Library · Crypto, word by word · Infrastructure and development
What is decentralized storage?
Decentralized storage keeps files on a network of independent computers instead of one company's servers. Blockchains store little data because it is expensive, so images, documents and app files usually live on such networks, with only a hash or link recorded on chain.
What it means for you
An NFT or token can point to files stored off chain; what you own is an on-chain record with a link, and if nobody keeps storing the file, the link can break. Check where a token's image or metadata actually lives, and whether that storage is paid for, permanent, or just pinned by someone who may stop.
How it works
Ethereum is not designed to hold large amounts of data: storage is limited and gas fees make it expensive. Decentralized storage networks persist data in two broad ways. Blockchain-based systems keep data as part of a chain that every node must account for, which raises scaling questions. Contract-based systems pay a set of nodes to keep data for a set period and record on chain only a hash of where it is. Many use challenge mechanisms in which nodes must prove they still hold the data or face penalties. Content-addressed networks without built-in incentives rely on pinning services to keep files available.
Source: ethereum.org: Decentralized storage · checked 4 October 2026
Related words
Educational content, not financial advice. Written by hand and checked against the source named above. Something wrong? Tell us and we reply within two business days.