Topic: Need for a Decentralized Cloud Network in Securing Bitcoin Data (Read 169 times)

I got your respective opinions and are all insightful, what i actually mean is for cloud system to be decentralized just as the bitcoin network because some of the crypto users uses the cloud system in keeping their user's credentials, but you all have proven no need for such as but also thought in such away that not everyone has the full knowledge that using a centralized cloud system is as getting oneself more vulnerable to attacks.
I really appreciate all contributions

It seems you don't fully understand what a decentralized approach is about. Users already have greatly reduced their chances of being cyber attacked by keeping their secrets separately and individually, by taking self-custody over private keys generated with free open-source software. In contrast to vulnerable centralized exchanges that keep all private keys of thousands of users in one place and can be hacked easily, individuals are almost invulnerable to hackers' attacks because their private keys are distributed across the globe and hidden in unknown locations. Also, every responsible and rational bitcoiner will run a full node with a full history of transactions on his personal computer, so that he can verify his own transactions and never rely on vulnerable centralized cloud services that may be shut down, seized, closed, or go malicious. Moreover, running a full node is one of the best ways to preserve the privacy of your transactions since no one will know what transactions you send or receive. As for other bitcoin data such as addresses and public keys, while they aren't supposed to be kept secretly, it is always better to never reuse them to maintain a decent level of financial privacy while operating on a transparent ledger.

Why do we need any second or third party to keep our bitcoins safe? It does no matter if they are centralized or decentralized.. you still have to trust them with your wealth. Bitcoin enthusiasts says ==> "Be your own Bank" and we should stay with that thought process, because that is the only way to secure your Bitcoin.

A decentralized "Cloud" service is even more insecure... because you have to trust MANY contributors to this service to honor their contribution to this service. (Some might even participate to sabotage the service and you will not have any way to determine that) 

You haven't clarified what you mean by "bitcoin data" so your topic makes no sense. If you are talking about the blockchain, then it simply can not be modified no matter where you are storing it because it is immutable and protected by cryptography (specifically proof of work algorithm). If you mean any personal data such as your wallet (including keys) then they shouldn't be kept in a cloud network whether it centralized or decentralized. I can't think of any other "bitcoin data".

The solution is staring you right in your eyes. It's the Bitcoin Network. What other better decentralized Bitcoin data storage would be out there than our very own?
Sometimes when we overthink, we tend to overlook the obvious solutions.

Private keys should be kept offline.

I know some people store their private keys or passwords in email, Google Drive, Dropbox, screenshots, facebook status (even in secret mode, it is not safe), etc.

[Guide] Secure air-gapped crypto wallet storage method
[SECURITY | GUIDE] How to protect your wallets and private keys

All bitcoin data is stored in Bitcoin Blockchain, which copies are stored in thousands of computers all over the globe.

Your personal bitcoin data, such as private keys, shouldn't be kept in any of those services, neither in that cloud you mentioned. They should be kept offline (in paper wallet, hardware wallet, airgrapped computers, etc) for security reasons.

Do we need such service because with Bitcoin we already have decentralized system for data storage, transaction processing and verification, etc.

All of these tasks can be done with Bitcoin wallets, nodes (full nodes, prune nodes) and it is safer than any cloud storage service if you ask me. Don't try to find alternative which is worse than Bitcoin. We have a best one so let's keep it simple by using it and don't look for any alternative.

The Bitcoin network - Mastering Bitcoin

The most common cloud networks we make use In keeping of bitcoin data are Google drive, Microsoft OneDrive, Dropbox, Apple iCloud drive and Amazon web service well known for great performance in dealing with cloud storage services where individuals, companies, firm, industries and corporate organizations uses them in keeping their record data as well as sensitive bitcoin wallet  addresses, passwords and vital informations as a means of storage. While It could also be recalled, some major cyber attacks in history on Colonial pipeline, Poly Network, Bitfinex, Coincheck  and solar winds.

But one of the ways to minimize this cyber security threats is to engage the use of a "Decentralized Cloud Storage System" other than the centralized system whereby private life, informations and data feels less secured when a third party cloud service providers are involved as they are prone to cyber attacks as on the cases mentioned above.

There are two major disadvantages of using centralized cloud system to store bitcoin data:

1. Data attacks and manipulations
2. Bridge on security data and  privacy

With a determination to check and balance loopholes relating to our bitcoin data privacy and means to reduce the tendencies of cyber security crime, i endolge the use of a Decentralized Cloud Storage System if any in existence or better still encourage more research/findings to create one.