Abstract

Filecoin is a decentralized, peer-to-peer digital storage market platform based on blockchain technology.

Filecoin is built on the InterPlanetary File System (IPFS). Users can rent out idle hard drive storage space to earn FIL tokens. Let’s see how Filecoin has shaken up the online storage market.

Introduction

Filecoin is more attractive than buying Amazon S3 buckets, DropBox cloud storage, etc. choose. Additionally, Filecoin can be locked into the same cloud storage contract.

As long as the infrastructure meets the requirements, anyone can set their own prices and contracts to buy and sell storage space on the Filecoin network. Let's understand how it works.

What is Filecoin (FIL)?

Filecoin is a decentralized storage network on which anyone can rent storage space. In the same way, anyone can buy storage space on the web. Rather than leaving important data to be managed by a single company, Filecoin can split the data and store it on computers distributed around the world.

In 2014, Juan Benet introduced the concept of Filecoin for the first time and released the project white paper "Filecoin: A File Storage Network Run by Cryptocurrency". The proposal states that Filecoin is a blockchain network similar to Bitcoin, where nodes in the network can be used to store data and are guaranteed by key retrieval proofs. Filecoin is developed by Protocol Labs and is sometimes called the "incentive layer" on the InterPlanetary File System (IPFS). The meaning is that users obtain FIL tokens as incentives by renting out their storage space.

So, can users send Christmas photos to Mars or Venus through Filecoin? It's still too early. The InterPlanetary File System (IPFS) is a peer-to-peer data storage and retrieval protocol built in a more decentralized manner. Unlike HTTP or HTTPS, it does not rely on a centralized server to store data.

In 2017, Filecoin raised more than $250 million in an initial coin offering, setting a record at the time. In October 2020, the Filecoin mainnet was launched immediately.

How does the Filecoin (FIL) network work

Filecoin’s infrastructure is a distributed peer-to-peer network. Its main The aim is to provide organizations and individuals around the world with new ways to store data.

Users with idle storage space can become storage miners, who are mainly responsible for storing data in the Filecoin network. Customers pay FIL tokens for storing and retrieving data.

The retrieval miners are served by another group of participants. As the name suggests, they facilitate the data retrieval process between customers and storage miners, and will also receive a small amount of FIL as compensation for their services.

Filecoin uses end-to-end encryption technology, and storage space providers cannot obtain the decryption key. Thanks to a distributed system, files are stored in different places, so security is guaranteed.

So, what exactly makes Filecoin slightly better than centralized storage technology? The first, of course, is to provide end-to-end cloud storage solutions for businesses and customers. Since different sellers set their own prices for the same product, namely storage services, users will ultimately benefit. When data storage space is insufficient, users can rent storage space, and when storage space is abundant, users can sell it. This is what Filecoin promises.

Importance of Filecoin (FIL)

Over the past few decades, data storage and access have The approach has changed dramatically. In the commercial field, people initially used on-site storage, and companies needed to equip huge server spaces. Since then, remote data storage warehouses and various cloud storage services have appeared around the world. Currently, most commercial organizations use a combination of multiple storage methods. Similarly, personal data storage begins to rely more on cloud storage.

Cloud storage giants such as Amazon Web Services (AWS), Hewlett Packard Enterprise (HPE) and Dell (Dell) have since emerged. Business customers often stick to one supplier for the long term, a practice that hinders competition. Filecoin allows customers who purchase storage space to choose storage providers at will and easily obtain the most cost-effective price. This may create a more intense competition in the cloud storage market.

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Filecoin (FIL) use cases

Compared with rigid supply contracts or high customization service fees , Filecoin allows customers to freely choose the most suitable storage solution. Organizations and individuals alike can provide unused storage space on the network. Earn FIL rewards by sharing resources.

It may not sound like anything new at first, but later users can build their own storage DApp! These include self-made storage apps, decentralized finance (DeFi) apps, and decentralized video apps.

How to store Filecoin (FIL)

Whether spending or earning FIL on the Filecoin network through storage services , or just trading tokens, both require storage space.

Filecoin recommends three wallets for storing FIL tokens. Lotus, which can run Filecoin nodes and can also connect to Ledger wallets. If you don’t want to run Lotus, you can choose the Glif wallet, which is a web-based interface that can also be connected to the Ledger wallet. Filfox wallet is web-based and can be used to store coins.

Of course, FIL can also be stored on Binance and earn income through Binance Finance.

Summary

Filecoin provides an excellent solution to the problem of global file storage and inefficient file retrieval. , and at the same time, it gives users more say, eliminating the need to be constrained by traditional large service providers.

With the launch of the mainnet and the improvement of supporting tools, Filecoin is rapidly entering the public eye. The success of the Filecoin ecosystem will not only depend on its actual use within the cryptocurrency community, but also whether it can continue to attract new people into the world of Web 3.0.

Do you have any other questions about Filecoin? Please visit our Q&A platform Ask Academy, where members of the Binance community will patiently answer your questions.