Why?
Filecoin is a decentralized file storage network. Unlike traditional cloud storage services, files are not stored in a single location but distributed across networked computers. This ensures the files are censorship-resistant and more secure. Users can upload, store and share files with other users on the network.
Who created it?
Filecoin was developed by Protocol Labs, which is also the creator of the decentralized cloud storage service IPFS. Protocol Labs was founded by Juan Benet in 2014.
How does it work?
Although the way Filecoin works is complex, it basically consists of two types of users: depositors and providers.
Storages: Users who offer their free disk space to the network. These spaces can be rented for file storage. Storers are rewarded with Filecoin's cryptocurrency FIL for their storage services.
Providers: Users who rent storage spaces that store files and provide access to other users on the network. Providers are responsible for keeping files securely and responding to access requests during storage.
File storage process:
Upload: Users upload their files to a "resource". This resource is a decentralized server where files are temporarily stored.
Storage Agreement: The user creates a "storage agreement" to distribute files to storages on the network. This agreement determines how long files will be stored, storage cost, and quality of service parameters.
Distributed Storage: Selected storages store files in chunks according to the storage agreement. These pieces are cryptographically linked, allowing files to be recreated even if any storage is lost.
Access: When users want to access their files, they pay a special type of users on the network called âminers.â Miners find the repositories that store the files and check if they are storing them correctly. Once the files are accessed, the miner reward is paid out as FIL.
What does it do?
Thanks to its decentralized structure, Filecoin offers several advantages over traditional cloud storage services:
Censorship Resistance: Because files are distributed across multiple locations, it is difficult to prevent censorship or access from a single point.
Increased Security: Files are more resistant to corruption or unauthorized access thanks to cryptographically secure storage and access control.
Data Ownership: Users have full control over their files. How files are stored and who can access them is determined by the user.
Potentially Lower Cost: Thanks to its decentralized nature, storage costs can be more competitive than traditional cloud storage services.
How much will it cost?
Filecoin (FIL) is a cryptocurrency whose price varies according to supply and demand. There is a limited supply of FILs in circulation and this supply will decrease over time. As of April 13, 2024, the FIL price is approximately $6.10.
More information:
Filecoin website: https://filecoin.io/blog/
Filecoin whitepaper: https://docs.filecoin.io/
Filecoin whitepaper: https://filecoin.io/filecoin.pdf
