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Data management is time-consuming, expensive and difficult for businesses and users. Filecoin is a network for storing data in a decentralized manner. The development team of this network intends to provide cheap, fast and secure data storage on the Internet. FileCoin allows users to host and share any type of data through a decentralized blockchain network with on-chain rewards. Data stored on this network remains secure as long as it is needed.
This network records each transaction with a storage unit. FileCoin’s built-in economic incentives ensure that every file is stored accurately and users don’t have to worry about losing their uploaded data. The amount of storage space available and the price of stored data is controlled by the open market, with exclusive data being more valuable or popular and commanding a higher premium.
Filecoin’s native digital currency is called FIL, which is not an ERC-20 token, as Filecoin uses its own blockchain technology to manage the network. FileCoin must use its own token. Because it executes its consensus algorithm. This network encourages participants to provide the best services.
This attracted several large investors such as Sequoia Capital and Union Square Ventures, which made the project attractive to other investors and also more reliable due to large token allocations with long investment periods of one to three years.
The FIL token plays a role in the maintenance and operation of the FileCoin network. FIL enables its holders to use the FILECOIN peer-to-peer network, transact on the data market, and run storage or retrieval nodes.
Coin file is based on the IPFS protocol. This fee is paid in FIL coins. Miners are computers that are responsible for storing users’ files and play an important role in the security of the FileCoin network.
Due to Filecoin’s decentralized nature, files can be stored peer-to-peer on the network. Users can choose one of the different FileCoin miners based on cost, redundancy and speed. This right to choose ensures that each user can store their data in the best way and according to their needs. In this way, it can save data with the help of different miners. Miners execute various types of “transactions” for users and at the same time charge a fee for their participation. Every 30 seconds a new block is added to the chain and miners receive their FIL rewards.
Protocol Labs is a popular company in the crypto world known for building reliable open source protocols like IPFS. This brand made FileCoin a popular option for investors.
The price of each FIL in this initial offering was $1.30. FileCoin’s ICO was one of the largest initial token offerings in history, raising $257 million. Only $186 million in funding was raised by Protocol Labs in the first hour.
Protocol Labs sold FIL tokens to investors using SAFT (a simple agreement for futures tokens). At launch, investors received their tokens on the genesis block of the FileCoin network.
Another 5% was reserved for Filecoin Foundation. 70% of the supply will be distributed among nodes in the form of block rewards over the following years.
Storage systems allow people to keep their own data, but are usually very centralized. FileCoin (FIL) allows users to store their data in a decentralized peer-to-peer network, keeping it immune to censorship, power outages, and hackers. Filecoin also uses its unique blockchain technology to reward network contributors.
Another unique feature of FileCoin is its architecture. FileCoin uses a dual node solution. While most networks only work with one type of node. These two types of nodes include storage nodes and recovery nodes. from storage nodes Storage is used to store data in the network. Recovery nodes are also located next to storage nodes in the network and have high bandwidth and low latency. Recovery nodes get paid when they provide the fastest place for a user to find and recover a file.
FileCoin also offers a unique business model for its customers. Uploaders and hosts can participate in the auctions. Bids that are competitively priced and reflect current market conditions and storage space availability. FileCoin market participants are incentivized to make storage cheaper over time.
FileCoin needs honest and active participants so that users can receive data in a timely and accurate manner. In order to prevent malicious agents or lazy nodes, FileCoin has implemented several features to increase security and participation in the network. Block awards are also subject to vesting periods. Dedicated block rewards ensure that users will stay on the network long enough to fulfill their commitments.
Miners are also required to submit PoReps, which ensures that all data is accurate. Filecoin prioritizes serving “verified” customers. By keeping an active list of miners and a verified list of businesses, users can safely transact whenever they like. The detailed description of PoRep is given in the official white paper of FileCoin.
According to what was said about FileCoin, the following advantages can be listed for it:
Cost reduction: With the creation of a large open market for data storage, the cost of this is reduced.
Scaling: Bringing together millions of computers around the world creates a massive storage network.
Economy: FileCoin uses existing resources instead of building new storage computers.
Security: FileCoin is a decentralized network which means there is no single point of attack and it is hard to compromise.
Speed: Instead of accessing a single server, it must access multiple servers to put documents together as needed. So its speed depends on the servers being online and the speed of the global Internet network.
Dapp: By processing transactions using FileCoin’s native currency, there is a barrier to entry into this network, as a person has to buy and exchange another coin to use this service.
In order for users to easily participate in the Filecoin network and store or purchase data, they must use Slate or Lotus. Slate is an open source storage system built on FileCoin that has an easy to use GUI. While Lotus is the official software for nodes in the FileCoin network. Users can run a Lotus node to interact directly with the FileCoin blockchain. It should be noted that you can trade FileCoin in various exchanges including Gemini, Kraken and Huobi.
Although many exchanges serve as logical options for holding FIL, several wallets support FILECOIN addresses, making it easy to send and receive FIL. Wallets like Achain, Freewallet, Carbon Wallet, MetaMask, Trust Wallet, Coinbase, BitGo can create FILE Coin addresses to better support FIL holders when spending and receiving their coins.
With the price recorded for FIL in April 2021, FileCoin certainly has the potential to climb to $1,000. However, the reality is that such a thing will not be easy. The coin’s total supply of almost two billion tokens means that it will eventually become 100 times more common than Bitcoin. That is, in order to reach the price of 1000 dollars, it has to overtake Bitcoin.
Currently, however, FIL has a circulating supply of around 320 million, a number that improves the coin’s rarity and thus makes it a little easier to get your hands on $1,000.
FileCoin is a great solution to file storage and retrieval inefficiencies around the world. It also puts the power in the hands of the customer and is less likely to be limited to contracts with big businesses.
With an active network and a set of suitable tools, FileCoin is already up and running. The success of the FileCoin ecosystem depends on its adoption in the cryptocurrency community, but it also depends on whether it can attract new people to the Web 3.0 world.
