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GWYK combines a peer-to-peer network with blockchain technology to create the world's first decentralized storage platform.

Here's how GWYK works.

 The GWYK software divides files into 30 segments before uploading, each targeted for distribution to hosts across the world. This distribution assures that no one host represents a single point of failure and reinforces overall network uptime and redundancy.

File segments are created using a technology called Reed-Solomon erasure coding, commonly used in CDs and DVDs. Erasure coding allows GWYK to divide files in a redundant manner, where any 10 of 30 segments can fully recover a user's files.

This means that if 20 out of 30 hosts go offline, a GWYK user is still able to download her files.Before leaving a renter's computer, each file segment is encrypted. This ensures that hosts only store encrypted segments of user data.

This differs from traditional cloud storage providers like Amazon, who do not encrypt user data by default. GWYK is more secure than existing solutions because hosts only store encrypted file segments, rather than whole files.

GWYK uses the Threefish algorithm, an open source, secure, high-performance encryption standard.

 Using the GWYK blockchain, renters form file contracts with hosts. These contracts set pricing, uptime commitments, and other aspects of the relationship between the renters and the hosts.

File contracts are a type of smart contract. They allow us to create cryptographic service level agreements (SLAs) that are stored on the GWYK blockchain.

Since file contracts are automatically enforced by the network, GWYK has no need for intermediaries or trusted third parties.Both renters and hosts use GWYKcoin, a unique cryptocurrency built on the GWYK blockchain. Renters use GWYKcoin to buy storage capacity from hosts, while hosts deposit GWYKcoin into each file contract as collateral.

Micropayments flow between renters and hosts using a technology called payment channels, which is similar to Bitcoin's Lightning Network. Payments between renters and hosts occur off-chain, greatly increasing network efficiency and scalability.

Since hosts pay collateral into every storage contract, they have a strong disincentive to go offline.Renters prepay for storage within file contracts, setting aside a fixed amount of GWYKcoin to be spent on storing and transferring data. File contracts typically last 90 days.

GWYK automatically renews contracts when they are within a certain window of expiring. If contracts are not renewed, GWYK returns any unused coins to the renter at the end of the contract period.

As individual hosts go offline, GWYK automatically moves renter data to new hosts in a process called file repair.

At the end of a file contract, the host must prove that she is storing the renter's data. This is called a storage proof. If the storage proof appears on the blockchain within a certain timeframe, the host is paid. If not, the host is penalized.

Storage proofs are made possible by a technology called Merkle trees. Merkle trees make it possible to prove that a small segment of data is part of a larger file. The advantage of these proofs is that they are very small, no matter how large the file is. This is important because the proofs are stored permanently on the blockchain.