Both IPFS and blockchain are decentralized technologies‚ but they serve different roles. Blockchain excels at secure transactions‚ whereas IPFS focuses on decentralized file storage. IPFS is useful for applications in finance‚ identity‚ and content delivery.
Table of contents
What is IPFS?
IPFS (InterPlanetary File System) is a P2P network for decentralized data storage. Blockchains can’t efficiently store large files. Blockchains become bloated with data that must be propagated throughout the network. Also‚ blockchain replication on many nodes wastes storage‚ especially if a node operator doesn’t need to view every file.
IPFS for Decentralized Applications
DApp backends use smart contracts on a blockchain‚ but frontends were on centralized servers. IPFS solves this. A distributed hash table helps others on the IPFS network find content. IPFS uses a P2P architecture with a distributed ledger design to solve storage and restriction issues. Blockchains have a DAG structure that links past blocks to earlier hash rates.
Example Use Case
Consider used-car trading‚ where information asymmetry is common. Using Ethereum blockchain and IPFS can help build a used-car trading platform.
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