I've been reading about Ethereum and it's fundamentals for a while now. I wonder what is difference between Ethereum and InterPlanetary File System ?


In simplest terms: Ethereum is a blockchain based smart contract platform, while IPFS is a distributed, content-addressed file system.





It's like Bitcoin and Bittorent. One is blockchain, another is peer-to-peer file sharing distributed system.

Ethereum is like a foundation with it's own currency Ether1. Foundation gives you an ability to build your own decentralized applications using Smart Contracts. There is a myriad of use cases for it.

Ipfs in many cases is used alongside Ethereum because data storage is very expensive in blockchain, but storing hash (ipfs address) is much cheaper and ipfs file system is distributed.

1. Developers and users can not only exchange this currency, but use it to pay for any computations which occur during interaction or deployment of Smart Contract.


Ethereum is a blockchain technology which uses IPFS under the hood for it's decentralised and distributed needs like global broadcast of transactions,blocks and saving those mined blocks on their respective nodes. For this type of storage needs, Ethereum uses customised IPFS and other protocols like libP2P.

  • Hi there. The way you've explained this is misleading. Ethereum doesn't use IPFS for any of the things you've described. IPFS is a distributed filesystem that can be used for storing files which can then be later referenced in smart contracts. IPFS isn't required to run an Ethereum node - all chain data is stored locally on the node (IPFS would be far too slow... ). – Richard Horrocks Jan 23 '20 at 9:26
  • Yeah I got you. I know how IPFS works and there is project which got separated called as IPLD which is used for describing links between content-addressed data, like in Ethereum blocks.So I thought deep down ethereum uses IPFS.I might be wrong but thanks for correcting me, @RichardHorrocks. – Sandeep Yadav Jan 23 '20 at 13:01

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