Filecoin is a decentralized, network-based storage service that allows anyone to rent excess space on their hard drive. In the age of Web3, this innovative system could help break free from the hegemony of the cloud giants…. Learn everything you need to know about Filecoin and its FIL cryptocurrency!
In 2021, Filecoin stood out as one of the stars of the “bull run.” cryptocurrencies. However, this project far from being an easy investment opportunity fleeting among many others.
This decentralized file sharing platform Introduced in 2020, could become the new benchmark for cloud storage in the age of Web3. Discover everything you need to know about how it works, its benefits and its long-term potential in this file…
What is Filecoin?
Filecoin is a decentralized protocol that allows users sell excess storage space on their computers. Conversely, it is possible to buy storage space available on the network.
This global network is free to join Use all unused disk space and wasted. In the Web3 era, this storage concept could reach its full potential as more and more systems become computerized and data-rich.
That Cryptocurrency FIL accompanies this network decentralized filecoin. It is used as a currency for disk space. It is therefore mandatory to buy FIL in order to use Filecoin.
Of Many exchanges can be used to save the FILE. Nevertheless, multiple crypto wallets also accept this token, which simplifies sending and receiving. We can mention Achain, Freewallet, Carbon Wallet and BitGo among the wallets that can generate Filecoin addresses.
What is Filecoin used for?
The WIRE is a proof-of-work token. That means Filecoin users can mine crypto to earn more.
This token can also be used across the Filecoin network pay for data storage or retrieval. It can also be used as security in the event of missing or invalid “evidence”.
In the second quarter of 2021, the FIL crypto experienced a real boom. Investors were excited about the potential of this decentralized network and the achieved value of the token his record $236.
That’s impressive, especially for a crypto whose The number of tokens in circulation is only 300 million at the time these lines were written.
Thereafter, WIRE has experienced several severe corrections. This cryptocurrency could still establish itself as a solid altcoin as storage requirements increase in the Web3 era.
The Filecoin network offers a modern approach to data storage, emphasizing decentralization and confidentiality. In the future it might allow Break free from centralized storage providers.
Who Uses Filecoin?
Filecoin also allows users connect with a “swarm”.allowing information such as blocks and messages to flow freely between thousands of peers.
the distributed P2P framework on which Filecoin is based also provides peers with the ability to communicate over secure channels to distribute information over the network, transfer data, or connect with others.
As other blockchain networks public and private, Filecoin is based on a node system Representing peers, synchronizing the blockchain and validating changes that occur in each block.
These nodes can also verify and publish important information on the network by broadcasting it publicly. So if you want to transfer FIL between two accounts, the nodes can do it automatically suggest storage agreements and restore to Filecoin storage provider.
The execution of a Filecoin node by an individual consumes very little computing power. The program can run continuously in the background without disturbing the operation of the machine.
Of numerous implementations of Filecoin nodes are also available to users. That The most popular at the moment is Lotus.
How does Filecoin work?
Decentralized storage is an attractive concept for People who value their privacy. It serves in particular to protect data protection.
However, another strength of Filecoin is its extremely competitive storage costs. Users can choose between competitive pricing, increased memory speed, or memory redundancy.
Aside from that, a suite of Filecoin applications Help negotiating storage space with the many providers on the network. There is no need to implement a different API for each provider, as is the case with centralized storage systems.
The Filecoin network is based according to the proof-of-work model. Additionally, unlike other popular cryptocurrencies like Bitcoin, WIRE PoW is tied to data storage.
Two PoW models are used by Filecoin to prove that a job is complete. The first is the ” Evidence of Replication “, which allows the network to confirm the replication of data in a single place, the second is the ” proof of space-time Checking whether the data is stored for a certain period of time.
These PoW models are combined to form large storage networks distributed across multiple independent parties. This eliminates any possibility of manipulating the network while increasing mining rewards. That Main competitors of Filecoin, Storj and Siacoindo not offer this level of security.
in summary, Filecoin’s great strength is its P2P approach Miners can offer their available storage space for FIL. This allows users and miners to trade storage in a marketplace where space, time and cost constraints are confirmed and processed through an algorithmic contract.
It is about one functional and solid Web3 alternative to major web2 cloud storage providers like Amazon Web ServicesGoogle cloud or Microsoft Azure. The main advantage is that users can free themselves from central storage.
And in terms of price, for comparison, a month of use costs about 0.0015% of the cost of storing data on Amazon Web Services. This price difference is mainly due to the large number of storage providers within the Filecoin ecosystem.
Additionally, Filecoin’s blockchain framework allows users to verify that their files are stored correctly by viewing available evidence. Even if the files are stored on someone else’s computerthe user is thus assured that this third party has no access.
Who Created Filecoin?
The Filecoin whitepaper was published in 2014 by Protocol Labs: an open source research and development laboratory looking for blockchain and cryptocurrency solutions for the web3.
Besides Filecoin, Protocol Labs has other lesser known projects like IPFS, SourceCred, Testground and Multiformats. The lab’s CEO and founder, Juan Benet, oversees all of these different projects.
What can be paid with FIL?
Worldwide, more than 300 companies Accept Filecoin payments for goods and services. These include Chipotle Mexican Grill, several electronics stores, and charities.
Many other companies may accept Filecoin in the near future. That Platforms like NOWPayments the acceptance of FIL transactions could promote this democratization.
On the other hand, note that Filecoin is not supported traditional staking or yield farming. It is therefore necessary to go through a third-party service. Platforms like Binance and Gemini offer around 7% APY for staking filecoins. We can also mention Filet, AAX and YoHodler services.
The future of Filecoin
the WIRE value record was achieved in April 2021, priced at $236.84 per token. In the future, Filecoin could possibly exceed $1,000 in value.
Nevertheless, The maximum amount of tokens is set at 2 billion. Ultimately, there could be 100 times more FIL in circulation than Bitcoin. This means that the WIRE must surpass the current popularity of Bitcoin to reach a value of $1000…
There are currently around 320 million FIL tokens in circulation. That The rarity of this crypto is therefore enhanced, which could facilitate the passage of the $1000 milestone. However, mass adoption would still be required…
General, Filecoin seems to have a bright future in the age of Web3. This decentralized network can enable emancipation from the cloud storage giants, with unbeatable prices and a native cryptocurrency that could skyrocket in value…