Content Addressing is a method used in decentralized file storage systems where files are identified by a unique hash generated from their content. This approach guarantees that the data remains intact and unaltered, as any modification to the file will result in a different hash. It also facilitates efficient retrieval and versioning of files, as users can easily access the exact version of a file by referencing its hash. This feature enhances the security and reliability of data storage, making it a cornerstone of decentralized systems.