What you must know about IPFS & Pinata NFT hosting services

Highlights

• InterPlanetary File System is also a distributed storage network, however, it is not exactly like a blockchain
• Pinata enables NFT storage on the IPFS network, and it charges a fee for these services
• Not all NFT projects have tasted success, and there are many examples of NFTs having failed to leave a mark

Is blockchain, which powers cryptocurrencies, the only network that provides decentralisation features? The answer is ‘no’. Multiple other technologies -- including the Hyperledger project, which counts backers like IBM, are working to distribute the control over any network in their own unique ways.

Another technology, which is seemingly similar to blockchain, is the InterPlanetary File System or the IPFS. One of the service providers in this space is Pinata, which describes itself as a content delivery network (CDN). Today, let us explore IPFS technology, and also understand what players like Pinata do in the non-fungible tokens (NFTs) sector.

What is IPFS?

The IPFS is considered a peer-to-peer network, where files are stored and can be accessed in a distributed system. It can be understood as a storage network, which is powered and run by peers who can be widely distributed geographically. By one measure, the IPFS is not exactly a blockchain network. It is instead a way to unify the data that is available on multiple blockchain networks.

The IPFS is considered a public network with distributed hash tables or DHTs, which make the stored content publicly viewable. Sometimes viewed as Filecoin, which is another distributed storage network, the IPFS differs slightly as it also allows the movement of stored content.

What is Pinata?

Pinata is an IPFS market participant, which claims to provide faster content sharing and request services. It also enables customisation through a branded domain for the user. Pinata NFT service, which allows the user to share the digital asset on Twitter, Instagram, and other social networks, is the key highlight. Pinata enables the hosting of NFT assets on the IPFS, which adds a metadata feature to the asset.

The company, which reportedly raised US$21.5 million funding earlier this month, bills itself as a Web 3.0 content storage enabler.

Is Pinata NFT safe and viable?

There are contrasting views. Some analysts think that Pinata adds IPFS features, which can help generate a content identifier (CID) to check the authenticity of an asset. However, some point out that Pinata is “not viable” in the longer term, particularly due to the high fee charged for its services.

Are NFTs valuable?

Spending money on Pinata NFT services makes sense when the user anticipates earning from the digital asset. However, not all NFTs are valuable and there are abundant projects that have failed to repeat the success of BAYC or CryptoPunks. Separately, some of Beeple’s NFTs like Everydays are very costly, however, Beeple’s collaboration with singer Madonna could not repeat the same success.

Also read: What is Pudgy Penguins NFT collection? Is it expensive?

Bottom line

IPFS technology and players like Pinata have yet to prove their viability in the long term. NFT support provided by Pinata can be availed by paying a fee, which some feel is quite high.

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