What is Interplanetary File System (IPFS)?
Author:
Hekang Dong
Published On
Oct 02, 2026
,7 min read

The Interplanetary File System (IPFS) is a decentralized, peer-to-peer system designed for storing and sharing files across a global network of computers. Instead of relying on centralized servers owned by companies or institutions, IPFS allows users to distribute data across thousands of independent nodes. Each participant in the network can both upload and download data, making the system more resilient and open. This decentralized model reduces dependence on centralized service providers and promotes greater data freedom.

How The Traditional Internet Stores Files

On today’s traditional internet, files are accessed using location-based addresses known as URLs, such as https://example.com/report.pdf. These addresses point to a specific server and folder where the file is stored. When a user requests the file, their browser connects directly to that server to download it.

This system works well when servers are reliable, but it creates a dependency on the organization hosting the content. If the server experiences downtime, technical issues, or policy changes, the file becomes inaccessible. Over time, many links break due to websites shutting down or changing their structure, a problem known as “link rot.”

For example, if a company hosts an important PDF document on its website and later shuts down its servers or deletes the file, all links pointing to that document will stop working. Researchers, students, or users who relied on that document will no longer be able to access it, even if it was once publicly available. This highlights the fragility of centralized storage systems.

How IPFS Is Different

IPFS uses content-based addressing instead of location-based addressing. Each file is assigned a unique identifier called a Content Identifier (CID), which is generated by hashing the file’s data. This CID acts as a fingerprint for the content.

Instead of asking, “Where is this file located?”, IPFS asks, “Who has this file with this exact content?” As long as at least one node on the network stores the file, it can be retrieved. Even if the original uploader goes offline, the file remains available through other peers that have a copy.

How IPFS Works

When a file is uploaded to IPFS, it is first divided into smaller pieces called blocks. Each block is cryptographically hashed, and these hashes are linked together in a structure known as a Merkle Directed Acyclic Graph simply called Merkle DAG (Proxikle is derived out by combining Proxima + Merkle). This structure ensures data integrity and allows efficient verification.

Nodes in the IPFS network use a distributed hash table (DHT) to find which peers are storing specific blocks. When a user requests a file using its CID, IPFS locates peers that have the required blocks and downloads them directly. The blocks are then reassembled to recreate the original file.

This peer-to-peer sharing model reduces server load, improves redundancy, and enables faster downloads when multiple peers provide the same data.

Keeping Files Available (Pinning)

IPFS works like a temporary cache. When a node downloads a file, it may store the data only for a limited time. If space is needed, old data can be removed automatically.

To ensure long-term availability, users must “pin” files. Pinning tells an IPFS node to keep a specific file permanently and not delete it during clean up. Many organizations and services offer pinning services to guarantee continuous storage.

Pinned files remain available as long as at least one node continues to pin them. Without pinning, files may disappear if no peers choose to store them.

Limitations

Despite its advantages, IPFS has several practical limitations that users should understand before adopting it.

  • Files must be pinned to remain available on the network
  • Requires technical knowledge to run nodes and manage storage
  • Performance depends on the number and speed of hosting peers
  • No built-in guarantee for permanent data storage
  • Dependence on public gateways for browser-based access
  • Limited control over illegal or copyrighted content
  • High storage costs for long-term and large-scale data pinning

IPFS and Blockchain

Blockchains are not designed to store large amounts of data because on-chain storage is expensive and inefficient. Instead, many blockchain-based applications store large files on IPFS and save only the CID on the blockchain.

This hybrid approach ensures that the file content can be verified using the CID while keeping blockchain costs low. When users access the blockchain record, they can retrieve the associated file from IPFS using the stored CID.

This method is widely used in NFTs, decentralized applications (dApps), digital certificates, and smart contract systems that require secure and verifiable file storage.

Where IPFS is Used

IPFS is used in many modern decentralized and data-intensive applications. It supports decentralized websites that cannot be easily taken down. It is widely used for NFT metadata and digital artwork storage. Research institutions use it to share scientific datasets. Software developers distribute open-source programs through IPFS. Libraries and archivists store historical documents for long-term preservation.

These use cases benefit from IPFS’s resistance to censorship, redundancy, and global accessibility.

Example:

You create an NFT with an image: “artwork.png”

Process:

1.  Upload image to IPFS

2.  Get CID: Qm789XYZ...

3.  Store CID in blockchain

4.  NFT points to IPFS file

Even if your website disappears, the NFT image still works via IPFS.

‍

Why “Interplanetary”?

The term “Interplanetary” reflects IPFS’s ability to function in unstable or disconnected networks. The system is designed to work even when internet connections are slow, intermittent, or temporarily unavailable.

For example, nodes can exchange data locally and synchronize later when connectivity is restored. This makes IPFS suitable for remote locations, disaster-prone areas, and even future space communication scenarios where latency is high.

Conclusion

IPFS transforms the internet from a location-based system into a content-based network. Instead of relying on centralized servers, users can access data based on what it is, not where it is stored. This shift increases reliability, transparency, and resistance to censorship. By combining cryptographic verification, peer-to-peer networking, and decentralized storage, IPFS provides a foundation for the next generation of open and resilient digital infrastructure. As adoption grows, it has the potential to reshape how information is stored and shared worldwide.

How The Traditional Internet Stores Files

How IPFS is Different

How IPFS Works

Limitations

IPFS and Blockchain

Where IPFS is Used

Process

Why "Interplanetary"

Conclusion

Build reliable dApps with innovation on the Proxikle Platform
Get Started