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 data 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 found by their unique hash, not a web address. This means if one node goes down, the file still exists elsewhere. It’s not just tech jargon—it’s how NFTs, decentralized apps, and even some crypto projects keep their data alive when centralized services fail.

IPFS works hand-in-hand with Filecoin, a blockchain-based storage marketplace where users pay to store data on IPFS. Think of IPFS as the highway and Filecoin as the toll system that keeps the highway running. Without Filecoin, there’s no incentive for people to host files long-term. That’s why projects like BLOCKLORDS and Ertha use IPFS to store NFT metadata—so the art and game data don’t vanish if the company shuts down. You can’t buy or trade an NFT if its image disappears, and IPFS fixes that.

But IPFS isn’t perfect. It’s not automatic. If no one’s actively hosting your file, it can disappear. That’s why smart users pair it with Filecoin or other pinning services. And while IPFS makes data more resilient, it doesn’t make it private. Everything stored on IPFS is public by default, which is why some crypto projects use encryption before uploading. It’s also why offshore crypto accounts and unlicensed mining operations sometimes hide behind IPFS—they think it’s anonymous, but blockchain analysis can still trace what’s linked to what.

IPFS is also the reason you can’t just search for a file by name like you would on Google. You need the exact content hash. That’s why tools like content addressing, a system where files are identified by their cryptographic hash rather than location matter. It’s slower for humans, but it’s tamper-proof. If someone changes one pixel in an NFT image, the hash changes—and you know it’s been altered. That’s why regulators and auditors are starting to look at IPFS logs when investigating crypto scams or unlicensed mining operations.

What you’ll find in the posts below isn’t just theory. You’ll see real cases: how Venezuela’s Petro tried—and failed—to use blockchain storage, why Iran’s mining rigs rely on decentralized networks to hide activity, and how exchanges like Jupiter and MetaTdex use IPFS to store their trading data without central control. Some projects use it right. Others use it as a smokescreen. You’ll learn how to tell the difference, what to check before trusting a project’s storage, and why IPFS might be the quietest revolution in crypto today—because if you can’t see it, it’s still holding everything together.