Definition ∞ A decentralized cloud is a computing infrastructure that distributes data storage and processing across a network of independent nodes rather than relying on centralized data centers. This architecture enhances data sovereignty, censorship resistance, and resilience against single points of failure. Participants contribute their computing resources, such as storage space or processing power, and are often compensated with native tokens. It represents a shift from traditional cloud services towards a peer-to-peer model for digital resource allocation.
Context ∞ The development of decentralized cloud solutions is a significant area of innovation, aiming to provide alternatives to established centralized cloud providers. A critical discussion revolves around achieving competitive performance, scalability, and user-friendliness while maintaining the core principles of decentralization. Future developments include more efficient resource discovery protocols, improved data encryption methods, and broader adoption for decentralized applications and web3 infrastructure.
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