Can Decentralized, Blockchain-Based Internet Become a Reality?

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Can Decentralized, Blockchain-Based Internet Become a Reality?

With the Internet becoming a modern-day necessity, there is an increasing effort to liberate it from the grip of regulatory agencies and monopolistic IT behemoths. Many internet users are increasingly weary of firms that may follow and sell their most sensitive private information.

These difficulties have paved the way for a novel idea: a decentralized version of the Internet built on open-source blockchain networks. Several initiatives aim to replace critical components of internet infrastructure with decentralised, peer-to-peer systems that do not depend on a single middleman or point of failure. This article examines some of the prospective offers as well as the challenges they are expected to confront.

Key Takeaways

  • Traditional Internet infrastructure is based on centralized services, which might endanger user data and privacy at times.
  • A number of new initiatives are attempting to develop a decentralized, blockchain-based Internet alternative that substitutes peer-to-peer service providers for centralized middlemen.
  • Several challenges confront these initiatives, including getting enough users and service providers to make the network competitive with existing services.

Decentralized Market Definition

Problems with the Centralized Internet

The Internet is continually monitored, and companies, application developers, and governments routinely track and collect user data. A blockchain-based solution may solve this issue by replacing Internet behemoths with a peer-to-peer network of providers.

Members of the community would own and manage the infrastructure utilized for storage and computation in this scenario. This would deprive governments and corporations of power while maintaining net neutrality.

This kind of Internet is also intended to assure data security. User data and apps are often kept on central servers on current Internet platforms, enabling businesses to construct thorough profiles of their consumers. For example, during Facebook’s Cambridge Analytica incident, this data was utilized to influence demographics and election outcomes.

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Decentralized Internet Projects

Several initiatives are attempting to replace critical Internet services with blockchain-based alternatives. Filecoin, for example, aims to replace centralized cloud storage companies with a decentralized file storage network, enabling users to rent out spare hard drive space for bitcoin. The files are encrypted, ensuring data security while enabling customers to rent external storage.

Another business, Blockstack, is attempting to develop a new layer for the existing Internet that will enable decentralized apps. Users would be able to communicate data using locally-run applications rather than sharing text, photos, and files through a centralized middleman, retaining control over their data. According to a CoinDesk description of the company, “via its platform architecture,” “applications developers cannot access user data, consumers may pick who keeps their data, and authorization rights to read or write to the data are established by the user.”

Other firms, like Andrena, aim to replace centralized routing networks with peer-to-peer mesh networks. A decentralized Internet might potentially provide large cost savings, albeit this is subject to market forces. Anyone with an Internet connection might supply basic cloud services instead of depending on Internet Service Providers.

Issues with Blockchain Internet

While the idea of a blockchain-based Internet seems to be possible, there are numerous apparent obstacles. One of the most difficult challenges, like with other blockchain initiatives, will be recruiting a critical mass of users so that the platform can benefit from network effects.

Second, abuse owing to anonymity is a huge concern in the blockchain sector, including the usage of cryptocurrencies for criminal reasons such as the sale of illegal substances or weapons. Given that data privacy is a fundamental aim of the decentralized Internet, it is unclear how — or if — such a system would prohibit users from participating in illicit behavior.

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Finally, blockchain networks depend on network members to maintain the system’s software. Participants may quit donating computing resources if the monetary benefits for participation are not attractive enough to stimulate their efforts. To make the decentralized blockchain-based Internet sustainable, a delicate balance will be required.

The Bottom Line

While the notion of a decentralized blockchain-based Internet is gaining popularity, a practical implementation would need a pragmatic and balanced strategy throughout the whole ecosystem. Even from the most hopeful viewpoint, there are several obstacles to overcome before such a system is available to the majority of Internet users. The notion is still growing, and its path to success may be lengthy and unclear.

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