There are few left who don’t think the future of finance is already here in various shapes and forms of the blockchain. We all currently trust our money on technology that - to put it mildly - is as outdated as a fax machine. Blockchains, which remove third parties off the picture, will forever change these systems.
Can we think the same way about cloud based data storage?
Cloud storage has taken over the marketplace for a reason: the cost per terabyte per month has lowered an order of magnitude and companies no longer need to create and maintain their own systems of servers, pay for off-site backups and bear the burden of expert teams to keep it all running smoothly.
Yet, despite the significantly lower costs and the spike on convenience, companies have collectively decided to trust their data to third parties. It makes sense: it is cheaper, more reliable and plenty redundant. All this economy and convenience has a cost - let’s call it a downside - and it again has to do with companies being forced to stay competitive by choosing a service that takes away their power to control their data.
The future of data storage will be in the blockchain because it goes even cheaper because it is cooperative. Similarly to Airbnb or Uber, it will use the excess capacity of all of the world's systems to place the cost of data storage another order of magnitude downwards. Today, it is already possible to combine the efficiency and reliability of the cloud with the decentralized security & control of the cooperative cloud storage model, all of which make this the foundation for yet another revolution in data storage.
The true cost of storing data
Against decentralised data storage systems, cloud storage is rather imperfect. First of all, because we only have traditional systems as a frame of reference, we think it is already affordable enough. Second, we think of data security as a matter of redundancy and uptime and forget matters of encryption. Third, we completely ignore the fact that data is on the hands of third parties.
Thanks to flexible contribution, multiple companies are able to rent out their redundant storage and the compound effect of this practice will further reduce costs in all fronts. Data security is taken up a notch thanks to geo-distribution algorithms. Data is stored everywhere on the cloud which means there is no single middleman. This results in total decentralization and real redundancy, complete privacy and a 1000% reduction in costs.
Prices of blockchain storage companies are already lower than the big players currently dominating the marketplace with products such as Amazon's S3, Microsoft Azure and Google Cloud.
- Blockchain storage: $10/mo
- Amazon Web Services: $115/mo
- Microsoft Azure: $120/mo
- Google Cloud: $100/mo
Costs will be driven down by adoption, as the marketplace is already experiencing drops down by as much as 800% below cloud storage systems. Speeds are up 10 fold and so security is simply unparalleled.
Blockchain storage advantages
- 100% private: Blockchain storage systems splits data into chunks, encrypts the data and distributes it over a decentralized network. You hold the keys to the data and only you have access to it.
- S|E|B: SEB Bank has a current account offer that can be opened by anyone over 18 and with it you can do all traditional operations including purchases with a contactless debit card. As as e-resident they also have the option for you to open a normal account with them and if you have questions they have a phone line in English. See their network here.
- Affordability improved: Blockchain storage already costs 10x less than your average traditional competitor. We estimate this cost will go down another 10x.
- Multi-region redundant: Your files are stored in hundreds of nodes all over the planet. There aren't failing hard drives, uptime is virtually 100%.
- Built on blockchain: Because people who host your data are competing to do so, they are outbidding one another driving the costs down. That is why the more people in it, the lower the costs.
- Open Source: most systems are built by communities of experts looking to live in a world where everyone can share the benefits of a more connected and more free internet.
One of the most useful features of a blockchain data storage system is its immutability, which means once a record is placed on the blockchain it is there forever alongside the date and time in which the record was made. Thus, if we need inalterability in a contract or record of any kind (think permits, voting, licensing, registries, titles, escrows, degrees, grades, medical records) these unique permanent online markers finally make it possible.
Storing your banking data on the blockchain
Today, your banking data is stored in outdated systems which are maintained by armies of professionals. Each bank has private and customized systems and teams that keep your data safe. Yet, every year we hear stories of credit cards and bank accounts being stolen by the hundreds of thousands not to mention the millions of people defrauded by hackers. Yet, the prices for banking services just keep going up and with more and more options on the table, it can rather difficult to manage multiple bank accounts and multiple electronic wallets in multiple countries.
The world of electronic money can be maddening.
When it comes to storing financial data, costs are high, security is low and it is far from truly convenient. A unified banking experience, where all bank accounts and cryptocurrency accounts of an individual are under one umbrella, is possible and we call it the eBAN (Electronic Bank Account Number).
For this to happen, first we need to understand why the costs of doing performing financial transaction aren't going down as they should. Under current systems such as with bitcoin, transaction fees that are paid in bitcoin, so the higher the value of a cryptocurrency the higher the transaction value will be.
Therefore if a solution is created to combine your traditional banking private data, such as your European IBAN, with your cryptocurrency wallets all into one, we would need to perform transactions using the aforementioned cryptocurrency in order to afford it.
Alternatively, we can create a system that combines all cryptocurrency under one umbrella while storing your eBAN, a hash of your IBAN, in the cloud as this is automatically connected to all your cryptocurrency accounts.