Filecoin and IPFS are related but distinct protocols developed by Protocol Labs. They serve different purposes in the realm of decentralized data storage and sharing. Understanding their differences is essential to grasp their unique roles in the Web3 landscape.Filecoin and IPFS, created by Protocol Labs, work together to enable decentralized storage and data sharing. However, they have specific functions that set them apart. The Complementary Nature of Filecoin and IPFS IPFS is a protocol for peer-to-peer data storage and sharing, breaking files into smaller pieces distributed across a network of nodes. Filecoin, on the other hand, focuses on providing persistent data storage services while incentivizing users to offer storage space, creating a decentralized storage network.Filecoin vs. IPFS: Core Distinctions While the terms Filecoin and IPFS are sometimes used interchangeably, it's essential to recognize their unique features. IPFS is akin to torrents, allowing decentralized file sharing but lacking permanent storage. IPFS relies on pinning services to maintain data, which can lead to challenges in stability and reliability.In contrast, Filecoin ensures that stored files remain accessible using blockchain technology. It incentivizes storage providers to offer competitive prices, allowing users to choose the best value for their storage needs. The content-addressed system in IPFS gives each file a unique identifier based on its content, making sharing more accessible and ensuring tamper-proof files. Filecoin takes this further by incentivizing users with tokens.