The Internet as we know it today is dominated by a small number of large tech companies. They not only manage our data, but also determine how we access information, communicate and work online. This brings with it problems such as privacy violations, censorship, a reliance on commercial cloud solutions and enormous energy consumption. At the same time, we see a growing movement toward the decentralized Internet – a network in which users own their own data and infrastructure. This model uses distributed nodes, which operate more energy efficiently than centralized data centers. Available capacity is used more efficiently, and more use is made of renewable energy sources.
But will this Internet finally really break through in 2025? We analyze the main trends and technological developments that could mark a tipping point this year.
Why the momentum for the decentralized Internet is growing
More and more consumers, businesses and governments are realizing the risks of the centralized Internet. Key developments such as stricter privacy laws, technological innovations and the growing demand for secure digital infrastructures and energy-efficient technology are accelerating this shift.
Trends pointing to a breakthrough in 2025
1. Trust in companies declines, privacy concerns rise
Deloitte’s September 2023 survey shows that consumers (in the U.S.) have less and less confidence in companies to protect their data. Only 50% of those surveyed believe the benefits of online services outweigh their privacy concerns, a drop of 9 percentage points since 2021. Moreover, the survey shows that:
- Only 41% of consumers think it has become easier to protect their online data.
- Only 34% think companies are transparent about how they collect and use data, a double-digit drop from 2021.
- 9% of consumers knowingly bought a device that does not track them in the past year, up 5 percentage points since 2022.
The need for privacy-friendly technology is growing rapidly. But while younger generations (Gen Z and Millennials) generally trust online services more than older generations, one trend remains clear: nearly 90% of consumers want more control over their data. This is an opportunity for companies that do take transparency and privacy seriously – and a risk for those that continue to ignore it.
Source: Deloitte Centre for Technology, Media and Telecommunications
2. Stricter enforcement of privacy laws (AVG/GDPR).
Regulations such as the AVG (GDPR) in Europe are being more strictly enforced, forcing companies to adopt more privacy-friendly solutions. For example, login methods through Google, Microsoft and Facebook were recently found to be non-compliant with the GDPR because they transmit personal data (such as IP addresses) to the U.S., in violation of European law. In addition, the Austrian Data Protection Authority has ruled that Meta tracking tools such as Facebook Login and Meta Pixel are illegal under the GDPR. This means many companies and governments will have to look for alternative login systems and privacy-friendly infrastructures by 2025.
3. Growth in demand for decentralized cloud storage
Demand for decentralized cloud storage is growing rapidly, driven by the need for more secure, scalable and cost-effective alternatives to traditional cloud providers such as Google Drive, Dropbox and Amazon S3. According to recent market trends, the number of platforms offering decentralized storage solutions is growing. Networks such as Threefold, Filecoin, Storj, Sia and Arweave allow users to store their files without depending on one central party. This brings significant advantages:
- Higher privacy and security: Data is distributed across multiple nodes, reducing the risk of data breaches and censorship.
- Lower costs: Users can rent out or utilize excess storage capacity at lower prices than commercial cloud providers. According to an analysis by CoinGecko, decentralized storage is on average about 78.6% cheaper than centralized storage, with an average price of $2.11 per GB per year for decentralized options.
- Better availability: Because files are kept in multiple locations, data remains accessible even if parts of the network go offline.
With growing privacy concerns, regulations such as the GDPR and the rising cost of centralized cloud storage, this trend is expected to continue into 2025. Decentralized solutions such as the ThreeFold Grid respond to this by offering secure, energy-efficient and fully autonomous cloud storage for significantly lower costs.
4. Farming pools provide reliability and accessibility
The introduction of farming pools will make the decentralized Internet more accessible and reliable. In a farming pool, multiple participants work together to share network and storage capacity. ThreeFold and HostService have announced that the first farming pool will be active in the near future. This is an important development, especially for node owners, who will benefit from:
- Higher and more stable revenues because capacity is offered collectively and there is constant demand
- Less technical management because the pool automatically ensures uptime and performance
- More sustainable energy consumption because nodes are used more efficiently than in traditional data centers
5. User-friendliness: easier access to the decentralized Internet
For years, one of the main barriers to the adoption of the decentralized Internet was complexity. Many users found it difficult to independently use alternatives to big tech solutions. In 2025, usability will be a focus, with major improvements at ThreeFold, HostService and open source solution providers such as NextCloud.
- ThreeFold lowers technical barriers → The technology behind the ThreeFold Grid is becoming easier to use, allowing developers and enterprises to run applications on the decentralized Internet without in-depth technical knowledge.
- HostService provides guidance and installation help → HostService plays a crucial role in this by helping people and businesses easily use this technology. For example, support is provided for installing NextCloud environments on the ThreeFold Grid, allowing users to effortlessly transition to a secure and decentralized cloud solution.
- NextCloud makes switch easier → NextCloud, a privacy-friendly alternative to Google Drive and Microsoft 365, is becoming more accessible thanks to improved interfaces and integrations. This makes it easier for businesses and individuals to securely store their files.
These developments are making the decentralized Internet not only more secure and sustainable, but also more easily accessible to a wide audience.
6. Increasing demand for AI computing power.
With the explosive growth of artificial intelligence (AI), there is an ever-increasing demand for distributed computing power. AI models are becoming more complex and require huge amounts of computing power to train and run. Decentralized networks such as the ThreeFold Grid offer a sustainable and scalable alternative to big tech cloud solutions. Benefits of decentralized AI infrastructure include:
- Lower costs: AI training through decentralized infrastructures is often cheaper than through traditional cloud providers.
- More privacy-friendly: AI models can run without collecting or sharing user data with central entities.
- Less wasted energy: Decentralized AI uses existing computing power more efficiently and can run on green energy sources.
Because of these advantages, there is growing interest in AI solutions that run on distributed infrastructure rather than centralized data centers.
7. Energy conservation and sustainability
Data centers of big tech companies are a huge energy consumer. The exponential growth of AI, streaming and cloud storage is causing a massive increase in power consumption. The ThreeFold Grid offers a sustainable alternative here, with a fully decentralized and energy-efficient model. What makes ThreeFold so energy efficient?
- No centralized data centers → The network uses thousands of independent nodes spread around the world. As a result, no massive energy is wasted on massive data centers constantly running at full capacity.
- Utilization of residual capacity → ThreeFold enables the use of unused computing power and storage of existing hardware. This means no additional hardware needs to be produced or maintained to expand the network, saving energy in production, transportation and maintenance.
- Efficient operating systems (Zero-OS) → The nodes run on Zero-OS, an extremely lightweight operating system that runs without overhead and does not use traditional virtualization or containers. This means less energy is required per compute process and servers run up to 10x more efficiently than traditional cloud solutions.
- Minimal energy consumption per transaction → Unlike traditional cloud and blockchain networks that consume huge amounts of power for data storage and validation, ThreeFold consumes only a fraction of this energy per data movement and computation process.
- No need for power-hungry cooling → Because ThreeFold nodes are distributed decentrally and mostly run in smaller data centers or in private homes, there is no need for industrial cooling systems, which in traditional data centers sometimes consume more power than the servers themselves.
Thanks to these developments, the ThreeFold Grid offers a realistic and scalable alternative for a sustainable digital future, where data storage and computing power are not only cheaper, but also much less environmentally damaging than traditional cloud solutions.
8. More applications on the ThreeFold Grid
The ThreeFold Grid is growing into a versatile alternative to traditional cloud providers such as AWS, Google Cloud and Microsoft Azure. Its scalable and energy-efficient infrastructure allows it to be used for a variety of applications, including:
- Decentralized web hosting → Websites and applications can be hosted without dependence on commercial data centers, with better protection against censorship and data breaches.
- Distributed cloud storage → Files are stored securely and decentrally, without control by a central party, at a lower cost than traditional cloud providers.
- Container- and serverless computing → Applications can run efficiently without expensive and power-hungry cloud infrastructures.
- Decentralized collaboration and productivity tools → Alternatives such as Nextcloud run on ThreeFold, keeping companies independent of big tech solutions.
- Blockchain infrastructure and nodes → ThreeFold provides a sustainable and efficient infrastructure for running blockchain nodes and smart contract platforms.
Through these applications, the ThreeFold Grid is growing into a full-fledged decentralized cloud alternative, suitable for both individuals and businesses.
9. Technological developments such as Mycelium
One of the most innovative developments within ThreeFold is Mycelium, a biologically inspired network model that provides a smarter, more efficient and resilient infrastructure.
- Self-healing and optimal use of capacity → As in nature, the mycelium network automatically chooses the most efficient routes for data traffic, minimizing failures and delays.
- Energy-efficient and scalable → Dynamically optimizing the network reduces energy waste and requires less infrastructure for the same performance.
- Decentralized and robust → Mycelium prevents single points of failure, makes the network more resistant to failure and increases the reliability of the ThreeFold Grid.
With Mycelium, the ThreeFold Grid not only becomes more sustainable, but also smarter and more stable, providing a solid foundation for the future of the decentralized Internet.
What does this mean to you?
2025 has everything to become the year of the decentralized Internet. Technology has matured, regulations are forcing companies to change, and consumers are demanding privacy-friendly solutions. Want to discover how you can be part of this digital revolution? You’ll learn more in our new free webinar “Introduction to Decentralized Internet: The Future of the Web” on Feb. 27.
