I had a chat with vaultec from SPK to see if we could solve that problem, but the inherent problem of having the storage space necessary for all the data is still there, while we can compress and optimize as much as we want, in the end image hosting is a slippery slope when it comes to what you can do to reduce file sizes.

One major problem with P2P/Blockchain-esque hosting is that, while you can potentially "improve" the space that someplace has, someone, somewhere would still has to have the full copy as I mentioned.

If we have 100 TB of images, around the P2P network, lets say 2 servers have >100TB space, they would be hosting everything for other peers to join the network and download, this would certainly reduce latency and improve reliability of those files, but any file they (the new peers) couldn't fit would be at risk.