Decentralized file storage pricing differentials persist despite market growth: Report

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Even though direct fees of decentralized file storage may be cheaper than Web2 products, other costs, such as retrieval fees and upload fees, can make them less appealing, according to a new report.

According to a new report published by Singaporean venture capital firm Foresight Ventures, the cost ofon blockchains such as Filecoin, Arweave, Swarm, StorJ, and Sia currently ranges from near zero to $4 per terabyte per month. This is much lower than traditional Web2 services such as Amazon Cloud or Microsoft Azure, where prices can range from $16 to $23 per TB of monthly storage.

However, the report also outlined other costs associated with decentralized storage, such as data upload fees and retrieval fees, the latter of which can amount to $7 per TB. Some service providers mentioned in the report, such as Filecoin, only had storage fees, which were also quite low, while others had all three types of aforementioned fees.

In addition, analysts at Foresight wrote that blockchain storage still faces issues such as"file loss,""difficult to retrieve data," and"high bandwidth requirements." Pointing to one blockchain, researchers commented:Despite pricing controversies, data from blockchain analytics firm Messari cited in the report show that the total storage capacity of the four largest file storage blockchains increased by 2% year-over-year to 17 million terabytes at the end of 2022.

 

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