Cloud Storage

Definition ∞ Cloud storage refers to the practice of storing digital data on a network of remote servers rather than directly on a user’s local device. These servers are typically maintained by a third-party provider, offering scalability, accessibility, and redundancy for data preservation. In the digital asset space, it can involve storing backups of wallet keys or other non-blockchain related information.
Context ∞ While blockchain inherently offers decentralized data integrity, some crypto services and users still rely on centralized cloud solutions for convenience or specific application needs, which introduces counterparty risk. News often highlights security incidents involving cloud providers that could indirectly impact users’ digital asset security if sensitive information is compromised. Decentralized storage solutions built on blockchain represent a significant alternative, addressing concerns about single points of failure and data control.