IPFS: What It Is and How It Powers Decentralized Storage in Crypto
When you store a file on IPFS, a peer-to-peer protocol for storing and sharing files in a distributed file system. Also known as InterPlanetary File System, it doesn't rely on servers like Google or Dropbox. Instead, files are saved across thousands of computers worldwide, and you access them by their unique hash—not a web address. This changes everything for crypto. If a website goes down, your NFT image or smart contract code doesn’t vanish. It lives on IPFS, pinned by anyone who cares about keeping it alive.
IPFS works by giving each file a fingerprint called a content address. That means if two people upload the same image, they get the exact same hash. No duplicates. No lost files. It’s like sharing a book by its ISBN instead of its shelf location. This system is why projects like Filecoin, a blockchain-based storage network that pays users to host IPFS data exist. Filecoin turns IPFS from a free, volunteer-driven network into a real economy. Miners earn tokens for storing data, and users pay for reliable, long-term hosting. Together, they solve the biggest problem in decentralized storage: incentives.
IPFS isn’t just for NFTs or memes. It’s used by crypto exchanges to store audit logs, by DAOs to archive governance votes, and by activists to share uncensored news. In countries like Venezuela or Russia, where governments block websites, IPFS lets people access crypto guides, exchange reviews, and financial tools without fear of takedowns. Even when a site like Cryptopia or BitGlobal shuts down, its data can still live on IPFS—if someone pinned it. That’s why you’ll find archived reviews of defunct exchanges in this collection. They’re not gone. They’re just stored differently.
But IPFS isn’t magic. Files disappear if no one keeps them pinned. That’s why tools like Pinata and Infura exist—they’re like digital librarians who pay to keep your data alive. And while IPFS handles the storage, blockchain handles the trust. You link your NFT to an IPFS hash, and the blockchain says, "This hash is the real one." No middleman. No server to hack. Just math and nodes.
What you’ll find here are real-world examples of how IPFS shows up in crypto—sometimes obvious, sometimes hidden. You’ll see how it connects to blockchain storage, how it’s used in airdrops and token contracts, and why some projects fail because they ignored it. No fluff. Just what works, what doesn’t, and why it matters for your next move.