How Blockchain Technology Makes File Storage More Convenient and Cost-Effective – Cryptopolitan
Storing files on the blockchain is an important topic of discussion among blockchain enthusiasts and developers. Although it is technically possible to store files directly on the blockchain, it is not a practical approach due to high costs and storage capacity limitations. Let’s explore alternative solutions to store files in a decentralized and cost-effective way using blockchain technology.
Why it is not possible to store files directly on the blockchain
Storing files directly on the blockchain may seem like a logical solution for decentralized file storage, but it is not practical. There are several reasons why it is not possible to store files directly on the blockchain.
First, storing files on the blockchain can be incredibly expensive. Blockchain transactions are processed using “gas”, which is a fee paid to the network to perform a transaction. The cost of storing a file on the blockchain will be proportional to the size of the file. For example, storing a 1MB file on the Ethereum blockchain would cost around $57,332.91 in gas fees alone at the time of writing this article, which is not a viable option for most users.
In Ethereum, the block size is not determined by the maximum size limit, but rather by the gas limit. The gas limit is the maximum amount of gas (or energy units) a user needs to complete the transaction. A higher gas limit means more work is required to complete a transaction. This cost varies with the transactional workload on the Ethereum network.
For example, it takes approximately 640,000 gas to store 1 kilobyte of data in a block (at a standard gas price of 20,000). Ethereum has a current block limit of 15 million gas, which can be expanded to 30 million based on demand. Therefore, the block size in Ethereum can be up to 46 kilobytes, depending on the gas limit.
To give an example of the high cost of storing files on the blockchain, let’s take the Ethereum blockchain as an example.
The cost of storing 1 kb on Ethereum
Ethereum stores data in tracks. Each track is 256 bits in size.
According to Ethereum’s yellow paper, it takes 20,000 gas to store a single 256-bit track.
8 bits make up one byte, so one track is 32 bytes (256/8= 32 bytes).
1kb equals 1024 bytes, so it has 32 tracks (1024 bytes/32 bytes = 32 tracks).
The amount of gas required to store 1kb is 32 tracks*20,000 gas = 640,000 gas
To include the file in the call data transaction field will cost extra gas.
Each byte costs 16 gas, so the total is 32 slots * 32 bytes * 16 gas = 16,384 gas
The basic gas fee for any transaction is 21,000 gas
So the total gas required to store 1kb = 640,000 + 16,384 + 21,000 = 677,384 gas
1 gas is equal to 0.00000005 ETH
So storing 1kb costs 677,384 gas* 0.00000005 = 0.0338692 ETH
The current price of ETH is $1,787.57, so the cost to store 1kb would be $60.66
The cost of storing 1 MB on Ethereum
1 MB = 1,000,000 bytes
1,000,000 bytes / 32 bytes = 31,250 tracks
31,250 spaces * 20,000 gas = 625,000,000 gas
31,250 slots * 32 bytes * 16 gas = 16,000,000 gas for call data
The basic gas cost is 21,000 gas
Total gas = 625,000,000 + 16,000,000 + 21,000 = 641,021,000 gas
1 gas is equal to 0.00000005 ETH
So store 1MB it costs 641,021,000 gas * 0.00000005 ETH = 32.05105 ETH = $57,332.91
Obviously, this cost is prohibitive for most users and businesses, making storing files directly on the blockchain an unrealistic option. However, there are alternative methods of decentralized file storage that are more practical and cost-effective, which we will explore in the next section.
Store files in a decentralized manner
Decentralization is a fundamental concept in the blockchain world, and so is file storage. Decentralized file storage ensures that data is not stored in one central location, which can be a single point of failure. In a decentralized storage system, data is distributed across multiple nodes or computers, making it more secure and less vulnerable to attack or manipulation. This distributed architecture also ensures that no single entity has full control over the data, ensuring greater transparency and accountability.
In a decentralized file storage system, metadata plays a crucial role. Metadata is data that describes other data and provides context, making it easier to manage and find specific files. In the context of decentralized file storage, metadata typically includes information about the file’s location, access rights, and other attributes. The metadata is stored on the blockchain, making it immutable and transparent, ensuring that the data cannot be tampered with.
Although storing files directly on the blockchain is not possible due to high costs and technical limitations, storing a document’s hash on the chain while keeping the entire document elsewhere is a practical solution. The document can be stored in a centralized database or on a distributed file storage system, while the hash is stored on the blockchain. By putting the document through a secure hash algorithm such as SHA-256 and storing the hash in a block, the hash value becomes a unique digital fingerprint of the document. This approach saves a huge amount of space and cost, as hash values are far smaller than whole documents. Moreover, it ensures the integrity and authenticity of the original document, as any change in the input will result in a completely new hash value, different from the original document.
Decentralized storage networks
Decentralized storage networks offer a way to store data in a distributed and secure manner. Unlike traditional centralized storage services, which store data on a single server or data center, decentralized storage networks store data on a global network of nodes. This makes them less vulnerable to data breaches and data loss, as data is stored redundantly in multiple locations.
Examples of decentralized storage networks include Arweave, Filecoin, and Storj. These networks work by allowing users to rent out unused storage space in exchange for tokens or other rewards. When a user wants to save a file, it is split into several parts and distributed over the network of nodes. The data is encrypted and replicated across multiple nodes, ensuring that even if one node fails, the data is still available. Let’s explore Arweave and Filecoin more in the following sections.
Arweave
Arweave’s innovative approach to decentralized storage is called permaweb, a permanent and decentralized web built on top of Arweave. Permaweb consists of a set of modular and interchangeable protocols. It addresses the critical flaw of the traditional web, which is the lack of memory. When documents are removed from one server in the network, they are lost from the knowledge base. Permaweb on Arweave allows developers and users to share a resilient knowledge base that is replicated in large numbers worldwide, forever.
The base protocol of the permaweb is Arweave, which is powered by two fundamental components: a scalable blockchain-like structure that uses a new mining system and a sustainable endowment to ensure the availability and permanence of arbitrarily labeled data. This approach makes it possible to store large amounts of data in a decentralized manner without the high costs associated with blockchain storage. On top of the Arweave protocol is a decentralized network of gateway servers that make the data easily accessible to browsers without the need for modifications or special software.
By combining these elements, permaweb on Arweave provides a secure and decentralized storage solution designed to last for centuries. Unlike centralized storage solutions, which can be vulnerable to hacking and data breaches, permaweb provides a resilient and immutable storage system that is resistant to tampering and censorship. It’s no wonder that Arweave is quickly gaining recognition as one of the most promising decentralized storage networks on the market today.
Filecoin
Filecoin is a unique decentralized storage network that offers built-in financial incentives and cryptography to ensure that files are stored reliably over time. This system is built on top of the InterPlanetary File System (IPFS) protocol, which uses content addressing to allow permanent references to data and avoids relying on specific devices or cloud servers for addressing content. Filecoin extends the capabilities of IPFS by adding an incentive layer on top, incentivizing content to be reliably stored and accessed.
Filecoin operates through a peer-to-peer network where users pay to store their files with storage providers, which are computers responsible for storing files and proving that they have stored them correctly over time. The available storage and the price of that storage is not controlled by a single company. Instead, Filecoin facilitates open markets for storing and retrieving files that anyone can participate in. This ensures that storage costs are distributed evenly across the network, with no central authority controlling prices.
Filecoin has multiple uses including Web3 native NFT and metaverse/game asset storage, incentivized permanent storage and archiving of Web2 datasets as a cheaper alternative to cloud storage. For example, NFT.Storage uses Filecoin to provide a simple decentralized storage solution for NFT content and metadata, while the Shoah Foundation and the Internet Archive use Filecoin to back up their content. Also, Filecoin supports a wide range of data formats, including audio and video files, allowing Web3 platforms such as Audius and Huddle01 to leverage Filecoin as the decentralized storage backend for music streaming and video conferencing.
Best practices for decentralized file storage
When it comes to decentralized file storage, there are several best practices that should be followed to ensure data reliability, privacy and security.
First, it is recommended to store the metadata on the blockchain, while storing the file itself in a decentralized storage network such as Arweave or Filecoin. In this way, the metadata can be publicly available and verifiable on the blockchain, while the file itself is stored in a secure and decentralized manner.
Second, data redundancy is essential to ensure that the data is always available and reliable. By storing multiple copies of the file in different locations, the risk of losing the data due to a single point of failure is greatly reduced. Decentralized storage networks often have built-in redundancy mechanisms to ensure that data is always available.
Third, protection of privacy and security of data is of utmost importance. Encryption should be used to protect the data in transit and at rest. Access to the data should also be controlled to ensure that only authorized parties can access it. Decentralized storage networks often offer built-in encryption and access control mechanisms.
Best practices for decentralized file storage include storing metadata on the blockchain, using a decentralized storage network for the actual file, ensuring data redundancy for increased reliability, and protecting data privacy and security. By following these best practices, users can ensure that their data is stored securely and reliably.
Conclusion
Although it is possible to store files directly on the blockchain, the high cost and limitations in the amount of data that can be stored make it an impractical approach. Decentralized file storage networks such as Arweave and Filecoin offer a much more reliable and cost-effective method of storing files in a decentralized manner. By using a combination of storing metadata on the blockchain and the file itself on a decentralized storage network, data redundancy can be ensured for increased reliability. It is also important to prioritize data protection and security in the storage process.
As the blockchain industry continues to grow, decentralized file storage is becoming more and more widespread. It is important to understand the limitations of traditional file storage methods and to explore and exploit the various decentralized storage networks available for secure and reliable file storage. With the right approach and tools, decentralized file storage can provide a more robust and secure storage solution for both individuals and businesses.
