IPFS: What It Is and How It Powers Decentralized Storage in Crypto
When you upload a file to IPFS, a peer-to-peer file system that stores data across a network of computers instead of centralized servers. Also known as InterPlanetary File System, it doesn’t use traditional URLs—it gives each file a unique hash, so it can’t be censored or lost if one server goes down. This is why crypto projects, NFT marketplaces, and DeFi apps rely on IPFS to store images, smart contracts, and metadata. If a website uses a regular server and that server dies, the content vanishes. But if it’s on IPFS, the file lives on as long as someone’s node is sharing it.
IPFS doesn’t store data by itself—it needs help. That’s where Filecoin, a blockchain-based incentive layer that pays users to store and retrieve files on IPFS comes in. People earn Filecoin tokens by offering unused hard drive space. Without Filecoin, IPFS would be like a library with no librarians—files might exist, but no one would keep them available. You’ll also see peer-to-peer file system, a network where users share files directly with each other, without middlemen mentioned in posts about crypto exchanges and NFT platforms. That’s because IPFS lets projects avoid relying on Amazon, Google, or Cloudflare—companies that can remove content on demand.
Why does this matter to you? If you’re holding an NFT, its image might be stored on IPFS. If the project’s website disappears, but the IPFS hash is still active, your NFT doesn’t turn into a blank image. Same goes for crypto wallets, DeFi apps, and even blockchain-based social media. IPFS is the quiet engine keeping decentralized apps alive. You’ll find real examples in our reviews—like how some crypto exchanges use it to store user data, or how dead projects still have their files floating around because IPFS never deletes anything. Some posts even show how bad actors abuse IPFS to host illegal content, which is why regulators are watching. But for legitimate use, it’s the most reliable way to keep digital assets permanent.
What you’ll find below aren’t theory-heavy guides. These are real-world breakdowns of platforms and tokens that either use IPFS—or claim to, but don’t. You’ll see which crypto exchanges actually store data on IPFS, which NFT projects rely on it, and which ones are just slapping the word "decentralized" on their website while keeping everything on a single server. No fluff. Just what works, what doesn’t, and what you should avoid.
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