Exploring Storage Options in Web3: Cloud, IPFS and On-Chain

Exploring Storage Options in Web3: Cloud, IPFS and On-Chain

Sep 22, 2023Β·

9 min read

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The emergence of Web3 has significantly changed how data is stored and accessed on the Internet. Web3, often referred to as the decentralized web, offers a new way of interacting with online information, promising increased privacy, transparency, and data ownership. However, one crucial aspect of decentralized applications (dApps) that is sometimes overlooked is the storage of media for NFTs (non-fungible tokens).

If you are involved in Web3 development, you will likely use NFTs in various ways as their applications expand. NFTs are used for a wide range of purposes, from digital art and collectibles to exclusive memberships and verifiable credentials. It has become evident that how we store and manage the associated metadata for these tokens is of utmost importance.

In this blog post, we will delve into everything you need to know about storage in Web3. This guide will focus on three primary storage options within this decentralized web: IPFS (InterPlanetary File System), On-Chain storage, and Cloud storage. Discuss the advantages and disadvantages of each option and address common misconceptions about decentralized storage.

What is NFT Metadata?

Metadata in the context of NFTs provides information about other data. It describes the name, description, and any other details that the author considers significant about the NFT. The metadata also often links to the images and other "primary" digital assets that give an NFT its value.

Marketplaces like OpenSea retrieve and use this metadata to display the contents of your NFT. This means that the metadata, not the token itself, is what determines the visual representation and detailed attributes of an NFT that we see in a marketplace.

How is Metadata Different from the Token?

The token is a unique digital representation of an asset (like a piece of artwork or a collectible) on the blockchain. It is a digital certificate of ownership for the corresponding. However, the token does not inherently carry detailed information about the asset.

It's the metadata that carries this detailed information. In other words, while the token represents ownership, the metadata describes what is owned. For example, an NFT token might represent ownership of a digital artwork. Still, it's the metadata that contains the information about the artwork, such as the artist's name, the artwork's title, its dimensions, and the URL of the image.

Why is Metadata Important?

Metadata plays a key role in making NFTs unique and valuable. The metadata of an NFT is immutable, meaning it can't be changed once it's set. This immutability ensures that the information about the NFT is always accurate and reliable. This is particularly important for things like verifying the authenticity of an artwork or proving ownership of a digital product.

Moreover, by linking to the primary digital assets (like images or videos) that give the NFT its value, the metadata effectively ties the value of those assets to the token. This connection is crucial for establishing and maintaining the value of the NFT.

Are NFTs stored on-chain or off-chain?

Non-fungible tokens (NFTs) can be stored both on-chain and off-chain, depending on the specific implementation.

On-chain NFTs are stored directly on a blockchain, meaning that the ownership information and the digital asset are recorded on the blockchain. The most popular blockchain platforms for hosting NFTs are Ethereum, Binance Smart Chain, and Flow. On-chain NFTs offer several advantages, such as

  • Decentralized storage: The data is stored in a decentralized manner, meaning that no central authority controls it.

  • Immutable: The data stored on a blockchain is immutable, meaning it cannot be altered or tampered with.

  • Transparent: All transactions and ownership changes are publicly visible on the blockchain, ensuring transparency.

  • Security: Storing NFTs on a blockchain provides an additional layer of security against fraud and censorship.

Off-chain NFTs, on the other hand, are stored on a separate database or file system, and their ownership is typically managed through a centralized service. Off-chain NFTs can be hosted on platforms like AWS, Google Cloud, or a personal server. While they offer faster transaction speeds and lower costs, they also rely on a centralized authority to manage the ownership and provenance of the digital assets. This means that off-chain NFTs may lack the same level of transparency, security, and decentralization as on-chain NFTs. However, they can still provide a cost-effective solution for applications where the need for decentralization is not as critical.

What are the options available for storing NFT metadata?

When it comes to storing NFT metadata, there are three primary choices to contemplate: utilizing cloud storage services such as Amazon Web Services (AWS) or Google Cloud, opting for decentralized storage solutions like IPFS, or going with fully on-chain storage. Let's dissect these various options for Web3 storage and explore their respective advantages and disadvantages.

1. InterPlanetary File System (IPFS)

The most widely used decentralized storage solution is IPFS, and as a result, it will be the main focus of this blog post.

IPFS is a distributed file system that allows users to store and share files across a network of nodes without relying on a single point of failure. It was created by Juan Benet and is currently being developed by Protocol Labs. IPFS is built using a peer-to-peer network protocol, where each node stores a copy of the file, making it highly available and resilient to failures or censorship.


  • Decentralized: No single entity controls the data, ensuring that there is no central point of failure or censorship.

  • Persistent: Data stored on IPFS is persistent and cannot be easily deleted or tampered with.

  • Availability: The interconnected group of computers forming IPFS ensures that your metadata is readily accessible, making it a great choice for hosting such information.

  • Scalable: IPFS can handle large amounts of data and is designed to scale as the network grows.

  • Efficient: IPFS uses a unique identifier, called a content address, to identify each file, making it efficient for retrieving and verifying data.


  • Publicly Accessible: IPFS storage is accessible to the public, meaning that anyone can view the data stored on it.

  • Learning Curve: Handling files can become complicated if you lack experience in development.

How is IPFS Uses to Store NFT Metadata?

When an NFT is created, its associate metadata, including information about the asset, ownership, or other details, is typically stored as a JSON file. This metadata file can be uploaded to IPFS, which generates a unique content identifier called a CID (Content Identifier) for the file.

The CID serves as a reference for accessing the metadata file. It can be embedded within the NFT itself or stored in a smart contract associated with the token. By using the CID, anyone can retrieve the metadata file from the IPFS network, ensuring that it remains accessible even if the original server hosting the file goes offline.

This decentralized storage approach offers benefits such as resilience, censorship resistance, and permanence for NFT metadata. Additionally, IPFS utilizes content addressing, which means that the CID remains constant as long as the content of the file remains the same, irrespective of which IPFS node hosts the file.

What is an IPFS gateway (like Spheron Network, Pinata, Infura, web3.storage)?

Managing and storing data on IPFS can be a complex task, which is why there are services that simplify decentralized storage, known as IPFS gateways. These platforms allow users to easily upload their data, which is then stored decentralized on the IPFS network.

Some well-known solutions for IPFS storage include:

  1. Spheron Network

  2. NFT.Storage

  3. Pinata

  4. Infura

  5. Web3.storage

To know more about these platforms, follow the blog : Navigating the IPFS Landscape: An Insider's Perspective

2. On-Chain Storage

On-chain storage refers to the practice of storing data directly on a blockchain. This approach leverages the immutability and security of blockchain technology to ensure that data is tamper-proof and transparent. On-chain storage can be further divided into two categories:

  1. Storing data in smart contracts: Smart contracts are self-executing contracts with the terms of the agreement written directly into lines of code. They can be used to store small amounts of data, such as metadata, and execute specific instructions when certain conditions are met.

  2. Storing data off-chain but linked to a smart contract: This method involves storing larger datasets off-chain while still utilizing smart contracts to manage access control, permissions, and other aspects related to the data.


  • Security: On-chain storage provides unparalleled security through the use of cryptographic techniques and consensus mechanisms inherent in blockchain technology.

  • Transparency: All transactions and interactions with on-chain data are recorded and visible on the blockchain, ensuring transparency and accountability.

  • Immutable: Once data is written to the blockchain, it becomes tamper-proof and cannot be altered or deleted.


  • Costly: Storing data on-chain can be expensive due to the computational resources required to process and validate transactions.

  • Difficulty in Handling - Handling on-chain metadata can pose significant challenges in terms of management and upkeep. On-chain metadata is typically not optimized for straightforward retrieval or maintenance, often necessitating developers to build custom tools or applications for interacting with this data. This process can be intricate and time-intensive.

3. Cloud Storage

Cloud storage solutions, such as Amazon S3, Google Cloud Storage, and Microsoft Azure Blob Storage, have been around for over a decade and offer a tried-and-true approach to storing and managing data online. These services allow users to store and retrieve data from remote servers, accessible via the internet.


  • Familiarity: Cloud storage services are well-established and widely adopted, making them easy to understand and integrate into existing workflows.

  • Scalability: Cloud storage offers virtually limitless capacity, allowing businesses and individuals to store vast amounts of data.


  • Centralized risk: Cloud storage services rely on a single point of trust, leaving users vulnerable to data breaches, service outages, and censorship.

  • Compliance: Depending on the location of the data center, cloud storage services may be subject to various regulations and legal requirements, potentially compromising data privacy.

  • Single Point of Failure: Single point of failure in a centralized server refers to a critical component or element within the server infrastructure that, if it were to fail, could result in a complete disruption or failure of the entire system. This vulnerability can lead to downtime, data loss, or service interruptions.

IPFS vs. On-Chain vs. Cloud storage






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Choosing the right storage option for NFT metadata depends on your specific use case and priorities. Decentralized storage solutions like IPFS are ideal for those who prioritize decentralization and security. On-chain storage is suitable for those who need the highest level of data security and transparency. Cloud storage, on the other hand, maybe the right choice for those who prioritize scalability and ease of use.

In the ever-evolving landscape of Web3, the storage of NFT metadata plays a pivotal role in shaping the future of digital ownership and creativity. Understanding these storage options empowers developers and creators to make informed decisions that align with their vision for a decentralized and secure digital ecosystem.