What is Filecoin (FIL)? | Bitcoin Magazine
Instead of trusting one company to provide documents, they can be broken down and saved around the world on different computers.
What is Filecoin?
Filecoin is a decentralized protocol that allows anyone to rent spare storage space on their computers. Likewise, anyone can buy storage on the network.
Filecoin’s ICO raised $257 million in 2017.
By allowing anyone in the world to join the network, it can create a huge data store. As more and more systems become computerized, it will be necessary to meet the growing demand.
It was created by Protocol Labs, headed by Juan Benet, a scientist and computer engineer.
What are the benefits of using Filecoin?
Filecoin has several advantages over centralized data storage solutions. These include:
💰 Cost – By creating a larger free market for data storage, this will reduce fees.
📈 Scale – Bringing together millions of computers around the world creates a massive storage network.
🌍 Economy – Instead of building new storage computers, Filecoin uses existing resources.
🔒 Secure – While Dropbox and iCloud have been hacked, a decentralized network means there is no single point of attack, making it harder to break in.
Some potential problems with Filecoin are:
🚗 Speed – Instead of accessing one server, it needs to access multiple servers to stitch together documents when required. This depends on the server that is online and the speed of the Internet.
📵 Dapp – By processing transactions in the Filecoin cryptocurrency, it creates a barrier to entry, as someone has to buy another coin and exchange it to use the service.
Is Filecoin safe?
Saving your documents on someone else’s computer is risky. However, Filecoin splits the data, like shredding it, so no one can piece it together. However, it knows how the data fits together and reorders when required.
This means that it is not possible to simply hack documents on a computer and gain access to the user’s files. If they try to hack it, they will just find a stream of meaningless data.
Filecoin isn’t the only company solving the problem of decentralized data storage. Several others have already started taking action.
- Siacoin already has over 500 hosting providers with a capacity of 3.9 petabytes or 3,900 terabytes. Its cryptocurrency is now tradable on cryptocurrency exchanges.
- Storj has launched the private alpha of its decentralized storage platform, which is expected to launch in early 2019. Its cryptocurrency STORJ is also live.
How to mine Filecoin
Miner Filecoin consists of three different types.
- Storage miners who are responsible for storing data on the Filecoin network
- Retrieval miners who are responsible for retrieving files
- Miner repair, still not done.
Storage miners will earn Filecoin by storing customer data and providing proof of this storage over time. In contrast, retrieving miners earn Filecoins by bidding and mining fees for a particular file, determined by market value.
Where to buy Filecoin?
Filecoin’s mainnet has been work in October 2020. After the launch, several exchanges committed to listing Filecoin. Binance has announced that it will list Filecoin with FIL/BTC, FIL/BNB, FIL/BUSD, and FIL/USDT trading pairs. Other exchanges that list FIL include Gemini, Kraken, KuCoin, and Huobi.
The Filecoin mainnet is new, so at the time of writing, there is no set price. Prior to the launch, 19 crypto exchanges and markets including Poloniex, BKEX, Bitforex and Bione allowed users to trade using Filecoin IOU, a pre-launch token.
Until the price discovery process takes place, it is impossible to determine how much Filecoin will cost.
The future of Filecoin
Cloud storage providers like Amazon and Google make a lot of money. This shows that the demand in the market is huge.
If customers decide to trust decentralized services, they could find themselves saving a lot of money. This money will also go back into the economy as it will go to individuals and small businesses, which can have a significant positive impact on people’s lives.
According to Decrypt
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