For blockchain or immutable storage, the best file formats are typically those supporting easy verification, compactness, and standard accessibility. Unlike regular storage where frequent updates are common, these systems require formats ensuring data integrity through cryptographic hashing; once added, the data cannot be changed without detection. Text-based formats (plain text, CSV, JSON) excel because they are human-readable, easily parsed by smart contracts, and enable straightforward content hashing for inclusion in blockchain transactions or proofs on immutable storage platforms.

In practice, JSON is frequently used for storing structured data like metadata or token attributes on chains like Ethereum, as it integrates seamlessly with web APIs and smart contracts. CSV is common for supply chain records on platforms like Hyperledger Fabric, efficiently storing audit trails of immutable transactions. IPFS (Interchangeable File System) often employs protocol buffers for efficient data serialization and distribution of decentralized content.

Key advantages include verifiable integrity and tamper-evidence. However, limitations exist: storing large files directly on-chain is inefficient and expensive; text formats lack compression, increasing costs; sensitive data requires pre-processing for privacy compliance. Future solutions focus on using these formats primarily for storing cryptographic proofs referencing off-chain data stored cost-effectively elsewhere, balancing security with scalability.