In the context of decentralized storage networks like Filecoin and Arweave, a sector is a standardized, fixed-size chunk of data that a storage provider commits to store on their hardware for a specified duration. This unit of storage, typically measured in gigabytes or terabytes, is the atomic component upon which storage deals and cryptographic proofs are built. By standardizing the data unit, the network can efficiently verify that providers are correctly storing the data they have pledged to hold, a process central to the network's security and reliability.
LABS
Glossary
Sector
A sector is a fixed-size unit of storage capacity that a storage miner commits to a decentralized network, within which client data is stored, sealed, and proven over time.
Chainscore © 2026
definition
BLOCKCHAIN STORAGE
What is a Sector?
A sector is a fundamental unit of data storage in blockchain-based decentralized storage networks, most notably Filecoin.
The lifecycle of a sector is governed by a storage deal, a cryptographically-enforced agreement between a client and a provider. When a provider accepts a deal, they seal the client's data into a sector, a computationally intensive process that generates a unique cryptographic commitment called a CommD (Commitment of Data) and a CommR (Replica Commitment). These commitments are stored on-chain and serve as the reference points for all future Proof-of-SpaceTime (PoSt) and Proof-of-Replication (PoRep) challenges, which the provider must periodically submit to prove continuous, honest storage.
Sectors are not static; they have a defined lifetime and state. A sector progresses through states like PreCommit, Proving, and Expired. While in the Proving state, the provider must regularly submit WindowPoSt proofs to avoid penalties. If a sector fails or the deal term ends, the sector can be terminated, freeing the physical storage space. This structured lifecycle ensures that network resources are accountable and that client data persistence is verifiable and economically incentivized.
The concept of a sector is crucial for enabling cryptoeconomic security. Providers must pledge collateral (in the form of the network's native token, like FIL) for each active sector. Faulty proofs or early termination result in slashing, where a portion of this collateral is forfeited. This mechanism aligns the provider's financial incentive with reliable data storage, creating a trustless market where clients can pay for verifiable, long-term storage without relying on a central authority's reputation.
While Filecoin popularized the sector model with its complex proof systems, the core idea influences other protocols. It represents a shift from simply storing data to creating a verifiable commodity, where storage space and its faithful maintenance become a cryptographically proven resource on a public blockchain. This transforms raw disk space into a transparent and tradable asset within a decentralized ecosystem.
how-it-works
BLOCKCHAIN STORAGE
How a Sector Works
A sector is the fundamental unit of storage commitment in a decentralized storage network, representing a verifiable contract between a storage provider and the network protocol.
In blockchain-based storage networks like Filecoin, a sector is a fixed-size, sealed container of data—commonly 32 or 64 GiB—that a storage provider commits to storing for a specified duration. The provider cryptographically seals the sector, generating a unique committed capacity (CC) or storing client data, and submits a storage pledge to the network. This process transforms raw storage hardware into a verifiable resource that can participate in the network's consensus and reward mechanisms.
The operational lifecycle of a sector is governed by a sector lifecycle state machine. Key states include PreCommit, where the provider stakes collateral and announces intent; Proving, where the sealed sector's cryptographic proof (a Proof of Spacetime) is submitted and continuously verified; and Terminated, which occurs upon successful completion or a fault. Sectors in the Faulty state due to downtime incur penalties, slashing the provider's staked collateral. This state-based model ensures accountable storage and aligns provider incentives with network reliability.
Sectors are the atomic unit for Proof of Spacetime (PoSt), the cryptographic verification that underpins the network's security. Periodically, the protocol challenges providers to prove they are still storing their committed sectors. By correctly generating a WindowPoSt (for ongoing proof) or a WinningPoSt (for block creation), the provider demonstrates continued custody of the data. Failed proofs result in faults and penalties, making the sector the critical link between physical storage and blockchain-enforced contracts.
There are two primary sector types: Committed Capacity (CC) sectors and deal sectors. A CC sector is filled with arbitrary, verifiable data (often zeros) to demonstrate available capacity, while a deal sector stores client data from a storage deal. The sealing process is identical, but deal sectors enable the network's core utility—decentralized file storage. Providers earn rewards from both block incentives for maintaining CC sectors and fees from clients for deal sectors.
The sector model creates a cryptoeconomic backbone for decentralized storage. By requiring substantial initial collateral and imposing slashing conditions for faults, it ensures providers have "skin in the game." This design mitigates Sybil attacks and outsourcing attacks, where a provider might pretend to store more data than they physically possess. The sector, therefore, is not just a data container but a staked, verifiable claim on real-world storage resources, enabling trustless cloud storage markets.
key-features
BLOCKCHAIN GLOSSARY
Key Features of a Sector
A sector in blockchain refers to a distinct category of protocols, applications, or assets grouped by their primary function or economic purpose, enabling structured analysis and comparison.
01
Functional Categorization
Sectors are defined by their core technical or economic function. This creates a taxonomy for the ecosystem, such as:
- DeFi (Decentralized Finance): Lending, borrowing, and trading protocols.
- NFTs (Non-Fungible Tokens): Digital ownership and collectibles.
- Infrastructure: Base layers, oracles, and interoperability networks.
- Gaming: Play-to-earn and blockchain-based virtual worlds. This classification allows investors and developers to assess trends, risks, and capital flows within a specific vertical.
02
Economic Interdependence
Protocols within a sector often share composability—the ability to integrate and build upon each other. For example, a yield aggregator in DeFi depends on underlying lending protocols and liquidity pools. This creates network effects and systemic risk, where the failure of a major protocol can impact the entire sector's Total Value Locked (TVL) and token valuations.
03
Metric-Driven Analysis
Sectors are analyzed using standardized, function-specific metrics. These provide objective performance benchmarks:
- DeFi: TVL, Annual Percentage Yield (APY), daily active addresses.
- NFTs: Trading volume, floor price, unique holders.
- Gaming: Daily active users, transaction volume, asset sales. These metrics allow for comparative analysis against both sector peers and historical performance.
04
Dynamic & Evolving Boundaries
Sector definitions are not static. New categories emerge (e.g., Real-World Assets (RWA), SocialFi), while others converge. A protocol may span multiple sectors, like a gaming project that also has a DeFi yield mechanism for its NFTs. This evolution reflects the rapid innovation and hybrid use cases inherent to blockchain technology.
05
Investment Vehicle Correlation
Tokens within the same sector often exhibit high price correlation, moving together based on sector-wide news, regulatory developments, or macroeconomic factors affecting that niche. This makes sector analysis crucial for portfolio construction, risk management, and the creation of sector-specific indices or exchange-traded products (ETPs).
06
Regulatory & Risk Profile
Different sectors face distinct regulatory scrutiny and inherent risks. For instance:
- DeFi may confront compliance challenges around securities laws and anti-money laundering (AML).
- NFTs grapple with intellectual property and consumer protection issues.
- Infrastructure faces security and decentralization audits. Understanding the sector-specific risk landscape is essential for builders and participants.
FILECOIN NETWORK
Sector Specifications & Evolution
Comparison of key technical specifications and evolutionary changes for Filecoin's storage sectors across major network upgrades.
| Specification | Sector v1 (Genesis) | Sector v1.1 (v16 Upgrade) | Sector v2 (v21 Upgrade) |
|---|---|---|---|
Maximum Sector Size | 32 GiB, 64 GiB | 32 GiB, 64 GiB | 512 MiB, 32 GiB, 64 GiB |
Minimum Sector Size | 32 GiB | 32 GiB | 512 MiB |
Seal Proof Type | StackedDRG | StackedDRG | StackedDRG (w/ PoSt optimizations) |
PreCommit Phase | Required | Required | Deprecated for CC sectors |
Interactive PoRep (IP PoRep) | |||
WindowPoSt Fault Fee | ~5.51 FIL/day (64 GiB) | ~5.51 FIL/day (64 GiB) | ~2.14 FIL/day (64 GiB) |
CC Sector Support | |||
Deal Sector Support |
ecosystem-usage
SECTOR
Ecosystem Usage
A sector in blockchain refers to a distinct category of protocols, applications, or assets grouped by their primary function or economic purpose within the broader ecosystem.
04
Gaming & Metaverse
The Gaming sector, often called GameFi or Web3 Gaming, integrates blockchain for in-game economies and asset ownership. Core concepts include:
- Play-to-Earn (P2E): Players earn cryptocurrency or NFTs through gameplay.
- True Asset Ownership: Players have verifiable, on-chain ownership of in-game items.
- Interoperable Assets: Items can potentially be used across different games or platforms.
- Metaverse Platforms: Virtual worlds where users can socialize, trade, and build (e.g., Decentraland, The Sandbox).
05
DAOs & Governance
The DAO (Decentralized Autonomous Organization) sector encompasses entities governed by smart contracts and member votes, rather than a central authority. Key aspects are:
- Governance Tokens: Confer voting rights on protocol upgrades and treasury management.
- Treasury Management: Collective control over a shared pool of assets.
- Coordination Tools: Platforms like Snapshot for off-chain voting and Sybil for delegate discovery. DAOs can govern protocols, invest funds, or manage communities, representing a new organizational primitive.
06
Analytics & Analysis
This sector provides the tools and data services required to measure, analyze, and interpret on-chain activity. It is critical for developers, investors, and researchers. Key services include:
- Block Explorers (e.g., Etherscan): For inspecting transactions and addresses.
- Data Analytics Platforms (e.g., Dune Analytics, Nansen): For creating custom dashboards and analyzing wallet behavior.
- Risk & Security Auditors (e.g., OpenZeppelin, CertiK): For smart contract security reviews.
- Portfolio Trackers (e.g., DeBank, Zapper): For users to monitor their holdings across protocols.
visual-explainer
FILECOIN STORAGE
Visual Explainer: The Sector Lifecycle
A detailed walkthrough of the complete operational lifespan of a storage sector on the Filecoin network, from commitment to termination.
A sector is the fundamental unit of storage capacity on the Filecoin network, representing a fixed-size, long-term commitment made by a storage provider to store client data. The sector lifecycle is a multi-phase, automated process governed by cryptographic proofs and smart contracts. It begins with sealing, where raw storage is cryptographically prepared, and culminates in either successful completion or penalized termination. This lifecycle ensures data integrity, enforces provider accountability, and underpins the network's security and reliability.
The lifecycle progresses through several key states. After sealing, the sector enters the Proving phase, where the provider must continuously submit Proofs of SpaceTime (PoSt) to the chain, demonstrating they are storing the unique sealed data. During the active Storage Deal period, the provider earns block rewards and client fees. Sectors can also be upgraded with verified client deals to earn higher rewards. Failure to submit valid proofs triggers slashing, where the provider's staked collateral is forfeited and the sector is marked as faulty.
Eventually, a sector reaches its contracted end. It can expire naturally, be terminated early by the provider, or be terminated due to persistent faults. Upon termination, the sector's storage capacity is released back to the provider's available resources. The lifecycle model creates a robust economic alignment: providers are incentivized for reliable, long-term storage through rewards, and are financially penalized for failures, ensuring the network reliably stores the world's most valuable data.
SECTOR
Technical Details
A sector is a fundamental unit of storage in Filecoin, representing a fixed-size commitment of storage capacity by a storage provider for a specific duration. This section details its technical specifications, lifecycle, and role in the network's security and economics.
A sector is the basic unit of storage commitment on the Filecoin network, representing a fixed-size piece of disk space (e.g., 32 GiB or 64 GiB) that a storage provider commits to the network for a set period. It is a cryptographically sealed container where client data is stored, along with the associated Proofs of Storage (Proof-of-Replication and Proof-of-Spacetime) that the provider must continuously submit to the chain to prove they are storing the data correctly. The sector's lifecycle, from sealing to expiration, is managed entirely on-chain.
security-considerations
SECTOR
Security & Economic Considerations
This sector encompasses the foundational mechanisms and incentive structures designed to secure blockchain networks and govern their economic activity. It includes consensus, staking, and governance models.
01
Proof-of-Stake (PoS)
A consensus mechanism where validators are chosen to create new blocks and validate transactions based on the amount of cryptocurrency they stake as collateral. This replaces the energy-intensive mining of Proof-of-Work.
- Security Model: Security is economic; validators risk losing their staked funds (slashing) for malicious behavior.
- Examples: Ethereum, Solana, Cardano, and Avalanche use PoS variants.
02
Slashing Conditions
Penalties imposed on validators or stakers in a PoS system for acting maliciously or negligently, such as double-signing blocks or being offline. A portion of their staked assets is burned or redistributed.
- Purpose: Creates a strong cryptoeconomic disincentive against attacks.
- Impact: Protects network integrity but introduces staking risk that participants must manage.
03
Total Value Locked (TVL)
A key economic metric representing the total amount of user funds deposited in a decentralized finance (DeFi) protocol's smart contracts. It is a primary indicator of a protocol's adoption, liquidity, and economic security.
- Calculation: Sum of all collateral, liquidity pool deposits, and staked assets.
- Significance: Higher TVL generally indicates greater network effects and can make certain attacks more costly.
04
Governance Tokens
Tokens that confer voting rights, allowing holders to participate in the decentralized governance of a protocol. Decisions can include parameter changes, treasury spending, and protocol upgrades.
- Economic Power: Token value is often tied to the success and utility of the underlying protocol.
- Considerations: Can lead to voter apathy or concentration of power if token distribution is skewed.
05
Cryptoeconomic Security
The security of a blockchain system derived from carefully aligned financial incentives and penalties. It ensures that rational actors are economically motivated to behave honestly, as the cost of attacking the network outweighs the potential reward.
- Core Principle: Makes Byzantine Fault Tolerance economically irrational.
- Analysis: Involves modeling staking ratios, slashing severity, and attack cost versus profitability.
06
Validator Economics
The business model and incentives for network validators or stakers. This includes block rewards, transaction fees, commission rates, and the operational costs of running nodes.
- Key Metrics: Annual Percentage Yield (APY), inflation rate, and validator uptime.
- Centralization Risk: High hardware or staking requirements can create barriers to entry, leading to validator concentration.
SECTOR
Frequently Asked Questions (FAQ)
Essential questions and answers about blockchain sectors, their technical characteristics, and their role in the decentralized ecosystem.
A blockchain sector is a classification of projects and protocols that share a common primary function or solve a similar core problem within the decentralized ecosystem. Sectors are defined by their underlying technical architecture and economic purpose, such as facilitating decentralized finance (DeFi), providing scalable execution layers (Layer 2s), or enabling digital ownership (NFTs). Unlike traditional industry classifications, blockchain sectors are often delineated by their consensus mechanism, data availability solution, or specific virtual machine, making them a fundamental lens for technical analysis and investment thesis development.
ENQUIRY
Get In Touch
today.
Our experts will offer a free quote and a 30min call to discuss your project.
NDA Protected
Confidentiality24h Response
Time to ValueDirectly to Engineering Team
No Sales Fluff10+
Protocols Shipped
$20M+
TVL Overall