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What is IPFS? Interplanetary File System Explained

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Key Takeaways

  • IPFS provides a decentralized alternative to traditional cloud storage by using peer-to-peer networking and content-based addressing, making data storage more secure, efficient, and resistant to censorship.
  • It enhances security and reliability by distributing files across multiple nodes instead of relying on a single server.
  • Key benefits of IPFS include lower storage costs, faster content retrieval, and enhanced data integrity.
  • IPFS challenges include manual file pinning, a steeper learning curve, and limited mainstream adoption.

There are many ways to store information nowadays, but most are heavily centralized. As a result, that carries the risk of data loss, should the service ever get compromised. The rapid advancements in decentralized technology over recent years have given rise to alternatives such as the InterPlanetary File System (IPFS).

IPFS is transforming how data is stored and shared across the internet. Unlike traditional cloud storage solutions such as AWS and Google Drive, IPFS leverages a decentralized file storage model to improve security, efficiency, and censorship resistance. As more blockchain and Web3 projects seek alternatives to centralized solutions, IPFS is gaining traction as a critical component of the decentralized internet. 

In this article, we’ll go over what IPFS is, how it works, its pros and cons, and how you can use it.

What is InterPlanetary File System (IPFS)?

IPFS is a peer-to-peer (P2P) protocol designed to store and share files in a decentralized manner. Unlike the traditional Hypertext Transfer Protocol (HTTP), which retrieves files from a single server, IPFS uses content-based addressing to locate files based on their unique cryptographic hash. This approach eliminates reliance on centralized servers and ensures files remain accessible even if certain nodes go offline.

IPFS enhances data security, resilience, and efficiency by enabling distributed file storage. Users benefit from faster load times, reduced bandwidth costs, and censorship resistance, making IPFS a key technology for the decentralized web.

Who Created IPFS?

IPFS was developed by Juan Benet and introduced by Protocol Labs in 2015. His goal was to create a more efficient, resilient, and open internet that could resist censorship and reduce dependence on centralized servers. Since its launch, IPFS has gained significant adoption in blockchain applications, digital preservation initiatives, and decentralized web hosting.

Benet’s vision for IPFS was to address the fundamental inefficiencies of the current Internet infrastructure. Traditional web protocols rely on a centralized model where a single server hosts files. In contrast, IPFS distributes content across multiple nodes, ensuring greater availability and redundancy.

IPFS vs. HTTP-based Storage

HTTP is the backbone of the modern web, but it comes with limitations, particularly regarding censorship resistance and redundancy. IPFS, on the other hand, offers a more robust, decentralized alternative.

Feature IPFS HTTP
Addressing Content-based (hash) Location-based (URL)
Centralization Fully decentralized Centralized
Speed Faster with cached content Dependent on server speed
Censorship Resistant Prone to takedowns
File integrity Immutable hashes ensure authenticity Can be modified or deleted

How Does IPFS Work?

The way IPFS works is a bit different from the centralized methods of storage we know.

Content-Based Addressing vs. Location-Based Addressing

Traditional storage systems rely on location-based addressing, meaning a file is retrieved from a specific location (e.g., a URL). However, in IPFS, files are identified by their content, not their location. Each file uploaded to IPFS is assigned a unique cryptographic hash, ensuring that the content remains unchanged.

Storing, Retrieving, and Distributing Data

In addition, the way data is stored and managed on IPFS is also different:

  1. Adding a File: When a user uploads a file, IPFS generates a unique hash for it.
  2. Distributed Storage: The file is split into smaller chunks and distributed across multiple nodes.
  3. Retrieval Process: When another user requests the file, IPFS searches for the hash in the network and retrieves it from the nearest node that has a copy.
  4. Replication and Persistence: Nodes that access the file can store a local copy, ensuring faster access and data redundancy.
  5. Pinning for Longevity: To ensure a file remains accessible, users can pin files, preventing their deletion from the network.

The Role of Hashing and Peer-to-Peer Networking

IPFS uses Merkle DAG (Directed Acyclic Graph) structures to store data efficiently. Since files split into smaller pieces, users can fetch them from multiple sources simultaneously, improving speed and redundancy. This peer-to-peer (P2P) networking model ensures that files remain accessible even if the original uploader goes offline.

Key Benefits of IPFS

The IPFS offers some notable benefits that give users an advantage in terms of speed, efficiency, resilience, costs, and censorship resistance:

Faster and More Efficient File Retrieval

IPFS speeds up content delivery by caching frequently accessed files across multiple nodes. This reduces bandwidth costs and enhances load times, making it ideal for content-heavy applications such as video streaming, social media platforms, and large datasets.

Resilience Against Censorship and Outages

Due to the decentralized nature of IPFS, files spread to more than just a single server. This eliminates a single point of failure, making it highly resistant to government censorship, data breaches, and accidental deletions. Activists, journalists, and organizations operating in restrictive environments can use IPFS to ensure access to critical information remains intact.

Enhanced Privacy and Security

Files on IPFS are cryptographically hashed, meaning they cannot be altered without changing their unique identifier. This ensures data integrity and authenticity, preventing tampering or unauthorized modifications. Furthermore, users can encrypt sensitive data before uploading it to IPFS, further enhancing privacy.

Lower Costs Compared to Traditional Cloud Services

With IPFS, users only pay for storage and bandwidth when retrieving files, reducing long-term cloud storage expenses. In addition, community-driven hosting reduces infrastructure costs. By eliminating the need for centralized data centers, IPFS offers a cost-effective solution for developers and businesses looking to decentralize their storage infrastructure.

Real-World Applications of IPFS

At first glance, IPFS is a Web3 project that’s aimed at blockchain applications. But that’s not necessarily true as traditional institutions can also utilize the IPFS.

Blockchain and Web3 Projects

Many blockchain applications use IPFS to store smart contract data, metadata, and digital assets. Platforms like Ethereum and Filecoin integrate IPFS for decentralized data storage.

Decentralized Websites and dApps

IPFS enables censorship-resistant websites by distributing website files across multiple nodes. This ensures that websites remain accessible even if central authorities attempt to block them. Developers are using IPFS with Ethereum Name Service (ENS) or Unstoppable Domains to create fully decentralized websites.

File Storage for NFTs and Digital Assets

Non-fungible tokens (NFTs) often store metadata on IPFS to prevent link rot. Since NFT ownership needs permanent and verifiable storage, IPFS provides a robust solution for storing tokenized assets. Without IPFS, traditional cloud servers can lose the NFT metadata if they go offline.

Scientific Data Storage and Archives

Researchers and institutions can use IPFS to store large datasets, scientific research, and historical archives. Since IPFS ensures data integrity, it is a valuable tool for long-term data preservation.

IPFS vs. Traditional Cloud Storage

By leveraging content-addressing instead of location-based addressing, IPFS provides a more resilient, secure, and cost-effective alternative to traditional cloud storage solutions. Here’s how IPFS compares to traditional cloud storage:

Feature IPFS Centralized Cloud Storage
Architecture Decentralized (peer-to-peer) Centralized (server-based)
Data retrieval Content-based Location-based
Redundancy and availability Files replicated across multiple nodes Data stored in data centers
Censorship resistance High Low
Security and integrity Immutable files with cryptographic verification Can be modified or deleted
Cost efficiency Lower costs (pay only for retrieval or pinning) Higher costs (monthly storage fees)
Speed and performance Faster with cached content Dependent on data center

While traditional cloud storage provides convenience and mainstream adoption, IPFS offers significant advantages in security, decentralization, and censorship resistance.

How to Use IPFS

Setting up and using IPFS is straightforward, especially with the availability of both graphical interfaces and command-line tools. Below is a guide to help you with installing, uploading, and retrieving files using IPFS.

Follow these steps to start with the desktop version of IPFS: 

1. Install IPFS

Download IPFS Desktop. Follow the installation instructions on IPFS’s official website for Windows, macOS, or Linux. Then, run the installer and launch the program.

2. Uploading a File to IPFS

Select the “Files” section on the user interface. Click on “Import” and select the file that you want to upload. Wait for the file to upload, once complete, you’ll notice that it has a specific hash under it.

3. Retrieving a File from IPFS

You can retrieve the file you’ve just uploaded from any other device by simply using its hash in the search bar. Select “Download” to download the file.

4. Pinning a File for Long-Term Storage

By default, IPFS does not guarantee permanent storage of files. To prevent the deletion of your file, pin it by selecting “Set pinning” from the dot dropdown menu on the right.

Best Practices for Securing Data on IPFS

Before you upload or download any files, make sure that you:

  • Encrypt Sensitive Files Before Uploading: Since all content on IPFS is public by default, encrypt personal or confidential data using tools like GPG or AES encryption before uploading.
  • Use a Private IPFS Network: If you need a controlled environment, consider setting up a private IPFS network with access restrictions.
  • Verify File Integrity: Regularly check file hashes to ensure data integrity and prevent accidental modifications.
  • Leverage Filecoin for Long-Term Storage: IPFS alone does not guarantee file permanence, so use Filecoin or other decentralized storage solutions to ensure availability.

By following these steps you can securely leverage IPFS for decentralized file storage, making it a powerful tool for content distribution, blockchain applications, and censorship-resistant data sharing.

Challenges and Limitations of IPFS

The IPFS is not perfect and comes with its own set of challenges. Some of these include:

Storage Costs and Persistence Issues

Unlike centralized storage, IPFS does not automatically persist files. Users must pin files or use Filecoin to ensure long-term availability.

Adoption Barriers and Usability Concerns

While IPFS offers cutting-edge decentralization, it requires technical knowledge to operate. Additionally, mainstream adoption remains a challenge due to limited developer resources and lack of widespread support from traditional web services.

Comparison to Alternatives like Arweave and Storj

IPFS isn’t the only alternative information storage service on the market. It already has some solid competition like:

  • Arweave: Uses a blockchain-based approach for permanent storage. It encourages users with its native AR token.
  • Storj: A cloud-based decentralized storage solution that incentivizes participation with its STORJ token.

Unlike its rivals, IPFS doesn’t have a native token, which can be a pro or a con, depending on your perspective.

Closing Thoughts: The Future of IPFS & Decentralized Web

With Web3 set to grow even further, IPFS could play a pivotal role in decentralized applications, NFT storage, and content distribution. The increasing demand for censorship-resistant, cost-effective, and secure storage, puts IPFS in a position to reshape the future of the internet.

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