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DIG Network Protocol

Living Document

This is a living whitepaper that will be continuously updated as research and development in the DIG Network continues. The protocol, specifications, and economic models described here may evolve based on ongoing development, community feedback, and real-world testing.

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Special Thanks​

This white paper is the accumulation of over 4 years of research on Chia Networks DataLayer. Thank you to CNI and the Chia community for your support over these years. This would have not been published without all of you. Special Shout outs to Bram Cohen, Gene Hoffman, yakuhito, Rigidity, Ken Grigs, Don Kackmen for your continrutions and support R&D of this project.

Now its time to Build!

Abstract​

The DIG Network Protocol establishes a decentralized content delivery network (CDN) built on the Chia blockchain, addressing the fundamental challenge of sustainable decentralized storage. By combining cryptographic proofs of storage with market-driven economic incentives, DIG creates a self-organizing network where data availability is guaranteed by mathematics and economics rather than corporate infrastructure.

The protocol introduces several key innovations: a four-part cryptographic Proof of Living Storage enabling trustless verification of data custody, capsule-level content propagation creating natural censorship resistance, tiered economic rewards based on content value signaling, and a circular token economy ensuring long-term sustainability. These mechanisms work together to solve the incentive alignment problem that has historically prevented decentralized storage networks from achieving mainstream adoption.

Introduction​

The Problem: Centralized Infrastructure Vulnerability​

Modern internet applications depend entirely on centralized infrastructure providers. When AWS experiences an outage, significant portions of the internet go offline. When a CDN provider decides to remove content, it vanishes globally. This centralization creates single points of failure for censorship, service disruption, and data loss.

Previous attempts at decentralized storage have failed to achieve sustainability because they lacked proper economic incentives. Networks like IPFS provide the technology for distributed storage but no sustainable mechanism to ensure data remains available over time. Without aligned incentives between storage providers and content creators, decentralized storage remains an idealistic concept rather than practical infrastructure.

The Solution: Economically Sustainable Decentralized Storage​

The DIG Network solves this fundamental problem by creating a marketplace where:

  1. Content creators signal the value of their data through two economic commitments:
    • DIG Handle registration: Market-priced .dig domain names
    • CapsuleStakeCoin creation: Per-capsule collateral proportional to data size
  2. Storage providers compete to store economically-backed content based on expected rewards
  3. Witness validators ensure network integrity through cryptographic verification of storage
  4. Economic incentives automatically balance supply and demand for storage

This creates the foundational application layer for all dApps on Chia and beyond, the default data persistence solution for NFT collections, and the infrastructure for an unstoppable global data network.

Core Innovation: Proof of Data Custody​

At the heart of DIG lies a novel approach to proving data storage without revealing the data itself. Storage providers generate cryptographic proofs that validators can verify without accessing the underlying content. This privacy-preserving verification enables a trustless network where:

  • Providers cannot fake storage commitments
  • Validators cannot access private data
  • Users can verify content integrity
  • The network maintains complete transparency

Document Structure​

This whitepaper is organized to provide both high-level understanding and technical depth:

System Overview - Architecture and core principles
Primitives - Building blocks of the network
Proof of Living Storage - Cryptographic verification mechanisms
Network Dynamics - Content distribution and discovery
Economic Model - Token mechanics and incentives
Technical Specifications - Implementation details

Key Properties​

The DIG Network achieves several critical properties through its design:

  • Censorship Resistance: No single entity controls content availability
  • Economic Sustainability: Self-funding through aligned incentives
  • Cryptographic Security: Mathematical guarantees of data integrity
  • Scalable Performance: Efficient capsule-level operations
  • Market Efficiency: Automatic resource allocation via economic signals

Getting Started​

For different audiences, we recommend starting with:

The DIG Network represents a fundamental shift in how we think about data storage and distribution - from trusting companies to trusting cryptography and economics.