As of 2011, newer flash memory designs have much higher estimated lifetimes. Several manufacturers are now offering warranties of 5 years or more. Such warranties should make the device more attractive for more applications. By reducing the probability of the device's premature failure, flash memory devices can now be considered for use where a magnetic disk would normally have been required. Flash drives have also experienced an exponential growth in their storage capacity over time (following the Moore's Law growth curve). As of 2013, single-packaged devices with capacities of 1 TB are readily available,[54] and devices with 16 GB capacity are very economical. Storage capacities in this range have traditionally been considered to offer adequate space, because they allow enough space for both the operating system software and some free space for the user's data.
Some organizations forbid the use of flash drives, and some computers are configured to disable the mounting of USB mass storage devices by users other than administrators; others use third-party software to control USB usage. The use of software allows the administrator to not only provide a USB lock but also control the use of CD-RW, SD cards and other memory devices. This enables companies with policies forbidding the use of USB flash drives in the workplace to enforce these policies. In a lower-tech security solution, some organizations disconnect USB ports inside the computer or fill the USB sockets with epoxy.
External flash drives use what's known as "solid-state" storage, which can store, back up, and retrieve data using only electronic circuits. Solid-state drives do not contain any moving mechanical parts, which enables them to access data quickly and easy. A typical flash drive allows up to 100,000 write/erase cycles before the integrity of the data starts to degrade. This translates to around a 10-year lifespan, depending on how much it is used.
M-Systems, an Israeli company, were granted a US patent on November 14, 2000, titled "Architecture for a [USB]-based Flash Disk", and crediting the invention to Amir Ban, Dov Moran and Oron Ogdan, all M-Systems employees at the time. The patent application was filed by M-Systems in April 1999.[6][1][7] Later in 1999, IBM filed an invention disclosure by one of its employees.[1] Flash drives were sold initially by Trek 2000 International, a company in Singapore, which began selling in early 2000. IBM became the first to sell USB flash drives in the United States in 2000.[1] The initial storage capacity of a flash drive was 8 MB.[7] Another version of the flash drive, described as a pen drive, was also developed. Pua Khein-Seng from Malaysia has been credited with this invention.[8] Patent disputes have arisen over the years, with competing companies including Singaporean company Trek Technology and Chinese company Netac Technology, attempting to enforce their patents.[9] Trek won a suit in Singapore,[10][11] but has lost battles in other countries.[12] Netac Technology has brought lawsuits against PNY Technologies,[13] Lenovo,[14] aigo,[15] Sony,[16][17][18] and Taiwan's Acer and Tai Guen Enterprise Co.[18]
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In January 2013, tech company Kingston, released a flash drive with 1 TB of storage.[24] The first USB 3.1 type-C flash drives, with read/write speeds of around 530 MB/s, were announced in March 2015.[25] As of July 2016, flash drives within the 8 to 256 GB were sold more frequently than those between 512 GB and 1 TB units.[2][3] In 2017, Kingston Technology announced the release of a 2-TB flash drive.[26]
As highly portable media, USB flash drives are easily lost or stolen. All USB flash drives can have their contents encrypted using third-party disk encryption software, which can often be run directly from the USB drive without installation (for example, FreeOTFE), although some, such as BitLocker, require the user to have administrative rights on every computer it is run on.

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Many people rely exclusively on the cloud for storing their data; it’s convenient and you can get a lot of storage for free. While storing data online certainly has its advantages, it also has serious drawbacks. The most obvious is security. Anything that is kept online is susceptible to security breaches, and news stories about many of the largest corporations suffering hacks only confirms that our online lives are not as safe as we may like.

A drawback to the small size of flash drives is that they are easily misplaced or otherwise lost. This is a particular problem if they contain sensitive data (see data security). As a consequence, some manufacturers have added encryption hardware to their drives, although software encryption systems which can be used in conjunction with any mass storage medium will achieve the same result. Most drives can be attached to keychains or lanyards. The USB plug is usually retractable or fitted with a removable protective cap.

When used in the same manner as external rotating drives (hard drives, optical drives, or floppy drives), i.e. in ignorance of their technology, USB drives' failure is more likely to be sudden: while rotating drives can fail instantaneously, they more frequently give some indication (noises, slowness) that they are about to fail, often with enough advance warning that data can be removed before total failure. USB drives give little or no advance warning of failure. Furthermore, when internal wear-leveling is applied to prolong life of the flash drive, once failure of even part of the memory occurs it can be difficult or impossible to use the remainder of the drive, which differs from magnetic media, where bad sectors can be marked permanently not to be used.[74]
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