The RIF pinning feature allows users to pay for the storage and sharing services provided by other computers on the IPFS protocol.
IPFS Network, a peer-to-peer protocol built on a decentralized platform for sharing data in a distributed file system, has announced the launch of its RIF Pinning feature to enable payments.
According to project developers behind the IPFS protocol, the current system does not have a built-in economic incentive program. Thus the need for one to complete its data-sharing network.
“This is where pinning comes in. When a file is uploaded onto IPFS, it will only exist for as long as it remains pinned by the computer that initially uploads it. But since the uploader is part of a peer-to-peer network, for it to be accessible by other IPFS users, it needs to be also pinned by other computers as well. Economics dictates that those other computers aren’t going to go through the trouble (or expense) unless they can earn some compensation for doing so,” the firm explained.
The IPFS Protocol and RIF Pinning in the Data Sharing Economy
Notably, the RIF pinning feature allows users to pay for the storage and sharing services provided by other computers on the IPFS protocol. Additionally, the RIF pinning program allows the providers to list their services that are set according to the amount of space used in GB per month. To start with, the platform will accept only two cryptocurrencies, RBTC and RIF tokens.
Having monetized its platform, IPFS protocol can now go ahead with registering new service providers and also users. Notably, both users and service providers on the IPFS protocol have different onboarding parameters. However, the users’ one is straightforward whilst the service providers’ requires some technical know-how.
Having identified a need in the economy of sharing, IPFS protocol aims to solve the billion-dollar challenge of decentralized storage with the help of blockchain and cryptocurrency technology.
Anybody can rent out space on the IPFS protocol through the decentralized storage marketplace, which has a list of available service providers. Key to note, there is a capped amount that the user can deposit for the service provider at a go.
“Providers can be paid only with funds that were already spent on running the Agreement. The Contract calculates the amount available to pay to the Provider,” the company explained through a press release.
In a bid to offer reliable services, whereby a provider may revoke the storage contract and jeopardize the other parties, the platform has set out clear rules to be followed before signing up for the project. However, the provider has the power to terminate an offer at their will.
“The Provider can decide to terminate an Offer. The active Agreements will continue to run until they run out of funds, but Consumers can not deposit new funds to the Agreements. Provider needs to be aware that the termination process can take quite a while,” the firm explained.
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