Blockchain system store transaction data in the form of a distributed database where each peer is to maintain an identical copy. Blockchain systems resemble repetition codes, incurring high storage cost. Recently, distributed storage blockchain (DSB) systems have been proposed to improve storage efficiency by incorporating secret sharing, private key encryption, and information dispersal algorithms. However, the DSB results in significant communication cost when peer failures occur due to denial of service attacks. In this project, we propose a new DSB approach based on a local secret sharing (LSS) scheme with a hierarchical secret structure of one global secret node and several local secret nodes. The proposed DSB approach with LSS improves the storage and recovery communication costs.