach the existing global data centre footprint of 3 ZB is estimated to have surpassed US$300 billion. If we increase this global footprint by over 300x to meet future demand, it will likely cost a massive US$100 trillion – far too great an amount to be borne by existing cloud service providers,” the report said.
“Should Holon’s data generation forecast be accurate, global storage capability is set to dramatically fall from 0.6 percent in 2020 to just 0.1 percent in 2025.”
The report reveals that blockchain may be able to provide sustainable solutions through a decentralised model.
“Blockchain technology provides an opportunity to challenge the current status quo in the data storage market. The decentralised nature of the technology and ability to raise large amounts of funds through token sales and venture capital interest in the space makes this challenge possible.”
Benefits of blockchain when it comes to data storage also span to improved security as the distributed network has no single vector for attack.
“Benefits span further than the single point of failure by using blockchain as an extra security layer through anonymity, encryption, and restricted access to the data stored,” the report said.
According to the report Web3 will improve the lack of standardisation that exists for ESG in a Web2 world, where blockchain will allow investors to view energy use and verify sustainability targets.
“This report takes ESG efforts to the next level, leveraging the power of Web3 and opening countless possibilities for increased climate action, encouraging investors to redefine their expectations for sustainability accounting,” says Alan Ransil, Filecoin Green Project Lead.
“We aspire to help other storage providers on our network breakdown the tangible efforts they can take to improve their sustainability, embracing a new standard of granularity, verifiability and accountability.”
Filecoin claims to be the largest distributed data storage network in the world with total storage capacity covering approximately 1 percent of global storage in its first year of operations.
