In order to achieve complete decentralization, it is necessary that the environment around the blockchain is also decentralized. Blockchain itself is a distributed ledger that runs on top of conventional systems. These elements include storage, communication, and computation. There are other factors, such as Identity and Wealth, that are traditionally based on centralized paradigms and there's a need to decentralize these aspects too in order to achieve a fully decentralized ecosystem.
Data can be stored directly in a blockchain, and with this, it does achieve decentralization, but a major disadvantage of this approach is that blockchain is not suitable for storing large amounts of data by design. It can store simple transactions and some arbitrary data but is certainly not suitable for storing images or large blobs of data, as is the case in traditional database systems. A better alternative is to use distributed hash tables (DHTs). DHTs...