IPFS-Enabled Blockchain Framework for Fair Payment Systems

Abstract

Blockchain-based fair payment systems have gained considerable attention due to their potential to facilitate transparent, secure, and automated transactions. However, managing large-scale digital assets directly on-chain is impractical due to blockchain scalability constraints, high transaction fees, and limited storage capacities. Existing solutions often employ centralized cloud-based storage services for off-chain data, introducing trust dependencies, censorship risks, and undermining core decentralization objectives. This paper presents a preliminary exploration into integrating the InterPlanetary File System (IPFS) a decentralized, peer-to-peer storage protocol with blockchain smart contracts to enable fully decentralized off-chain storage for fair payment systems. We propose a conceptual model leveraging IPFS to ensure verifiable data delivery, automated dispute resolution, and trustless payment settlements. Preliminary qualitative analysis and comparative evaluations highlight substantial improvements in decentralization, transparency, and resilience compared to traditional cloud-based approaches. Our results demonstrate the feasibility and potential advantages of employing IPFS in blockchain payment frameworks, paving the way for truly decentralized digital asset management and exchange systems.