Filecoin was in so much news lately because at once, it became the Top 10 biggest cryptos in the market, now it is among the top 30.
And by currency scenario, it can store 1 EiB or over 1.1 million TeraByte of data, this is a huge amount of data, for your context 1 EiB is enough to store 290,000,000 full HD movies.
It also gained so much attention in 2017 in its ICO when it gained around $270M, which is quite impressive, so let’s dive into Filecoin.
What is Filecoin?
Filecoin is an open-source decentralized Storage Provider Company, in which, instead of handing over your data to a single firm like AWS, Dropbox, or Azure, you can split them into many pieces and store them on the storage devices of numerous computers all around the world.
Filecoin's token is FIL, it is used to make payments to the users or service providers for such activities.
Filecoin is joined with IPFS to make a secure and more efficient web which have to be free from corporate control. It allows anyone to take participate as a storage provider and uses a bunch of cryptographic storage algorithms to ensure that data is being stored securely and correctly over time.
Who created Filecoin?
Juan Benet, who also designed the InterPlanetary File System (IPFS), also founded Filecoin. His full name is Juan Batiz-Benet. He is the founder and the CEO of Protocol Labs. Benet is a computer scientist from the United States who studied at Stanford University.
How Filecoin works?
Filecoin was created by Protocol Labs in 2014 to utilize unused storage in an efficient storage market for users. Filecoin is used to connect the users and the storage providers with each other. If users agree on a price, can use the storage provider's storage.
Let’s start from nodes and understands each one by one.
Node: Nodes are responsible for the publication and validation of any type of message in the Filecoin block, and in return, they get FIL coin as a reward.
The Network: Filecoin is made up of a distributed peer-to-peer network, and they transfer and communicate by gossiping to each other.
Filecoin nodes: Nodes are responsible for the publication and validation of any type of messages in the Filecoin block, and in return, they get FIL coin as a reward.
Filecoin miners: Miners or storage providers provide their storage to the network and to do that they sign deals, and in return, they also get FIL coins as rewards,
Miners or storage providers provide their storage to the network and to do that they sign deals, and in return, they also get FIL coins as rewards. Running a Filecoin node 24*7 is the mandatory task.
Now, let's talk about its deals.
Deals: These deals are of two types
1. Storage deals – these are an agreement between storage providers and clients to store data in the network. Once the deal is started and storage providers received the data to store, it will repeatedly prove that it is still storing the data and if it is unable to prove then he will be removed from the chain and lose all the FIL tokens he has.
2. Retrieval deals – these are an agreement between users and retrieval miners to extract the data that is stored in the network. (Retrieval and storage miners may or may not be the same)
But storing our valuable information into someone else’s computer is a little bit risky, so to secure it from a hacker, filecoin has taken some important precautionary measures.
Proof of replication- they used it to make an encrypted copy of the data and stored it in some physical storage so that no other miner can replicate it.
Proof of spacetime- This is like random inquiry, random storage providers need to prove that random parts of the data they stored are still there.
And to ensure the safety of data they followed some proof algorithms, but it includes two condition
a. They must store all the data of the users.
b. And they must store it during the whole lifetime of the deal.
To secure it from malicious actors, Filecoin breaks the file into many pieces and then stores it so that if hackers try to break it, they could steal only a piece of it which will be irrelevant data.
Filecoin market cap
The price of FIL when I am writing this blog is 71 USD, the current market cap ranking of FIL is #24 with a market capital of 7.8 billion USD.
It has a circulating supply of 110 million FIL and the maximum supply is not available.
Is Filecoin a good investment?
Cryptocurrency is a very volatile subject so do your own research before investing, but I think for long-term investment, Filecoin (FIL) is a good investment. The potential of Filecoin is enormous and in the future, it has a great tendency to provide investors with vast opportunities.
It is one of the largest start-ups in the world and it has the potential to disrupt the biggest companies of the world like Amazon, Google, Alibaba, and many others.
Also Read: Sia Network (SC)
What do you think about Filecoin?
Filecoin is popular among people, but it has many competitors in the market in the field of cloud storage industry so it has the pressure to maintain its status among various others, but its economic design will attract early adopters to build the infrastructure of the Filecoin.
The Filecoin ICO is the biggest in the history of cryptocurrency, it brings 257 million USD. If we talk about its token allocation then 70% of the allocation to Filecoin Miners, 15% to protocol Labs, 10% to investors, and the rest 5% to Filecoin Foundation.
You can buy Filecoin from all the major exchanges including Binance, Houbi Global, Gate.io, Coinbase exchange, etc.