Filecoin
Filecoin is a storage system intended to store "the most important human information". Unlike competitors in cloud storage such as Google Drive or Dropbox, Filecoin does not use a central server to manage information in its system: the data is stored in a peer-to-peer blockchain, with financial incentives for users who provide the storage space themselves on computers. Without a central authority, the price of Filecoin services is not set: Instead, the decentralized system acts as an open market with storage providers setting their prices, and users looking for storage space choose their preferred offering based on factors such as cost, redundancy, speed.
Filecoin was developed by Protocol Labs by computer scientist Juan Benet. Filecoin launch takes place within a few years: In 2017, the Filecoin ICO raised $257 million (the largest in history at the time) and attracted the interest of capitalist ventures such as Union Square Ventures, and Andreessen Horowitz. Following the ICO, the Filecoin main net went live in October 2020.
Filecoin is looking to provide an alternative to traditional online storage providers and contracts. Its technology serves as the catalyst for a peer-to-peer file transfer program for IPFS (InterPlanetary File System), which uses content containing hash addresses to store data instead of central servers and IP addresses. This is aimed at reducing reuse, increasing longevity, and improving efficiency.
Filecoin encourages IPFS by rewarding storage providers and receivers by providing resources to the system. The network also comes with a built-in Ethereum integration that allows developers to access data in the Ethereum blockchain and engage with its smart contracts.
The Filecoin protocol aims to use Proof-of-Replication (PoRep) and Proof-of-Spacetime (PoST) to ensure that files are securely stored over time within a separate network. PoRep is a type of Proof of Storage with specific properties featured, PoST describes how miners build blocks that store data. Clients (network users) can find miners for data storage and data retrieval, the various functions that exist between different markets divided by countries. PoST provides a level of authentication for data storage and retrieval through a distributed, multi-market system.
Mining Storage miners can earn FIL by keeping customer data and “using cryptographic proofs to ensure storage at all times.” Unlike the Proof of Excavation mines, the chances of receiving a block (and labor charges) "are equal to the amount of storage a miner provides on a network." Alternatively, returning miners can earn FIL by winning bids at the request of the client.
Filecoin can be used to:
· Buy and sell data in data trading and markets.
· Store and distribute important data resources securely and securely, including encyclopedias, historical documents, worksheets, and scientific papers.
· Provide blockchain services that include distributed storage, supply chains, and dApps.
· Arrange for payment of goods services with a FIL token.
· Provide long-term storage with a large amount of client data.
· Act as a store for the price area, supported by its use as a cloud storage service.
| DATE | NEWS/EVENTS | IMPACT |
| 07/05/2022 | TerraUSD and LUNA both collapsed, and as a result, a number of crypto platforms folded in the aftermath | -37% Decrease |
| 13/05/2021 | Elon Musk tweeted that Tesla will no longer accept Bitcoin as a payment mechanism | -55% Decrease |
| 17/03/2021 | Grayscale CEO Michael Sonnenshein has announced the addition of FIL to Grayscale's list of investment products | +65% Increase |
| 21/12/2020 | Filecoin network has a temporary outage | -20% Decrease |
Since Filecoin’s main goal is to store files securely in its blockchain, the potential for storage of tech giants is also possible. The OpenSea platform, which is a major NFT trading platform, is already using Filecoin. Institutional investors are always on the lookout for such high-profile projects and operating cases, and Filecoin (FIL) is one of them. With Web3's tendency taking its toll, the potential for a sharp rise in the price of FIL tokens may be expected.
Filecoin blockchain is not only the largest archive but also the largest archive in other blockchains. It is true that the top 10 cryptocurrencies worldwide have their own blockchains, and that is because of the trust these blockchains have in the eyes of crypto users. However, as Filecoin continues to grow and enters several blockchains on its platforms, the opportunity to become a top blockchain is possible. With this change, the price of FIL tokens can also skyrocket to the moon and beyond.
