The data transmitted over the internet is often processed and stored in large-scale servers controlled by internet service providers and web services like Google and Amazon. This is the most efficient way to send information back and forth between users. Data is sent from one user, funneled through a centralized server, and is then sent to the intended recipient; the centralized server does most of the processing and is the key facilitator in this transfer.
However, there have been many recent hacks and other data breaches by businesses and organizations that have custody of our personal information. This data loss puts customers at risk of their identity being compromised. Since all customer data is stored in one place, it is an easy target for hackers, as illustrated by the Equifax and Facebook hacks.
Blockchain Technology offers an alternative known as peer-to-peer storage. Instead of a centralized, vulnerable server, information is duplicated and stored by every single user of the network. When information is recalled by a user, pieces of the desired file are gathered from several users storage. While this isn’t the most efficient way to store data, it is the most secure.