IPFS, short for InterPlanetary File System, is a distributed file-sharing system that aims to change the way content is stored and accessed on the internet. Rather than relying on a centralized server to host files, IPFS allows users to share files directly with each other through a peer-to-peer network.

IPFS works by using a unique content-addressing system to identify and retrieve files. Each file is given a unique hash based on its content, which serves as its address on the network. When a user requests a file, their computer searches the network for other nodes that have the file and downloads it in pieces from multiple sources simultaneously.

This distributed approach to file-sharing offers several advantages over traditional centralized systems. First, files can be accessed more quickly since they are downloaded from multiple sources. Second, files are more resistant to censorship or failure of a single server, as the network is designed to continue functioning even if some nodes go offline. Finally, because each file is uniquely identified by its content, identical files are stored only once on the network, reducing redundancy and conserving storage space.

IPFS has a wide range of potential applications, including hosting websites, sharing large datasets, and distributing software updates. It is an open-source project and has a growing community of developers and users who are working to improve and expand its capabilities.