Best Decentralized File Storage software of 2022


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Decentralized File Storage Software Trends

Decentralized file storage distributes data into various chunks and stores it inside different nodes of a peer-to-peer network. This application of blockchain technology improves data security and privacy while serving as an alternative to centralized cloud storage. 

Why use decentralized file storage?

The biggest appeal of decentralized file storage is that it addresses the limitations and challenges of centralized storage. One of the many issues this storage network solves is hosting data with millions of nodes, unlike centralized storage, which uses finite data centers. This method also reduces costs and offers a large amount of storage bandwidth. 

Decentralized file storage ensures all data remains encrypted during transactions. It's one of the two solid factors contributing to the network's high privacy and security levels. The encrypted data is then split between millions of storage nodes, making it impossible for any single node to access the information stored on a decentralized network. 

The storage platforms are supported by a blockchain that provides reliability and transparency through cryptography. Users also get verifiable proofs for data storage and consumption, eliminating the need to trust centralized storage providers. This way, users can avoid data breaches or theft. 

Since millions of nodes usually participate in this storage process, it minimizes data loss. Multiple copies are created during the process to prevent data from going missing or corrupted when a particular region goes down. The extra copies then serve as replacements when this happens. 

It's also common for centralized storage systems to face intense congestions that overwhelm the servers due to network traffic. But thanks to the millions of nodes copying data simultaneously, decentralized file storage does not face such challenges. The network is fast since it stores multiple data copies across various nodes, allowing users to securely and quickly access their data. 

Decentralized file storage networks are inherently more private than centralized cloud storage - which stores data on a public cloud. As a result, it affords the developers the peace of mind needed to build applications without getting stolen or misappropriated. Additionally, they get complete data control, lower bandwidth fees, and an overall trusted experience. 

The architectural design of decentralized storage affords its users a level of resistance to hackers and outages that have plagued centralized data networks. This data storage system leverages infrastructure programmed to mitigate undue influence or control. With a permissionless structure, developers can employ the storage's services with minimal restrictions. 

Another major appeal of the decentralized file system is the fair pricing rates. Due to the constant competition between storage nodes to get incentivized, it is almost impossible to find unfair prices. And since only the fittest nodes are incentivized, anti-competition strategies or monopolies of storage nodes are zero to none. This practice ensures that users enjoy fair prices while using decentralized storage. 

Who uses decentralized file storage?

Anyone can use decentralized file storage for both personal and professional use. It is used to store data and information. Users can also rent out extra storage space in their hard drives to clients and earn tokens in return. 

Several companies use decentralized file storage to process and store data exchanges during business transactions. Organizations subject to regulatory compliance find this form of storage appealing since it helps insulate against data breaches. Thanks to decentralized file storage, if a hacker manages to infiltrate their defenses, they would only be able to get tiny fragments of their data.

Financial institutions benefit more from decentralized file storage as they can easily access their database and check transaction history without a third party. In addition, distributed ledgers record each transaction in real-time, eliminating room for fraud. And, with a smart contract in place, the network can execute programs once certain conditions are met.  

Decentralized file storage can also help banks reduce costs and value transfer by utilizing blockchain technology. They can create an affordable and transparent payment model using decentralized ledgers and automation. Peer-to-peer transactions between lenders and borrowers are also adopted to eliminate the need for credit guarantees by other financial intermediaries. 

Investment institutions invest in this technology to create innovative ways of making a profit. In addition, it allows them to understand their customers and potential risk management areas. 

Companies also address work inefficiencies, fraud, high costs, and operational risks of various processes in their financial sectors. As a result, they can optimize infrastructure and improve their services and user experience. 

The decentralized storage network allows financial crime agencies to effectively identify suspicious transactions and activities in real-time. In addition, Anti-Money Laundering (AML) organizations use the technology to optimize financial processes thanks to Know Your Customer (KYC) policies. 

The KYC policy requires companies to verify the identity of their clients to prevent potential risks of fraud or other illegal intentions for the business. Every customer's credit history and financial transactions are stored in a general ledger and shared by multiple nodes. The peer-to-peer network makes it easier and faster to find customer data, saving the company unnecessary costs.    

Decentralized file storage also facilitates diversification for businesses. The distribution network supports a divided decision-making process, making it easy for users to branch into other areas of an organization. Also, companies can easily diversify into different product lines. 

Other sectors that benefit from decentralized file storage include healthcare, education, automotive companies, and more. 

Decentralization makes it easy for schools to store digital records, curricula, degrees, and student information efficiently. Data loss is effectively avoided when the data is stored on multiple nodes across the globe. In addition, damaged or corrupt hard drives no longer threaten users. 

In the automotive industry, distributed files provide transparency, ensuring that suppliers, manufacturers, and shipping companies follow the same supply chain. This method makes it almost impossible for users to insert counterfeit products. Decentralization also allows businesses to manage large amounts of generated data during operations. 

Smart contracts embedded in manufacturing blockchains allow companies to release purchase orders at various phases of the development process. In addition, this technology makes it easy to remove the middleman while processing multiple transactions. 

And in the healthcare sector, hybrid solutions involving blockchain-based technology and conventional data storage are being developed and implemented. They are mainly used for storing medical records securely and tracking health assets and supply chains. With decentralized file storage, health records are more secure, easily accessible, and affordable to create and maintain. 


Most decentralized file storages share similar traits, such as efficiency and resiliency, among several others. This distribution system offers users an accessible network for their work. Participation in the network is relatively easy as it allows as many nodes as possible to distribute and store files during the process.  

Some storage options use lower hardware requirements, so it would be easy for many users to contribute to a network by running a node. And thanks to how affordable and reliable these decentralized storage systems are, users can successfully provision and manage storage through code. 

Decentralized file storage fetches data based on its form instead of its location. This feature also makes it a content-addressed storage system. A unique cryptographic hash is created for every file, picture, or video, and eventually, it is used to fetch them. The distributed file network connects all computing devices with similar file systems. So, using routing algorithms, users can choose where they get content from and set the privacy of what peers/nodes to receive. 

Hash addressing makes data immutable, meaning it does not change form over time regardless of external factors. It also saves bandwidth by gathering data from different nodes instead of a single server.  

The decentralized file storage also draws inspiration from other successful peer-to-peer (P2P) systems by sharing files securely between nodes. In addition, the network protocol provides retrieval service and data storage through independent storage providers that do not rely on a single coordinator. This technique allows users to duplicate and edit various versions of a particular file independently, store the new ones, and merge the edits with the original file. 

Some decentralized file storage forms do not depend on access to internet protocols as data is distributed in overlay networks. This feature is a valuable tool for users in areas with internet censorship. They can use the network to promote free speech. In addition, it provides secure communications that allow users to reclaim their online freedom and anonymity, this way they can avoid third-party surveillance. 

In addition to utilizing hash-based content addressing protocols, some decentralized file storage networks provide in-built incentive layers. This incentive layer allows trading resources for payment by using deposit-based storage incentives and P2P accounting for bandwidth. 

Users struggling with securing and providing access to rapidly scaling data sets can use decentralized file storage to support massive scalability. This process includes automating storage and infrastructure management so that a single system or network can handle hundreds of PBs. 

Some decentralized applications allow users to store data in a decentralized pattern. The process is quite similar to how torrents work since the technology is based on file-sharing. Two or more users can exchange an agreed-upon amount of storage for a paid duration. Other features like public/private key encryption and transaction ledgers ensure the process is secure. And the data is constantly available once it is split into smaller pieces that are indistinguishable from other objects. 

A professional could also use the software to earn extra cash by leasing their hard drive and bandwidth. The renter and the storage provider negotiate the terms of an agreement in a mutually beneficial contract. The storage provider can compensate for each file the client shares and penalize them for any missing evidence.  

Decentralized storage networks use blockchain technology to leverage underutilized hard drive capacity across the globe to provide a data storage marketplace. A proof-of-storage algorithm and a proof-of-work consensus mechanism protect and validate file contracts. In addition, the network automatically verifies all storage proofs once they are uploaded. 

The decentralized file storage uses open-source code software to avoid centralized architecture. As a result, it does not depend solely on its servers to ensure the network stays afloat. 

The decentralized finance industry is one of the target audiences for this form of file storage as it offers them cheaper, faster, and more efficient options. Some decentralized file storage software buys extra storage capacity from traditional cloud services to maximize the output of unused resources. This method allows the providers to compete for workloads, resulting in lower costs for developers and end-users of a product. 

Some decentralized file storage networks do more than just store data; they also provide data ownership and privacy for users. They allow data owners to log in and create accounts with an email or social authentication, store encrypted files, and share with a trusted network. The decentralized file storage handles user data management and access without relying on centralized servers.

Decentralized storage solutions ensure users stay in control while effortlessly keeping their data safe. Furthermore, security breaches are almost impossible since the hacker would need to decipher the cryptographically encoded data from several storage nodes simultaneously. And if they do succeed in cracking the code, they'd only have fragments of the data. 


Q: What is decentralized file storage?

A: Decentralized file storage is an application of blockchain technology that allows users to store data and information across multiple computers or nodes. It reduces the reliance on large centralized data silos such as the cloud. 

The system utilizes a peer-to-peer (P2P) network of operators, each of them holding tiny encrypted portions of the complete data. Also, it offers numerous advantages over cloud-based storage networks. 

Q: How does decentralized file storage work?

A: Decentralized storage involves storing data or information across multiple nodes. These nodes are then connected on a decentralized peer-to-peer network. Users can download any file from a decentralized storage system by downloading various fragments of the file from the P2P network. 

Decentralized file storage can either use any P2P network or a blockchain-based system. It then splits users' files into several small chunks of data, also known as "blocks." These blocks are encrypted with public-private keys or a unique hash and distributed across different nodes or computers. This distribution process is called "sharding."

The blockchain-based storage system does not store user data; instead, it encourages user groups to join the network, store and host servers. 

Q: What are the benefits of decentralized file storage?

A: The benefits of this storage form include increased security and privacy, load balancing, high reliability, lower costs, fair market price, increased speed, and more.

One of the essential benefits of decentralized file storage is the high security and privacy it affords users. Data is broken into smaller chunks during the process, with each portion encrypted separately using public-private keys or hashes. This method protects users' private information from bad actors. 

Load balancing reduces the burden on a server while also easing network traffic. Servers can also optimize and allocate data to remove any bottlenecks within the central system resources. 

The decentralized network distributes and stores data on multiple hosts in the system, creating data redundancy in the case of hardware failure. The saved copies serve as a backup when necessary. 

The overall cost of storage is notably lower than that of the centralized system since it reduces the requirements for machine performance. Decentralized storage eliminates the need for high-performing hardware and software. 

And lastly, thanks to P2P technology, decentralized storage systems provide users with faster download speed. 

Since data is stored at multiple locations, the network supports increased speed even during peak traffic hours. 

Q: How do you create a decentralized file storage economy?

A: When users start a new operation, they need to set a transaction fee that incentivizes the miners to generate a new block. Several miners compete, with the winner mining and collecting the transactional data accumulated by the user. The miner also receives a token as a bonus. 

A commercially viable economy requires that the transaction fees are low enough for network transactions, and the incentives are appealing for miners to mine new blocks. A decentralized file storage economy is successful when every user profits in one way from the market setup. 

Q: How is decentralized file storage different from blockchain?

A: While several products rely on the blockchain network to support their storage strategies, decentralized file storage is quite different from the blockchain. Both of them can exist without the other. Some decentralized storage networks focus mainly on privacy, while others are designed for peak data performance. 

One particular decentralized storage file does not use any blockchain technology or public ledger, making it easier to scale the network without synchronizing ledger data across nodes. 

Q: What protocol does decentralized file storage use?

A: Decentralized file storage uses the InterPlanetary File System (IPFS) to store and share data in a distributed file system. 

Q: Is decentralized file storage cheaper?

A: Yes, because decentralized file storage does not have an upfront investment in data centers to get the network service running. 

Predictions show the storage would become more affordable in the future since the network better utilizes local dynamics and excess capacity than centralized data centers. And, when the network grows and more drives and bandwidth are added, decentralized file storage can select the most efficient data route instead of relying on the centralized model. 

And since multiple users are involved in the file-sharing process, as opposed to the three major players, decentralized economics favor the developer and end-user. 

Q: Why is decentralized storage important?

A: Decentralized file storage is essential because it allows users to store and share files efficiently without relying on centralized cloud storage systems.

Centralized storage users experience a lack of control and ownership of their data as the host can monitor, censor, or even disclose crucial information to third parties. Cloud users also face higher data breaches and security risks, low transmission speed due to servers in remote areas, and increased storage costs. 

Decentralized file storage eliminates most of the problems and threats centralized storage poses to users. In addition, it has a high-reliability rate, increased speed, lower costs, and fair market pricing.

Q: Is cloud computing decentralized?

A: Presently, cloud computing is mainly dominated by centralized tech companies, although there might be an alternate path in the future. Decentralized file storage is the natural next step towards blockchain evolution as it amplifies user performance while preserving internet privacy.  

Q: Is decentralized file storage more secure?

A: Yes, decentralized storage systems offer users a high level of security. Data is broken into smaller chunks and encrypted using public-private keys or hashes. And, none of the user's personal information is left on the saved data, unlike with centralized systems. 

Q: Does decentralized file storage balance load better, and is it more reliable?

A: Yes, decentralized file storage systems are highly reliable and follow the principle of load balancing. 

The network's hosts can cache frequently used data locally without accessing the server repeatedly. This optimization process helps ease network traffic and reduce the burden on the server. The server also eliminates bottlenecks within the central system resources by allocating and optimizing data. 

Decentralized storage is more reliable since the files are distributed and stored on multiple hosts in the network. The system makes copies of the original data in case of hardware failure or any other form of loss and presents them when necessary. 

Additionally, the sharded data chunks are separately encrypted with a unique hash to provide an extra layer of protection from intruders. 

Q: Does decentralized file storage transmit data faster?

A: Yes, it does. Thanks to peer-to-peer technology, data transmissions do not happen on a central server, unlike centralized cloud storage. Multiple copies of user data are stored in different locations across the globe, which results in faster downloads. 


Decentralized file storage is the natural next step towards blockchain evolution. The technology amplifies user performance while preserving internet privacy. It breaks data into smaller fragments, encrypts, and scatters them across multiple file-based storage systems instead of storing it in one place on the cloud. 

The network employs blockchain technology to maintain data integrity. Decentralized file storage affords users increased security and privacy, high reliability, lower costs, fair market price, increased speed, and more.