Crypto Terms:
Letter I
What is InterPlanetary File System (IPFS)?
Meaning:
InterPlanetary File System (IPFS) -
a peer-to-peer distributed file system that relies on a blockchain-like structure to store and share information.
Let's find out InterPlanetary File System (IPFS) meaning, definition in crypto, what is InterPlanetary File System (IPFS), and all other detailed facts.
The InterPlanetery File System (IPFS) is the first completely distributed and decentralized file system that relies on a blockchain-like structure to store and share information. Traditionally, information is stored on web servers with a specific location.
Blockchain-like structure means that IPFS works in the same way as a blockchain-based network of nodes does, where all data is exchanged and distributed through the nearest possible source. Thus, IPFS enables users to access content from the nearest available peer results in increased speed of access and information security.
For instance, if you want to visit a Wikipedia page, traditionally you would type in an HTTP address in a web browser which would forward you to a page hosted on one of Wikipedia’s servers. If you want to visit the same page through IPFS Gateway, you would be forwarded to that page through the nearest computer that recently accessed it.
One of the main benefits of IPFS is that it relies on content addressing to recall relevant information rather than accessing it through a specific location as it is with traditional file systems.
To put it simply, imagine that you go to a library and ask for a book by its title – this would be like content addressing. However, if you go to a library and ask for a book that’s located on the 5th row of aisle 9, it would be like location-based searching. Thus, IPFS relies on relevant content keywords to search for information rather than a specific location it is stored in.
Because of its versatility and security, IPFS is quickly becoming the industry standard in blockchain projects. IPFS has become an important tool for non-fungible token (NFT) marketplaces to store information about the items they publish.
cryptocurrencies, the <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-token/">token’s intrinsic value is also influenced by the company or people behind the project, as well as the goal of the project. For instance, the creator of <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//who-is-satoshi-nakamoto/">Satoshi Nakamoto<\/strong><\/a>, is <strong>an intriguing character<\/strong> about whom we barely know anything. That could affect the intrinsic value of Bitcoin in a bad way, however, the goals of Bitcoin wield enormous power which pushes the token’s intrinsic value upward.<\/p>\n<p>Because of the numerous factors that can influence the construction of an asset's intrinsic value, it is a pretty abstract number. Therefore, financial analysts have complex algorithms to calculate it as precisely as possible. However, in <strong>the crypto world<\/strong>, it might be a bit harder to determine the token’s intrinsic value but, with the right amount of research, it’s not impossible.<\/p>","definition":"the actual worth of an asset, based on its recent performance and other factors affecting it in the long term.","status":"published","meta_title":"What is Intrinsic Value? Definition & Meaning | Crypto Wiki","meta_description":"Intrinsic Value meaning: Intrinsic Value - the actual worth of an asset, based on its recent performance and other factors affecting it in the long term.","meta_keywords":null}"
:prev-section="{"id":415,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/Interoperability","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2024-01-03T03:28:32.000000Z","slug":"what-is-interoperability","title":"What is Interoperability?","section":"I","keyword":"Interoperability","content":"<p><strong>Blockchain interoperability<\/strong>, also known as <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-cross-chain/">cross-chain interoperability, is the capability to see and share data from several blockchains. It’s beneficial because you can trade assets across multiple blockchains without the need for a <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-decentralized-exchange-dex/">decentralized, <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-custodial/">custodial exchange. Interoperability allows users to <strong>transact across different platforms<\/strong>, thus it helps with the development of a blockchain. Cross-chain bridges can also contribute to increased liquidity on a blockchain.<\/p>\n<p>In simple terms, cross-chain bridging allows moving assets between different blockchains. However, not all bridges operate on the same principles and have the same level of security - each bridging platform will be different, and that's something that should be kept in mind!<\/p>\n<p>Even though there are several blockchain interoperability solutions on the market (such as Polkadot, which is known for its unique structure of relay chains and parachains, or Cosmos - the so-called \"internet of blockchains\"), more are needed to connect different blockchains like <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-bitcoin-btc/">Bitcoin and <a href=https://www.bitdegree.org/"https:////www.bitdegree.org//crypto//buy-ethereum-eth/">Ethereum. One of the well-known solutions is wrapped tokens (or proxy tokens).<\/p>\n<p>The most popular wrapped token at the moment is <strong>Wrapped Bitcoin (WBTC)<\/strong>. However, with wrapped tokens, you’ll need to have a trusted <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-custodian/">custodian to hold your funds or develop a safe mint\/burn protocol to assure a stable supply of your <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-crypto-asset/">crypto assets<\/strong><\/a>.<\/p>\n<p>People might use cross-chain bridges for multiple reasons, including (but not limited to):<\/p>\n<ul class=\"pros-check\">\n<li>Trying out exclusive dApps;<\/li>\n<li>Searching for lower fees;<\/li>\n<li>Looking for airdrops;<\/li>\n<li>Exploring yield programs;<\/li>\n<li>Cross-chain messaging.<\/li>\n<\/ul>\n<p>One of the projects working on a native blockchain interoperability solution is Komodo. They developed <strong>a decentralized exchange<\/strong> that is compatible with 99% of cryptocurrencies called <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-atomicdex/">AtomicDEX. In this decentralized exchange, interoperability is created through <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-atomic-swap/">atomic swaps<\/strong><\/a>, which are safe exchanges of digital assets between individuals using non-custodial wallets. AtomicDEX offers native cross-chain trading, which eliminates the need for wrapped tokens.<\/p>\n<p>It's worth pointing out that cross-chain interoperability faces many challenges, too. These include, but are not limited to:<\/p>\n<ul class=\"pros-check\">\n<li>Transaction speeds;<\/li>\n<li>Hack potential;<\/li>\n<li>Scalability issues;<\/li>\n<li>Lack of standardized protocols;<\/li>\n<li>Diverse blockchain architectures.<\/li>\n<\/ul>\n<p>While not all cross-chain solutions are built to support every blockchain platform, these are challenges that all of those solutions still face, nonetheless.<\/p>\n<p>When it comes to using an actual cross-chain bridge, the process would typically look something like this:<\/p>\n<ol>\n<li>Navigate to the bridge page;<\/li>\n<li>Select the network \/ tokens that you want to bridge;<\/li>\n<li>Pass through confirmations when needed, approve spending;<\/li>\n<li>Confirm the transaction on the source network;<\/li>\n<li>Claim the transactions on the destination;<\/li>\n<li>Access your assets (coins or tokens) on the destination chain.<\/li>\n<\/ol>\n<p>The process is rather straightforward on paper, but can differ a bit, depending on the bridge that you plan to use. The core steps, however, should always remain similar.<\/p>","definition":"the capability to see and share data from several blockchains.","status":"published","meta_title":"What is Interoperability? Definition & Meaning | Crypto Wiki","meta_description":"Interoperability meaning: Interoperability - the capability to see and share data from several blockchains.","meta_keywords":null}"
:model="{"id":422,"wikipedia_url":"https:\/\/en.wikipedia.org\/wiki\/InterPlanetary_File_System","level":"easy","author_id":1,"created_at":"2023-06-19T06:58:59.000000Z","updated_at":"2024-01-03T03:38:55.000000Z","slug":"what-is-interplanetary-file-system-ipfs","title":"What is InterPlanetary File System (IPFS)?","section":"I","keyword":"InterPlanetary File System (IPFS)","content":"<p><strong>The InterPlanetery File System (IPFS)<\/strong> <strong>is the first completely distributed and decentralized file system that relies on a blockchain-like structure to store and share information.<\/strong> Traditionally, information is stored on web servers with a specific location.<\/p>\n<p>Blockchain-like structure means that IPFS works in the same way as a blockchain-based network of <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-node/">nodes does, where all data is exchanged and distributed through the nearest possible source. Thus, IPFS enables users to access content from the nearest available peer results in increased speed of access and information security.<\/p>\n<p>For instance, if you want to visit a Wikipedia page, traditionally you would type in an <a href=https://www.bitdegree.org/"https:////en.wikipedia.org//wiki//Hypertext_Transfer_Protocol/" target=\"_blank\" rel=\"nofollow noindex noopener\"><strong>HTTP address<\/strong><\/a> in a web browser which would forward you to a page hosted on one of Wikipedia’s servers. If you want to visit the same page through IPFS Gateway, you would be forwarded to that page through the nearest computer that recently accessed it.<\/p>\n<p>One of the main benefits of IPFS is that <strong>it relies on content addressing to recall relevant information<\/strong> rather than accessing it through a specific location as it is with traditional file systems.<\/p>\n<p>To put it simply, imagine that you go to a library and ask for a book by its title – this would be like content addressing. However, if you go to a library and ask for a book that’s located on the 5th row of aisle 9, it would be like location-based searching. Thus, <strong>IPFS relies on relevant content keywords<\/strong> to search for information rather than a specific location it is stored in.<\/p>\n<p>Because of its versatility and security, IPFS is quickly becoming the industry standard in blockchain projects. IPFS has become an important tool for <a href=https://www.bitdegree.org/"//crypto//learn//crypto-terms//what-is-non-fungible-token-nft/">non-fungible token (NFT)<\/strong><\/a> marketplaces to store information about the items they publish.<\/p>","definition":"a peer-to-peer distributed file system that relies on a blockchain-like structure to store and share information.","status":"published","meta_title":"What is InterPlanetary File System (IPFS)? Definition & Meaning | Crypto Wiki","meta_description":"InterPlanetary File System (IPFS) meaning: InterPlanetary File System (IPFS) - a peer-to-peer distributed file system that relies on a blockchain-like structure to store and share information.","meta_keywords":null,"author":{"id":1,"user_id":1,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2023-05-11T07:18:20.000000Z","title":"Editor-In-Chief","slug":"aaron-s-editor-in-chief","description":"<p>Having completed a Master’s degree on Economics, Politics & Culture for the East Asia region, Aaron has written scientific papers with a comparative analysis of the differences between US’ Western and Japan’s Collective forms of capitalism, 1945-2020.<\/p>\n<p>With close to a decade of experience in the FinTech industry, Aaron understands all of the biggest issues and struggles that crypto enthusiasts face. He’s a passionate analyst who is concerned with data-driven and fact-based content, as well as that which speaks to both Web3 natives and industry newcomers.<\/p>\n<p>Aaron is the go-to person for everything and anything related to digital currencies. With a huge passion for blockchain & Web3 education, Aaron strives to transform the space as we know it, and make it more approachable to complete beginners.<\/p>\n<p>Aaron has been quoted by multiple established outlets, and is a published author himself. Even during his free time, he enjoys researching the market trends, and looking for the next supernova.<\/p>","user":{"id":1,"first_name":"Aaron","last_name":"S.","email":"aaron@bitdegree.org","email_sanitized":"aaron@bitdegree.org","email_verified_at":"2023-12-01T09:40:20.000000Z","must_verify_email":false,"is_registered_with_wallet":false,"status":"active","country":"LT","last_connected_ip":"88.119.132.125","image_id":2641,"referral_token":"05TMu2NysXOCn525","referred_by":null,"created_at":"2023-05-03T14:30:55.000000Z","updated_at":"2024-01-09T15:22:21.000000Z","full_name":"Aaron S."}}}"
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Standards","status":"published","modified_content":null},{"chapter_id":3,"order":5,"slug":"how-to-buy-crypto","title":"From Fiat to Crypto: How to Buy Crypto for the First Time","status":"published","modified_content":null},{"chapter_id":3,"order":6,"slug":"fiat-to-crypto","title":"Taking Profits: Turning Crypto Into Fiat","status":"published","modified_content":null},{"chapter_id":3,"order":7,"slug":"how-to-use-crypto","title":"You\u2019ve Got Crypto: What Can You Do With It?","status":"published","modified_content":null}]},{"id":4,"title":"Crypto Wallets","slug":"crypto-wallets","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-crypto-wallets.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-wallets-101.jpg","rating":80,"sections":[{"chapter_id":4,"order":1,"slug":"what-is-a-crypto-wallet","title":"What is a Crypto Wallet?","status":"published","modified_content":null},{"chapter_id":4,"order":2,"slug":"hot-wallet-vs-cold-wallet","title":"Hot Wallet VS Cold Wallet: Which One to Pick?","status":"published","modified_content":null},{"chapter_id":4,"order":3,"slug":"non-custodial-wallet","title":"What are Non-Custodial Crypto Wallets?","status":"published","modified_content":null},{"chapter_id":4,"order":4,"slug":"what-is-metamask","title":"Metamask: The Leading Non-Custodial Wallet","status":"published","modified_content":null},{"chapter_id":4,"order":37,"slug":"how-safe-is-cryptocurrency","title":"The Key Crypto Wallet Safety Practices: How Safe Can Crypto Be?","status":"published","modified_content":null}]},{"id":5,"title":"NFTs","slug":"nfts","updated":null,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-nfts.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/nfts-101.jpg","rating":100,"sections":[{"chapter_id":5,"order":2,"slug":"how-to-trade-nfts","title":"NFT Trading: The Ins and Outs","status":"published","modified_content":null},{"chapter_id":5,"order":3,"slug":"buying-nft","title":"Tips and Tricks of Choosing the Right NFTs","status":"published","modified_content":null},{"chapter_id":5,"order":4,"slug":"how-to-store-nft","title":"How to Store NFTs: Best Practices","status":"published","modified_content":null},{"chapter_id":5,"order":5,"slug":"how-to-create-an-nft","title":"How to Create Your Own NFTs?","status":"published","modified_content":null},{"chapter_id":5,"order":6,"slug":"how-to-make-passive-money-with-nft","title":"Making Passive Money with NFTs","status":"published","modified_content":null}]},{"id":6,"title":"dApps & Defi","slug":"dapps-and-defi","updated":true,"chapter":"crypto\/assets\/crypto-book\/chapters\/learn-dapps.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/dapps-defi-101.jpg","rating":80,"sections":[{"chapter_id":6,"order":1,"slug":"what-are-nfts","title":"What are Non-Fungible Tokens 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Mining?","status":"published","modified_content":null},{"chapter_id":9,"order":3,"slug":"what-is-staking-crypto","title":"An Advanced Look into What is Staking Crypto","status":"published","modified_content":null},{"chapter_id":9,"order":4,"slug":"what-is-proof-of-stake-vs-proof-of-work","title":"Proof-of-Work VS Proof-of-Stake: The Differences That Matter","status":"published","modified_content":null},{"chapter_id":9,"order":5,"slug":"what-is-crypto-mining-rig","title":"Crypto Mining Rig: What It is and How to Build One?","status":"published","modified_content":null}]},{"id":10,"title":"Crypto Terms","updated":false,"chapter":"crypto\/assets\/crypto-book\/chapters\/crypto-101-glossary.jpg","chapter_simple":"crypto\/assets\/crypto-book\/chapters-simple\/crypto-glossary-101.jpg","rating":100,"sections":["A","B","C","D","E","F","G","H","I","J","K","L","M","N","O","P","Q","R","S","T","U","V","W","X","Y","Z"]}]"
current-chapter="I"
current-section="what-is-interplanetary-file-system-ipfs">
