What is IPFS in crypto?

IPFS is a technology often mentioned alongside blockchain, Web3 and decentralised applications. The abbreviation stands for InterPlanetary File System and refers to a network protocol designed to store and share files in a decentralised way.

Instead of keeping data on a single central server, IPFS spreads files across a network of computers. This creates a system where information does not depend on one central party. That makes the network more robust and better able to withstand outages or censorship.

IPFS is increasingly used in Web3 projects, blockchain applications and digital storage solutions. In this article you will learn what IPFS storage is, how it works and why it matters in the world of crypto.

In short

• IPFS stands for InterPlanetary File System

• It is a decentralised system for storing files

• Data is distributed across a network of nodes

• IPFS uses cryptographic hashes to identify files

• It is often used in Web3 and blockchain projects

What is IPFS storage?

IPFS storage refers to storing files via the IPFS network. Instead of keeping files on one central server, they are distributed across multiple computers in the network.

When a file is added to IPFS, it is split into smaller pieces. These pieces are then stored on different nodes in the network. Each node can hold part of the file.

Introduction to IPFS

The InterPlanetary File System was developed as an alternative to the traditional internet protocol HTTP. In the current internet model, files are usually stored on central servers.

When you visit a website, your browser asks a server to deliver a particular file. If that server is unavailable, the website cannot be loaded. IPFS works differently. Instead of asking where a file is located, the network asks for the content of the file itself. This is called content addressing. With this approach, a file can be retrieved from multiple locations at once.

InterPlanetary File System (IPFS) explained

The name InterPlanetary File System sounds futuristic, but the idea behind it is quite logical. The system is designed to spread information worldwide via a network of computers.

IPFS uses a peer-to-peer network. That means every computer in the network can both store files and share them with other computers. When someone uploads a file to IPFS, that file gets a unique cryptographic hash. This hash acts as a kind of digital fingerprint. With this hash, the file can always be found, regardless of where it is physically stored.

How does IPFS work?

IPFS works on the basis of content addressing. Instead of identifying files by their location, they are identified by their content.

When a file is added to the network, the following happens:

• The file is split into smaller blocks

• Each block gets a cryptographic hash

• The hashes are stored in a data structure known as a Merkle tree

• The file can be requested via its hash

When someone wants to download the file, the network searches for nodes that hold the required blocks. This process makes it possible to share files efficiently and securely.

Technical details of IPFS

An important technical element of IPFS is the Merkle tree. This is a data structure used to organise and verify large amounts of data efficiently.

In a Merkle tree, blocks of data are linked via hashes. This allows the system to check whether a file is complete and unchanged. If a small part of a file is modified, the hash of the file also changes. This makes manipulation easy to detect. IPFS also uses a Distributed Hash Table (DHT). This lets the network quickly determine which nodes store certain data. This technology helps find files efficiently within the network.

IPFS and crypto: why do they belong together?

IPFS is often used in combination with blockchain technology. Blockchains are well suited for storing transaction data, but less efficient for storing large files.

IPFS can be used to store large amounts of data off-chain while the blockchain only keeps the hash of the file. This combination is often used for:

• Non-Fungible Tokens (NFTs)

• decentralised applications (dApps)

• Web3 platforms

By placing files on IPFS, projects can store data without depending on central servers.

Traditional vs. new: HTTP vs. IPFS

The traditional internet mainly works with the HTTP protocol. In this model, websites depend on central servers. If a server goes offline, the website content can no longer be retrieved.

IPFS works differently. Because files can be stored on multiple nodes, the network can fetch information from different sources at the same time. This can offer advantages in terms of availability, speed and decentralisation. However, the system is still evolving and is not yet used everywhere.

Key features of IPFS

IPFS has several properties that distinguish it from traditional storage methods. One of the main features is decentralisation. Data is spread across a network of nodes instead of one central server.

In addition, IPFS uses content addressing. Information is therefore identified by the content of files rather than by a location. Verification also plays an important role. By using cryptographic hashes, the network can check whether data has remained intact.

How can IPFS be used?

IPFS can be used for various applications. Within Web3 it is often used to store data for decentralised applications. NFT projects also use IPFS to store metadata and digital files.

Other possible applications include:

• decentralised websites

• archiving digital information

• distribution of large datasets

• media storage

By spreading data across a network of nodes, information can remain accessible even when certain servers are offline.

Advantages of IPFS

IPFS offers several advantages compared with traditional storage methods. An important advantage is that data does not depend on one central server. This can make information more resilient to outages or failures.

In addition, the network can handle data distribution more efficiently. Files can be downloaded from multiple nodes at once, which can improve speed. Content addressing also helps verify that files are authentic.

Disadvantages of IPFS

Although IPFS offers many possibilities, there are also challenges. The network is still evolving and is not yet as widely used as traditional internet protocols.

In addition, storing data on IPFS can depend on nodes willing to host files. When no one keeps a file, it can become harder to find. Additional systems such as pinning services exist to address this problem.

Applications of IPFS

IPFS is increasingly used in modern internet projects. Within Web3 it plays a role in storing data for decentralised applications. NFT projects also use IPFS to store digital files.

IPFS can also be used for:

• decentralised websites

• digital archives

• content distribution

• dataset storage

Through the combination of peer-to-peer technology and cryptographic verification, IPFS can offer an alternative to traditional storage methods.

Frequently asked questions

What is an IPFS address?

An IPFS address is a unique hash that refers to a file on the IPFS network. With this hash, the network can find and retrieve the file.

Who is the founder of IPFS?

IPFS was developed by Juan Benet, a computer scientist and entrepreneur. He introduced the project in 2015 through the company Protocol Labs.

What is an IPFS hash?

An IPFS hash is a cryptographic fingerprint of a file. The hash is used to identify and verify the file within the network.

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