A Guide to Understand Arcana’s Privacy Stack for Decentralized Applications


Developer's Corner


May 30, 2023

According to the latest adoption statistics, we now have more than 3500 decentralized applications (DApps) on various blockchains. The crypto incentive mechanism has fuelled the rise in new token models that have led to the rise of Web3 encompasses Defi, NFT, Gaming, DAOs, and the metaverse. This has also led to the rise of infrastructure platforms to serve developers building these DApps and platforms, with a decentralized version of the centralized platform counterparts.

One type of this platform is the Decentralized Storage Platform. The goal of decentralizing the internet is that these platforms gain adoption and preference over centralized providers as Web3 scales. But the adoption so far seems to be limited to Web3, with unsolved problems that still exist, preventing them from scaling to Web2 developers. Filecoin, Sia, and Storj do provide decentralized storage. They’re, however, used for storing DApps or archival data, and do not compete with traditional storage providers. This is mainly because existing decentralized storage solutions do not offer a seamless UX and the services that need to accompany it for a target customer/user who is choosing a decentralized cloud over a centralized cloud, which is privacy.

That’s exactly where Arcana makes a difference.

We go the extra mile by providing a decentralized storage solution along with a privacy stack to address the requirements for both crypto and non-crypto natives. Opting for decentralized storage doesn’t have to be any different from going to AWS or Azure for cloud storage needs, where you typically use other cloud services along with storage, such as IAM, KMS, and Auth, all of which are fundamental to building applications.

Read on as we share a quick guide to understand our privacy stack for decentralized applications.

Decentralized Storage

Our decentralized storage network comprises several storage nodes that are grouped based on the regions they’re in. Developers get to choose a region that is best suited for their requirements (such as low latency for download and upload). All the storage in our network is provided by independent third parties, and they do so in exchange for our native token #XAR.

With Arcana’s decentralized storage, developers get to enjoy the experience of using traditional centralized storage solutions such as AWS while not compromising on the data security and privacy front.

Where our storage services shines is in developer friendliness and speed of integration, which is minutes, along with payment in fiat/stables coins with a fixed pricing model that doesn’t fluctuate based on token price or supply and demand.

End-to-End Encryption

We at Arcana use a simple hybrid encryption scheme, and any file uploaded to our storage network will be end-to-end encrypted on the client-side.

Here’s how it works: A file is first encrypted with a symmetric key generated on the client’s end, and later encrypted with the user’s public key before storing the file on our network. Why do we do this? Because doing so ensures that no one except the uploader can decrypt the symmetric key to access the file. When it comes to sharing keys, we go with a threshold proxy re-encryption scheme. More on that in our technical paper.

Non-Custodial Key Management

We provide decentralized, non-custodial public key infrastructure (PKI) for facilitating ease of use. As a result, DApp users can seamlessly claim a public-private key pair while signing up or registering in an event whenever the need be. We let developers pick from a range of oAuth-based user signup options, including but not limited to Facebook, Gmail, and Twitter. Our non-custodial key management is powered by a distributed key generation (DKG) in a verifiable secret sharing protocol that is compatible with asynchronous networks.

This drastically reduces the UX friction of users having to create crypto wallets such as Metamask or Trust wallet, improving conversion rates.

Decentralized IAM

Developers can now assign a public-private key pair to their users. Each time a file is uploaded to our storage network, it gets assigned with a decentralized id, also known as a ‘DID.’ Here’s an outline of the DID spec:

This DID specification defines the identity of the file and has a access list with public addresses that can access the file and the type of permission that they have. With this users can not only store encrypted data, but also securely share them with other users, apps, or businesses.

This access management is done completely on-chain without the use of centralized services.


Whether you’re a DApp developer looking to opt for cutting-edge decentralized storage and privacy stack or a non-crypto native looking for decentralized storage options, your search ends at Arcana.

We’re the decentralized storage layer for Ethereum and offer storage for DApps built on EVM-compatible chains such as Ethereum, Binance chain, and Polygon (Matic). Through Arcana’s privacy stack, you can allow users to log in and create accounts with email or social authentication to generate keys, store encrypted data, and securely share this data with others by allowing data owners to define access policies for who should get access, and for how long. The network takes care of managing the access and keys of users and their data, without relying on a centralized server or provider.

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Copyright © Arcana Technologies Ltd. All rights reserved.

Schedule a Demo

The call is completely free and no commitment is required.

Copyright © Arcana Technologies Ltd. All rights reserved.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and no commitment is required.

Schedule a Demo

The call is completely free and

no commitment is required.