Photo: Moralis, all right reserved.

The infamous blockchain scalability issue might be permanently solved by zero-knowledge proofs (ZKPs), which are described in great length in my recent publication. They can offload the main layer-1 network and increase transaction throughput. Using ZKP encryption, some businesses are already developing scalability solutions. You may be familiar with zkSync, Loopring, or Starknet; their teams recently revealed their milestones, sparking a heated discussion regarding scalability.

Zero-Knowledge Rollups Reminder

Photo: David Becker, all right reserved.

Zero-knowledge rollups (ZK-rollups) bundle many layer-2 transactions that were executed off-chain and submit them as one transaction onto Ethereum, while generating a cryptographic proof. Unlike Optimistic rollups which assume transactions are valid until proven otherwise, ZK-rollups use those validity proofs to instantly prove if transactions are valid or not. The status of all transfers on layer-2 is maintained by the ZK-rollup smart contract, and this state can only be altered with a validity proof. This implies that instead of entire transaction data, ZK-rollups merely require the validity evidence. Because less data is supplied in a ZK-rollup, verifying a block is faster and less expensive. With a ZK-rollup, there are no delays when moving funds from layer-2 to layer-1 because a validity proof accepted by the ZK-rollup contract has already verified the funds.

STARKs vs SNARKs

The cryptographic proof submitted on layer-1 can be in the form of SNARK (Succinct Non-interactive Argument of Knowledge) or STARK (Scalable Transparent Argument of Knowledge). ZK-SNARKs are so-called because they possess the following qualities:

- Succinct: the proof can be easily confirmed and is far smaller than the data it represents.

- Non-interactive: there is no back-and-forth communication between the prover and verifier because only one set of data is sent between them.

- Argument: A SNARK is a “computationally sound” statement that satisfies rigorous requirements, making it difficult to cheat (i.e., generate false proofs).

- Knowledge: SNARK-based proofs cannot be created with access to the underlying information.

The T* *present in the STARK name stands for transparent. It replaces the non-interactive property.

STARKs, unlike SNARKs, do not require trusted setup.

The meaning of S* *is changed from succinct to scalable, signifying that STARKs can be even more scalable than SNARKs.

Photo: Altoros, all right reserved.

SNARKs: the Importance of Trusted Setup

Photo: Cytonn Photography, all right reserved.

ZK-SNARKs uses Elliptic curve cryptography (ECC) which is a kind of encryption technology that generates secure cryptographic keys using elliptic curve properties.

Photo: Avinetworks, all right reserved.

The initial generation event that creates the credentials needed for private transactions and the keys required to verify those credentials is called trusted setup. When such a key is initially created, a secret parameter is assigned between the verification key and the key that carries the private transaction.

Suppose the secrets used to construct these keys during the trusted setup event are not compromised. In that case, they might be used to manufacture trades via fake verifications, allowing the holder to do things like produce new tokens out of thin air and use them in transactions. But, of course, there would be no method of verifying that the tokens made out of thin air were indeed brought into existence due to the privacy characteristics of ZK-SNARKs. Having said that, developers should only use the trusted setup once at the beginning. As a result, users of SNARK-based networks must trust that the trusted setup has been performed correctly, which means that the secret associated with the trusted setup key has been destroyed and is no longer in the possession of the people who attended the ceremony. The reliance on settings has been one of the main reasons for disagreement among SNARK critics.

Photo: fcats-blockchain-incubator, all right reserved.

What advantages do ZK-SNARKs offer?

1. High throughput

Throughput is increased via ZK-SNARKs by reducing processing on Ethereum’s base layer. The transaction data that a ZK-SNARK verifies is typically greater than the actual SNARK proof. Consequently, the underlying blockchain is less congested, then, faster transactions and lower gas costs are made possible.

2. Small proof dimensions

SNARK proofs are simple to verify on the main chain due to their moderate size. On Ethereum, this translates to decreased gas costs for off-chain transaction verification, lowering rollup costs for users.

3. Safety

The cutting-edge cryptographic security procedures employed in ZK-SNARKs are the primary reason why ZK rollups are regarded as being more secure than other scaling projects. Computationally sound, ZK-SNARK evidence makes it challenging to mislead verifiers and engage in malevolent behaviour.

What drawbacks do ZK-SNARKs have?

1. Trusted setup problem

To set up the ZK-SNARK protocol, public parameters must be created, they enable private communication between provers and verifiers. A malicious actor may produce erroneous validity proofs if they were aware of the public parameters. Some projects attempt to solve this problem by using multi-party computation (MPC), which involves different individuals, to generate the public parameters. Nevertheless, this strategy necessitates that users have faith in all parties’ honesty. Given that blockchains are meant to remove the need for authority trust, this is a big challenge.

2. Exposure to quantum computing threats

At its core, ZK-SNARKs rely on elliptic curves for security to provide validity proofs. However, elliptic curves are utilized in cryptography upon the presumption that it is impossible to calculate the discrete logarithm of a random elliptic curve element with regard to a publicly known base point. Although Elliptic Curve Cryptography (ECC) is very secure, advances in quantum computing could undermine its security architecture.

STARKs: Another Level of Zero-Knowledge Proofs

Unlike SNARKs, STARKs’ core mechanism is based on hash functions. Using hash functions provides various advantages right away, such as being quantum resistant, or being less vulnerable to attack. Furthermore, there is no need for a trustworthy setup to start using STARKs in a network.

STARKs are safer thanks to this nuance, which takes away the danger of initial collaboration. Since researchers believe quantum computers could pose a threat to SNARK security in the future, it might become significant. Although STARKs are produced more rapidly, they require a lot more space and require more time to check. Yet, for large transaction batches, the amortized computation cost is still lower. Therefore, they allow us to scale more effectively.

Photo: *Ethworks; image courtesy of Alex Gluchowski, *all right reserved.

What are ZK-STARKs’ advantages?

1. No requirement for a reliable setup

ZK-STARKs rely on open randomness and do not need a trusted setup to work. As a result, trust assumptions on the part of users are reduced, and STARK-based protocol security is increased.

2. Scalable characteristics

When compared to SNARKs, STARKs can be computed and verified faster. However, even as the complexity of the underlying computation increases exponentially, ZK-STARKs maintain low proving and verifying times.

3. Maximum throughput

By providing secure and verifiable off-chain computation, STARKs, like SNARKs, can scale blockchains.

4. Enhanced security assurances

Instead of the elliptic curve encryption techniques used in ZK-SNARKs, collision-resistant hashes are employed in ZK-STARKs. This is thought to be more secure than the elliptic curves used in SNARKs since it is immune to quantum computing assaults.

What are the downsides of ZK-STARKs?

1. Larger proof sizes

While STARKs offer speedier proofs than SNARK-based proofs, the disadvantage is that these proofs are bulkier. Therefore, verifying STARK proofs on Ethereum is longer and more expensive due to the greater gas costs associated with computing larger proofs.

2. Reduced adoption

Since SNARKs were the first use of zero-knowledge technology in blockchains, they have a larger market share than STARKs. The developer environment and tooling for SNARK-based ZK proofs are larger, and ZK-SNARKs are used in the majority of ZK rollups. On the other hand, ZK-STARKs have less acceptance even though they have well-known backers like the Ethereum Foundation. Thus, developers may encounter less assistance and tooling while creating ZK projects using STARKs.

Photo: Hackernoon, all right reserved.

References

⁃ Know The Difference Between ZK-SNARKs vs ZK-STARKs* -**** ***March 23, 2022 - by smita.verma - (https://www.blockchain-council.org/blockchain/ZK-SNARKs-vs-ZK-STARKs/)

⁃ ***SNARKs vs STARKs - Understanding the Difference - ***November 20, 2021 - by Gaurav (Coincodecap) - (https://coincodecap.com/snarks-vs-starks-difference)

⁃ ***STARKs vs SNARKs vs Recursive SNARKs - ***May 27, 2022 - by Alchemy - (https://www.alchemy.com/overviews/snarks-vs-starks)

⁃ ***What Are ZK-SNARKs? - ***Zcash - (https://z.cash/technology/zksnarks/)

⁃ Zero-knowledge Proof: STARKs vs SNARKs?* -**** ***May 18, 2021 - by Mattison Asher, Coogan Brennan - (https://consensys.net/blog/blockchain-explained/zero-knowledge-proofs-starks-vs-snarks/)

⁃ ***What is ZK-STARK? - ***by Starkware - (https://starkware.co/stark/)

Web3 developers have the choice between state channels, optimistic rollups, or zero-knowledge (ZK) rollups under the category of layer 2 Ethereum scaling options. ZK-rollups are becoming increasingly popular as a scaling option for Ethereum, with the potential to substantially cut transaction costs and time. ZK-rollups use zero-knowledge proof which we will dive into in this post.

What is Zero-Knowledge Proof?

Photo: Golden, all right reserved.

A zero-knowledge proof is a cryptographic method for proving that something is acknowledged without explicitly exposing the known information. It enables private data to be kept private throughout a transaction. Zero-knowledge proofs are indirect proofs that allow you to demonstrate that you know a secret without ever telling anybody else. You merely have to demonstrate that you are telling the truth.

The prover and verifier are the two most important roles in zero-knowledge proofs.

The prover must demonstrate that he or she is aware of the secret. The verifier must be able to determine whether or not the prover is lying. It works because the verifier asks the prover to perform actions that can only be done if the prover is certain that he or she is aware of the secret. If the prover is guessing, the verifier’s tests will finally prove him or her wrong. If the secret is known, the prover will pass the verifiers’ exam every time. Let’s see an example to illustrate this concept.

Alibaba Cave Example

The most prominent zero-knowledge proof example that demonstrates the reasoning utilized in the zero-knowledge proof cryptography technique is the Alibaba Cave. You must assume two characters in this example, Jessica and Owen. They are each on a quest and end themselves in a cave. They come upon two separate entrances to two different routes, A and B. Inside the cave, there is another door that connects the two paths. On one hand, Jessica knows the secret code to unlock the door and is thus assuming the position of ‘prover’. On the other hand, Owen wants to buy the code and plays the ‘verifier’. Owen wants to be sure Jessica is telling the truth about knowing the secret code to open the door. For this, Jessica must prove to Owen that she knows the code without actually revealing the contents in the code.

At this point, it is important to wonder how a zero-knowledge proof example would work here. First and foremost, Owen must wait outside the cave while Jessica enters by either way A or B.

After that, Owen approaches the cave’s mouth after Jessica enters the cave and cries out to her, begging her to exit down one of the trails.

If Jessica knows the secret code to open the door, then she would open the door and return through a path requested by Owen. When Jessica does not know the secret code, she might have to return back to the same path she selected to go inside. On the other hand, if Jessica exits the cave through the other side, then Owen can be sure that Jessica knows the code.

Owen may believe that Jessica passed the test due to her luck. In this case, it is obvious that the transaction has a 50% probability of both sides choosing the same course. Nonetheless, if the same transaction is repeated several times, the chances of Jessica departing by the same path as Owen without the secret code are greatly reduced. As a result, Jessica’s chances of exiting the cave via Owen’s chosen path are little to none if she does not know the code. Finally, this ZKP example indicates that Jessica could prove the veracity of her statement to Owen by repeatedly escaping the cave by the path she chose.

Zero knowledge traits are visible in the example as Owen cannot learn anything about the code. Owen stays out of the cave, thereby making it impossible for him to learn about the code. Therefore, Jessica could prove to Owen that she knows the code to the door without revealing it to him.

Properties of Zero-Knowledge Proof

Photo: Blockgeni, all right reserved.

• Zero-KnowledgeIf the statement is true, the verifier will not know that the statement or was. Here statement can be an absolute value or an algorithm.

• CompletenessIf the statement is true then an honest verifier can be convinced eventually.

• SoundnessIf the prover is dishonest, they cannot convince the verifier of the integrity of the proof.

The different types of zero-knowledge proofs

There are two main types of zero-knowledge proofs (ZKPs):

• Interactive zero-knowledge proofs: In this type of ZKPs, the prover and verifier interact several times. The verifier challenges the prover who provides replies to these challenges until the verifier is convinced.

• Non-interactive zero-knowledge proofs: Here, the proof delivered by the prover can be verified by the verifier only once at any time. This type of ZKPs requires more computational power than interactive ZKPs.

Applications and use cases of zero-knowledge proofs

Zero-knowledge proofs can be used to protect data privacy in a diverse set of use cases, such as:

• Blockchain: Zero-knowledge proofs can introduce more privacy to public blockchains. For instance, the cryptocurrency Zcash is based on Zero-Knowledge Succinct Non-Interactive Argument of Knowledge (Zk-SNARKs), a type of zero-knowledge cryptographic method that I will tackle in a future Medium article.

• Online voting: ZKPs can allow voters to vote anonymously and to verify that their vote was included in the final tally.

• Authentication: ZKPs can be used to authenticate users without exchanging secret information such as passwords.

Why Do We Need Zero-knowledge Proofs (ZKPs)?

Every day, we are pushed into circumstances where we must give up our privacy as most websites demand that we expose our personal information. Even though we all freely participate in these activities, many of these services have become indispensable, leaving us with no option in how we tackle privacy issues. As a culture, we have been virtually stripped of any decision-making control over how our data is used.

The lack of privacy has sparked a debate in recent years about what can be done to ensure that the sharing of information between two or more parties is kept to a minimum. The use of ZKPs opens up the possibility of greater independence.

References

⁃ ***What are Zero Knowledge Proofs? ***— May 12, 2020 — Matt Hussey — (https://decrypt.co/resources/zero-knowledge-proofs-explained-learn-guide)

⁃ ***ZERO-KNOWLEDGE ROLLUPS ***— May 23, 2022 — Corwin Smith — (https://ethereum.org/en/developers/docs/scaling/zk-rollups/)

⁃ Zero-Knowledge Proofs: STARKs vs SNARKs — Mattison Asher, Coogan Brennan — May 18, 2021 — (https://consensys.net/blog/blockchain-explained/zero-knowledge-proofs-starks-vs-snarks/)

⁃ ***Zero-Knowledge Proof: How it Works & Applications in 2022 ***— April 10, 2022 — Cem Dilmegani — (https://research.aimultiple.com/zero-knowledge-proofs/)

⁃ ***Zero Knowledge Proof ***— May 11, 2022 — GeeksForGeeks — (https://www.geeksforgeeks.org/zero-knowledge-proof/)

⁃ ***Fundamentals: What Are Zero-knowledge Proofs? ***— March 08, 2022 — Alex Bączkowski — (https://alephzero.org/blog/fundamentals-zero-knowledge-proofs/)

Layer 1: The Base Network of Blockchain

The blockchain ecosystem is expanding at never-before-seen speeds for any technology. There were just a few dozen cryptocurrencies almost a decade ago, but there are now a plethora of cryptocurrencies and blockchain networks. However, the scalability of blockchain networks is critical to their growth and utilization. This is where layer 1 (L1) blockchain solutions are required. So, what exactly do L1 blockchain solutions entail? In this post, we will go through the fundamentals of L1 in the blockchain realm, present layer 2 (L2) solutions, and how they work.

What Is Layer 1?

We must first consider blockchain scalability to comprehend L1 solutions. Despite offering users several advantages such as decentralization, high levels of security, and permanent record-keeping, blockchain technology has a few flaws. As its use grows more widespread, a slew of difficulties emerges. One of them is scalability, which relates to the system’s transaction throughput rate, and is measured in transactions per second (TPS). It is used to refer to a system’s capacity to deliver a quality experience to every user, regardless of how many users it has at any given moment. The need for blockchain layers has increased in conjunction with the growing use of cryptocurrencies. Such layers are required to ensure stronger network security and speed, as well as better record keeping and TPS. Consequently, L1 and L2 solutions are used to solve these problems.

The goal of L1 solutions is to enhance the fundamental protocol so that scalability may be achieved. While Bitcoin, Ethereum, and Litecoin are L1 blockchains, Lighting Network is a L2 solution designed to increase the Bitcoin network’s transaction speed. Contrary to L2, L1 solutions alter the rules of the blockchain protocol to boost transaction speed and capacity, allowing additional users and data to be accommodated. A L1 scaling solution, for example, might be used to speed up block confirmation or increase the amount of data in a block.

Types of Layer 1 Solutions

The 2 most common L1 solutions include the following:

Photo: Openledger, all right reserved.

• Consensus Protocol Changes, because some consensus protocols are more efficient than others, projects like Ethereum are transitioning from Proof of Work to** Proof of Stake**. The latter ensures higher speeds and is more energy-efficient than the former as it does not require minors to solve complex cryptographic algorithms and thus uses substantial computing power. Instead of Proof of Stake system processes and validates the new blocks of data based on the participant’s stake.

Photo: MongoDB, all right reserved.

• Sharding is one of the most popular L1 scalability methods and it is a mechanism that has been adapted from a distributed database. Through sharding, transaction sets are broken down into smaller pieces, known as shards, which are processed by the network in parallel. Since the workload is spread across the peer-to-peer network better, blocks are completed faster. Ethereum 2.0, Tezos, and Zilliqa are exploring the use of shards.

L1 solutions change how a blockchain’s fundamental protocol performs in terms of data processing, making it better. One of its benefits is that they do not require the addition of anything to the current infrastructure. Sharding and changes to the blockchain’s consensus process are two examples of such solutions. Nevertheless, not everything can be solved on L1.

Layer 2 Networks

Photo: Pixelplex, all right reserved.

Due to technological limitations, certain upgrades to the principal blockchain network are difficult or impossible to implement. Ethereum, for example, is migrating to Proof of Stake (PoS), but it has taken years. Some use cases just cannot work with L1 due to scalability issues. A blockchain game could not use the Bitcoin network because of the high transaction delays. Nonetheless, the game may wish to maintain L1’s security and decentralization. The best option is to employ a L2 solution which build on top of the base network. L2 apps rely on L1 to execute transactions and are built on top of it. Take, for example, Bitcoin and the Lightning Network. The L1 network is Bitcoin, whereas the L2 network is the Lightning Network. When there is a lot of demand on the Bitcoin network, transactions might take hours to process. Users can transmit Bitcoin payments off the main chain rapidly, with the entire balance being sent back to the main chain later. This essentially consolidates all transactions into a single record, saving time and resources.

What is Layer 2?

First, we must explain what L2 scaling solutions are trying to solve. Essentially these major blockchains can only do 7 transactions a second or 15 transactions a second which is very small and slow compared to Visa which can do like 100,000 transactions a second. To compete with these centralized methods, we need to find a way to process more transactions per second. There are two ways to scale, we can either scale the base layer (L1) or outsource some of the work to a new layer. Here is why we cannot scale the base layer, the blockchain trilemma, there are 3 big important areas when it comes to blockchain: decentralization, security, and scalability. Without going too in-depth, developers have not found a way to maximize all three, if they try to improve one, the other two start to lose their benefits. Because of this, developers must be creative to find out how to scale a blockchain. Another solution remain possible which is called layer 2.

L2 is a secondary protocol built on top of the existing blockchain network (L1). It is focused on tackling the pressing issues that the main chain may experience, such as low transaction throughput and poor scalability. L2 can relieve some of the main chain’s load by delivering data to various processing channels. It then sends the processed data back to the blockchain protocol’s core to complete the operation. As a result, the underlying blockchain is far less crowded and scalable, allowing for speedier computation and delivery. On top of this, the great majority of existing L2 platforms have been designed in such a way that the main chain protocol is unaffected. Native blockchain catalyzers, also known as L2 platforms, are capable of keeping the decentralized benefits of L1.

Advantages of Layer-2 Solutions

One of the most substantial benefits of L2 solutions is that the underlying blockchain does not have to change its structure (code) since it will simply act as an extra layer. Another aspect worth highlighting is that L2 platforms can contribute to better** data privacy**. Normally, the existing L1 solutions (Ethereum, Solana, Avalanche, etc.) are fully public, meaning that all transactions conducted on those chains are transparent. Being aware of what is going on on the network is beneficial, but some firms want to keep their critical customer information secret. In situations like this, L2 may be a true lifesaver because it is an off-chain, private-by-default solution.

Types of Layer 2 Solutions

A good analogy is to compare L1 and L2 solutions to a highway (L1) and motorcycles, cars, and trucks (L2 solutions), each of these L2 scaling solutions has a place in scaling a blockchain. It is not so much about which one is the best, but which one is the best for the situation that you are working with. Let’s go over some L2 scaling solutions.

Rollups

Photo: Finematics, all right reserved.

Rollups provide scaling by bundling or rolling up sidechain transactions to a single transaction and generating a cryptographic proof also known as a SNARK (succinct non-interactive argument of knowledge), only this proof is submitted to the base layer. With rollups, all transactions state and execution are handled off the main chain. The main chain only stores transaction data. There are two types of rollups: ZK rollups and Optimistic rollups. On one hand, ZK rollups although faster and more efficient than optimistic rollups, do not provide an easy way for the existing smart contracts to migrate to L2. On the other hand, Optimistic rollups run an *EVM-*compatible virtual machine called OVM (Optimistic Virtual Machine) which allows for executing the same smart contracts as can be executed on Ethereum, but they are slower and less efficient. This is important as it makes it easier for the existing smart contracts to maintain their composability, which is extremely relevant in DeFi where all major smart contracts were already battle-tested. One of the main projects working on the optimistic rollups is Optimism. When it comes to ZK rollups, Loopring and DeversiFi are good examples of decentralized exchanges built on L2. On top of that, we have zkSync enabling scalable crypto payments.

Sidechains

Photo: FranceCrypto, all right reserved.

Sidechains are secondary blockchains that run parallel to the side of the main chain and use the resources they have to offload the work. They can steal or borrow information from the main blockchain and then use their virtual machine to execute smart contracts or validate transactions, following this, they send the data that they have back to the main blockchain for security reasons. A sidechain cannot operate without its parent chain, but a parent chain does not need a sidechain. In the case of Ethereum, the Polygon network is a sidechain.

Channels

Channels are a way to lock up your funds and then trade a virtual version of your funds on a network that is much faster. For instance, when it comes to Visa whenever we swipe our credit card or debit card, we are not sending true dollar bills from us to the vendor, instead, we are sending a virtual number representation of how many dollars we owe to that vendor. Since everyone agrees that the virtual dollar is equal to a real dollar, there are no issues. In a channel system, we simply use code to make sure that you can only send what you have locked up. The lightning network is an example of a L2 scaling solution using channels for the bitcoin blockchain. Essentially you lock up some of your bitcoins with someone else and then you can send your virtual bitcoins back and forth until you decide to settle and push one transaction to the blockchain, instead of a whole bunch of them that you would have done otherwise. Similarly, to the way a lightning bolt works you can pay anyone that is connected to the person that you locked up your initial coins with through the network. A downside of channels is that they can only be used for transactions, not smart contracts or virtual machine code, they are application-specific.

Plasma

Plasma may be the most confusing L2 solution. In short, plasma uses child chains sometimes also called plasma chains which have their child chains that they can then broadcast important operations through the main chain. Think about it like how the United States is divided into the federal system and the local system, there might be federal news that is super important such as when the president signs an executive order or there might be local news such as when your cousin wins valedictorian well both of these are important pieces of information that should be recorded. However, one of these might warrant a $10,000 photoshoot and 50 new articles about it. Thinking about child chains like this in the plasma idea is probably the best way to understand how this L2 scaling solution works.

Looking into the limitations of Layer 2 solutions

Despite their many advantages, L2 solutions have certain disadvantages. To begin with, L2 might impede the underlying chain’s liquidity. It should come as no surprise that the importance of liquidity cannot be overstated because it aids in the development of a viable and flourishing market. To offer adequate support for all of its commodities and tokens, Ethereum, for example, need a liquid market. However, once another layer is introduced, the blockchain’s liquidity is likely to decrease. Aside from that, users of the site may face needless onboarding issues. The L1 chain, as well as its dApps, will need to create new accounts whenever an extra layer is implemented. As a result, if money is delivered to many L2 protocols, it may be difficult for the user to keep track of them all. As you can see, the benefits of L2 come at a price. Nonetheless, L2 is particularly useful if the primary purpose is to relieve the main blockchain’s transaction throughput strain.

Conclusion

Currently, the L2 solution offers the best possibility for blockchain to displace old centralized systems. Blockchain technology may achieve rapid acceptance due to higher processing capacity, fewer transaction fees, and a richer user experience. L2 solutions have demonstrated great potential and have exerted a positive impact on the blockchain ecosystem. Though L2 might lose momentum with the launch of the Ethereum 2.0 upgrade, they will remain on the Ethereum scaling agenda to help the blockchain move into the lead. Essentially, the Ethereum community of developers has been striving to establish Ethereum 2.0 to run in parallel with L2 solutions — and not replace them. It is therefore safe to say that L2 will continue to play a pivotal role in addressing scalability and transaction throughput issues without the need for changes on the main chains.

References

⁃ Know Everything About Layer 1 Blockchain — March 23, 2022 — Georgia Weston — (https://101blockchains.com/layer-1-blockchain/)

⁃ **What Is Layer 1 in Blockchain? **— February 22, 2022 — Binance Academy — (https://academy.binance.com/en/articles/what-is-layer-1-in-blockchain)

⁃ ***Layer 1 v. Layer 2 ***— Hedera — (https://hedera.com/learning/distributed-ledger-technologies/layer-1-vs-layer-2)

⁃ ***What Are Layer 2 Blockchain Scaling Solutions and What Benefits Do They Offer? ***— January 11, 2022 — Kira Belova — (https://pixelplex.io/blog/what-is-layer-2/)

⁃ ***What Is a ‘Layer 2 Blockchain,’ and What Does It Mean? ***— December 29, 2021 — Luu Hoang — (https://bestarion.com/what-is-a-layer-2-blockchain-and-what-does-it-mean/)

⁃ Blockchain Layer 1 vs Layer 2: What you need to know — April 14, 2022 — LCX Team — (https://www.lcx.com/blockchain-layer-1-vs-layer-2-what-you-need-to-know/)

⁃ Layer-1 Blockchain — CoinMarketCap Glossary -(https://coinmarketcap.com/alexandria/glossary/layer-1-blockchain)

⁃ ***Layer-1 and Layer-2 Blockchain Scaling Solutions ***— March 29, 2022 — CryptoPedia Staff — (https://www.gemini.com/cryptopedia/blockchain-layer-2-network-layer-1-network)

⁃ ***Ethereum For Everyone, Layer 2 ***— (https://ethereum.org/en/layer-2/)

⁃ ***Layer 2 (ou seconde couche), qu’est-ce que c’est? ***— April 19, 2022 — Quentin Lahurit — (https://coinacademy.fr/academie-blockchain/layer-2-seconde-couche-quest-c-e-que-cest/)

⁃ ***What is a Layer 2 Protocol in Crypto? ***— April 7, 2022 — RJ Fulton — (https://www.howtogeek.com/794948/what-is-a-layer-2-protocol-in-crypto/)

IPFS: The Decentralized Storing Protocol

In the realm of information technology, decentralization has never been more important than it is now. We are approaching an era of decentralization, defined by more powerful distributed computing, ubiquitous network connectivity, and decentralized storage resources, while mobile computing and the Internet of Things (IoT) expand the ways that data collecting and processing are used. Decentralization in computing is now nearly synonymous with blockchain technology and other peer-to-peer (P2P) networks like BitTorrent, which allow for safe and reliable information exchange between peers without a single body managing the network.

Blockchain has become one of the most hyped technologies these days. Nevertheless, storing large documents is still very expensive as the approximate 2 megabytes (MB) size limit per block in Bitcoin’s blockchain would limit the file size that can be uploaded. One such prominent P2P network emerged; the InterPlanetary File System (IPFS). IPFS is an open-source, content-addressable, peer-to-peer distributed file system that may be used to store and share enormous amounts of data.

This paper focuses on the disruption that IPFS can have in today’s digital economy due to the emergence of blockchain technology. We also look at how IPFS works and a couple of its most important uses. We will start by going over some background information and covering the blockchain’s subject.

Blockchain, the Foundation of IPFS

What Is Blockchain?

Many of the technology we take for granted now were once considered revolutionary. Consider how much cellphones have altered our lifestyles and work environment. Another silent revolution is underway: blockchain, a distributed database that maintains a constantly expanding list of ordered documents known as “blocks”.

Before understanding IPFS, it is primordial to grasp what blockchain is and how it works. A blockchain is a decentralized network of computer systems connected to the Internet that collectively keep track of transactions. One record is disseminated and safeguarded over the blockchain system. The exchanges are approved by each machine in the group. Nobody, on the other hand, has control over the network, unlike in a centralized network. A blockchain is made up of a series of blocks, which are information units used to store the organization’s value-based data. Some procedures are to be followed to add a block to a blockchain:

⁃ When a transaction is completed, it should be verified by a set of computer networks. After receiving clearance from the network group, the transaction is assembled in a block, among other ones.

⁃ The sender’s and receiver’s digital signatures, as well as other pieces of information, must be put in a block.

⁃ A hash should be assigned to a block to distinguish it from other blocks. This block also provides the hash of the most recent block added to the blockchain. The block can be added to the blockchain after it has been hashed.

⁃ After a new block is added to the blockchain, all the information about the trade becomes public, and any user in the network may investigate it, for example, to know the sender. Although the data is visible and auditable, it is not modifiable. The most popular example of blockchain use is the infamous currency Bitcoin (BTC).

Figure 1. A Sequence of Block Structure in a Blockchain

Contrary to the belief, the blockchain is, in fact, inefficient at storing vast amounts of data. However, it is successful when storing hashes of documents rather than the documents themselves. A hash[1] is generated every time a document is uploaded to the IPFS, and this hash is stored in the smart contract which is used to access the document. The hash value changes each time, for any changes made in the content of the document.

The Need for Decentralized Internet and Storage

Over 3.5 billion individuals lost access to one of the world’s most powerful and widely used data storage, communication, and information-sharing platforms at the end of 2021, all because of a single server system failure at Facebook. While the outage was only momentary, it underlined the hazards of entrusting our online data and digital life to massive, centralized companies. Rather than depending on such centralized depositories, we should embrace decentralized computing’s democratizing power and return authority to individual citizens.

The most fundamental difference between traditional centralized IT systems and developing, more agile decentralized networks is the locus of control. For example, all data posted and moved on Facebook must transit through one of the company’s data centers, creating a single point of failure if something goes wrong or a hacker gains access to the system. Nonetheless, in decentralized systems, the control is distributed over a network of hundreds or thousands of members, each of whom provides storage space to the system. There are many users, and there are a lot of access points, therefore there is less of a chance of a single point of catastrophic failure. Also, other participants can respond to fill up the gaps left by the compromised node if one of them is compromised.

What Are Decentralized Storage Systems

Different Types of Storage

Web 2.0 — The Social/Participative Web

Cloud storage enables you to keep data and files in a remote place that you can access through the internet or a private network connection. That remote place is owned by a third-party cloud, as a result, the data that you provide becomes their responsibility. The service provider hosts, protects, manages, and maintains the servers and other infrastructure, as well as ensures that you have access to the data whenever you need it. Cloud storage is a scalable and cost-effective alternative to hard drives. Users must move files to an external storage device when they run out of space. By storing data in the cloud, your company may avoid the capital expenditures of creating and maintaining in-house storage networks by paying for storage technology and capacity as a service. Cloud storage employs servers to preserve data. For redundancy, providers generally store the same data on many computers as part of the service. This way, if a server is taken down for maintenance or suffers an outage, you can still access your data. Still, cloud-based technology comes with some drawbacks:

• Security: Cloud-based services are notorious for their security vulnerabilities due to their centralization. Although cloud storage companies utilize the most up-to-date technology and methods to safeguard their infrastructure, infrequent breaches have happened, causing consumers to be uneasy.

• Administrative control: Another prevalent issue with cloud resources is the ability to see, access, and move your data at any time. Offloading maintenance and administration to a third party have benefits, but it also has the potential to limit your data control.

• Latency: Traffic congestion can cause delays in data transmission to and from the cloud, especially when using shared public internet connections.

Web 3.0 — the Semantic Web

Cloud storage keeps all files on a single centralized system, whereas decentralized storage distributes data across several servers. Thus, security is not reliant on a single server, but rather on many servers, using this decentralized system. This increases the stability and redundancy of the system in the event of a breakdown, making it a great place to store data. Therefore, it helps keep the data secure during storage and transfers. Decentralized storage solutions also address the issues that traditional storage systems ignore:

⁃ No single point of failure. There is no central database in a decentralized storage network, each file is encrypted and distributed among several computers. Your data will be available on the other servers in the network even if one server dies. Additionally, the dispersal of data across several sources makes hacking more difficult.

⁃ The distribution of data into several encryptions is distributed across multiple nodes. As a result, retaining the entire file is hard for an attacker.

⁃ Above all, many copies of the data in the various nodes help avoid bottlenecks on the central server and enhance the downloading speed.

Overall, the advantages of decentralized storage are obvious: increased security, increased reliability, increased privacy, and reduced costs.

Example of Decentralized Storage provider

Filecoin, a cryptocurrency company that allows users to rent out their hard drive space in exchange for Filecoin (FIL) tokens. Filecoin and IPFS are intrinsically related as Filecoin is an incentive layer built on top of IPFS technology. Nevertheless, while interacting with IPFS does not require using Filecoin, all Filecoin nodes are IPFS nodes under the hood.

In the next section, we will explain in more detail IPFS technology.

IPFS, the Future of Web 3.0

What is the Utility of IPFS and its History?

Web 3.0 is being developed by developers to provide a better internet. As a result, they are turning to decentralized data networks to boost data resiliency. Therefore, emerging technologies like IPFS give the promising potential for upgrading Web 2.0’s underlying protocols. An important point to mention is that IPFS is not ‘decentralized’ at its core. It is distributed, even though it shares the same principles as a decentralized network. If we say IPFS is decentralized, it will mean each peer has a copy of the entire network, while that is possible, it is not true for every peer on the network. Let us take a closer look at how IPFS came into existence.

IPFS was born in 2015 as a result of Protocol Labs’ efforts to develop a system that might revolutionize the way information is transmitted throughout the world. It was created by Juan Benet to transfer scientific datasets up to 100 GB in size between peers. He found that current methods for transferring and storing information on the web were slow, controlled by very few people, and easily hackable. Overall, it aspires to create a distributed web that is more resilient.

Juan Benet is a Stanford computer science graduate. During the Napster-led music revolution, where music became unrestricted and free for the first time, he realized the benefits of removing central authority. Despite the legal scrutiny that ended up suppressing many of these achievements, he had seen what was possible with P2P network architectures. While working in scientific innovation in 2013, Benet realized that the tools used for sharing and versioning large datasets were inefficient, error-prone, and stagnant due to centralization. To change this, he combined GitHub[2]’s data-linking structure with BitTorrent[3]’s P2P system to create IPFS. With this, he founded Protocol Labs in May 2014, with IPFS and Filecoin** **as two of his first projects.

IPFS vs HTTP

The differences between IPFS and Hypertext Transfer Protocol (HTTP) can be classified into different factors for evaluating the two protocols. Let us look at the comparison of IPFS and HTTP across different benchmarks:

⁃ Retrieving Files

The flexibility of obtaining a file is the first criterion in the IPFS vs HTTP comparison. In the case of HTTP, a file’s identifier specifies its location. As a result, it helps in locating and requesting the file from the computers that hold it. The HTTP file retrieval method is simple and adaptable. However, it is useless in situations where you are not connected to the internet. IPFS, on the other hand, uses a two-part method to file retrieval. Firstly, it would use content addressing to verify file identity. It would then look for the file with the peer-to-peer overlay for a speedier download.

• Centralization

One of the most significant drawbacks of HTTP is that the files are hosted on servers controlled by huge corporations such as Amazon or Google. As a result, filtering and alteration of material might be controlled by intermediaries. Decentralization benefits, on the other hand, are most likely to be seen in IPFS and other use cases. The internet as we know it now is a total reversal of the original design goal. The internet was meant to be a completely decentralized network. When you look at the current status of the internet, though, it looks to be the polar opposite. IPFS has the potential to provide a beneficial and securely open and flat online. Consequently, the facility of a decentralized web can ensure promising levels of individual privacy.

• Availability

Many of the criticisms of the HTTP protocol revolve around the average lifetime of a web page. With just about 100 days until a webpage vanishes, it poses a serious problem for the internet. Furthermore, users must rely on the availability of information to be dependent on the state of servers. If a server relocates or is affected by a natural disaster, it will be unable to deliver the content links. Therefore, you will need to access the server’s new location or have backups of the data on the server. It is important to understand how HTTP relies on location-based addressing at this point. On the other hand, IPFS relies on content-based addressing. So, you do not have to depend on only a single server for retrieving the data you want. IPFS enables users to access data from any of the millions of computers powered by IPFS with copies of the desired file.

• Cost

When it comes to providing data through HTTP, data is highly costly. When the server is on the other side of the planet, the cost is significantly greater. It was designed primarily for the transport of web pages rather than large amounts of data. HTTP consumption would increasingly indicate the need for strong and expensive resources, given how heavily modern lives rely on data. IPFS, on the other hand, might result in a 60 percent decrease in video bandwidth. Even huge streaming services like Netflix are looking at the possibilities of using peer-to-peer (P2P) technology to stream content (i.e., THETA Network[4] is a great example of this use case).

In summary, the main difference between HTTP and IPFS is that HTTP serves files while IPFS distributes files to whoever wants a piece of ownership. When a user requests an HTTP file they are temporarily gaining ownership of the file; if the network shuts off, they can no longer access that file. Whereas IPFS; if you request a file, you are served the original copy of that file. In the end, on IPFS you get to own the file even if it is not yours because it was cryptographically signed by the original owner using a hash of the content on the file and the node’s private key. On HTTP, you are just another peer asking to borrow services for the moment while the network remains online. On one hand, HTTP is good for real-time services like checking flight times and streaming music. On the other hand, IPFS is great at fool-proofing files, digital content ownership, and giving power back to the user.

How Can IPFS Be Used?

IPFS allows users to access files, videos, webpages, articles, research papers, and so on from anywhere. As a result of this, it becomes quicker, more secure, and more open, because the data is retrieved directly from the source, and users might have access to information that would otherwise be blocked. Consequently, this information might be obtained in areas with low Internet connectivity, giving individuals in poorer or more corrupt nations even more influence.

Another valuable feature for academics and corporations is the ability to track work progress, as IPFS links each version of a file to the previous one, maintaining a linear trail. Finally, the word Inter-Planetary alludes to the possibility of this information being exchanged across planets in the future. Currently, sending an information request from Mars to Earth takes four minutes, under ideal conditions. Nonetheless, if the item had previously been downloaded on Mars, the file would have already been saved and could be downloaded right away. IPFS is the web of the future in this respect.

How Does IPFS Work?

When you type a URL into your browser, your computer typically requests that page from another computer. However, if there is an IPFS mirror of that page, you can utilize it instead. Rather than requesting a page from a single computer, your computer utilizes IPFS to request the page from several machines all over the world. That means you can obtain the page you are looking for from any IPFS user anywhere in the world, not just from one machine. Keep in mind that when you utilize IPFS, you are not only getting files from other people; your computer is also assisting in the distribution of those data.

1) Distributed Hash tables

When you hear someone say something like “query the network”, “ask the network”, or “get it from the network”, it can be translated as “query the distributed hash table”.

A data hash table (DHT) is a data structure that implements a structure that can map keys to values. A DHT uses a hash function to compute an index — aka hash code — into numerous slots, from which the desired value can be located. A visualization of this structure is presented in Figure 1.

Figure 1. Illustration of a Distributed Hash Table Within the IPFS Network

By using DHTs, IPFS data is spread across a network of computers and coordinated to enable efficient access between nodes. Decentralization, fault tolerance, and scalability are the key benefits of DHTs. They can grow to handle millions of nodes because nodes do not require central coordination, the system can function consistently even when nodes fail or leave the network.

Currently, IPFS uses a variant of a Kademlia DHT for its routing. A virtual network is formed by the participant nodes, and each node is identified by a node ID. The node ID is typically a large random number that is chosen to be unique for a particular node. It serves not only as identification, but the Kademlia algorithm uses the node ID to locate values (usually file hashes or keywords). The node ID provides a direct map to file hashes, and that node stores information on where to obtain the resource. To look up the value associated with a given key, the algorithm explores the network in several steps. Each step will find nodes that are closer to the key until the contacted node returns the value or no more closer nodes are found. Its decentralized structure increases the resistance against a denial-of-service attack[5] (DoS). Kademlia uses a “distance” calculation between two nodes, this distance is computed as the exclusive or (XOR) of the two-node IDs. The logic behind the XOR is represented in Figure 2.

Figure 2. Representation of a XOR Table

A question resides*, *how do we decide who stores a given Key/Value pair?

To assign key-value pairs to peers, Kademlia relies on the notion of a distance between two identifiers. It means that we can use this fact to decide where to store Key/Value pairs, we just store them in the ‘hash table’ of the peer(s) that are XOR close to the key being stored.

For example, if I am trying to find the location of a given file with the Content Identifier (CID) QmHash, I simply need to find the peer with the ID that is closest (in XOR distance) to QmHash. Conceptually, this works by first querying peers whom I am directly connected to see if they have QmHash, and if not, if they know of any Peers with an ID that is closer than theirs to QmHash. I will keep performing this query as I move through peers with IDs that are closer and closer to QmHash. Eventually, I should end up at a peer that is relatively close to QmHash, and that is storing the location of QmHash’s content. Then with that information in hand, my peer will go and fetch the actual content behind QmHash. You do not want to store a given Key/Value pair just once in the DHT, otherwise, the second the peer storing that Key/Value pair goes offline, we will lose that information. IPFS currently ensures sufficient redundancy by ‘putting’ a given Key/Value pair into the DHT approximately 20 times, spread across 20 different peers that are all relatively close to the given hash key.

2) Merkle DAG

A Merkle DAG is a Directed Acyclic Graph[6] where each node has an identifier, and this is the result of hashing the node’s contents using a cryptographic hash function. This brings some important considerations:

⁃ Merkle DAGs can only be constructed from the leaves, that is, from nodes without children. Parents are added after children because the children’s identifiers must be computed in advance to be able to link them.

⁃ Merkle DAG nodes are immutable. Any change in a node would alter its identifier and thus affect all the ascendants in the DAG, essentially creating a different DAG.

The individual blocks of data are called leaf nodes, which are hashed to form non-leaf nodes. These non-leaf nodes can then be combined and hashed until all the data blocks can be represented by a single root hash. Figure 3 is an easier way to conceptualize it.

Figure 3. Graphical Representation of a Merkle DAG and its Characteristics

Identifying a data object (like a Merkle DAG node) by the value of its hash is referred to as content addressing. Thus, we name the node identifier as Content Identifier (CID). The hash that represents the stored data is the root hash, it is the hash value stored in DHT. In a nutshell, a Merkle DAG is a data structure where hashes are used to reference data blocks and objects. This creates several useful features: all content on IPFS can be uniquely identified since each data block has a unique hash. Moreover, the data is tamper-resistant because to alter it would change the hash, as shown below.

Figure 4. Encountering an Error While Modifying Merkle Tree’s Values

3) Version Control Systems

The Merkle DAG structure also makes it possible to create a distributed version control system (VCS). Github is the most well-known example of this, as it allows coders to work on several projects at the same time. A Merkle DAG is used to keep track of files on Github. It allows users to copy and update numerous copies of a file separately, save these versions, and then combine the adjustments with the original.** **IPFS uses a similar concept for data objects: the full file history may be recovered as long as objects match the original data, as well as any additional versions, remain available. IPFS objects can be kept indefinitely since data blocks are saved locally throughout the network and can be cached[7] indefinitely.

To sum up, DHT allows nodes to store and distribute data without the need for central coordination. Using public-key cryptography, allows shared data to be quickly pre-authenticated and confirmed. The Merkle DAG enables data to be uniquely identifiable, tamper-resistant and preserved indefinitely. The Version Control System allows you to view previous versions of modified material.

4) Self-Certifying File System (SFS)

The Self-certifying File System (SFS) is the final fundamental component of IPFS. It is a distributed file system that does not require any particular permissions to transfer data. It is “self-certifying” since the file name authenticates the contents supplied to a client (which is signed by the server). Therefore, you can securely access remote content with the transparency of local storage. All things on IPFS may be uniquely identifiable, as we said previously, but this also applies to nodes. Each node on the network has a set of public keys, private keys, and a node ID which is the hash of its public key. Nodes can then use their private keys to ‘sign’ any data objects they publish, and the authenticity of this data can be verified using the sender’s public key.

What Are IPFS’ Limitations

IPFS offers an exciting look into a future with faster access to data and no government censorship, but how feasible is it currently, and what challenges does it pose?

⁃ **No way to search: *IPFS’s use of content-based addressing (hashing) ensures that information is unchanged and avoids website crashes. Nevertheless, it remains unclear how to browse the information on this new system. Because IPFS is a location where people may store a wide range of material, a user-friendly search mechanism is required. It is like the Internet without Google if there is not an accessible search engine. IPFS was clearly designed with hash searches in mind, but this may alienate individuals who are less tech-savvy. *As this is easily fixable and being discussed in their forums, it is only a matter of time until an easier search system is implemented.

⁃ **Unregulated: **As a decentralized network, IPFS brings the Internet back to the people, but this also comes with dangers. The lack of a central place for that much data begs the question of how it will be governed. How will bad information, such as fake news, hate speech, terrorist organizations, black markets, or copyright infringements, be addressed? Other blockchains check transactions and information using Proof-of-Work or Proof-of-Stake, but who or what can verify and govern complicated content like articles, movies, and the like?

⁃ **File availability: **Each user or node stores a cache of the files they have downloaded, meaning that they stay accessible to other users. However, if all the nodes storing a piece of information stop using the system, then that data is lost and becomes inaccessible. This means that users must be incentivized to preserve copies. IPFS created Filecoin with this in mind, rewarding users to keep data copies available for as long as feasible.

⁃ **Lack of content creator rewards: **If all the information belongs to the users, with no centralized party looking to make a profit, then there will be no advertisements or other profit-generating tools. That raises the question, how will content creators be rewarded? And if they are not rewarded, then what incentive is there for them to create more content?

The Problem of Deleting Content in IPFS

While the IPFS has been widely advertised as the new “permanent web” where stored information remains available regardless of a single point of failure attacks or censorship takedowns, the term “permanent” should not be misunderstood to be equivalent to the permanent storage and availability of the uploaded content. Instead, it has been clarified that the term is used to refer to the permanent reference of the content to which an IPFS link points. As previously stated, this is due to the content addressability property, which ensures that all resources are uniquely and permanently addressed by their contents. It is important to know that even when a file is “deleted” from a node, it is not certain that it has also been deleted from all the other nodes that had previously accessed that file. Thus, as long as anybody is willing to continue spending energy to maintain an object online, that content would be permanently stored in IPFS. In a nutshell, a file is preserved in the IPFS network if there is at least one node that is actively sharing it, and it can only be completely removed from the network if its original host, and all other hosts serving it, delete it.

The Need for Complete Content Removal

The original vision of the IPFS did not consider the malicious uses for promoting and disseminating illegal or copyrighted content, or even cases of infringing on human rights. As a consequence, IPFS does not support any efficient methods neither for completely removing nor stopping from being disseminated across its entire network any illegal, personal, or copyrighted content. Arguably, this lack may have adverse implications for IPFS alignment with at least the data protection and privacy laws. Acknowledging this deficiency, IPFS plans to support blocklists (i.e., lists of illegal content that needs to be blocked from the IPFS network). These blocklists will specify policies for content storage and distribution and therefore will allow subnetworks of peers to agree upon sets of content they would wish to censor. Yet, blocklists, as they have been so far designed, present some limitations:

• They cannot be universally applied since what is illegal in one jurisdiction is not necessarily in others (e.g., consider political or even religious-related content).

• The maintenance and coordination of such lists by the IPFS gateways would be proved burdensome given the high demand for content to be censored and the continuously increasing size of these lists.

• These blocklists can be easily circumvented since by changing just a bit of the unwanted file the corresponding hash does change, but the actual information may not be radically affected.

• There must be processes in place to carefully examine and add content to these blocklists in order not to violate any other legal rights, such as the freedom of speech.

• Blocklists fall short of the General Data Protection Regulation** (**GDPR) data protection obligation, which requires the deletion of personal data broadcast in the IPFS network if specific circumstances are met. In this regard, we will look at the Right to be Forgotten (RtbF) and its relevance to the IPFS protocol in the following paragraphs.

GDPR & RtbF & IPFS

In simple terms, the RtbF allows the possibility for individuals to request the erasure of their personal data from all the available sources to which they have been disseminated when certain conditions are met. The challenge of encompassing the RtbF in contemporary information systems is immense. One such advanced technology that emerged over the long period under which the final GDPR text was being debated and finalized, is blockchain. Given that blockchain technology was not the widely adopted technical trend that it is now, its compliance with several GDPR rules is presently being questioned. A major inconsistency between blockchain and the RtbF emerges due to the blockchain’s design immutability. To overcome this barrier, numerous blockchain projects are using the IPFS network for decentralized storage and sharing of personal files, while merely storing their hash addresses on the blockchain. Should a request for wiping personal data under the RtbF be made, this method shifts the task of removing the real information to the IPFS protocol.

Towards Aligning RtbF with IPFS

Aligning IPFS and RtbF to work together is not an easy task. Any attempts to design and enforce an erasure request would be pointless since IPFS is a trustless network, and other nodes can never be trusted to honor a content erasure request. Because there is no mechanism to verify that anything in the IPFS has been erased from the whole network, a node can hold data for as long as it wishes. Above all, IPFS, like HTTP, is a protocol that serves as a basis for other systems. Consequently, imposing data manipulation rules on it is technically impossible. Providing a delegation mechanism in the protocol layer for securely managing erasure requests would be the most efficient method to align the IPFS with the RtbF. As a result, the responsibility for ensuring the actual erasure is transferred to each IPFS node, which acts as its own data controller. By all accounts, incorporating this type of erasure delegation mechanism into the IPFS protocol will significantly enhance its GDPR compliance, adding actual value to its future adoption by any apps that process personal data.

Conclusion

While any online-savvy user should be able to understand IPFS on a fundamental level, how many of those people desire to download and run a node using clunky content identifier (CID) connections rather than conventional, familiar web URLs? IPFS is not as smooth or user-friendly as normal webpages, but like many Web3 technologies, this will improve with time, especially as more web browsers add native link support. IPFS has wisely capitalized on the booming NFT sector to bolster its case. When NFT collectibles exploded in popularity in early 2021, there were reports of people’s expensive new acquisitions going missing because the platform or server hosting them went down. IPFS provides a mechanism to effectively back up NFTs to a distributed network, and NFT marketplaces such as OpenSea have taken advantage of the feature. You can think of IPFS as the giant web version of BitTorrent and Blockchain combined. BitTorrent is the underlying technology on how the files are distributed, while the blockchain is how the files are managed. Nothing is going to suddenly replace the existing, centralized web, but over time things will evolve, hence, IPFS will be more adopted by enterprises and used in a variety of other interesting ways to fuel the future of Web3 development. Perhaps IPFS is a glimpse of what the current web might evolve into.

Apppendix

[1] A hash function is a mathematical function that converts an input value into a compressed numerical value — a hash or hash value. It is a processing unit that takes in data of arbitrary length and gives you the output of a fixed length — the hash value.

[2] Github is a for-profit company that offers a cloud-based Git repository hosting service. Essentially, it makes it a lot easier for individuals and teams to use Git for version control and collaboration. (Wikipedia)

[3] BitTorrent is a communication protocol for P2P sharing, which enables users to distribute data and electronic files over the Internet in a decentralized manner. (Wikipedia)

[4] https://www.thetatoken.org/

[5] A denial-of-service (DoS) attack is a type of cyber attack in which a malicious actor aims to render a computer unavailable to its intended users by interrupting its normal functioning. DoS attacks typically function by overwhelming or flooding a targeted machine with requests until normal traffic is unable to be processed, resulting in denial-of-service to additional users.

[6] A Directed Acyclic Graph is a way to model topological sequences of information that have no cycles. A simple example of a DAG is a family tree.

[7] A cache is a hardware or software that is used to store something, usually data, temporarily in a computing environment.

References

⁃ ***Official IPFS documentation ***— (https://docs.ipfs.io/)

⁃ Decentralized document version control using Ethereum blockchain and IPFS N.Nizamuddina, K.Salaha, M.Ajmal AzadbJ.Arshadc, M.H.Rehmand — 1 April 2019 — (https://www.sciencedirect.com/science/article/abs/pii/S0045790618333093)

⁃ Blockchain Technology Beyond Bitcoin (UC Berkeley) — October 16, 2015 — Michael Crosby, Google Nachiappan, Yahoo Pradhan Pattanayak, Yahoo Sanjeev Verma, Samsung Research America, Vignesh Kalyanaraman, Fairchild Semiconductor -(http://scet.berkeley.edu/wp-content/uploads/BlockchainPaper.pdf)

⁃ **A Brief History of Blockchain **by Vinay Gupt — February 28, 2017 — Harvard Business Review — (https://hbr.org/2017/02/a-brief-history-of-blockchain)

⁃ **Why We Need a Decentralized Internet **— Kristin Smith **— **November 3, 2021 — (https://morningconsult.com/opinions/why-we-need-a-decentralized-internet/)

⁃ Google and IBM Cloud Storage official documentation — (https://www.ibm.com/cloud/learn/cloud-storage) & (https://cloud.google.com/storage/docs/)

⁃ The Benefits of Decentralized Storage vs Cloud Storage* *— (https://medium.com/geekculture/the-benefits-of-decentralized-storage-vs-cloud-storage-f5f01592ed9d) — January 5, 2021- Nuno Bispo

⁃ Everything you need to know about Decentralized Storage Systems — Kelsey Taylor — (https://www.hitechnectar.com/blogs/everything-you-need-to-know-about-decentralized-storage-systems/)

⁃ ***Official Filecoin documentation ***— (https://docs.filecoin.io/about-filecoin/ipfs-and-filecoin/)

⁃ What is the bitcoin block size — August 17, 2020 — Bitcoin Magazine — (https://bitcoinmagazine.com/guides/what-is-the-bitcoin-block-size-limit)

⁃ A Blockchain and IPFS based framework for secure Research record-keeping — Rajalakshmi, Lakshmy K, Sindhu and Amritha P — 2018 — (https://www.acadpubl.eu/hub/2018-119-15/4/751.pdf)

⁃ ***Kademlia: A Peer-to-peer Information System Based on the XOR Metric ***— Petar Maymounkov and David Mazières — New York University Research Paper — (https://pdos.csail.mit.edu/\~petar/papers/maymounkov-kademlia-lncs.pdf)

⁃ Delegated content erasure in IPFS — Nov 2020 — Eugenia Politou, Efthimios Alepis, Constantinos Patsakisa, Fran Casino Mamoun Alazab — (https://ris.cdu.edu.au/ws/portalfiles/portal/34147339/34068842.pdf)

⁃ An Introduction to IPFS (InterPlanetary File System) — Gwyneth Iredale — June 04, 2021 — (https://www.linkedin.com/pulse/introductory-guide-ipfs-interplanetary-file-system-aman-kumar-singh)

⁃ A Brief Overview of Kademlia, and its use in various decentralized platforms — Feb 15, 2019 — Kevin Leffew — (https://www.storj.io/blog/a-brief-overview-of-kademlia-and-its-use-in-various-decentralized-platforms)

⁃ Wikipedia page of the Kademlia DHT — (https://en.wikipedia.org/wiki/Kademlia)

⁃ How to Use IPFS: The Backbone of Web3 — August 5, 2021 — Andrew Hayward (https://decrypt.co/resources/how-to-use-ipfs-the-backbone-of-web3)

⁃ ***Blockchain — A Practical Guide to Developing Business, Law, and Technology Solutions ***by Joseph J.Bambara, Paul R.Allen — 2018 (physical book from Boston Public Library)