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InterPlanetary File System (IPFS)

InterPlanetary File System (IPFS)

The InterPlanetary File System, or IPFS, lets people store and share files online without depending on just one server. Instead of getting data from a single place, users can access content from many computers at the same time. This setup helps make the web more open, faster, and less likely to be censored.

IPFS was introduced by Protocol Labs as part of a broader effort to rethink how information moves online.

Why IPFS was created

Most websites rely on central servers. If a server goes offline, changes location, or blocks access, the content can become unavailable. IPFS solves this by spreading files across many independent computers. If one copy is missing, another can still provide the data.

This method lowers the risk of everything failing at once and makes it cheaper to move large amounts of data.

How content addressing works

Most websites today use location-based addressing. You request a file by its address, such as a URL, and hope the server responds.

IPFS uses a different system. Files are recognized by their content, not their location. When you add a file to IPFS, it is split into smaller parts, and each part gets a unique cryptographic hash. This hash works like a fingerprint. If the file changes, the fingerprint changes as well.

With this system, users know they are getting the exact data they requested, even if it comes from several different computers.

Peer-to-Peer network structure

IPFS uses a peer-to-peer network. Anyone can store data, request data, or do both. When you ask for a file, the network finds peers with the needed parts and downloads them from the nearest or fastest sources.

Sharing the workload this way takes pressure off any one computer and often makes downloads faster.

Immutability and versioning

Once a file is added to IPFS, it cannot be changed. Any update creates a new version with a new hash. This makes IPFS well-suited for data that should stay exactly the same over time, such as public records or published research.

To handle updates more easily, IPFS supports naming systems that can point to the latest version of content without changing the underlying files.

Relationship with blockchains

IPFS is often discussed with blockchain technology, but it is not a blockchain. Instead, it acts as a storage layer. Blockchains are good for recording small pieces of data, while IPFS is better for handling large files.

Many blockchain projects store file references or hashes on the blockchain and keep the actual content on IPFS. This saves space and keeps data easy to access.

Common use cases

IPFS is used in many areas:

  • Hosting decentralized websites that do not rely on a single server
  • Storing NFT media files like images, audio, or video
  • Sharing large datasets without heavy hosting costs
  • Archiving content that should remain publicly available

Advantages and limitations

IPFS is good at resisting censorship, keeping data accurate, and sharing files efficiently. However, it does not guarantee that data will always be available unless someone keeps hosting it. Long-term storage depends on incentives, pinning services, or community support.

Because of this balance, people often use IPFS along with other tools instead of using it alone.

About the Author
Jan Strandberg is the Founder and CEO of Acquire.Fi. He brings over a decade of experience scaling high-growth ventures in fintech and crypto.

Before founding Acquire.Fi, Jan was Co-Founder of YIELD App and the Head of Marketing at Paxful, where he played a central role in the business’s growth and profitability. Jan's strategic vision and sharp instinct for what drives sustainable growth in emerging markets have defined his career and turned early-stage platforms into category leaders.
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