OPEN
Shares

What is the future for decentralized ownership

Shares

In this day and age, ownership of any asset is controlled by a centralized process or database, but with the creation of the blockchain, decentralized ownership is becoming a potential reality. Instead of relying on 3rd parties to validate your ownership of an asset, you should be able to do it yourself.

What is IPFS?

The Interplanetary File System IPFS (IPFS) is a framework that aims to replace the centralized architecture of the HTTP protocol of the internet with a more distributed approach, but its architecture offers so much more. The IPFS is a distributed network of nodes. Nodes can query one another for information, and they decide which pieces of information that they store.

The Interplanetary file system is implemented so that it ties a file to a single hash. This makes it possible to use the IPFS to reference large amounts of data on the blockchain in a cost effective manner.

Important Features of IPFS

While IPFS has far reaching applications with regards to replacing the internet, as a faster and more efficient source of content delivery, there are a few features it has that provide far reaching impacts for digital ownership.

  • It does not have a single point of failure since the data storage system is decentralized
  • Nodes can choose what data to store which means that more popular resources can be queried faster
  • Data can be made private and permissioned on the network
  • Changes on the file can be recorded in a history much like the change history in git

The IPFS presents a unique way to carry an identity and to own a digital asset without relying on a centralized system or entity. Of course, if it does represent some asset, it would need a blockchain to match up with the IPFS address of the information to ensure that it would be difficult to dispute.

What are the applications IPFS with regards to digital ownership?

One potential application of the IPFS is as a way to store states and receipts of ownership on the blockchain. The current implementation of OPEN uses OPEN states to store data on-chain, but there is a way to increase the security of the system, by storing the data for OPEN states in nodes on IPFS.

With this implementation it would be possible to use the OPEN Platform to provide a payment gateway that allows for the transfer of information, assets, and to propagate changes to centralized systems. This is the future of decentralization and the end goal of the OPEN Platform. It allows centralized parties to communicate with each other without first establishing trust.

Further

With the IPFS up and running, creating a distributed digital asset allocation is the logical next step for the future of decentralization. Instead of relying on centralized bodies for information and ownership, a decentralized form of ownership gives more power to the individuals that actually own the asset. The OPEN Platform is currently working to provide a Proof-of-Concept for its Scaffold and Open State Architecture, then it hopes to bring in a version of IPFS to allow for a greater implementation flexibility on the platform.

About the Author open