Filecoin is a cryptocurrency that promotes a decentralized peer-to-peer system that allows people with extra storage space to rent it out to others who need it to store their files. With the help of the filecoin network, users who have spare, idle computer memory may rent it out to willing customers for a variable price set by market forces. Consider the filecoin network as a competitor to Dropbox or any other cloud storage service that individuals may sign up for and use to store their files. Instead of a central operating body that stores all data and determines the price, users may choose among numerous miners offering storage spaces at a price agreed upon by them. In conclusion, nobody would control all saved files, and rates for services cannot be fixed at will. Only the filecoin is recognized for usage as a form of payment inside the network.
How it all began
Filecoin made its public debut in 2017 with an ICO that saw it generate the most money ($257 million) of any cryptocurrency up to that point in a public sale. After the success of the ICO in 2017, the Filecoin mainnet was formally introduced to the general public in October 2020. Before Filecoin was released, the concept of creating a peer-to-peer storage system run on a blockchain already existed. Filecoin emphasizes the adaptability and cross-functional nature of blockchain technology, in contrast to the majority of other cryptocurrency and blockchain initiatives created only for financial transactions. It was created to encourage more diffused, less expensive, and safer file deposit activities. To maintain the largest network and several information deposit facilities, the technique offers that people from around the world donate their empty disk space for financial benefits. By combining members’ various storage contributions, Filecoin would be able to meet significant storage demands. The blockchain system’s network’s deposit volume has topped 2.5 billion gigabytes as of February 2021.
Hirers and miners
The hirers and the miner are the two main actors in the filecoin paradigm. The miners are typically retrieval and storage miners. A participant may choose to be either a storage miner or a retrieval miner, or both at once. The storage miner makes deposit space accessible while the hirer asks for deposit spaces to store their data. After the rental time or when asked, the retrieval miner retrieves a file for the hirer. For each file saved, a storage miner receives a filecoin token, and for each file retrieved, a retrieval miner also receives a reward. The amount of tokens the hirer must pay is not predetermined; instead, it depends on the number of peers involved in the transaction and their level of agreement.
Proofs
Proof in a cryptocurrency or blockchain transaction is comparable to a validation exercise that network users (often miners) carry out to confirm the legitimacy of a transaction. The filecoin network is distinct from the consensus mechanisms used by bitcoin and other well-known cryptocurrencies (PoW and PoS). The Proof of Replication (PoRep) and Proof of Spacetime protocols are supported by the filecoin paradigm (PoSt). In the Filecoin system, the cryptographic proof type is used to verify that storage providers fulfill their obligations and uphold the conditions of a signed contract. They must provide proof that they have stored all of the documents brought by the hirer and that they will do so securely for the whole term as specified. The Proof of Replication ensures that a miner has gathered all the data and files and has encrypted them in a way that prevents replication in subsequent transactions. Accordingly, no single collection of data may be kept in a single storage location more than once while the initial agreement is still in force. Proof of Spacetime ensures that all submitted data will be kept up to date for the whole agreed-upon rent length. To confirm that they are still holding all of the data they have stored, each miner requires the consensus mechanism. The Proof system automatically identifies miners who have neglected to do their duties and imposes a penalty.
Where to buy Filecoin
After Filecoin’s mainnet launch at the end of 2020, the FIL token was made available for buying or exchange on several well-known cryptocurrency trading platforms across the globe. It’s simple to purchase a Filecoin; just go to an exchange that lists it, get as many as you’d like, and then save them in your wallet. The majority of cryptocurrency exchanges that offer the FIL token often match it with either Bitcoin or USDT.
Keeping your Filecoin secure
Filecoin is a cryptocurrency that cannot be physically touched but may be kept in digital cryptocurrency wallets. Any exchange that offers filecoin should typically provide a supported wallet for storage. However, Filecoin advises utilizing three web-based wallets to store the FIL token:
- The Lotus wallet
- The Glif wallet
- The Firefox wallet
None of the aforementioned recommendations diminish the value of another wallet that accepts the FIL coin.
