PARAMETA provides all the necessary technologies for Web3 businesses and support for efficient blockchain operation through its own blockchain framework, the Parameta Framework. As a first-generation blockchain company, Parameta Framework has many differentiated technologies, but let’s take a closer look at the Decentralized Storage that greatly increases security by enhancing decentralization.

The Need for Decentralized Data Storage

Before explaining the Decentralized Storage in the Parameta Framework, let’s take a look at why decentralization is important for data storage.

Decentralization has become increasingly valued since the rise of blockchain and cryptocurrencies. The recent paradigm shift known as Web3 is not complete without decentralization, which means that blockchain is essential for Web3 and decentralization. Bitcoin decentralized assets and payments, Ethereum decentralized computation and data, and we can say that the environment is already in place to implement decentralized storage with blockchain.

But here’s where reality diverges a bit. Despite the fact that all assets and data can be managed and calculated on a blockchain, the implementation of NFTs (non-fungible tokens), the poster child for decentralized services, contains a centralized element. NFTs are smart contracts that record the owner of each unique token on the blockchain and allow the owner to change. To describe the unique properties of each token, metadata is used, which is stored in external storage rather than on the blockchain. Many NFT projects use an external, centralized repository to store their artwork or tokens. This is not a fully decentralized service as it does not ensure the availability of critical metadata.

How NFTs are implemented on OpenSea, which stores metadata off-chain.

It is clear that Ethereum is a system that can store data, but it is difficult to upload important data to Ethereum due to high fees and privacy issues. Therefore, for full decentralization in the Web3 world, decentralized storage for storing large amounts of data or personal information is necessary, and practical services have emerged.

Decentralized storage is not a traditional centralized cloud storage, but a distributed network of multiple storage providers, where anyone can provide storage space and store data. It can be described as a form of sustainable ecosystem where those who provide storage space are rewarded accordingly, and those who store data pay fees based on their usage.

Before we dive into the Decentralized Storage that PAREMETA has applied to the Parameta Framework, let’s take a look at some of the many existing decentralized storage projects.

Existing Decentralized Storage Projects

Filecoin

Perhaps the biggest project in decentralized storage is Filecoin. Based on the IPFS (InterPlanetary File System), Filecoin provides a marketplace that connects those with storage space to those who need it. When a storage provider and a storage target enter into a deal, the storage provider submits a PoRep (Proof-of-Replication) proving that data has been replicated and stored in their storage space and receives FIL (Filecoin’s coins) as a fee. They periodically submit PoSt (Proof-of-Spacetime) to prove that they are storing the data for the duration of the deal and receive the remaining FIL as a fee. This proof system is what makes Filecoin different, and Filecoin participants use cryptographic proofs to enable trustless, sustainable decentralized storage.

Swarm

Swarm is an Ethereum-powered decentralized repository optimized for Ethereum that aims to provide data storage for use by Ethereum dApps. It is characterized by using a data storage model that extends the DHT (Distributed Hash Table) called the DISC (Distributed Immutable Store of Chunks).

Storj

Storj is a distributed cloud storage that encrypts data and divides it into more than 80 pieces to be stored on nodes distributed around the world, and when you want to use the data, you can collect and restore 29 of them. By encrypting and storing it on independent nodes, it is quite effective against security threats such as server hacking, and it has the advantage that only some of the divided pieces can be restored, ensuring the availability of data even if some nodes fail. It also provides developer convenience through an interface compatible with Amazon’s S3 (Simple Storage Service) storage, which is especially popular among developers.

In addition to the Filecoin, Swarm, and Storj we have covered so far, there are many other decentralized storage projects. There is probably a need for most public blockchain projects to provide their own decentralized data storage.

Increasing Importance of Privacy

‘Ownership’ is the most important concept in Web3. Ownership means being able to prove and control that something is yours, and this can be achieved to some extent with NFTs. Supporting privacy features in decentralized storage is crucial as there is a lot of sensitive information that cannot be made public. However, to date, decentralized services have focused on decentralization over privacy.

Using the cloud to store data has made our lives easier by allowing us to access our data anytime and anywhere, but data gathered in one place is easy to target for hackers, and there have been many data leakage incidents due to hacking. Even if you change the centralized cloud to decentralized storage, it is still vulnerable to security if privacy is not considered.

Therefore, decentralized storage also requires the following elements for privacy.

• Data must be encrypted with a private key so that not even the storage operator can see it.

• Ensure that only authorized people can access that data.

• Control over access rights can be enforced in real time.

• There must be a record of data access and use, and that record must be reliable.

Decentralized Storage in The Parameta Framework

The Decentralized Storage in the Parameta Framework of PARAMETA allows you to distribute and manage data in a completely decentralized way, with privacy and security features.

Parameta Framework vs. Leading Decentralized Storage Solutions/Services

Encryption and Access Control

The Decentralized Storage in the Parameta Framework ensures that data is stored encrypted with a private key, so that not even the storage can see the data, which means that even if the storage is hacked, there is no meaningful data for the hacker to take.

It also ensures that only authorized people have access to the data. Access authorization uses asymmetric cryptographic key technology, where there is a public key and a private key. This usually involves re-encrypting the data with the opposite public key and passing it on, but since you can’t do this manually, the data store does it for you. In this case, the data store ends up being the centralized party, which leads to the same issues with centralization that we mentioned earlier.

In the Parameta Framework, a technology called PRE (Proxy Re-Encryption) can be used to achieve the same effect as encrypting with the other party’s public key without revealing the data owner’s key. By encrypting and storing data with a random secret key, and then re-encrypting and forwarding that secret key to the other party (public key), you avoid having to re-encrypt and forward the stored data with the other party’s public key, and you have a strong access control mechanism because only designated people (private key holders) can decrypt the data.

The process of data decryption using Proxy Re-Encryption (PRE) technology. As a result, the data owner encrypts it with their public key and the service provider who needs the data is authorized to decrypt it with their private key. Here, the important Re-Encryption Key is managed in a decentralized manner.

BFS (Blockchain File System)

The Decentralized Storage in the Parameta Framework employs the BFS (Blockchain File System) for distributed storage of encrypted data. BFS is a decentralized storage provided for use by smart contracts on the blockchain. It utilizes the capabilities of IPFS nodes, which are basically distributed storage systems, and provides a pinning function for permanent storage of data in a decentralized manner.

Usually, when you want to use IPFS to store data permanently, you need to use a service provider that operates a pinning service, or you need to operate an IPFS node yourself. This is the centralized method mentioned earlier.

The Parameta Framework organizes a cluster for the Pinning service and allows pinning to occur through the consensus of the nodes participating in the cluster. The cluster is responsible for managing pinning so that data can be kept redundant according to the requirements of the user requesting data storage, ensuring that there is always a certain number of data being pinned.

Relationship between BFS and IPFS nodes. BFS manages the pinning of IPFS nodes in a decentralized manner.

With the development of blockchain and Web3, there is a growing interest in decentralized services. For a complete Web3 world, decentralization of data storage is essential, and this data storage must provide enhanced security to protect individuals’ sensitive data.

To this end, Parameta Framework provides a decentralized storage solution with enhanced privacy features. Parameta Framework’s decentralized storage solution is organized in a Layer 2 format and has its own incentive system to help build a sustainable ecosystem.

Decentralized Storage in the Parameter Framework as Layer 2