IPFS, Filecoin, and Arweave are three of the most popular decentralised storage solutions. Let’s explore how each one works, what makes them different, and when to use them.
Most of us rely on cloud storage services like Google Drive or AWS to store our data. While these platforms are convenient they are centralised, which means your data lives on servers owned and controlled by a single company. That creates risks like downtime, censorship, security breaches, and rising storage costs.
Decentralised storage offers a new way forward. By spreading data across a network of users instead of one central location, it provides better privacy, resilience, and long-term efficiency.
Let’s start with some basics of decentralised storage and then explore three of the most popular decentralised storage solutions: IPFS, Filecoin, and Arweave.
| “In a world where data is everything, decentralised storage offers the freedom to own, control, and share your files without the limitations of centralised authorities.”
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What is decentralised storage?
Decentralised storage is a system where data is stored across a distributed network of nodes instead of on servers owned by a single company. Each file is broken into pieces, encrypted, and spread across multiple locations, making it more secure and resistant to tampering or loss.
Table 1: How decentralised storage differs from centralised storage
|
Feature |
Centralised storage |
Decentralised storage |
|
Control |
Managed by one provider (like AWS, Google) |
Shared across a network of participants (like IPFS, Filecon, Arweave) |
|
Data location |
Stored in specific locations, often known as data centres |
Distributed across multiple nodes globally |
|
Single point of failure |
Centralised systems are prone to single points of failure; if the provider experiences downtime, access to data can be lost |
Its systems avoid failure by redundantly storing data across multiple nodes |
|
Censorship risk |
The risk of censorship is high since providers can remove or block data |
Censorship risk is low due to distributed control |
|
Privacy |
Depends on the provider’s policy |
Data is encrypted and often anonymous by design |
|
Cost |
Monthly fees; pay for storage and bandwidth |
Often pay once or based on actual usage |
IPFS (InterPlanetary File System)
The InterPlanetary File System (IPFS) is a peer-to-peer distributed file system developed by Protocol Labs. Its mission is to replace the traditional, centralised web (based on HTTP) with a decentralised, content-addressable protocol. By shifting from location-based URLs to content-based identifiers, IPFS makes the web faster, more secure, and resistant to censorship.
How it works
IPFS operates by breaking files into smaller blocks and distributing them across a decentralised network. Here’s a step-by-step breakdown.
Step 1. Chunking: First, files are divided into multiple blocks or chunks.
Step 2. Hashing: Then each block is hashed using cryptographic algorithms.
Step 3. Content Identifier (CID): Next, these hashes generate a unique CID for each piece of data.
Step 4. Retrieval: When you request a file, IPFS retrieves the data from any peer in the network that has the corresponding hash, and not from a centralised server.
Key features
Content-addressable: Files are identified by their content and not by their location, ensuring immutability and verifiability.
Deduplication: Identical blocks of data are stored only once, which significantly reduces redundancy.
Offline-first capability: If you already have the data or hash stored locally then you can access it without requiring an internet connection.
Limitations
IPFS lacks a built-in economic model to encourage storage. Nodes must voluntarily ‘pin’ or host files to ensure availability. If a file is not pinned or hosted by any node, it may eventually disappear from the network.
Table 2: A comparative analysis of IPFS, Filecoin, and Arweave
|
Feature |
IPFS |
Filecon |
Arweave |
|
Primary function |
Content delivery and file sharing |
Incentivised, secure storage |
Permanent, long-term storage |
|
Incentive layer |
No built-in rewards for storage |
Yes – miners are rewarded with FIL |
Yes – pay miners once with AR |
|
Data type |
Mutable – can change over time |
Mutable – data can be updated |
Immutable – data is stored permanently |
|
Ideal use case |
Hosting DApp files, websites, media |
Large-scale, reliable storage needs |
Archiving records, research, NFTs, history |
|
Cost structure |
Free, but no storage guarantees |
Pay-as-you-go based on duration and size |
One-time payment for forever storage |
|
Protocol type |
Protocol for sharing files |
Blockchain-powered storage marketplace |
Blockweave – a new type of blockchain |
Filecoin
Filecoin, also developed by Protocol Labs, is a decentralised storage network built on top of IPFS. While IPFS focuses on how data is stored and accessed, Filecoin adds a vital economic layer that incentivises long-term storage and reliability. By leveraging blockchain technology, Filecoin allows users to rent out unused hard drive space and earn FIL tokens in return.
How it works
Filecoin creates a decentralised marketplace for storage where users (clients) pay miners to store their data. The protocol ensures trust and integrity through advanced cryptographic proofs.
Step 1. Proof of Replication (PoRep): Miners prove that they have physically stored a unique copy of the client’s data.
Step 2. Proof of Spacetime (PoSt): Miners continuously prove that the data is being stored over time.
Step 3. Retrieval miners: Specialised nodes can earn FIL by quickly and efficiently delivering content to users upon request.
Key features
Market-driven storage: An open storage marketplace where providers compete based on cost, speed, and reliability.
Incentivisation model: Encourages miners to offer consistent and long-term data storage backed by economic rewards.
Smart contract integration: Enables programmable interactions with stored data, ideal for Web3 applications and decentralised platforms.
Limitations
Operating a Filecoin node requires significant computational power, storage capacity, and technical expertise, which is a higher barrier for small users. So, due to its infrastructure demands, Filecoin is more suited to organisations and enterprises than casual users or hobbyists.
Arweave
Arweave takes a distinct approach to decentralised storage by emphasising permanent data preservation. Instead of renting space for a period, like traditional or even other decentralised solutions, Arweave operates on a ‘pay once, store forever’ model. It utilises a blockchain-inspired data structure known as the Blockweave, specifically designed for efficient and permanent archiving of digital content.
How it works
Arweave operates as a decentralised storage network that allows users to store data permanently. When users upload data, they pay a one-time fee using AR tokens. These payments are collected into an endowment fund, which continuously incentivises miners to store and maintain the data over time.
It uses a unique consensus mechanism called Succinct Proof of Random Access (SPoRA), requiring miners to prove they can access random pieces of historical data. This ensures data replication across the network, making the archive tamper-proof and persistently available.
Key features
Permaweb: A decentralised web built on Arweave that hosts permanent web pages, applications, and documents.
True content permanence: Ideal for use cases where immutability is critical—such as NFT metadata, historical archives, academic research, and journalism.
One-time payment: Users pay upfront, making long-term storage highly cost-effective without recurring fees.
Limitations
Once data is uploaded, it cannot be altered or removed making error correction or content updates impossible. Compared to more mature ecosystems like IPFS or Filecoin, Arweave has a smaller node base, which can affect network resilience and decentralisation in the near term.
Decentralised storage is not just an alternative to cloud service, it’s also a foundational layer for the future of the web. Whether you’re looking for peer-to-peer content distribution (IPFS), a decentralised storage economy (Filecoin), or immutable archiving (Arweave), each protocol offers unique advantages tailored to different needs.
As blockchain technology continues to mature, we can expect these solutions to become even more integral to how data is stored, shared, and preserved in the digital age.
