NFTs, or non-fungible tokens, have seen a surge in popularity in recent years as the digital assets industry continues to evolve at a rapid pace.
These inimitable digital assets that are recorded on a blockchain and can take the form of collectibles, digital sculptures, virtual real estate, and more. Nevertheless, one of the obstacles to working with NFTs is the issue of storage and distribution. This is where InterPlanetary File System (IPFS) and Filecoin come into play.
Not sure what are these? Don’t worry! Just continue to read, and you will have the answer to what are IPFS and Filecoin and how can they be used for NFTs.
What is IPFS?
IPFS is a peer-to-peer protocol that aims to enhance the web’s speed and efficiency by enabling users to share files directly instead of depending on centralized servers.
IPFS distributes files across a network of nodes by breaking them down into smaller parts. This method results in faster download speeds and improved dependability as the file can be obtained from multiple sources.
IPFS also uses a content-addressable system, which means that each file is identified by its content rather than its location. This makes it much harder for the file to be taken down or blocked.
What is Filecoin?
Filecoin is a distributed storage network that is built on top of IPFS. Users can earn Filecoin by renting out their unused storage space to others with this method.
Filecoin network aims to be more lucrative and resourceful than centralized cloud storage solutions by using spare storage capacity on a distributed network instead of a single provider.
How can IPFS and Filecoin be used for NFTs?
NFTs are distinctive digital assets that are stockpiled on a blockchain, and they require a robust and decentralized storage solution. IPFS and Filecoin provide the ideal infrastructure for this purpose.
By using IPFS to break up NFTs into smaller pieces and distribute them across a network of nodes, it makes it almost impossible for the NFTs to be taken down or blocked.
Additionally, the content-addressable system of IPFS makes it easy to verify the authenticity of an NFT, as each one has a unique content hash that can be checked against the blockchain.
Filecoin, on the other hand, provides a way to store and distribute NFTs in a decentralized manner, making it more secure and resilient than traditional storage solutions.
By using Filecoin, users can rent out their unused storage space to the network, and in return, they will receive the Filecoin cryptocurrency. This creates an incentive for users to provide storage space for NFTs, which helps to ensure that the network remains decentralized and robust.
IPFS and Filecoin are two decentralized technologies that provide an innovative solution for the storage and distribution of NFTs. These decentralized technologies make it possible to store and distribute NFTs in a robust and secure manner, which is crucial for the growth and development of the digital asset market.