What is Distributed Data?

Distributed data is data that resides somewhere else other than your local system.  It can be in a distributed data store like IPFS.

IPFS is a peer-to-peer (p2p) storage network. Content is accessible through peers located anywhere in the world, that might relay information, store it, or do both. IPFS knows how to find what you ask for using its content address rather than its location.

Data that resides in a Blockchain is distributed.