Data Fragmentation: Files are broken into encrypted pieces, distributed across multiple, independent nodes worldwide.
Content-Addressing: Files are accessed via unique cryptographic hashes, not location-based URLs.
Security & Privacy: Because data is encrypted and distributed, no single node (or the provider itself) can access the full, raw data.
Prominent Projects: Examples include Filecoin, Storj, and Sia.
Key Aspects of Decentralized Cloud Computing
Distributed Processing: Computational tasks are distributed across idle hardware, allowing for scalable, on-demand, high-performance computing.
Peer-to-Peer Marketplace: Users rent excess capacity from providers, creating a competitive marketplace.
Applications: Ideal for dApps (decentralized applications), smart contracts, and AI training, such as on Fluence Network or io.net.
Advantages Over Centralized Systems
No Single Point of Failure: Higher uptime and resistance to censorship.
Data Sovereignty: Users retain control over their data, rather than entrusting it to a single, large corporation.
Cost-Effectiveness: Utilizing unused, decentralized resources often results in cheaper storage and compute power.
Challenges.
Performance Variability: Network speed depends on node availability.
Complexity: Managing decentralized systems requires higher technical expertise.
Regulatory Uncertainty: The decentralized nature can complicate legal compliance.
