IPFS, which stands for InterPlanetary File System, is a decentralized and distributed file storage protocol that has the potential to revolutionize the new internet era.

 

With its decentralized nature, like blockchain technology, IPFS can be a complementary and comprehensive solution for various content storage and distribution needs.

 

To understand what IPFS is, how it functions in the crypto world, how it works, and how it differs from blockchain, check out the following review.

 

What is IPFS?

 

IPFS is a decentralized storage system that allows users and operators to own a portion of the data collectively, creating a robust file-sharing network.

 

Compared to centralized servers and managed by a single entity, IPFS operates on a peer-to-peer (P2P) basis, allowing users to store and access various types of content, such as files, websites, applications, and data in a distributed manner.

 

It enables file storage without the risk of information leakage that often occurs in conventional systems.

 

IPFS Functions in the Crypto World

 

IPFS plays an important role in the crypto ecosystem. For example, in the context of Ethereum, IPFS acts as a decentralized storage system for the code in all smart contracts.

 

However, the benefits of IPFS are not just limited to Ethereum. IPFS has been adopted by many blockchain-based applications as their storage solution.

 

In addition, IPFS also facilitates access to files on web pages and various types of files stored on computer devices, such as documents, emails, or database records.

 

As such, IPFS paves the path towards more secure and efficient data storage and access in the crypto world.

 

How IPFS Works

Below is how IPFS works, which is very important to know, including the following:

 

1. Content Addressing

 

IPFS adopts an approach known as content addressing to identify content. This approach identifies content based on its information content rather than its location.

 

In the context of IPFS, each piece of content is assigned a content identifier or CID, which acts as a unique hash for the content.

 

This CID serves as the primary identifier and link in a distributed network, ensuring a consistent and accessible identity from anywhere in the network.

 

2. Directed Acyclic Graphs (DAGs)

 

IPFS and similar distributed systems use data structures known as Directed Acyclic Graphs (DAGs). DAGs are data structures utilized by IPFS to improve the flow of a file.

 

Through DAGs, different parts of a file can come from diverse sources and be verified quickly.

 

3. Distributed Hash Tables (DHTs)

 

The role of the DHT (Distributed Hash Table) in IPFS is to find the peer that hosts the content the user is searching for. Thus, the DHT facilitates the content search and discovery process within the IPFS network.

 

How to Use IPFS?

 

Quoting id.beincrypto.com, when you upload a file to IPFS, the network breaks it into small segments and distributes them to multiple computers (nodes).

 

Each segment of the file has a unique hash. This hash helps the network to identify the nodes that store certain segments of the file that match the hash.

 

Then, to access and retrieve the file, you need to enter the hash in an IPFS-enabled web browser, such as Brave Browser or Opera. The process is similar to accessing a normal web page by entering the URL address in the browser.

 

Once identified, IPFS asks all nodes to send their file segments over a P2P connection. Thus, files can be retrieved by collecting those segments from various nodes in the network.

 

Difference Between IPFS and Blockchain

 

Quoting the page id.beincrypto.com, IPFS and blockchain are different technologies with different goals, although both promote decentralized concepts.

 

IPFS brings the concept of decentralized and distributed file storage to access content in the Web 3.0 era. On the other hand, blockchain is a distributed ledger system used to record transactions securely and transparently.

 

While both use cryptography to protect data, blockchain has an additional consensus mechanism. However, they can complement each other to provide a more complete solution.

 

For example, IPFS can store data for blockchain applications, such as smart contracts.

 

Example of IPFS Usage in Crypto Projects

 

Quoting the page id.beincrypto.com, many projects in various sectors have adopted this decentralized storage system. Some examples of IPFS implementation include projects such as Filecoin, Arweave, and Ethereum Name Service (ENS).

 

• Filecoin, as a decentralized storage network, uses IPFS as its base protocol. This system allows users to buy and sell storage space on a peer-to-peer network. Filecoin miners earn the crypto token FIL in exchange for providing storage space to the network. Users then pay an amount of FIL for the data storage and retrieval process.
• Arweave is a blockchain-based storage platform that utilizes IPFS for content addressing. The platform provides a permanent and decentralized storage solution for web content, ensuring that data remains accessible and verifiable over time.
• ENS, which stands for Ethereum Name Service, is a service that enables the creation of human-readable domain names on the Ethereum blockchain. The service leverages IPFS as a decentralized content store. As such, users can associate hashes with their ENS domains, linking those domain names to content stored within the network.

 

Pros and Cons of IPFS

 

Quoting the page id.beincrypto.com, IPFS has several advantages over the older conventional internet system.

 

Pros

 

• Decentralization: IPFS offers an efficient way to access different types of files, such as websites, videos, images, research papers, and articles, from anywhere without dependence on a centralized third party. This focus on decentralization increases the speed, democratization, and security of the network.
• Immutable: Data stored in IPFS cannot be changed or modified by other parties, preventing content censorship. Users can access data directly from the source through peer-to-peer (P2P) connections.
• Efficiency: IPFS has the potential to provide faster and more secure connectivity in areas with less stable internet connections.

 

Cons

 

Despite providing some benefits, IPFS still needs some improvement. Here are some of its shortcomings, among others:

 

• Difficulty searching for content: This storage network does not have a fully functional search engine, so you cannot use search tools to find content. By analogy, IPFS at this stage is similar to the internet without search engine services like Google, Bing, or DuckDuckGo.
• Lack of regulation: Decentralization can often have a dark side, especially when there is a lack of regulation of potentially harmful content. Harmful content includes everything from hate speech and fake news to child pornography and copyright infringement. Additionally, giving platforms absolute freedom of speech comes with its risks.

 

Nevertheless, IPFS has the potential to be a key element in developing the web3 paradigm and pave the way for a new era of internet experience.

 

Conclusion

 

In conclusion, IPFS is a decentralized content distribution protocol that aims to overcome the limitations of traditional HTTP protocols.

 

By utilizing a system based on peer-to-peer networking, IPFS enables efficient content storage and retrieval without dependence on a central server.

 

The technology promises security, reliability, and censorship resistance, allowing users to share and access information more freely.

 

IPFS has great potential to become integral to the emerging Web3 paradigm and pave the way for a new era in a more decentralized and empowered internet experience.

 

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