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By Adeyemi Boboye
“When decentralized blockchain protocols start displacing the centralized web services that dominate the current Internet, we'll see real Internet-based sovereignty. The future Internet will be decentralized. - Olaf Carlson-Wee”
The notion that Web3 fundamentals differ from previous iterations of the Web.; i.e., Web1, Web2, is inaccurate. It rather continues its evolutionary path. Its distinction, however, lies in its emphasis on decentralization. Thus, the core principle of Web3 is placing power in the hands of end users.
To some, Web3 has been primarily associated with cryptocurrency. However, the Web3 ecosystem offers a broader spectrum of products and service offerings. Blockchain enthusiasts firmly believe that the future of the Internet hinges on decentralization, proving that there is more to Web3 than just cryptocurrency.
Let’s examine a few of the products and service offerings providing definitive value to the Web3 ecosystem. For instance, AirGap ensures crypto tokens are stored securely, while youves, a DeFi platform, disrupts the conventional finance system. Another example is E-seal, utilizing blockchain technology to establish reliable electronic seals for businesses, ensuring data immutability, legal issuance, and authenticity, thereby transforming industry standards.
The influence of Web3's disruption extends to the cloud server industry. Acurast leads the charge by tackling fundamental issues and disrupting the US cloud monopoly through mobile hardware. This initiative democratizes and decentralizes the cloud, empowering individuals to engage in the decentralized Cloud using their mobile phones.
Understanding the Concept of Cloud Servers
In simpler terms, cloud servers are virtual servers operating within a cloud computing framework, accessible on demand by many users.
Cloud servers perform similar tasks to physical servers, such as storing data and operating applications. These services, executed by third-party providers, deliver computing resources through a network over the Internet.
Virtualization software, specifically a hypervisor, partitions physical servers into multiple virtual servers, constituting cloud servers.
What are the Problems with the Present Day Cloud Servers in Web3?
Addressing the numerous challenges encountered despite recent industry advancements is important to driving innovation within the cloud server community.
Cost Management: While cloud servers offer scalability, managing costs can become complex. Expenses can fluctuate based on usage, and if not monitored carefully, it could result in unexpected bills.
Data Privacy and Compliance: Storing data on third-party servers may raise concerns about data privacy, compliance regulations, and jurisdictional issues, especially for sensitive information subject to specific regulations.
Limited Control: Users have limited control over the underlying infrastructure and hardware resources in a cloud server environment, as these aspects are managed by the service provider.
Security Concerns: Cloud servers may be susceptible to security breaches and data vulnerabilities. Despite stringent security measures by providers, there's always a risk of unauthorized access, data breaches, or outages.
What is a decentralized cloud server?
A decentralized cloud server refers to a cloud infrastructure that is distributed across multiple locations or nodes, often geographically dispersed. Decentralized cloud servers function on an interconnected node, where resources such as storage, processing power, and bandwidth are contributed by each node, in contrast to the traditional centralized cloud servers. The latter typically store and manage data and resources in a single or limited number of locations controlled by a centralized entity.
These decentralized servers use blockchain or similar distributed ledger technologies to ensure data integrity, security, and consensus among nodes. They prioritize user autonomy, privacy, and resilience by removing reliance on a single point of control, making it harder for data breaches or system failures to affect the entire network.
Users or participants in a decentralized cloud server network typically contribute their unused computing resources in exchange for compensation or rewards, creating a communal ecosystem where anyone can contribute and benefit from the network's resources while maintaining data ownership and control.
Use-cases and Real World Application of Decentralized Cloud Server in Web3
Real-life applications and user benefits determine the success of an innovative or disruptive technology. Numerous Blockchain use cases align with this principle, showcasing how decentralized cloud servers have the potential to revolutionize Web3.
Decentralized Finance (DeFi): DeFi projects use decentralized cloud servers to provide services, bypassing centralized intermediaries. Projects like youves rely on Acurast for price feeds, while developers exploring DeFi projects can use Acurast to directly access price feeds for smart contracts from a centralized exchange.
Blockchain and Cryptocurrency Projects: Many blockchain networks rely on decentralized cloud servers for their infrastructure. For instance, Ethereum nodes, which support the Ethereum blockchain, are distributed across servers worldwide, ensuring network decentralization and consensus.
GameFi: They rely on decentralized cloud providers' Oracle service to access live data on cryptocurrency prices. The data shared forms the foundation for creating prediction markets, enabling users to trade stakes in event outcomes. Moreover, the GameFi application needs a Verifiable Random Number to ascertain game results accurately, enhancing fairness and transparency in gaming experiences.
FlaminGoals, a sports betting platform on the Tezos blockchain, employed Acurast to incentivize its users during the football world championship. Users received rewards from a collective pot generated through ticket sales for each participating team. This integration exemplifies how Decentralized Cloud servers enhance engagement and rewards in GameFi.
Content Delivery Networks (CDNs): Decentralized CDNs like Livepeer or Theta Network use decentralized cloud servers to optimize video streaming and content delivery. By distributing content across multiple nodes, these networks improve speed, reduce latency, and enhance scalability, ensuring better performance for users worldwide.
Healthcare and Data Privacy: Decentralized cloud servers offer secure and private storage solutions for sensitive healthcare data. Projects like Anoma, Acurast, and Namada utilize decentralized servers to ensure data integrity, accessibility, and patient privacy while enabling the secure sharing of medical records.
Final Note
A decentralized cloud server plays an important role in Web3's sustainability. Distributing data storage across a network of nodes enhances security and privacy compared to traditional centralized servers. This decentralized model aligns with Web3's principles, promoting a more open, transparent, and democratic Internet. As we continue to embrace Web3's possibilities, the decentralized cloud server will remain a cornerstone, driving innovation and empowering users worldwide.
Disclaimer
The views and opinions expressed in this article are solely those of the authors and do not reflect the views of Bitcoin Insider. Every investment and trading move involves risk - this is especially true for cryptocurrencies given their volatility. We strongly advise our readers to conduct their own research when making a decision.