Data sets and blocks are stored in a set of independent, functionally equivalent chunks. These chunks are placed on different elements of a distributed network to achieve pre-defined level of fault tolerance. Terms of fault tolerance are defined in terms of amount of unavailable sites in the network allowing receipt and access to the data block. Maximal and minimal number of chunks available are variable method parameters. The minimal amount of data chunks K needed to restore a data block is defined. The size of each chunk is approximately 1/K of the original block size. The maximal amounts of chunks are defined during distribution operation and depend upon a requested fault tolerance level. Redundancy in data storage is minimized and varies dynamically by changing the total amount of chunks available. Significant increase in data transfer rate is possible because all block chunks could be transferred in parallel and independently.