Hey everyone, we are back with an improved long term plan for Polkadot Storage.



Last December, [phase 3 got rejected](https://polkadot.polkassembly.io/referenda/1313) during confirmation with a very narrow margin. Work has continued uninterrupted and we now have over 90% of phase 3 completed. We are testing the system in our private testnet and will move to a public testnet soon. Integration with mainnet has been postponed because of the JAM integration plans and we’ll continue improving tools and interfaces. For more details on our progress check [the weekly updates on the forum](https://forum.polkadot.network/t/polkadot-native-storage-updates/7021/70).



During this time we have also been working with Parity and with their guidance have improved our long term approach. These ideas have been incorporated into Phase 4:



Jam Integration

* Using our storage for Jam DA resupply.
* Service Integration so that any Jam Service can use our long term storage.

Light weight proof system

* This was first initially flagged by Lucky Friday (thank you) and we later refined it during conversations with Parity. In short, our initial proof system protects against outsourcing attacks but it's also heavy and expensive. We wanna offer an alternative lighter proof system for users who don't need guarantees like that, at a much lower price.
* Merkle Proofs + zk-SNARKs
* Make the network work with multiple proof systems, let power users choose the proof system/guarantees they want.

Replication

* We added a naive version for now.
* Move from full replication to for example Erasure coding.
* Something like what Walrus uses “Twin-Code” or Reed Solomon error correction

Legal

* Explore responsibilities and liabilities when dealing with toxic data.

Economic model:

* Slashing - Although we have slashing implemented, we need to do some research on what the best numbers should be.
* Storage costs - Modeling the costs and income model for providers.
* Retrieval - Research retrieval costs to mitigate bandwidth attacks.
* Pricing - Price is important for users, make sure we do everything to be competitive with centralized solutions.
* Restaked DOT - Allow usage of restaked Dot so not to compete with staking rewards.

XCM

* Exposing the storage so that other parachains can store data. Check usefulness after Jam integration.

Marketplace model

* Thinking of this Storage layer also as a marketplace that gives access to all forms of competing centralized and decentralized storage.



Overall the plan is to turn this into a proper Storage product and build applications on top. With so much potential and attention on storage lately, it's an exciting time to build.
 

Links:

* Code[ https://github.com/eigerco/polka-storage/](https://github.com/eigerco/polka-storage/)
* Book [https://eigerco.github.io/polka-storage-book/](https://eigerco.github.io/polka-storage-book/)
* Phase 1 [https://polkadot.polkassembly.io/referenda/494](https://polkadot.polkassembly.io/referenda/494)
* Phase 2 [https://polkadot.polkassembly.io/referenda/1150](https://polkadot.polkassembly.io/referenda/1150)
* Old Phase 3 [https://polkadot.polkassembly.io/referenda/1313](https://polkadot.polkassembly.io/referenda/1313)
* Original proposal[ https://docs.google.com/document/d/16SZXvXyBRd-oEMIbgAid\_vaxTuKzDlxuNc9CwSq3Lq0/edit](https://docs.google.com/document/d/16SZXvXyBRd-oEMIbgAid_vaxTuKzDlxuNc9CwSq3Lq0/edit)
* Thinking about JAM DA integration[ https://docs.google.com/document/d/1L1jlMI9-KOfxMYUMQVeq0tPNtz1fitxTXlg6gKwjXnM/edit?usp=sharing](https://docs.google.com/document/d/1L1jlMI9-KOfxMYUMQVeq0tPNtz1fitxTXlg6gKwjXnM/edit?usp=sharing)
* Weekly updates[ https://forum.polkadot.network/t/polkadot-native-storage-updates/7021](https://forum.polkadot.network/t/polkadot-native-storage-updates/7021)
* Research on native storage we first[ did in 2021](https://github.com/common-good-storage/report/blob/master/src/first.md) but there were limitations with collators back then. We returned to this topic in 2023 and got[ a grant](https://github.com/dtuzi/Grants-Program/blob/4d5e7ff1cc90ab0416604dc705bd02c29ba136e6/applications/Eiger_Storage_on_Polkadot_1.md) from W3F to figure out how.
* Initial research pre-implementation[ https://github.com/eigerco/polkadot-native-storage/blob/main/doc/report/polkadot-native-storage-v1.0.0.pdf](https://github.com/eigerco/polkadot-native-storage/blob/main/doc/report/polkadot-native-storage-v1.0.0.pdf)
* Old forum discussion[ https://forum.polkadot.network/t/polkadot-native-storage/4551](https://forum.polkadot.network/t/polkadot-native-storage/4551)

Propose and approve a spend of treasury funds.

## Dispatch Origin

Must be [`Config::SpendOrigin`] with the `Success` value being at least
`amount` of `asset_kind` in the native asset. The amount of `asset_kind` is converted
for assertion using the [`Config::BalanceConverter`].

## Details

Create an approved spend for transferring a specific `amount` of `asset_kind` to a
designated beneficiary. The spend must be claimed using the `payout` dispatchable within
the [`Config::PayoutPeriod`].

### Parameters
- `asset_kind`: An indicator of the specific asset class to be spent.
- `amount`: The amount to be transferred from the treasury to the `beneficiary`.
- `beneficiary`: The beneficiary of the spend.
- `valid_from`: The block number from which the spend can be claimed. It can refer to
  the past if the resulting spend has not yet expired according to the
  [`Config::PayoutPeriod`]. If `None`, the spend can be claimed immediately after
  approval.

## Events

Emits [`Event::AssetSpendApproved`] if successful.

- **Problem Statement & Audience:** Improving the long-term plan for Polkadot Storage after facing rejection in phase 3 with a narrow margin, targeting developers and stakeholders in the Polkadot ecosystem.
- **Significance:** Enhancing the storage system with Jam integration, lightweight proof systems, replication improvements, legal considerations, economic models, XCM exposure, and a marketplace model to compete with centralized solutions.
- **Proposed Solution:** Incorporating ideas from Parity into Phase 4, focusing on various technical enhancements and economic considerations to develop a competitive storage product.
- **Expected Outcomes & Value proposition:** Transforming the storage system into a robust product, fostering application development, and positioning it as a marketplace for diverse storage solutions.

#1541 Polkadot Storage Phase 3

No Active Proposals