Blockchain Benefits for Web Hosting and Data Storage

There is a vast amount of computing power around the world that is currently not being used efficiently. For example, there are an estimated 4 billion personal computers in the world and 90% of them have free capacities that could be leased at any given moment. The results of this inefficiency are, on the one hand, artificially high prices for data storage and web hosting and the wasting of free computing power. Blockchain technology could provide a solution to this two-sided problem by quickly linking idle computing power to users in need. At the same time, this technology could offer a technological framework for bringing the sharing economy concept to web hosting and data storage.

Start Ups Rush to Meet the Need

Several new start-ups are trying to use blockchain technology to disrupt the web hosting and data storage economy. A central premise of their business plans is that enough individuals around the world will be interested in linking up to a collective network that draws on their computing power to make a platform useful to large organizations with massive computing needs.

One example is DeNet, which is a Hong Kong-based company with a development back-office in Kazan, Russia. DeNet describes itself as a secure, inexpensive and high-quality infrastructure for secure decentralized web hosting and data storage services. The project is dedicated to developing a blockchain-based service that is global in scope and includes an ‘on demand’ marketplace for storing data and renting out personal processing power for profit. Owners of server equipment (i.e. computers, mobile phones, tablets) will be able to connect their processing power to the DeNet network and rent it out as a way of generating income. DeNet will use a fee-based business model to generate income from renting vacant server capacities to private and corporate clients.

The goal is to harness existing idle computing power and make it available for purposes of web hosting and data storage, while giving individuals the chance to profit from devices they already own. To participate does not require downloading any apps. The only thing necessary is a digital device and a web browser.

Security is also a major focus of the DeNet project. Its whitepaper explains that all data and information stored an the service will be encrypted. Further, there is no central administrator because the service will run on a blockchain. This means that each website’s information will be controlled only by the owner, so data storage is completely secure.

Potential for Success

DeNet is in an interesting position. It is one of a few new projects trying to take advantage of the inefficiencies of the internet and its inability to efficiently match supply with demand. The key to DeNet’s success will be if it can come through with the intention to develop a simple hosting service with clear mechanisms for renting idle computing power that are easy to use and profitable. If individuals see linking up their devices to the DeNet network to be in their interests in large enough numbers, then the project could be a success.

Full disclosure: I do not own DeNet tokens and I have not participated in the DeNet ICO. This article is not intended as investment advice. You should always do your own research.