Crypto glossary

Decentralized storage (IPFS, Arweave, Filecoin)

Definition

Decentralized storage spreads files across independent peer-to-peer nodes instead of one company's servers, with networks such as IPFS, Filecoin and Arweave.

Rather than uploading a file to a single cloud provider, decentralized storage splits or replicates it across many nodes. Files are usually addressed by a hash of their content, so anyone can check that what they download is exactly what was stored. The main designs differ: IPFS is a protocol for finding and sharing content but does not guarantee anyone keeps it; Filecoin pays providers to store data under contracts verified by cryptographic proofs; Arweave charges a single upfront fee for storage intended to be permanent.

These networks host NFT images and metadata, front ends for dApps, archives, blockchain data and research datasets. Using them avoids a link in a token pointing to a server that can be switched off or edited.

Decentralized does not mean permanent by default. Content on IPFS disappears if nobody pins it, Filecoin deals expire unless renewed, and permanence promises rely on long-term economic assumptions. Retrieval can be slower than conventional cloud services, and once data is widely replicated, removing it is very hard.

Example

An NFT project stores its artwork on Arweave and its metadata on IPFS with paid pinning, so the tokens keep showing the correct images even if the project's website goes offline.

Related terms

Latest articles on Decentralized storage